Department of KUBS

SUBJECT:
BUSINESS RESEARCH METHOD

SUBMITTED TO:
DR. SARAH ANJUM
BY:
NOMAN ALI
MUHAMMAD SHAHERYAR SURI

CLASS :
BSBA 3rd year

In partial fulfillment for the requirement of degree of

bachelor in science in business administration

Data of submission:
MAY 21 2024

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Table of Contents

S# Topics Page #
1 Introduction 2

2 Abstract 3

3 Acknowledgement 3

4 Methodology 4

5 Problem statement 4

6 Revitalizing Pakistan International Airlines 6

7 Research Question 7

8 Research Objectives 8

9 Research Outcome 8

10 Literature Review 10

11 Findings And Analysis 14

12 Recommendations and Limitations 15

13 conclusion 17

14 Question responses in graphical view by SPSS 18

15 Questionnaire 26

16 Bibliography 31

17 APPENDIX 35

PILOT RESEARCH

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PAKISTAN INTERNATIONAL
AIRLINE(PIA)

INTRODUCTION:

PIA was founded on 29 October 1946 by Shanaz as Orient Airways, and was initially based in Calcutta,
British India, before shifting operations to the newly independent state of Pakistan in 1947. Orient
Airways was nationalized to form the Pakistan International Airlines Corporation (PIAC). PIA is
Pakistan's largest airline and operates a fleet of 31 aircraft. The airline operates a frequent flier program,
Awards +Plus. It is not part of any airline alliance. The airline operates nearly 50 flights daily, servicing
20 domestic destinations and 27 international destinations across Asia, Europe, the Middle East and North
America. It is under the administrative control of the Secretary to the Government of Pakistan for
Aviation.

Acknowledgement
First of all I would like to thank Almighty Allah and after that my professor Dr. Sarah Anjum for giving
me the chance to work on this important event that has helped a lot in increasing my knowledge and
abilities and I would also like to thanks Chairman Karachi <university Business School Dr Danish
Siddique for providing us with the such competitive faculty and last I would like to thanks my team
member those who have helped me with my this research

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Abstract
Pakistan International Airlines (PIA) faces significant challenges that impede its profitability.
Key issues include an aging fleet, high operational costs, and inefficient route management. The
airline suffers from substantial debt and financial losses exacerbated by poor cost control and
outdated technology. PIA's service quality and customer experience are often criticized, leading
to a declining market reputation. Additionally, bureaucratic inefficiencies and political
interference have hampered effective management and strategic decision-making. To achieve
profitability, PIA must modernize its fleet, optimize routes, enhance revenue streams, improve
customer service, and streamline operations. Strategic partnerships and robust corporate
governance are also crucial to addressing these longstanding issues

Methodology
We have used SPSS software to get the statistical view of the research to find out the relation between the
problem area and figure out the result of research and the following techniques are used: Spearman and
Carl Pearson and graphical analysis which helped a lot to conduct this research.

Unique Problem Statement :

“The over employed sector with the minimum trade routes has damaged the firm a lot. Also, financial
instability is a major constraint in the organization’s growth”

Some problems which are highlighted

- Poor Governance:

PIA's precarious financial situation, poor performance, and corruption have all contributed to its downfall.

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- Overstaffing:

PIA has the largest per-flight crew among rival carriers, and nothing has been done to rectify this issue,
which is a significant drain on the airline's finances.

- Incompetent Employees:

PIA has seen a large-scale induction of fake degree holders between 2008 and 2014. Incompetent
employees are another significant reason for its financial woes.

- Political Influence: Political interference has harmed PIA's operations and management.

- Poor Maintenance:

Sagging and damp seat coverings, soiled floor carpets, a filthy and unkempt appearance, broken toilet
doors, rattling planes, and failing equipment all require restoration, better maintenance, and planning.

- Fuel Prices:

Increases in oil prices have had a significant impact on PIA's financial situation.

Pathetic Condition of Aircrafts

Old and reconditioned aircrafts cause the chances of crashing which is a direct threat to the customer
base.

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Revitalizing Pakistan International Airlines: Overcoming

Operational Inefficiencies and Service Quality Issues

Problem Areas:

Pakistan International Airlines (PIA) is facing significant challenges in maintaining its market share and
reputation due to:

1. Poor On-Time Performance (OTP): Frequent flight delays and cancellations resulting in
passenger dissatisfaction and loss of trust.

2. Subpar Service Quality: Inconsistent and unprofessional service by cabin crew, ground staff, and
customer support teams.

3. Aging Fleet and Maintenance Issues: Outdated aircraft and inadequate maintenance leading
to safety concerns and increased fuel consumption.

4. Inefficient Operations and Route Network: Suboptimal route planning, inefficient flight
scheduling, and underutilization of resources.

5. Financial Instability: Rising debt, decreasing revenue, and poor financial management
threatening the airline's sustainability.

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6. Lack of Modernization and Technological Upgrades: Outdated IT systems, inadequate

digital infrastructure, and limited online services.

7. Poor Customer Engagement and Loyalty: Ineffective loyalty programs, inadequate

customer feedback mechanisms, and unresponsive customer support.

8. Inadequate Employee Training and Development: Insufficient training, poor employee

morale, and high staff turnover rates.

Research Questions:

1.What are the primary causes of PIA's operational inefficiencies and service quality issues?

2. How can PIA modernize its fleet, operations, and technology to enhance customer experience and
reduce costs?

3. What strategies can PIA implement to improve employee training, morale, and retention?

4. How can PIA revamp its route network, scheduling, and pricing to increase revenue and market share?

5. What customer engagement and loyalty programs can PIA introduce to retain passengers and attract
new customers?

Research Objectives:

1. Identify the root causes of PIA's operational and service quality issues.

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2. Develop strategies to modernize PIA's fleet, operations, and technology.

3. Design employee training and development programs to enhance service quality and productivity.

4. Optimize PIA's route network, scheduling, and pricing to improve revenue and market share.

5. Create effective customer engagement and loyalty programs to retain passengers and attract new
customers.

Research Outcome

1. To reduce the workforce

We have always heard that quality is better than quantity, higher command should educate the staff and
unnecessary staff should be downsized. The excessive uneducated staff is the real threat to the
organization as it is the major cause of operational loss of billions annually.

2. To Negotiate with the other organizations to get new trade routes

The higher officials and the responsibilities should insist the government to negotiate with other nations
to get the new trade routes and the facility on the board should be well enough that our aircrafts should be
catered accordingly.

3. Payment of the liabilities

The liabilities should be paid off timely so as to avoid fuel shortages and that will also minimize the

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delays in flights and as soon as the delays will be reduced the lost worth of the company will start
retrieving back. Also the trust of the customers will re established.

4. Training of the Employees

The training program of the employees should be introduced to make the staff more capable and to deal
with the situations that must be tackled effectively and the educated and experienced staff would be way
much better than untrained.

5. Commercialization and marketing should be introduced

There are some events that must be introduced that are

1. Hajj Operation
2. Sponsoring the sports events
3. Flights for the tourism

6. Pick up Services for the premium passengers

One of the top airlines in the world like Emirates gives the service of pick up to premium passengers to
create the goodwill of the organization.

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Literature Review

The company’s problem analysis that was performed by the students of the Lahore university

References
1 https://www.scribd.com/document/372203673/Literature-Review-docx

Literature Review
The Financial performance of Pakistan International
Airlines are weak. According to Lin (2012), Pakistan International
Airlines scored 0.84 value. The Pakistan international airline
(PIA) can reduce about 26% of inputs with a zero percent
reduction in output. Furthermore, operating revenue from
passenger services, international percentage of operation,
operation focus, indirect cost, and fixed asset has positively
affected efficiency. In contrast, the specialization in serving global
and passenger markets exerts a negative effect. Pakistan
International Airlines is operating in the international market: It
has strengths, weaknesses, opportunities in the world market, and
State-owned Enterprises not Burden: A Case Study of PIA
(2022) Pakistan Journal of Economic Studies 379
threats from competition. (Selase, 2018) finds that the financial
and service performance of Pakistan International Airlines is not
satisfactory. The study suggests that Pakistan International
Airlines can be the market leader if they save current market share,
extend the market, expand market share, improve the customer

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service and food quality, cooperate with passengers, and revise

ticket prices. In Pakistan several private airlines are operating
flights directly. Berry and Jia (2010) analyzed the United States
airline industry empirically. They find the industry problem and
estimate the impact of demand and supply change on profitability.
They conclude that compared to the 1990s, the demand for air
travel was more sensitive in 2006. The preferences of the
passengers were towards direct flights.
Additionally, the changes in marginal cost were in favor
of direct flights. At last, they recommend increasing profit, and
the airline should focus on direct flights and changes in demand
because changes in demand and cost also relate to changes in the
network. They should give less attention to hub airports with more
to a large number of direct flights.
Saleem et al. (2017) intended the study to check the impact
of service quality and trust repurchase interactions of Pakistan
International Airlines. They developed two hypotheses (i) service
quality is a directly and positive relationship to repurchase
intentions. (ii) Service quality positively correlates with
repurchase intention through customer satisfaction. They found a
positive relationship between quality and repurchase intention,
customer satisfaction and brand image and strongly support the
hypothesis. The policy recommendation for the management of
Pakistan International Airlines is to improve customer
satisfaction, repurchase intention and brand image.
Baloch et al. (2017) Analyzed the service quality and
reviewed the competitiveness of Pakistan International Airlines.
They explained the main dimensions of service quality, such as
tangible, reliability, responsiveness, assurance and empathy. The
method is descriptive, and 200 samples were collected through
questionnaires in which 50% of Passengers were domestic, and
50% were international. The result shows that service quality
affects competition failure in quality services that will not favor
Ullah and Hina

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380 © (2022) Pakistan Journal of Economic Studies

Pakistan International Airlines. The study recommends that
Pakistan International Airline management should focus on the
service quality standard at the international level.
Productivity is one of the main issues of Pakistan
international airlines. Ahmad and Khan (2011) analyzed the
productivity of some Asian airlines, including Pakistan
International Airlines. They decided that, specifically, Pakistan
International Airline, in the short run, could cut down the seating
capacity. The data also show that Pakistan International Airlines
has better performance in terms of available ton kilometer (ATK)
Than Sri Lankan airlines while worse in terms of average
employee productivity (AEP). They conclude that the airline
Industry plays an important role in economic growth. The study
recommends that Pakistan International Airlines focus on
increasing the average productivity, length, and unit cost. In
Pakistan, especially in government organizations, there is a lack
of proper training, research, and development. Ahmed (2017)
investigated the impact of organizational comment on employee
turnover of PIA. The factors behind lower turnover of employees
are no or less support from the organization, non-availability of
the training program, job satisfaction, and job autonomy. He
suggests that individual must participate in training programs and
need more attention to job satisfaction. Organizations should
support, need job autonomy, and there should be learning
opportunities.
Most of the routes operated by Pakistan international
airlines are not profitable. Park and Zhang (2000) analyzed global
airline alliance empirically in which they checked the impact of
fair, passenger volume, and consumer surplus of four major
airlines. They concluded that airline alliance increases the
aggregate demand on alliance routes and decreases the fare and
passenger volume.
3 Methodology

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The paper's methodology is based on operational profit

analysis; we used data from 2000-18. The chapter also includes a
comparative study of PIA with some international airlines.
State-owned Enterprises not Burden: A Case Study of PIA
© (2022) Pakistan Journal of Economic Studies 381
3.1 Operating Profit Analysis of PIA
Operating profit is the profit that is generated through the
operation. Operating profit is sometimes called profit before
interest and tax and is calculated as operating expenses minus
operating expenses.
4 Results and Discussion
The operating revenue and expenses are given in table 1
and figure 1 as per the net profit from 2000-18. As we can observe
from the table as well as from the graph that from the year 2000-
04 the net profit was positive and in 2006 and 2010 and the
remaining years have negative net operating profit means that
expenses were more than revenue due to which PIA is still bearing
losses.

Reference link
https://www.researchgate.net/publication/336557922_Assessment_of_Perceived_Service_Quality_Using
_SERVQUAL_Mod-el_A_case_study_of_Pakistan_International_Airline_PIA_In-Flight_Hospitality

http://sbbwu.edu.pk/journal/WU_Journal_of_Social_Sciences_Summer_2017_Vol_11_No_1/10%20Serv
ice%20Quality%20Attributes%20and%20Customer%20Loyalty%20Case%20Study%20of
%20%20Pakistan%20International%20Air%20Line.pdf

https://www.ukessays.com/essays/management/strategic-analysis-of-pakistan-international-airlines-
management-essay.php

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Finding And Analysis

This study will employ a mixed-methods approach, combining both qualitative and quantitative data:

Primary Data:

Interviews with personnel at PIA, including managers, various department representatives, and marketing
team members.
Focus group discussions with industry experts and potential international trade partners.

Secondary Data:

Analysis of PIA's internal data (e.g., revenue, liabilities)

Industry reports and market research data on the global leather goods market and potential target markets.

Sample Design:

Purposive sampling will be used to select participants with relevant expertise and experience in the
leather industry and international trade.
Snowball sampling can also be used to identify additional participants through referrals from initial
contacts.

Data Analysis:

The thematic analysis involves studying qualitative data from interviews and focus groups to find
important themes and insights about export opportunities and challenges.
Descriptive analysis of secondary data to understand market trends, competitor analysis, and potential
target market characteristics.

Time Frame:

Phase 1: Literature review and data collection design (2 months)

Phase 2: Data collection (interviews, focus groups) (2 months)
Phase 3: Data analysis and report writing (1 month)

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Budget:

Researcher fees
Travel expenses for data collection (if necessary)
Transcription costs for interviews
Data analysis software
Miscellaneous expenses

Recommendations and Limitations

Recommendations

1. Fleet Modernization:
- Embrace New Technology: PIA should invest in newer, more fuel-efficient aircraft. These will not
only reduce maintenance costs but also enhance safety and passenger comfort. Opting for leasing instead
of purchasing can make this transition financially feasible.

2. Operational Efficiency:
- Optimize Routes and Schedules: Improving route planning and scheduling can significantly enhance
aircraft utilization, reduce delays, and improve on-time performance. Implementing real-time tracking
and management systems will aid in this optimization.

3. Financial Management:
- Tackle Debt Head-On: A well-structured debt management plan is essential. This includes
restructuring existing debt and enhancing financial transparency to regain investor confidence and attract
new partnerships.

4. Customer Service Improvement:

- Focus on Training: Investing in comprehensive training programs for all customer-facing staff will
ensure a consistent and high-quality service experience. Establish robust feedback systems to address
complaints promptly and effectively.

5. Employee Training and Development:

- Continuous Learning: Regularly update training programs to keep up with industry standards and
technological advancements. Performance-based incentives can help boost morale and productivity.

6. Strategic Partnerships:
- Collaborate and Expand: Form alliances with international airlines to expand PIA’s route network
and share resources. Collaborate with tourism boards and travel agencies to position PIA as a preferred
carrier for travelers.

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Launch targeted marketing campaigns to rejuvenate PIA’s brand image. Utilize social media

7. Marketing and Branding:

- Rebuild the Brand: and digital platforms to engage with customers and highlight new services and
improvements.

8. Political and Bureaucratic Reforms:

- Promote Meritocracy: Minimize political interference in the airline’s operations. Ensure recruitment
and promotions are based on merit to eliminate corruption and improve efficiency.

Limitations

1. Data Availability:
- Restricted Access: Limited access to comprehensive and up-to-date data from PIA made it
challenging to conduct an in-depth financial analysis.

2. Scope of Study:
- Limited Timeframe: The study focused on a specific period and might not capture long-term trends
and challenges fully. Broader temporal analysis could provide a more comprehensive understanding.

3. Sample Size:
- Representation Issues: The sample size for interviews and focus group discussions was relatively
small, which might not represent all stakeholder perspectives comprehensively.

4. Geopolitical Factors:
- External Influences: The study did not delve deeply into the geopolitical factors that influence
Pakistan’s economy and aviation sector, which can significantly impact PIA’s operations.

5. Market Conditions:
- Economic Fluctuations: Global economic changes, such as fuel price volatility, were not extensively
accounted for, which could affect PIA’s financial stability and profitability.

6. Implementation Challenges:
- Cultural Resistance: Implementing the recommendations may face resistance due to existing
organizational culture and political dynamics, posing significant challenges to effective change
management.

7. Reliance on Secondary Data:

-Bias and Accuracy: The study relied heavily on secondary data sources, which may have inherent
biases or inaccuracies, impacting the validity of the findings and recommendations.

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8. Technological Constraints:
-Future Innovations: Potential advancements in aviation technology were not fully explored, which
could influence the feasibility and effectiveness of the proposed recommendations.

Conclusion

 Revitalizing PIA is not just about financial strategies and operational tweaks; it’s about renewing
hope and commitment within the organization. It's about understanding that every employee,
from the ground staff to the pilots, plays a crucial role in this journey. It’s about ensuring that
every passenger feels valued and every flight is a testament to the airline’s dedication to
excellence.

 To achieve this, PIA must address its immediate operational challenges while also fostering a
culture of continuous improvement and innovation. By doing so, PIA can not only regain its
market position but also rebuild trust and pride among its employees and customers alike. The
road ahead is challenging, but with decisive actions and a collective effort, PIA can soar to new
heights once again.

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Question responses in graphical view

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Rights short answer about this: what initiative will you take on your behalf to make pia a better
organization?4 responses
It's right pia better organization rather than others
I think PIA have to work on their systems there Aircraft repairing unit there pilot aviation license.
Maintenance
eliminate the black sheep of departments

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Bibliography :

The Aeronautical Journal.

“The Aeronautical Journal.” Wikipedia, 28 july 2016,

https://www.cambridge.org/core/journals/aeronautical-journal/article/

reduction-of-airline-costs/1F5138C5B2035ABC82ED6ECDFBFAFE5D.

Accessed 19 aprail 2024.

“AIDS AND Airlines.” Wikipedia,

https://www.cambridge.org/core/books/economics-of-airlines/563B1E7D22

DBF92AD9CDEC3CBA09767A. Accessed 20 May 2024.

“AIRLINE ECONOMY.”

https://www.cambridge.org/core/books/economics-of-airlines/563B1E7D22

DBF92AD9CDEC3CBA09767A,

https://www.cambridge.org/core/books/economics-of-airlines/563B1E7D22

DBF92AD9CDEC3CBA09767A.

“airline pricing.” Wikipedia,

https://www.cambridge.org/core/books/economics-of-airlines/airline-

pricing/C22008190BCF0B4075D3168D27171C8F. Accessed 20 May 2024.

“airline view.” https://www.cambridge.org/core/journals/aeronautical-

journal/article/an-airline-view/540A2DC5DA43BF6147AC0BE9F1E03583.

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Cambridge University Press. “government and airline.” Wikipedia,

Cambridge University Press, 22 may 2009,

https://www.cambridge.org/core/journals/international-organization/article/

governments-and-airlines/E29302BB089A98D1171508606D2774F3.

Accessed 20 May 2024.

Cuerden, Adam. “financial performance of PIA.” Wikipedia, the free

encyclopedia, https://www.scribd.com/document/372203673/Literature-

Review-docx. Accessed 1 May 2024.

“Does Religiosity Buffer the Effects of Adverse Childhood Experiences

among Pakistani Women.” Shaheed Benazir Bhutto Women University,

http://sbbwu.edu.pk/journal/WU_Journal_of_Social_Sciences_Summer_201

7_Vol_11_No_1/10%20Service%20Quality%20Attributes%20and

%20Customer%20Loyalty%20Case%20Study%20of%20%20Pakistan

%20International%20Air%20Line.pdf. Accessed 17 apr 2024.

“(PDF) Assessment of Perceived Service Quality Using SERVQUAL Mod-

el: A case study of Pakistan International Airline (PIA) In-Flight

Hospitality.” ResearchGate,

https://www.researchgate.net/publication/336557922_Assessment_of_Percei

ved_Service_Quality_Using_SERVQUAL_Mod-

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el_A_case_study_of_Pakistan_International_Airline_PIA_In-

Flight_Hospitality. Accessed 17 aprail 2024.

“STRATEGIC ANALYSIS OF PAKISTAN INTERNATIONAL

AIRLINES.” UK Essays, 1 January 2015,

https://www.ukessays.com/essays/management/strategic-analysis-of-

pakistan-international-airlines-management-essay.php. Accessed 3 May

2024.

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APPENDIX

A: List of Interviews Conducted

1. **Mr. Ahsan Khan**, General Manager, PIA Operations

2. **Ms. Rabia Ali**, Head of Customer Service, PIA

3. **Mr. Tariq Mehmood**, Chief Financial Officer, PIA

4. **Dr. Faisal Raza**, Aviation Industry Expert

5. **Ms. Sarah Javed**, Head of Marketing, PIA

B: Focus Group Discussion Summary

- **Participants:** Industry experts, PIA senior management, aviation consultants

- **Key Topics:** Operational challenges, fleet modernization, customer experience, route

expansion, financial stabilization

C: Questionnaire Sample

1. **Factors affecting operational efficiency**

2. **Service quality rating scale (1-5)**

3. **Suggestions for customer service improvements**

4. **Satisfaction with on-time performance**

5. **Initiatives for employee training and development**

D: Graphical Analysis by SPSS

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1. **Operational Costs vs. Flight Delays**: Correlation graph

2. **Customer Satisfaction Levels**: Pie chart

3. **Revenue vs. Expenses (2000-2018)**: Line graph

E: Financial Data Summary (2000-2018)

- Annual operating revenue and expenses

- Net profit trends

F: Literature Review Sources

1. Lin, (2012)

2. Selase, (2018)

3. Berry & Jia, (2010)

4. Saleem et al., (2017)

5. Baloch et al., (2017)

6. Ahmad & Khan, (2011)

7. Ahmed, (2017)

8. Park & Zhang, (2000)

G: Research Tools and Software

- **SPSS**: Statistical analysis

- **Transcription Software**: For interview text conversion

H: Budget Breakdown

1. **Researcher Fees**: $2000

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2. **Travel Expenses**: $500

3. **Transcription Costs**: $300

4. **Data Analysis Software**: $400

5. **Miscellaneous Expenses**: $300

- **Total**: $3500

I: Research Timeline

- **Phase 1: Literature Review and Design**: Jan - Feb 2024

- **Phase 2: Data Collection**: Mar - Apr 2024

- **Phase 3: Data Analysis and Report Writing**: May 2024

J: References

- **ResearchGate**: SERVQUAL Model assessment

- **Scribd**: Literature Review on PIA

- **UK Essays**: Strategic Analysis of PIA

- **Cambridge University Press**: Airline economics journals

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