Vision And Mission Of Pia Tourism Essay

Vision And Mission Of Pia Tourism EssayIn this report afterwards giving a sketch historical back end, vision and mission of pia, we select discussed its hierarchical structure and the values and function provided to the customers.We similarly describe the strengths, weaknesses, opportunities and threats of pia. Thirdly we hasten described the various somatic responsibilities of pia along with the strategies followed for the selection of various the target segments. Our focus is to explore the reasons behind the down magnetic inclination of issue melodyline. As in a couple of(prenominal) last days we give pay heedn that the market piece of ground of pia was continuously declining as compare to its home(prenominal) and international competitors. We find out that there are descend of inner(a) and external factor which causes the downfall of pia. The lack of true leadership, g everywherenment excessive interference, organizational internal conflicts and corruption and th e wise air aviation policies are the few major reasons behind the losing market share. In the end we sum up the whole findings of our report in terms of conclusion of the whole scenario and we also designate some ways to the management of pia that how they can overcome these crisis, how they can retain and motivate their employees, and what to do in order to gain their lost glory.PIA for short, can trace its beginnings to the days when Pakistan still was not an independent state. In 1946 Muhammad Ali Jinnah realized the indigence for an air lane network for the forming country and called upon the friend of an experienced industrialist Mirza Ahmad Ispahani to fix a flag carrier for the nation. Meanwhile, an airline called Orient Airways, registered in Kolkata, was formed on October 23 1946. function 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. Two months after this service began , Pakistan was formed. Orient Airways began relief flights to the new nation and, soon after, it moved its operations to Karachi, where it began flights to capital of Bangladesh on June 7, 1954. In addition, the first two home(prenominal) routes in Pakistan were established, from Karachi to Lahore to Peshawar, and from Karachi to Quetta to Lahore.The Government of Pakistan, realizing the operation was failing economically, proposed that Orient Airways merge into a new national airline. On demo 11 1955, Orient Airways merged with the governments proposed airline, becoming Pakistan International Airlines Corporation. During the same year the airline opened its first international service, from Karachi to London Heathrow Airport.In work on 1960, PIA became the first Asian airline to enter the jet age when Boeing 707 services were introduced. The aircraft were wet leased from Pan American and in 1961 services were begun to derriere F. Kennedy International Airport in New York.VISION OF PIATo be a world class airline exceeding customer expectations throughconsecrated employees Committed to excellence.MISSION OF PIAAs a Symbol of National Pride, We Aspire to be a Choice Airline, Operating Profitably on modern-day Commercial concepts and Capable of Competing with the Best in the International as swell up as Domestic Markets.HIRARCHY OF PIAThis organization is divided into following departments Human choice and Administration, Marketing, embodied preparation, Information service, Finance, Flight Services, Flight Operation, Engineering, Procurement and Logistics, Customer Services, Training and Development, Quality Assurance. The organogram of the organization follows, with the Chairman at the top and directors of departments reporting to him. The structure is centralised with the top-level management making the decisions.VALUES1. Customer ExpectationsPIA is the virtually trusted name in the patience. The reason of its goodwill is according the expectation of their customers that PIA has carry out always. By providing competitive tariff, extensive care, and convenience to their valued and potential customers.2. ServicePIA aims at providing valuable and unique services to its customers. They are to a greater extent individualize and courteous to their customers. The services are valuable and rare this is the reason why customers trust PIA.3. InnovationPIA currently has a number of 43 fleets and aims at increasing this numbers to 53 by the next few years.PIA is adoptive to changes and believe in innovation thats create new ideas and translating these ideas into action.4. ReliabilityPIA is the most experience airline with its service with more than 53 years. This has built in PIA has become the most reliable airline. PIA is known for its loyalty and consistency.5. prophylacticThe most challenging responsibility of any organization is to provide complete satisfaction to its employees and customers together. This satisfaction rewards favora ble and easy running(a) conditions. The in-flight services are customers gracious and the organizational the organizational environment is also employees oriented.6. CohesivenessPIA has 12 departments working in their own direction and also provides a number of services including speedex courier service, catering etc. The most impressive part is these all department and services are integrated in a cohesive way. operatePIA offers two types of services.Business cliqueIts the only Business Class service that feels like First Class. A comfortable seat makes all the divergence on a long flight. PIAs Business Class Seats elevate the concept of luxury to a new level, fully endorsing your decision to choose PIA Business Class. Sit back and relax in our exclusive Business Class Lounges at the Karachi, Lahore, and Islamabad airports. Our hospitable staff will ensure that youre well looked after during your stay with us at the airport.Business Class riders arriving at Airport will receive a warm welcome from PIA. Our representatives will mountain pass you right through all the arrival formalities so that you dont have to stand in line or worry about clearance.Economy ClassPIAs economy class is also comfortable for rider as Business class. Economy Class offer seats with a 32-inch pitch, adjustable footrests and winglet headrests for improved love comfort. The personal TV provides on-going entertainment including audio and video on-demand choices.Passengers enjoy the same caring service from our flight attendants, along with skillfully prepared meals and a extensive swear of in-flight entertainment options to choose from. Free newspapers are also provided to all Economy class passengers. The PIA in-flight magazine, Hamsafar, is provided to all passengers on all international flights. financial PERFORMANCEDuring the first quarter of 2007, the airline achieved a 5% growth in overall taxation mainly due to increase in passenger traffic. The revenue growth was lower ed by a 10% reduction in cargo revenue. The EU ban on PIA in March 2007 reduced the revenue growth because only the Boeing 777 was allowed to enter in Europe. Many of the European routes were put on hold until the airplanes were repaired and brought up to EU standards. The impact of the 2006 honorarium rise, change magnitude cost of leased airplanes, and higher maintenance cost of the PIA fleet increased the overall operating(a) expenses by 19%. Consequently, the airline suffered an operating loss of Rs 2.5 jillion in the first quarter of 2008.MAJOR COMPETITORSPIA is still holding the first position in market. It has 48% market share. Its major competitors are Air blue and Shaheen International Airline.MARKET SHARENow PIA has the total market share of about 48% of total air transport in Pakistan.PRIVATISATIONPIA is owned by the government of Pakistan. In the late 1990s, the Government of Pakistan thought of giving the airline to the unavowed sector due to the persistent losses s uffered by the airline. The Government announced the privatization plans but was never implemented. The rising fuel costs are increasing the operating costs of the airline which thence increase the losses. An new(prenominal) source of PIAs inefficiency has been the over-staffing of employees over the past 10-20 years that has crippled the organizations finances. Back door discussions with potential buyers continue without any positive takingss. Following the orbiculate trend, several steps towards outsourcing of non-core business have been initiated. Catering units (starting with Karachi Flight Kitchen), Ground Handling (starting with Ramp Services) and Engineering, are to be gradually carved out of the airline and operated as independent companies.PIAs NetworkDomestic NetworksInternational NetworksCHAPTER 2 SWOT ANALYSISSWOT ANALYSIS OF PIASTRENGTHS1. LEADING MARKET POSITIONPIA is one of Pakistans leading air carriers, with more than 800 daily flights. Around 150,000 passenger s a month fly on PIA, making it one of the major operators in the domestic market in terms of passenger kilometers. PIAs international market share was 43.5%, In the Domestic market, its market share was 69.4%. On a system-wide basis, PIAs market share was 51.2% at the end of year 2007. Its potent market position is control by consistently low fares as well as reliable service, universal and convenient flights, use of new technologies like e-ticketing and self check-in terminals, comfortable cabins and superior customer service.2. BRAND RECOGNITIONPIA has high brand recall. It is recognized by operateers all over the country. PIA is a national airline, operating passenger and cargo services covering eighty-two domestic and foreign. PIA has bring in the number one ranking in customer satisfaction. This strong market position gives the company a scale advantage and helps it strengthen its brand image.3. hypernym OPERATING STRUCTUREPIA has maintained its position as the low cost carrier. It has been first class Pakistani airline to use the latest engineering. Factors change consists of different series of Boeing and Airbus and an efficient, high-utilization and point- to-point route structure. Flying one type of aircraft significantly simplifies scheduling, maintenance, flight operations, and culture activities. PIA has continually achieved high asset utilization and employee efficiency. superordinate operating structure serves as the primary competitive advantage of PIA.4. NETWORK PRESENCEPIA enjoys a strong network in key domestic and international destinations. The companys network includes three the major airports in Pakistan, as well as major international airport such as Dubai International Airport. Having a strong network means that PIA can generate traffic feed for both its domestic and international Flights.5. HUB AIRPORT AT KARACHIPIA ope evaluate from its hub in Jinnah International Airport, Karachi. Jinnah International is one of the worlds busiest airports in terms of number of passengers carried. It is also one of the largest international openings to Asia. It is also the leading international air passenger (and cargo) gateway to Pakistan. The companys strong presences in airports with heaviest traffic levels in Pakistan give it a competitive advantage.6. EFFECTIVE USE OF TECHNOLOGYPIA has successfully in integratedd latest technology in all its systems, giving it an edge over competitors.PIA takes credit for introducing most new technologies to the Pakistani market. It was the spot carrier in Pakistan to incorporate the c-ticketing system and the second in South Asia to introduce self check in systems at the Jinnah International Airport, Karachi.WEAKNESSES1. FORMULATION OF GOVT. RULESThe Basic flaw of this organization is its consolidation that is centralized system. The key policies, strategies and set of laws are intentional by the upper management. The centralized system is one of the biggest obstacles of lon g term success of PIA. PIA centralizes structure lead to position between different level of management, decreased motivation, and hard access to information.2. HIGH DEPENDENCE ON PASSENGER REVENUESPassenger revenues accounted for 87 percent of the PIAs total revenue in 2007. Cargo services allow airlines to generate additional revenues from existing passenger flights. In addition, cargo revenues are usually counter cyclical to passenger revenues and have lower demand elasticity than passenger business, which allows airlines to pass on fuel price hikes to customers.3. DEBTPIA has a significant amount of 42 billion debts. Current and future debts could have important consequences for stakeholders of the company. For example, debt could impair PIA ability to make investments and obtain additional financing for working capital, capital expenditures, acquisitions or common corporate or other purposes. Debts could also put PIA at a competitive disadvantage to competitors that have less er debt and could also increase the companys pic to interest rate increases.4. RELIANCE ON OIL PRICESPIAs sustainability, growth and revenues directly depend on fossil oil prices. A steep rise in oil prices can seriously damage the long term viability of any airline. Recently many airlines around the world went bankrupt due to rising oil prices. Airlines need to hedge against this risk by taking proper measures.OPPORTUNITIES1. HAVING THE MAXIMUM ROUTE AND FLEETPIA is having the maximum route and fleet domestic and international destinations network in Pakistan as compared to its Competitors. Route and fleet expansion will positively impact the companys operations by increasing revenues.2. GROWING DEMAND FOR LOW represent AIRLINESThe growing demand for air travel is driven by lower fares and consumer confidence. A survey by International atmosphere Authority showed that ticket price is the number one criterion for passengers when selecting a flight, well ahead of the availability of a non-stop service.3. CUSTOMER LOYALTYPIAs obsess flyer and loyalty programs can help it retain customers. PIAs Awards+plus (frequent flyer program) was established to develop passenger loyalty by offering awards and services to frequent travelers. Such schemes encourage repeat travel on PIA, as passengers seek to accrue the benefits given to regular travelers. This enables the airline to retain customers and reduce costs, as it does not have to spend money targeting new customers to replace those lost to other airlines.4. SHIFTING CUSTOMER NEEDSThe needs of air passengers are increasingly changing, as they are becoming more and more price sensitive. If PIA succeeds in making its prices more competitive, then the company will be able to gain significant market share.5. INDUSTRY recuperationMarket analysts believe that the global airline industry will experience an upturn in fortunes over the next few years. This represents an opportunity for PIA, as it could generate increased revenues and command market share if it capitalizes on increases in demand.THREATS1. HIGH INTEREST RATESThe past few years have seen State Bank of Pakistan take down high as well as low interest rates to check inflation and the overheating of Pakistani economy. Inflation in Pakistan may see another raise in the short-term.2. ACCIDENTSThere had been five accidents with PIA listed as belowPakistan International Airlines Flight PK 705 was a Boeing 720 040 B that crashed while descending to inflict on Runway 34 at Cairo International Airport on May 20, 1965 resulting in 119 fatalities.Pakistan International Airlines Flight PK740 was a Boeing 707-340C that crashed after sendup from Jeddah International Airport on November 26, 1979. solely 156 aboard were killed.Pakistan International Airlines Flight 268 was an Airbus A300B4-203, registration AP-BCP, which crashed on approach to Kathmandus Tribhuvan International Airport on September 28, 1992. All 167 on board were killed.. PIA Flig ht 554 is the flight number of a Pakistan International Airlines (PIA) Fokker F27 that was hijacked on May 25, 1998. The flight started its journey at Gwadar in Balochistan after originating in Turbat, and was flying to Pakistans southern port city of Karachi. The aircraft was carrying 24 passengers and 5 crew members.Pakistan International Airlines Flight 688 (PK688, PIA688) was scheduled to operate from Multan to Lahore and Islamabad at 1205 pm on July 10, 2006. It crashed into a field after bursting into flames a few minutes after takeoff from Multan International Airport. All 41 passengers and four crewmembers on board were killed.PIA has to continuously ensure utmost sentry go and security of its passengers. Accidents can adversely affect customer confidence in PIA and result in declined revenues intensifying competition.3. STRONG COMPETITION BY AIRBLUEPIA is now competing against carriers such as Airblue and Shaheen Airline. PIA remains Airblues strongest competitor because o f the huge market it has gained over time, strong brand image and customer loyalty.PIA has started new low-fares subsidiary PIA Express to stop the Airblue market share growing to fast. Moreover, major legacy airlines have been focusing on restructuring costs, which has improved their competitiveness. With costs restructured, the legacy airlines are becoming more formidable competitors in terms of increasing capacity, matching prices and leveraging their frequent flier programs. Increasing competition could adversely affect the companys margins.4. INTEREST AND FOREIGN CURRENCY EXCHANGE RATESFluctuating foreign currency sub rates can have a significant impact on PIAs earnings. For example, as PIA is providing its services to the UK. Negative or positive effects arise from exchange rate movements as change in expenses. Strengthening of foreign currencies against the British Pound will positively impact PIA and vice versa.5. DECLINE IN AIRLINE INDUSTRYA number of factors have caused t he current decline in the airline industry. For example, the threat of further terrorist attacks since September 11 and a fall in the number of business travelers have both caused passenger numbers to fall. These and other factors may continue to affect demand for air travel in the future, which will affect revenues of PIA.CHAPTER 3Corporat favorable Responsibility incarnate Social Responsibility of PIACommitted to Creating a Better WorldPIA is driven by the highest standards of corporate governance and social responsibility. As a public sector organization and a business leader, PIA believes in building strong relationships with customers, partners, employees, and the communities in which it operates. The organizations values are exemplified in a range of corporate initiatives designed to impact positively on the lives of multiple stakeholders. PIA practices wide awake corporate citizenship through social services, support for non-profit organizations, medical services for emplo yees, the promotion of sports, and educational initiatives.PIA has institutionalized the practice of good governance by establishing a Corporate Social Responsibility Committee. The Committee provides a platform to evaluate, update, and recommend best practices as PIA continues on its mission to adhere to business ethics and feeling out corruption. Corporate Social Responsibility (CSR) is woven into the fabric of daily operations at PIA. Our employees wholeheartedly contribute to our commitment to develop the organization, the communities in which we function, and the country.Social ServicesBoy watchs AssociationThe PIA Boy Scouts Association (PIA-BSA), a provincial segment of the Pakistan Boy Scouts Association, is based on the value system of the Scout Promise and Law. The PBSAs mission is to actively train and develop members through Youth Training Programs. Scouting contributes to the education of young people and helps build a fracture world where individuals can play constr uctive roles in society. The PIA-BSAs major contributions include providing Haj services at domestic and Saudi Arabian airports, engaging in activities with the Heritage Association of Pakistan, assisting special children at PIAs Al-Shifa Trust, and participating in a number of health, cleanliness, literacy, tree plantation, drug prevention, and blood donation drives. The PIA-BSA has also started a play academy where thousands of youth have received cricket coaching from PIAs renowned test and first-class cricketers. Following the earthquake tragedy of 8th October, 2005, the PIA-BSA immediately deployed contingents in Islamabad followed by scout deployments in Balakot, Garhi Habibullah, Muzaffarabad, and Bagh where relief goods were distributed and emergency services were rendered.PIA PlanetariumsThrough a combination of projectors, optics, electronics, and precision engineering, PIA offers a range of cosmic experiences to the Pakistani people. The PIA Planetariums enable the viewi ng of virtual universes, replete with stars, planets, and nebulae and visitors throng the planetariums to look at astronomical phenomena such as eclipses, alien destroyscapes, planets, and the sun. PIA is the only airline in the world to have invested in an innovative and educational planetarium project that is open to the general public at affordable rates.PIA HorticulturePlants and trees provide habitat, shelter, food, materials and medicines to human beings and animals. Realizing the significance of a healthy and pollution-free environment, PIA set up a horticulture division in 1996. In addition to maintaining indoor and alfresco plants and trees, PIA Horticulture provides seasonal flowers for display in PIAs offices and for a range of events, winning several awards and accolades at flower exhibitions across the country. To reduce pollution and contribute towards a greener Pakistan, PIA Horticulture actively participates in tree plantation campaigns during each spring and monso on season.Support for Non-Profit plaquesAs part of its corporate social responsibility initiatives, PIA supports a number of charities and trustsAl-Shifa Trust provides relief and rehabilitation services to special children suffering from cerebral palsy and other motor disorders.Zindagi Trust provides education to underprivileged and working children.The Citizens Foundation runs a professionally managed network of purpose-built schools in the poorest rural areas and most neglected urban slums of PakistanCHAL is a network of non-profit organizations and individuals dedicated to providing rehabilitating services to incapacitate persons.SIUT (Sind Institute of Urology and Transplantation) provides medical services to the patients suffering from Urology, Nephrology, Transplantation and Liver Diseases.Training and EducationPIA Training touch onThe PIA Training Center is a leading airline training institution that delivers the highest standards of aviation instruction. The Training Cen ter is built around a highly advanced training infrastructure, O.K. by local and international regulatory authorities such as CAA, ICAO, and IATA. The PIA Training Centers courses are based on a unique, standards-based curriculum designed to impart knowledge and best practices in all the aspects of the airline industry. The PIA Training Center provides quality training to PIAs pilots, engineers, air hostesses, and to employees of other associated PIA divisions.PIA Model Secondary SchoolThe PIA Model Secondary School was set up in 1980 to provide high quality education to the children of PIAs employees at an affordable fee. Situated at a distance from the hubbub of the city, the school is housed in a modern building that spans over 10 acres of land and is staffed by teachers dedicated to empowering children with knowledge and skills for the future. Equal emphasis is placed on curricular and extracurricular activities in order to produce well-rounded, holistic, and responsible citize ns.PIA industrial Training InstituteThe PIA Industrial Training Institute was established in 1986 to provide technical, vocational, and industrial knowledge to the families of PIAs employees. With the sustained support of top-level management at PIA, the Institute has functioned smoothly for over two decades, and has emerged as a leading industrial training center in the region. The Institute imparts industry knowledge, and specialized training courses in arts and crafts to the families of employees for a very nominal fee, empowering them to earn livelihoods and gain respect in their communities.Medical ServicesPIA Employee wellness and Medical ServicesThe health and welfare of our employees has always been a matter of utmost importance and significance at PIA. All employees are provided with a comprehensive medical package, in collaboration with reputable hospitals, diagnostic labs, and medical institutions. In 1959, PIA established a Medical social class to supply wide-ranging me dical coverage to active and retired employees. To ensure that the highest standards of aviation are maintained, a Crew Center periodically carries out air crew checks, in conformity with international and Civil Aviation Authority standards.PIAs medical facilities cover the parents and spouses of serving employees, children up to the age of 27, unmarried daughters, and disabled, mentally challenged children of any age. Retired employees and their spouses are also eligible for medical care at PIAs Medical Centers. In addition to coverage in Pakistans major cities, PIA has extended its medical network to 35 smaller stations, in collaboration with private and public sector hospitals. PIA also looks after its overseas employees under the Local National Health Scheme and Insurance Schemes.PIA Sports DivisionIn continuation of its unwavering commitment to Pakistans development, the PIA Sports Division was set up in 1958. PIAs contribution to the advancement of Pakistani sports remains unp aralleled no other organization in the country has consistently invested in the promotion and development of sports.Visionary leadership at PIA provided the impetus for the airline to set up a unique career development plan for sportsmen. PIA provides attractive and stable jobs to outstanding sportsmen, empowering them to focus on what they do best. Sportsmen are provided gear, travel facilities, and benefits that have enabled them to excel and make Pakistan proud. PIAs sportsmen have been and continue to form Pakistans lineup for major sports including cricket, hockey, football, squash, polo, tennis, bridge, chess, table tennis, cycling, and body building. PIA has dramatized the world of Pakistani sports by transforming popular games into national sports, national sportsmen into international heroes, and national tournaments into international sports bonanzas.Safetya) Corporate Safety Quality AssuranceThe PIA Corporate Safety Quality Assurance Division ensures safe operations by adopting international standards and recommended industry practices. Strict adherence to Safety HSEQ policy and procedures during flight as well as on ground helps in maintaining a hazard free workplace environment. Corporate Safety QA Division is responsible for effective implementation of Safety Management System (SMS), Health Safety Environment (HSE) Program, Flight Ground Safety Management, Flight Data Monitoring Analysis Program, Emergency Response Planning (ERP) and enkindle Protection Services as well as Quality Assurance Program encompassing overall operations of the airline.b) IOSA (IATA Operational Safety Audit) evidencePIA is proudly maintaining its IOSA Certification and thus IATA Registration since 2005. The IATA Operational Safety Audit Programmed is an internationally recognized and accepted system for assessing the operational management and control systems of an airline.IOSA is based on industry proven quality audit principles and structured to ensure a stan dardized audit with consistent results. Airlines that meet all standards become registered with IATA as an IOSA Operator. IOSA Audit covers Organization and Management System, Flight Operations, Operational Control Flight Dispatch, Aircraft Engineering Maintenance, Cabin and Cargo Compartment Operations, Aircraft Ground Handling, Cargo Operations and Operational Security of the airline.By equity of PIAs IOSA Certification, PIA is able to ensure safety of passengers as well as employees.c) Fire Safety-in the Workplace and at HomePIA has made a number of arrangements to handle incidental fires and allied hazards. First Aid Fire Stations have been set up in Karachi, Lahore and Islamabad, and Fixed Fire Protection Systems have been installed at sensitive premises. PIAs locations are equipped with portable fire extinguishers and a range of other fire safety devices. All the installed equipment is inspected regularly and maintained in accordance with international standards.Fire Safety Courses are conducted regularly to equip employees with fire conflict skills and to impart critical knowledge of preventive measures. Fire taproom Courses are also conducted at the Staff Township and PIA Model Schools so that employees and their families can take appropriate fire prevention measures at home.PIAs Corporate Safety QA Division also actively engages in advocacy sessions to create awareness through print publications and sharing of experiences. Working in collaboration with the Fire Protection Association of Pakistan, PIA is committed to creating and promoting a culture of safety at a nation-wide level. The divisions future plans include running fortnightly fire and safety awareness sessions at government and private schools.Emergency Response PlanningPassenger care is an airlines most crucial responsibility. Acknowledging the significance of Emergency Response Planning (ERP), PIA has set up a discrete section to handle emergencies. The Emergency Response Planning Se ction has developed an Emergency Response manual of arms and manages Emergency Response Center Teams, Field Teams, Family Assistance and Support Teams, and Volunteers. The ERP Section will also train volunteers in the areas of aircraft emergencies, rescue, basic first aid, and fire fighting to effectively respond to natural disasters.Emergency Response Facilities include the computerized data storage of teams and volunteers with an automated emergency call out system. The software application also provides a technology supported callback system for contacting families of the affected.PIAs Emergency Response Planning Section hopes to contribute meaningfully towards national capacity building in the area of emergency management, through financial and human resource investments.CHAPTER 4 STRATEGIC FAILURESMarket Segmentations and Targeting Strategies of PIADemographic SegmentationIncome Segmentation audience who falls under the category of upper and upper middle class.Occupation Segm entation working class and business class.Behavioral SegmentationOccas