PIA: Leading Change Management

PIA: Leading Change ManagementAhmed Ali, Hassan Sial, Hooria Adnan, Shermeen WasifMBA-II (B)

History of PIA

Domestic Market Share5International Market SharePorters Five Forces ModelALLPPT.com _ Free Powerpoint Templates, Diagrams and ChartsISSUESPolitical PressuresDebt (Rs. 55 billion in 2007)Changing MDs and policiesPoor HR PoliciesALLPPT.com _ Free Powerpoint Templates, Diagrams and ChartsISSUESMoney LeakagesFinancial performance poor (Loss of 35.88 bil) RisingFuel PricesEmployees dissatisfiedIFE Score

1= Major Weakness, 2=Minor Weakness, 3=Minor Strength, 4=Major StrengthCAA Figures (2013-2014)

EFE Score

RecommendationsForm a New Board of DirectorsShould include expertsNo political background/connections/interferencesAppoint a New Managing DirectorEvaluate Performance of Senior Management

Appointment of a New Managing DirectorIndustry Expert ExperiencedNo Political Background/ConnectionsOversee Restructuring and Modernization of FleetPrivatizationThe Government should sell 49% of its share to private investorsWill raise capital and improve operational efficiencyGovernment will retain the overall ownership therefore the airline will remain a National CarrierModernize the FleetInduction of New Fuel Efficient Aircrafts keeping in view the demand/passenger load of different routesAt present PIA has a fleet of 40 aircrafts some of which are very old e.g. Airbus A310sPIA has to replace these aircrafts with newer ones

Fleet Requirement (Proposed)5 x ATR 72-500

10 x Airbus A320-200 or Boeing 737-900

5 x Airbus A330-200

10 x Boeing 777-200/300 ERCodesharingEffective way to expand destination network without buying additional aircraftsPIA should codeshare with airlines on low frequency/loss making routesWill help the airline cut costs and share revenue with the codesharing airline on a proportional basis. Thank You!