Pakistan International Airlines or PIA represents the proverb “In the land of the blind, the one-eyed man is king”. PIA grows in a controlled environment but shatters in the competition. It was born from a monopoly because the State of Bank of Pakistan protected the aviation industry from competition in the initial days. This wasn’t a bad thing because many countries protect their nascent industries from external competition to enable them to grow. Liberalization in the 1990s introduced airlines from the Gulf, which showed the true market position of PIA. The national carrier is currently on ventilator with losses and liabilities reaching to a point of no returning. PIA has an accumulated loss of $1.7 billion or Rs500 million, 2.14 billion debt or Rs600 billion, and $0.18 billion yearly loss or Rs50 billion (all figures in current USD exchange rate and taken from 2015-2025). PIA is a lethal combination of poor competitiveness, a politicized institution, elitist culture, and poor work ethics. This article will discuss the failure of PIA from a strategic management lens, showing that short-term gains override sustainable growth. Why PIA Failed? In-House Operations (Non-Core Activities) Organizations perform two types of activities: core and non-core. Strategic management literature……
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