Industry Background

• Pakistan International Airlines Corporation (PIAC) was established in 1955.

• Airline Deregulation Act 1978.• 1982 the Pakistan Civil Aviation Authority (CAA) • CAA faced severe resistance from various

professionals of PIAC• Resulted in a gradual but certain decline in

standards in all areas of airline operations

OPEN SKIES POLICY

• In the early 1990s the government of Pakistan adopted an Open Skies Aviation Policy

• PIA suddenly found itself competing with outside carriers at home

• This led to more confusion in the minds of unprofessional bureaucrats, the regulatory authority and of course the national carrier

PRIVATE AIRLINES

• several local airlines started to appear in the private sector during the 1990s

• Most were set up with short-term gains in view• They used – old and inefficient equipment;– Lacked professional managements; – They blatantly violated basic aviation standards and

laws governing safety standards.• Resultantly, several had to be shut down.

PAKISTAN’S AVIATION POLICY

• The Pakistan aviation industry was started up when Orient Airways merged with Pakistan International Airlines Corporation (PIAC) to become the national flag carrier of Pakistan called Pakistan International Airlines (PIA)

• Pakistan’s National Aviation Policy has been reviewed and revised several times in bits and pieces, mostly by unprofessional bureaucrats and people with vested agendas

• Neither the national carrier nor the airlines in the private sector of Pakistan find the current aviation policy acceptable

• Lack of vision, inability to use modern management tools and poor infrastructure, are some of the other factors responsible for this situation

CURRENT PAKISTAN SCENERIO

• Poorly served regions by local and foreign carriers.

• Lack of meaningful incentives.• Tourism industry remains strained.• The airport infrastructure is inadequate to

handle the growing number of travelers.

• None of our airports is worthy of being called a world-class facility.

• Inadequate for new technology large aircrafts like A-380.

• All our civil airports are now in the middle of densely populated cities

• A vibrant airline industry plays a pivotal role in projecting a country, and improving its global market image which is not so in case of Pakistan

• The national carrier has a long way to go in improving its service, image, and most importantly, its profitability. The government currently absorbs PIA’s heavy losses on a regular basis.

• No Pakistani carrier has made any significant contribution towards developing a decent cargo airline.

VISION OF PIA

‘To be a world class airline exceeding customer expectations through dedicated

employees committed to excellence.’

PIA

• . Established in 1955, Pakistan International Airlines (PIA) is a national airline, operating passenger and cargo services covering eighty-two domestic and foreign destinations.

• PIA is a huge corporation with more than 17,000 employees.

• The structure is centralized with the top-level management making the decisions.

why PIA has managed to survive

• Federal government patronage• CAA’s support to the national carrier• A high average growth rate of passenger traffic

of around 8-10 percent per annum, to and from Pakistan, during the past 15 years

PIA Culture

• The distinguished culture is determined by the vision and values communicated throughout the structure and amongst people.

• Since Pakistan International Airlines is bureaucratic organization, so the culture is similar to that of any government organization.

VISION OF AIRBLUE

• “To provide exceptional customer service at low prices”

• Established in 2003, Airblue is a private airline which offers passenger and cargo transportation to both domestic and foreign destinations.

• It is credited as the first private carrier of Pakistan to operate the Airbus A320 and introduce e-ticketing, wireless check-in and self check-in kiosk facilities.

• The size of the organization is not as huge as PIA and mostly comprises of young employees

• It is the first airline to have employees trained according to international standards.

• Airblue is fast becoming an airline of choice for the Pakistanis.

• first time in the history of Pakistan Airblue had placed orders for the purchase of ten new air crafts amounting to one billion dollars, delivery of these airplanes started in 2009.

• AirBlue’s domestic share is on rapid rise and it has grown with each passing day and number of domestic flights has increased from 12 to 28 flights daily.

Culture at AirBlue

• Air blue has a open-organization culture• Culture determinates:

• leadership • Communication • Group dynamics

• Workers perceive this as the “Quality of work life” which directs their degree of motivation.

• Final outcomes: Performance, individual satisfaction, and personal growth and development

Destination

Services Cycle

ClientTravel Agent

Airlines

Ticket Purchase

Baggage

Boarding PassSecurity Clearance

loungeDepartureArrival

Baggage Delivery

Feed

Bac

k

PIA Services

• 53 Airplanes in the Fleet• 76% market Share in Domestic• 50% market share in International• Three Different Classes

• Business• Economy Plus• Economy

• Global Distribution System (GDS)

• IATA and ICAO approved• 103 agents operating in Twin city territory

• American Express• Air International• Trans Air etc.

• 7% discount given to Agents.• Lunch and dinners are provided in-flight

services.• Ground Training School (PTC)

Recent Improvements In PIA

• New 777 Boeing Airplanes added in the Fleet.• Chicago and Bradford routes added.• Revenue Management system

• Navy• Mother• Tony• Kilo• Y

• Transit/Transfer passenger Facilities.

Regions Covered By PIAAmerica & CanadaUK & Ireland

London, Manchester, Birmingham, Bradford, Glasgow, Stansted

EuropeCopenhagen & Oslo Regional (Istanbul, Amsterdam, Paris, Frankfurt, Milan,

Barcelona) Paris

South Asia & Far East AsiaKathmandu, Bangkok, Beijing Narita, Kuala, Lumpur, Regional (DAC/DEL/BOM)

Gulf & KSAJeddah, UAE, Kuwait, Muscat, Doha, Bahrain, Dammam & RiyadhPakistan

Air blue Services

• Low Freight Airline• 6 air Crafts in the Fleet.• Target Market: Middle Class• Services in the Economy Class only• Meals through: Kitchen Cuisine & Gourmet.• E’Ticketing.• Female Staff hiring• High Demand (usually overbooked).

Value Added Benefits

• ABN / Faisal Bank Cards (Co-Branding)• Every 50Rs. Spent 1 point earned (1000 points Free)

• Frequent Fliers• Blue Miles: 2000 miles• Platinum Miles: 20,000 miles

• In flight sales point ( Feed back Cards).• I PAD services

Beyond Boundary activities

• 152 Passengers Died on the 18th July incident 2010.

• 5500,000 Rs. given to family of each passenger by Air-Blue

• Free traveling, hoteling, stay, road fairs.• Even the taxi and transport charges are paid

by Air-Blue.

Official Customers

Ratings

General Ratings: PIA

Busi

ness

CLA

SS:

PIA

ECONOMY Plus: PIA

ECO

NO

MY

CLAS

S: P

IA

Average Ratings for Airblue

Domestic routes War: AirBlue growth beats PIA

• According to provisional aviation statistics for the year 2006-07, Airblue carried 1.4 million passengers in 2006-07, up around 7.7 per cent from previous year’s 1.3 million it carried between different cities of Pakistan. The PIA, faced with accumulated losses of more than Rs35 billion, lost domestic market share by 5.7 per cent as it carried five million passengers compared to 5.3 million during the period under review. “Airblue has capitalized on Aero Asia clientele,” said an industry official. Airblue, which started with only 22,320 passengers in 2003-04, carried 1.4 million passengers in the last fiscal year

Comparison PIA vs Air-Blue

PIA50 Planes

America & Canada, UK & Ireland, Europe, South Asia & Far East Asia, Gulf coveredBusiness Class, Economy Plus, Economy

Dinner and Lunch served

Baggage allowed 40 to 50Kg

Direct flights

Less flight delays

Customer’s first Preference

76% share

Student, Senior citizen, Journalist discountsGround Training School (PTC)

Air Blue6 Planes

Abu Dhabi, Dubai, Manchester, Sharjah Only

Economy Class Only

No lunch, Snacks only

Baggage allowed 20 to 30 Kg

Stays

Usual Delays

Second Preference

17% share

No discounts as such

Retired Air Force staff hired.

Rate ComparisonTickets PIA Air Blue

Islamabad to Abu Dhabi 15,500 17,150

Islamabad to Dubai 14,500 15,900

Islamabad to Karachi 6,650 8,050

Islamabad to Manchester 44,500 45,200

Islamabad to Sharjah 14,500 17,400

Abu Dhabi to Islamabad 16,500 12,150

Dubai to Islamabad 14,500 14,900

Karachi to Islamabad 7,450 7,250

Manchester to Islamabad 28,500 36,100

Sharjah to Islamabad 14,500 14,900

Conclusion

Special Thanx to:

Amjad Raja, HR head PIA IslamabadM. Asad Khan, Sr. Sales promotion Officer PIA.Osama Ainuddin, Sr. Sales promotion Officer PIA.Saleem Sharwani, Station Head Air Blue Islamabad.Madiha Jamil Choudhry, Finance Executive, Air

BlueAtif Hafeez Abassi, Sales Executive, Air blueSehrish Choudhry, Hr Executive, Air Blue.