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IMAGE BUILDING in AIR LINE INDUSTRY: a CASE of PAKISTAN INTERNATIONAL AIRLINE Muhammad Zaheer Department of Aviation Management Superior University Lahore, Pakistan

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IMAGE BUILDING in AIR LINE INDUSTRY: a CASE of PAKISTAN INTERNATIONAL AIRLINE Muhammad Zaheer Department of Aviation Management Superior University Lahore, Pakistan ijcrb.webs.com JUNE 2013 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 5, NO 2 IMAGE BUILDING IN AIR LINE INDUSTRY: A CASE OF PAKISTAN INTERNATIONAL AIRLINE Muhammad Zaheer Department of Aviation Management Superior University Lahore, Pakistan Muhammad Tahir Akbar MSBA Superior University Lahore, Pakistan Dr.Muhammad Ramzan Superior University Lahore, Pakistan Abstract The present research paper investigates the reasons of bad image prevailing in airline industry of Pakistan specific to a case study of PIA. Airline industry is a service industry and services' quality is not easily to measure. A service can have many attributes including cost, value for money, customer services. In airline services the in-flight services, customer services, food quality, crew members' attitude, fare rates and fight delays are important attributes so that's why they are selected for the study. The study is based on both the primary and secondary data. Primary data collection includes Interviews and discussion with the respondents. A questionnaire based on some attributes was designed so as to know what image of PIA‟s customer has in his/her mind. The source of secondary data was articles, journals, broachers and annual reports. It was found in the research that some common problems which were creating badly image in the minds of the customers are lack of quality ambience in an aircraft, non-cooperative crew members, and unjustifiable fare rates etc. This research would mostly be focusing the frequent flyers and the study would be conducted in Lahore market only. Key Words:Image Building, Airline Industry, Customer Services, Frequent Flyers COPY RIGHT © 2013 Institute of Interdisciplinary Business Research 192 ijcrb.webs.com JUNE 2013 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 5, NO 2 Introduction The research is conducted to know about the image of Pakistan International Airlines in the mind of its customers and customer satisfaction. Airline industry is a service industry and services' quality is not easily to measure. A service can have many attributes including cost, value for money, customer services. In airline services the in-flight services, customer services, food quality, crew members' attitude, fare rates and fight delays are important attributes so that's why they are selected for the study. Only frequent flyers group has been selected for the study because only those people have a clear idea of the service quality of an airline. Pakistan International Airlines is having most of the market share in the aviation industry. Though its quality experienced variations but still it is the market leader in Pakistan. A basic research has been carried out to find if there are any problems with the service quality of PIA and after reaching getting a conclusion, some possible recommendations will be given to solve the problem. Pakistan Aviation Industry The Pakistan aviation market has seen many airlines. However, due largely to the economic sanctions placed on Pakistan during the 1990s the industry growth eventually leveled off due to the increase in oil prices. 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 or PIA for short. PIA remained the only operator for many years after its creation, but soon private airlines arrived at the scene to compete with the national flag carrier. Current Airlines of Pakistan Pakistan International Airlines Aero Asia Air Blue Shaheen Air International Domestic Industry Analysis – Pakistan Air transport has probably never been more important to the development of a new nation than in the case of Pakistan. Pakistan aviation industry is comprised on five commercial airlines. The Pakistan aviation market has seen many airlines but due to uncertainties in the industry some airlines defunct and today industry is pursuing new opportunities globally. COPY RIGHT © 2013 Institute of Interdisciplinary Business Research 193 ijcrb.webs.com JUNE 2013 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 5, NO 2 Civil Aviation Authority 2009 PIA has the maximum share in the market with 71.40% of the industry, Aero Asia has share of 15.29% and Air Blue has 8.70% share in the Pakistan's Aviation Industry. So, PIA is the most favorite airline of the nation and people believe in their services and love to travel with Pakistan International Airline. SWOT ANALYSIS The SWOT analysis is an extremely useful tool for understanding and decision- making for all sorts of situations in business and organizations. SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. The SWOT analysis headings provide a good framework for reviewing strategy, position and direction of a company or business proposition, or any idea. A SWOT analysis helps in understanding, presentation, discussion and decision-making. A SWOT analysis normally comprises of four sections, one for each of the SWOT headings: Strengths, Weaknesses, Opportunities, and Threats. It is important to clearly identify the subject of a SWOT analysis because a SWOT analysis is a perspective of one thing, be it a company, a product, a proposition, an idea, a method or option. SWOT ANALYSIS OF PIA After all the information about PIA we are now able to make a brief SWOT analysis of the Pakistan International Airline Corporation. We now know all the strengths, weaknesses opportunities and threats of PIA. We have to analyze this information which may help us in making some conclusions and suggesting some recommendations. STRENGTHS The strengths, which enable PIA to compete both in the local as well as international airline market, are Reaching most of the countries of the world than any other airline High technology airplanes Up gradation of the airplanes with the passage of time We are proud to say that PIA is one of the airlines of the world, which have the airline coverage of maximum areas of Asia Europe Australia USA and most of the African countries. Along with this coverage PIA is facilitating its passengers with all the necessities and technologies and providing them with a safe, secure and enjoyable flight to any part of the world. COPY RIGHT © 2013 Institute of Interdisciplinary Business Research 194 ijcrb.webs.com JUNE 2013 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 5, NO 2 The second point is that PIA has one of the most modern and technologically advanced airplanes of the world. In the beginning 1954 PIA had very simple planes. However with the passage of time, it has improved its planes with different items. For example, PIA has changed all of its fan or blade planes with jet engine planes. Also for international flights, they have digital radar system in the planes to secure their passengers safety and avoid any casualty. Earlier on they provided the facilities of watching movies on a TV screen in the plane. However now they provide the facility of personal TV screens at the back of each passenger seat of the plane. This ensures privacy of the viewer and does not disturb those passengers wish to rest or indulge in any other activity. The third point is that PIA is doing its best with the government to upgrade its planes with the use of modern technology. In the past PIA used the same planes bought in 1980s and 1990s. That is why its performance was not too good. Fortunately in the year 2003 PIA signed an agreement with the Boeing Company to provide them with new airplanes. These include 777 jet engine planes. According to the agreement PIA received three of these planes by 2005 and the others will be handed over in the coming years. These new airplanes will provide the customers of PIA great satisfaction because of the modern facilities. WEAKNESSES The main reason of the weakness of the PIA is The lack of related field staff or educated staff Unionization The first point of the weakness of the PIA is that there is no related staff in the airports and also in the different stations. When different political governments come into power they employ people of their own choice in the PIA, usually those who voted for them during the elections. The main factor that has weakened the performance of PIA is the recruitment of less qualified people or inefficient people. These people are able to get away with their inefficiency because they further hire qualified personal secretaries and assistants who carry out their duties for them. Another factor is that even though most of the staff is highly educated, they qualifications do not match their post. There are many employees in the PIA Peshawar airport that are on a high post and possess degrees that are not suited to the post. The second main weakness of the PIA is that there were labor unions. In an organization labor is very good because all the employees cannot express their views directly. So they share their views and problems with one another and it is then presented in a formal manner to the concerned authority. This ensures steady relationship between the labor and the COPY RIGHT © 2013 Institute of Interdisciplinary Business Research 195 ijcrb.webs.com JUNE 2013 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 5, NO 2 management of that organization. However, these unions can sometimes prove to be troublesome if given to much support or if they are created in a sensitive organization such as PIA. This problem has been there in the PIA since the last one decade. The labor unions had become very powerful and influential. The president of the labor union was given a car, a driver and a residence. There were two people given these facilities one the stationmaster and the other the labor union president.
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