Case Study

HISTORY

Pakistan International Airlines', or 'PIA' for short, can trace its beginnings to the days when Pakistan was not a nation, rather a region of British India. In 1946 Muhammad Ali Jinnah realized the need for an airline network for the forming country and called upon the help of an industrialist Mirza Ahmad Ispahani to develop a flag carrier for the nation. Meanwhile, an airline called 'Orient Airways, registered in Calcutta, was formed on 23 October 1946. In February 1947, the airline brought three DC-3 airplanes from a company in Texas, and in May of that year the airline was granted a license to fly. Services were started in June from Kolkata to Sittwe and Yangon. This was the first post-war airline flight by a South Asian registered airline company

PIA FINANCIAL DATA

YearRevenues (PKR in Million)

(Loss) (PKR in Million)

Employees (Ave.)

2010 107,532 (20,785) 18,019

2009 94,564 (5,822) 17,944

2008 88,863 (36,139) 18,036

2007 70,481 (13,399) 18,149

2006 70,587 (12,763) 18,282

2005 64,074 (4,412) 19,263

2004 57,788 2,307 19,634

YearRevenue Passengers (Million)

Passenger Load Factor

Average Passenger Stage Distance (Statute KM)

2010 5.538 74% 2,827

2009 5.535 70% 2,510

2008 5.617 71% 2,479

2007 5.415 67% 2,527

2006 5.732 69% 2,639

2005 5.499 70% 2,638

Passenger Traffic

parked in Islamabad.

Pakistan International Airlines destinations

PIA’S FLEET

• 40 PLANES• BOEING 777 (9)• Boeing 747 (6)• Boeing 737 (6)• Airbus A310 (12)• ATR42 ( 7 )

PIA PROFITABLE INVESTMENT &ASSET

• The Roosevelt Hotel (New York)The Roosevelt Hotel is at Madison Avenue and 45th Street in

midtown Manhattan, named in honor of President Theodore Roosevelt. The New York City hotel opened on September 22, 1924. The hotel closed in 1995 and reopened in 1997 after a $65-million extensive renovation.

There are a total of 1,015 rooms in the hotel, including 52 suites. The 3,900 square feet (360 m2) Presidential Suite has four bedrooms, a kitchen, formal living and dining areas, and a wrap-around terrace.

The rooms are traditionally decorated, with mahogany wood furniture and light-colored bed coverings.

SCRIBE HOTEL (PARIS)

The Hotel Scribe is a 19th-century building located in the centre of Paris, within 200 meters of the Opera, and 400 meters from Place Vendome. Its 213 guestrooms over six floors feature light, traditional decor with modern touches. All offer flat-screen televisions with Internet connections, satellite channels and pay movies, multi-line phones, safes . Bathrooms include robes, shower/tub combinations and complimentary designer toiletries.

PIA’S FAKE DEGREE EMPLOYEES

Pakistan International Airlines has fired 200 employees for presenting fake degrees at the time of hiring. PIA Director Public Relations Syed Sultan Hassan told The Express Tribune that employees were served warning notices multiple times and given a chance to prove their documents were valid before being handed pink slips.

PIA DEBT

• MD PIA Ijaz Haroon has said that PIA had declared a loss of Rs41 billion in the last two years and the national carrier is under a debt of Rs1.11 trillion whereas its total net worth is no more than Rs16 billion. According to details Senator Tariq Azeem presided over the meeting of Senate’s standing committee’s subordinate body on defence and reviewed the five year revival plan for PIA. In this meeting MD Ijaz Haroon informed the subordinate committee that PIA had a deficit of Rs41.700 million in the last two years.

REASONS FOR LOSS

• OVER STAFFING• LACK OF COMPETENT EMPLOYEES• HIGH FEUL COST• HIGH MAINTENANCE COST

THE END