PIA

PowerPoint Presentation

Group Members:

Presentation Outline:

Introduction and History of PIA.Corporate Management.Communication Process.Labor Unions and Modes of Strikes.Actions to resolve Strikes.Employees health and safety.Forms of Termination.SWOT Analysis and Conclusion.

1. Introduction and History of PIA.Introduction.

National flag carrier and a state-owned enterprise of the Government of Pakistan.Headquarter.Destinations.Main Bases and Secondary Bases.First Asian airline to operate a jet aircraft and Boeing 737 aircraft.Pakistan's largest airline.launch customer to operate the Boeing 777-200LR model. Privatization

B) History of PIA: History of PIA is divided into two main phases which are:

Pre-Independence Phase.Post-Independence Phase.

6

Pre-Independence Phase:In 1946, the country's founder Muhammad Ali Jinnah realized the need for a flag carrier .requested financial help from a wealthy businessman Mirza Ahmad Ispahani and Adamjee Haji Dawood .'Orient Airways', was registered in Calcutta on 23 October 1946.In February 1947, the airline bought three DC-3 Planes. The airline started its operations in June, offering services from Kolkata to Sittwe and Yangon.

Post-Independence Phase:On 7 June 1954, Orient Airways started its operations with service from Karachi to Dhaka. Airline also introduced two new domestic routes, i.e., Karachi-Lahore-Peshawar and Karachi-Quetta-Lahore. However, due to sustained losses, the Government of Pakistan proposed that Orient Airways merge with a new national airline.On 11 March 1955, Orient Airways merged with the government's proposed airline, becoming Pakistan International Airlines Corporation.The newly formed airline not just offered services on its domestic routes but also first international routes.

1960sManaging DirectorGreat successKarachi-New YorkCapt.Abdullah Baig(London-Karachi)Helicopter service in East Pakistan.Flights for Beijing 1964Served Pak-Army in 1965 War

1970sStarted new destinationsNoor Khan as a executive for 2nd timeGreat financial successAgreements with LibyaStarted Cargo services in 1974Provide assistance to Somali Airline,Philippine Airline,Air maltaServed Pak-Army in 1971 War

1980sCargo center at Karachi AirportDuty free shopsPIA PlanetariumStarted services for TorontoShukriya khanumMaliha SamiProvided assistance to Emirates Airlines

1990sIn 1991,six AirBus A310-300Shaheen AirlineStarted services for Tashkent(1992)Started services for Zurich(1993)Karachi to DubaiAllow 12 Airlines to operate in PakistanStarted services for Jarkarta,Fujairah,Baku,Al-ainIntroduces three Reservation system(Sabre,Galileo,Amadeus)Purchased Boeing 747 flight stimulator to train pilots

2000sPurchased six Boeing 747-300 aircraftPurchased 8 Boeing 777 aircraftAgain started routes for Manchester,newyork,chicago,washington,Houston

2010sordered 5 more Boeing 777-300 aircraftsPurchased 4 Boeing 737-800 aircraftsLease 4 ATR Planes

Corporate Management:Structure:Pak Government shares in PIA (87%) The remainder (13%) by private shareholdersThe airline is under the administration of Ministry of DefenseThe chairman of which is Muhammad Mian Nawaz Sharif.

Hierarchy:

Org. Structure:

Organizational Hierarchy:

Communication Process:

The communication process at the different level of management is as follows:

Written communication.Verbal communication.

Labor Unions in PIA:

For Labour Unions it is required,Firstly register them to Secretary General at National Industrial Relationship Commission (NIRC), Required to show at least 90 employees, then NIRC will provide them Tags.After receiving tags union can start their campaign and take part in referendum held in the organization.

Registration Process:

There are two major unions in PIA:Air League.Peoples Unity labour group.Other Unions:Piasi.Skyways.United Union.

Labor Unions in PIA:

Air League.

One of the labour unions of PIA.Supported by the Pakistani Political Party Pakistan Muslim League Nawaz Group (PMLN).Air League Labour Group remain dominant and came into power when the PMLN get majority and came into government. Currently CBA is controlled by the Air League. Air League works for the employees job security, pay structure, promotions and work place health and safety conditions and working environment.

Peoples Unity Labour Group:Second labour union group of PIA.It is supported by the PPPP.Peoples Unity became and remains CBAs during the government of PPPP.Peoples unity also perform work for the Rights of the employees of PIA.

Others Unions in PIA:

Piasi: It is supported by the Jamat-e-Islami, and not so active.Skyways: It is supported by the combination of different political parties.United Union: It is supported by the MQM.

Other Different Associations of PIA:

PALPA:SSA:SAE:

Modes of Strikes in PIA:

Announced Strikes:

In June 2014,Pilots working for the Pakistan International Airlines (PIA) have announced to stop flying if the airlines management continues to implement unfair and unjust taxation policy on their salaries.

In October, 2014 PIA employees go on strike over wages issue.


Announced Strikes:

In November 2007 there was a strike by 800 aircraft engineers for an increase in their salaries.

In April 2009 the Pakistan Airline Pilot Association (PALPA), which has been the most militant association, organized a strike.

In August 2010 another strike was called by PALPA.


Announced Strikes:

On 7th February 2011, the Pilots association started a strike and soon all other workers, including cabin crew, kitchen staff and ground staff joined in when PIA signed a Memorandum of Understanding (MOU) with Turkish Airlines, according to which international routes to major western destinations were to be given to Turkish Airlines.

Demands which were met:End to the code share agreement with Turkish Airlines,Dismissal of Corrupt Managing Director (MD) Captain Ijaz Haroon;150% increase in salaries;Regularization of the daily wage workers;Reinstatement of the 234 workers who were dismissed for not having a matriculation certificate.


Sympathy Strikes:

On the assassination of the Benazir Bhutto.When the plane was crashed on 10 July 2006 in Multan.When planes faced accident on 30 May, 2009 and 31 August, 2012 at Allama Iqbal International Airport, Lahore.On the occurrence of Peshawar Tragedy.

Techniques to resolve strikes/industrial disputes:Collective Bargaining:Structure of CBA:Negotiation and Arbitration:

Structure of CBA:

Employees Health and Safety and measures taken by the management:Health centers in PIA offices which not only provide medical facilities not only to the employees but also to their families.PIA refers 4 hospitals for their employees in Multan which are Nishter Hospital, Institute of cardiology, CMH and Faisal Hospital.Annually there is a review carried out by ERP in February who observes the food quality offered in the offices, also observes the working conditions of the offices.

Employees Health and Safety and measures taken by the management:HSE Management System (Health, Safety & Environment).

Safety & Quality Certifications: IOSA.EASA.

Forms of termination:

Directly Termination:Employee are directly fired without issuing any prior notice.Indirectly Termination:Indirect termination is less strict than the direct termination.Show cause Notice is issued

SWOT Analysis:Strengths:Status of being Flag Carrier of Pakistan.Highest market share at domestic network.Being the oldest airline of Pakistan, it has a very strong brand image in the domestic market.Subsidized fares make it possible for the Airline to provide services at affordable prices.Strategic location of main hub at Karachi, Pakistan's capital, makes it possible to serve various domestic and international destinations.Having Governmental Protection.

SWOT Analysis:Weaknesses:

Old aging fleet of PIA causing higher operating cost. Huge burden of Employees which cause financial burden. Inadequate space on the aircraft.Charging of higher fare as compared to competitors.Lack of marketing activities as compared to competitors. Poor quality of food/service on board especially in domestic flights.Lack of integrated brand promotions as compared to competitors.Loyalty programs not being used to the fullest.

SWOT Analysis:Opportunities:

PIA has huge potential market in Middle East if PIA upgrades its fleet. PIA has largest domestic network and by proper route planning PIA can generate huge amount of Revenue with higher profit. PTDC provides favorable market for domestic as well as international sectors for the airline.PIA can generate more revenue by attracting customers through Web and Mobile Reservations system.Due to subsidized fares, it can maintain a competitive edge over its competitors. Proper use of loyalty programs can lead to increased customer loyalty.

SWOT Analysis:Threats:

Negative rising perception about the country, regarding terrorism.Political instability and law and order situation.Rising fuel prices in the world.Over staffing at all levels.Frequently rising Airlines fare.Fast growing domestic and international competitors.Effective promotion strategies adopted by other competitors like Emirates and Shaheen and Airblue. Effective branding strategies adopted by competitors will dilute its brand image in the global market.

Conclusion Using SWOT Analysis:No doubt PIA has good market for further growth. It has many advantages over many others airlines. PIA should have to upgrade its old aging fleet Another burden on PIA is it has the highest number of employees as compared to other airlines.PIA should adopt a good marketing plan so that it will generate higher profit. PIA should adopt competitive strategies both at domestic network and on certain international routes.

Documents

PIA