CHAPTER # 8

PROBLEMS AND SUGGESTIONS AB0UT PIAC

8.1 PROBLEMS
During my 8 weeks internship in PIA at Islamabad/ Rawalpindi station. I
observed various problems which PIA was facing or employees were facing, so I
came up with certain suggestions for the better functioning of the Airline. Some of
these problems are of such nature that their solution will help the Airline and its
workers in cooping in this complex world of globalization.
These problems are

1. Employees were not satisfied about the Promotion procedure and merit was
not encouraged. Chairman of PIA should always be appointed from with in the
organization.

2. PIA hadn’t a good marketing strategy for certain international routes where
PIA was facing financial losses.

3. PIA is operating with Old aged fleet which is causing financial burden on PIA
as PIA still has 4- engine Boeing 747 which now is known as gas guzzler as its
has highest operating cost and the profit generating Saudi Arabian route is now
being operated in loss.

4. Passengers were not satisfied about the refund process as it was time
consuming.

5. PIA have highest employee ratio to per airplane. Which is a huge financial
burden on PIA.

6. Complaint of Employees as they were not properly facilitated comparing to

the other airlines.

8.2 Suggestions
 I would like to give certain suggestions for PIA betterment and
profitability.
1. PIA should adopt transparent policy that employees should be promoted on
merit basis. And Chairman of PIA should be appointed from with in the
organization. Union should support it, it will motivate the employees and PIA
will grow in profit.
2. PIA should adopt good marketing policies so that it will bring higher profit
and maximum utilization of its available resources, Business sector should be
attracted to operate at full potential.
3. PIA should upgrade its fleet as it’s causing the airline higher operating cost
and PIA is incurring loss .PIA should purchase new Airplane with twin
engines these will reduce the operating cost of PIA.
4. Airline should focus on the customer’s satisfaction, refund process should be
quick so that customer remains loyal to brand.
5. PIA should not induct new employees till the time they are needed on the basis
of my personal observation at Rawalpindi station I have seen that a task which
can be performed by person PIA had 3 employees for that.
6. PIA should give bonus to the industrious and competent employees.
7. There should be control on the increase of fares, as mediocre are in majority in
Pakistan, and it is highly difficult for to even think about the air traveling.
Management should think over it and at least they can start a new packaged
flight twice a week having 50% fares.
8. Unnecessary facilities provided to the Government Department should not be
discouraged but with drawn as it causes financial losses.
Management should focus on computerized system up gradation and
implementation.
9. Management should hire the services of specialized IT personnel for their
system development and up gradation on time.
10. There should be clear and even distribution of work and only qualified person
should be appointed on jobs.
11. There should be improved service standards and that should focus on quality.
12. PIA should offer its services of reservation and seat confirmation with by SMS
and flight confirmation message should also be sent via SMS to the passenger.
13. PIA should give more incentives to its frequent flyer as it will generate more
brand loyalty by giving better incentives to the customers.