Implementation of program: Human resources and administration department: Pakistan International Airlines is a huge company with over 18,

000 employees. A human resources and administration department is working but it is needed to be work efficiently and according to the standards. If it would have been working properly then there would not been 525 ratio of employees per plane. Jobs must be designed by this department. Each and every position must be clearly defined. From the chairman to a sales agent and even further down everyone must be clear about his responsibilities. He should be held responsible for his job. International standards for recruitment must be adopted. Right number of persons must be appointed for a specific job. Proper advertisements for each and every job must be done. So that as many talented candidates can come in front. PIAs manpower should be combination of youth and experience. Both the age groups shall be included in order to gain profitability. Rewards and incentives must be attached with the performance. Similarly there should be a check if an employee is not fulfilling his or her responsibilities. Job security must be done so that employees feel secure within the organization and remain loyal and committed to it, work for its benefits. Employee participation in the decision making must be enhanced. For the top level management such as chairman or managing director people having aviation industry experience must be hired. There should be no political or government influence during recruitment or selection. Merit must be considered at first. Management issues: There should be no compromise on discipline. Discipline should be the key factor for the organization. Policies must be clearly defined. Goals and objectives should be determined for the organization as a whole and individually as well. Management must assure that each and every person is committed to his job and the organization is going towards the achievement of its targets. Management should ensure the punctuality of flight, in flights services and their standard must be world class. Safety and maintenance issues for the planes must be strongly checked. Managements

Perspective should be to increase the profitability and ensure the good image of Pakistan. Security and safety of cargo must be ensured. It must be managements responsibility to ensure services to the passengers both in plane and at airport as well. The management must talk to the government on rou rationalization. Only those routes must be held which are profiting or which can provide profits in the future. The management needs to bring all the available resources in use and bring the modern facilities, softwares and information to the organization or at least report the need to top level decision makers. Management should be done by objectives, both short term and long terms. Short term objectives to increase the profit and market share by reducing the costs and expenses. Long term objectives must be image building, providing state or the art equipment and fleet to the organization and creating corporate culture and value in the organization. Marketing department: Pakistan International Airlines marketing department has two divisions. It is Passengers division and cargo division. Passenger sales division must be held responsible to boost sales by introducing different types of packages. It must also have the responsibility for handling customer queries and complaints. Effective campaigning of the special interests tourists packages for Pakistan to increase the travel to Pakistan must be done. Soft and brighter image of Pakistan and PIA must be enhanced. Cargo division must be responsible for supplying both perishable and non-perishable Goods in the global market place. The major objectives of this division should be: To develop Strategic alliances with other carriers so as to increase the capacity on the high yield sectors. Annually enhancing the cargo reservation services, terminal services and warehousing services at domestic and international stations to be competitive other carriers in the industry. Revisions of cargo fares and offerings on annual basis to optimize the full potential Of cargo space on all the sectors Marketing planning should be done in such a way: It must gather effective information regarding marketing and sales activities of various airlines. Must Adopt and access the emerging softwares / programs which are needed to remain competitive in the industry.

 Annual assignment of realistic sales targets must be given to each sales area Effective evaluation of the sales targets on monthly basis must be done to take corrective measures for fulfillment of the sales targets. The organization must provide a lot of activities in-flight to ensure that thepassengers are entertained during their journey. These activities include movies,music, and in-flight duty free shops. The pricing objective of PIA should be to maximize profits. It is considered anairline which charges high prices as compared to its competitors. So it must provideservices to the passengers comparable to its price. Prices and services must be settledin accordance with the industry. PIA being huge organization must use a lot of promotional methods to persuadepeople to use its services. These must include advertising (newspaper, internet),through its own magazine, personal selling, sales promotion, and public relations. Advertising is an impersonal form of communication which should be used by PIA in many ways, such as TV ads, print ads. PIA can also use internet for its promotion. The passengers must provide online booking facility, online checking facility and up to date flight schedule. PIA is treated much of an ethnic airline rather than being a commercial airline. Itsimage must be advertised and portrayed in such a way so that every group andsegment of passengers can travel on it. How to cope with rising fuel prices: Most of the world airlines are having a great problem in handling rising fuel prices inthe international market. PIA is already in a financial crunch and such situation wherethere is a price rise every day faces a difficult situation. PIA can adopt the policy ofhedging like many other airlines which are going in profit. It can borrow money frombanks with the help of government (as having full support of the government) andhedge the fuel for certain periods. Another way to cope rising fuel prices is to insure the fuel or to sign future contract with jet fuel providing companies such as Shell. 20
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Causes of loss to PIA By maintaining the fleet in a good condition with the passage of time can also save

the fuel to great deal. Modernization of fleet: A big reason for the decrease of market share and profits is due to the aged fleet ofPakistan International Airlines. PIA is competing with the rich and wealthy airlinecompanies from the Middle East. Average age of PIAs fleet is 13 now with theinduction of 4 new planes, while its competitors have average age fleet between 7-8years. PIA must modernize its fleet. At the moment it has 43 planes out of which only33 are operating while rest of them are not in operating condition. PIA mustmodernize and expand it fleet number to 55 in the coming two years. Fuel efficientplanes must be bought. It will not only enhance the brighter image but also will bringgreat financial benefits by reducing maintenance cost and fuel consumption. Themodern fleet will be well equipped with all the modern facilities. Explore more market: India can be a great market for Pakistan international Airlines. It is a huge market andneeded to increase its flight to India. Similarly the frequency of flights can be raisedto profit making routes. According to IATA average annual growth in passengers willbe 5.8% for Asia pacific and 6.8% for Middle East from 2007-2011. PIA can takeadvantage of this situation and by providing greater services it can get more market share.
Training and development department: Training and development must function properly. It must prepare the employees forthe upcoming challenges and threats in the industry. Both the airlines staff and otheremployees of the organization must be well equipped with the latest techniques andskils used in the airline industry. Engineering department plays a vital role in thisregard. A lot of money can be saved if engineers and technicians are well equipped.No need to go abroad for maintenance and over hauling of the planes. Accountability: There should be proper check and balance in the organization. Everyone should be held responsible for its responsibilities. There should be proper audit of each and 21