A research study submitted in partial fulfillment of the requirement for the degree of Master of Business Administration.

The airline industry has faced a wave of recession from mid 1980s until the end of 1993. Now the industry has shown signs of recovery. Pakistan International Airlines was established in 1954 and its regular services were started from may 10, 1954. Even though four decades have been passed by the PIA but the momentum of the growth is still very slow. On the other hand Air France is trying to save itself from the collapse with the help of government subsidy 20 billion French francs. Positioning strategy is becoming very crucial for the profitability and the growth of the geographic routes. This research study recommends a qualitative business strategy analysis. In addition it points out the directions for future changes required in the airline industry in order to response more effectively too rapidly changing global trends. The case study is focused on Pakistan International Airline and Air France. Selection of these two airlines were made because both are state owned and located in Europe-Asia route. The study leads to a fundamental question in the airline's future as its ability to delineate a strategic and feasible positioning at the Karachi-Paris route. A comprehensive in-depth interview techniques with management of PIA and Air France were used. It has identified external and internal analysis, which helped in comparison of positioning strategies between PIA and Air France and putting forward the strategic alternatives for positioning with respect to services, pricing, promotions and distribution.

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1995