Sir Muzamil Man

8/2/2019 Sir Muzamil Man

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Defines

Design, development,production,operation and

use of aircraft.

Derived from avis the Latin word for bird

Air craft manufacturers are

Piper,Diamond,Hawkerbeecraft

AVIATION


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Carries flag of UAE

Wins award of best airline of 2011

Net profit in 2011 was (+)5,441.00billion


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UNITED AIRLINESFounded in 6 April 1926

Carries flag of USANet profit in 3-3-2011 was US$ - 65 million


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LOCAL TREND

AIR BLUE


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SHAHEEN AIR


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Founded 1993

Key people Khalid Sahbai

Fleet size 12

Head quarters Jinnah international airportKarachi

Ground services Contract with Gerry Dnata

Revenue PKR 89.257 (million) 2010


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Introduction

Carrier airline of PakistanHead office on the grounds of

KarachiEmployees -------------

18,043 people


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GOVERNMENT SHARE IN PIA

Govt share 87%


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International route map of

PIA


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MissionOffering the quality customer services and innovative

products.

AchievementsFirst airline in Asia to introduce auto ticketing

First airline to operate a jet air craft

First airline to start a airline safari with a jet air craft


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Ch. Ahmad Mukhtar

Malik. Nazir AhmadMr. Jawed LawaiDr. Waqar Masood Khan

Capt.Nadeem Khan Yousaf ZaiMr. Yousaf WaqarMakhdoom Syed Ahmad Makhdoom


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Financial performance continues to be a challengein 2010

Loss of PKR 20.785 billion in 2010

Going in loss from 2004 to till yet


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Research Methodology As both approaches i.e. qualitative, quantitative are use Target population

It includes people from my society, employees of PIA, and EX student ofBaha-ud-dinZikaria University .

Sample SizeSample size of 30 respondents is selected.

Variables

Dependent variable-------------losses

Independent variable-----------poor management

Research instrument

A blend of both qualitative and quantitative technique is used.

Data collection and Screening procedures.

Data was collected through questionnaires and interview of two officials ofPIA.


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Per hour loss -------------------- 2million rupees

Per day loss----------------------- 40million rupees


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01 billion rupees lost in first quarter of 2010 because of increase incost of leased crafts and over all expenses are increased by 32%.

In 2008 operating and financing cost increase in proportion and banof EU on PIA crafts except Boeing. 777 reduces the revenues

In 2009 passenger revenue was decreased by 5.4% and cargo

revenue was decreased by 10%.

In 2006 salary hike of employees results in increased charges ofnon AP planes or leased planes


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PIA is ranked as 3 star air line

in 2011 by Skytrax.


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Market size and Market growthIn 2010-11 the market size was 7.27 million

passengers as compared to 2009-10 which was 7.93million passengers.


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Lapses in management

Lack of expertise

Over head cost

Corruption at its peak

Nepotism and political involvement


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Aged fleet

Lack of check and balance

Increase in expenses

Low scale advertisement

Over staffing

High officials


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Maintenance problems.

Lack of experience relating to

aviation industry.


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PRIVATIZATION

The privatization of PIA was announced

many times but never implemented.

Back door discussions with potential

buyers.

FINANCIAL ANALYSIS A HOT RECAP


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FINANCIAL ANALYSIS ----------A HOT RECAP

Profitable years for PIA are from 2001 to 2004.

The route cause for the loss was started when the then PrimeMinster Shoukat Aziz appointed his own friends to head the

airline.

In the era of MD Capt. Aijaz Haroon in incurred loss of PIAs 55years old history.

Banned by European Union in 2009.

Rupee lost its value against US $.

Crude oil prices increased 147 $ per barrel.


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PIA ----------------- AT BOTTOM LINE

R


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Revenues

Revenue Net Dec 31 2010 Dec 31 2009

Passenger 79,817,592 62,002,315Cargo 5,458,688 4,849,735Excess baggage 875,530 865,657Charter 183,806 163,806Handling & related 686,755 712686

ServicesEngineering Services 936,578 718,333Room, food, bewares 9,205,365 7,546,179


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PRIMERY DATA RESULTS

In flight services38% passengers are some what satisfied.42% are dissatisfied.

20% are satisfied.

Passengers view about flight timing

About only 35% people are satisfied with the timings ofdeparture / arrival

RESERVATION SYSTEM FOR TICKETS


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RESERVATION SYSTEM FOR TICKETS35% Passengers are somewhat satisfied12% Passengers are satisfied.

53% Passengers are dissatisfied.

STAFF ATTITUDE89% Passengers are dissatisfied.

7% Passengers are satisfied.4% Passengers are some what satisfied


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POLITICAL FACTORS ARE AFFECTING

THE PIA87%Passengers are agreed.11% Passengers are some what agreed.2% Passengers are disagreed.

SECURITY OF PASSENGERS AND LUGGAGE

58% Passengers are satisfied23% Passengers are somewhat satisfied.19 % Passengers are dissatisfied.


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STRENGTHSPoint to point services

Govt sponsored organizationPeople oriented organization (no language problem)Healthy internal environment

WEAKNESSESLess international traffic.Weak rewards and appraisals.Lack of professionalism.Less effort in the field of marketing.

Poor management .Over burdened employees.Lack of professionalism.Favoritism.

Centralized decision making


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OPPORTINITIESBig markets available that are unreservedLow cost carriersBetter recruitment policy

THREATSFluctuating oil pricesHigh amount of loan

Government changing TerrorismPrivatizationWeak financial position


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POLITICAL FACTORSIf the Govt remain stable

then PIA must purchasenew advanced airplane to

compete in internationalmarket.


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Economic FactorsSeptember 11 attacks. Global depression in Asia. Having new Boeing 777 &Boeing 737 which have longer

range and better fuel capacity.


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Social factorsPeople are more aware of

market.Hajj operations attractspeople.

E-ticketing opportunity.


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Technological factorsInnovation made in booking andreservation.In flight entertainment and auto

checks.


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Conclusion Political influence Aged fleet Absence of check and balance Unfair wages

Absence of merit for recruitment Misuse of meals and transport Influence of Union Centralized decision making


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Decentralization

Strategic Business UnitEmployee Empowerment

Overhead Costs


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PIA WikipediaGohar .com (PIAs downhill slide into heavylosses in 2010)

Economic survey of Pakistan(http;//www.gov.finance.pk/M.Asharaf (salary maintainer PIA Islamabad)Attaullah Khadim Finance department (PIA

Faisalabad)M.Nazir Nasir (Air traffic controller PIA ISB)Express Tribune 26th February 2011.


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Sir Muzamil Man