PROJECT OF PAKITAN INTERNATIONAL AIRLINES

INTRODUCTION AND HISTORY OF PAKISTAN INTERNATIONAL AIRLINES

The new airline was initially a pilot project, registered in Calcutta as Orient Airways Ltd., on 23rd October 1946. With Mr. A.M. Ispahani as the Chairman and Air vice Marshal O.K. Carter as the General Manager of the new air carrier, an operating license was obtained in May 1947 with Calcutta as the base. Four Douglas DC-3s had been purchased from Tempo of Texas in February 1947 and operations first started on 4 June 1947. The designated route was Calcutta-Akyab-Rangoon, which also happened to be the first post-war international operation to be flown by an airline registered in India. Within two months of Orient Airways' operational beginnings, Pakistan was born. The birth of a new nation generated one of the largest transfers of population in the history of Mankind. Orient Airways, along with the help of some BOAC aircraft which had been chartered by the Government of Pakistan, started relief operations and transportation of the population between Delhi and Karachi, the two capitals. Later, Orient Airways transferred its base to Pakistan and established the vital, link between Karachi and Dacca, the two capitals of the two wings of Pakistan. With a skeleton fleet of just two DC-3s, three crew and twelve mechanics, Orient Airways launched its scheduled operations in a fairy-tale fashion. The initial routes were Karachi-Lahore-Peshawar, Karachi-QuettaLahore and Karachi-Delhi Calcutta-Dacca. By the end of 1949, Orient Airways had acquired 10 DC-3s and 3 Convair 240s which it operated on these routes. In 1950, it had become increasingly apparent that additional capacity would have to be inducted in order to cater to the growing needs of the subcontinent. Orient Airways was a privately owned company, with limited capital and resources. It could not be expected to grow and expand on its own. It was then that the Government of Pakistan decided to form a state-owned airline and invited Orient Airways to merge with it. The outcome of the merger was the birth of a new airline,

Named Pakistan International Airlines (PIA) on 11 March, 1955. Apart from transport activities, Orient Airways had established the center of overhaul and maintenance facilities and acquired trained 1

PROJECT OF PAKITAN INTERNATIONAL AIRLINES pilots, engineers and technicians which proved a great asset for PIA during its teething phase. The year 1955 also marked the inauguration of the fledgling airline's first scheduled international service - to the glittering, glitzy capital city of U.K, London, via Cairo and Rome. At first, there was much criticism regarding this venture as the public could not comprehend or agree with the need to operate an international route when priority, in their opinion, should be given to other projects which were considered more vital, for the growth of a new and developing country. However, PIA's priority then as well as now, was to serve the Pakistani community at large. The need to provide transportation to the expatriates has remained one of the foremost priorities of the national airline. Moreover, with the provision of this service, PIA could and did earn substantial foreign exchange, which in turn it invested in the purchase of aircraft and spare parts. Fleet expansion was one of the airlines major requirements. In 1956, orders were placed for two Super constellation and five Viscounts which were to be delivered by 1959.PIA, at this junction, possessed a small fleet which comprised of Conveyors, Viscounts, Super Constellations and DC-3s. While Mr. M.A. Ispahani was the first Chairman of the new dynamic airline; it was the first Managing Director of PIA, Mr. Zafar-ulAhsan, who in his 4 year tenure got the ball rolling and set the shape of things to come. The PIA Head Office building at Karachi airport, which houses the entire major departments of the airline to date, was the brain-child of Mr. Zafar-ul- Ahsan. In fact, on his departure from the airline, the employees presented him with a silver replica of the building with the caption: "The House you built". In 1959, the Government of Pakistan appointed an Air Force Officer, Air Commodore Nur Khan (who later rose to the rank of Air vice Marshal) as the Managing Director of PIA. With him at the helm of affairs, PIA took such a turn around in a short span of 6 years, that the airline gained the stature and status of one of the frontline carriers of

the world. In aviation circles, this period has often been termed as the "golden years of PIA". Expansion, growth, development were the key-words that the new management was committed to. In March 1960, PIA launched its first jet service (Boeing 707) on the London-Karachi-Dacca, route which later proved to be most successful. This service enabled PIA to become the first Asian Airline to operate a jet aircraft. A train-blazer, this success set the trend for PIA. In 1961, the airline took on the awesome task of initiating a cross-Atlantic service from Karachi to New York. By this time, PIA had

PROJECT OF PAKITAN INTERNATIONAL AIRLINES placed orders for more new aircraft, which included Fokker F-27s, Boeing 720Bs and Sikorsky helicopters. Helicopter service in East Pakistan had gained momentum by 1962 and expanded to include Sylhet, Chittagong, Dacca, Comilla and Ishurdi. PIA's helicopter operations on a scheduled basis carried over 70,000 passengers during their first year. It was, at that time, regarded as equal to any other similar operation in the world. Unfortunately, due to two mishaps, the service was discontinued in 1966. In 1962, PIA attempted to set a new record and succeeded. On the London-Karachi sector, finding the upper winds forecast favorable, PIA set out to break the record for the fastest flight between London and Karachi. With representatives of FAI. (Federation Aeronautique International) on board to monitor the official timings, PIA completed the flight in 6 hours 43 min 51 sec, the fastest record which to this day remains unbroken. In 1964, PIA achieved another historic first, which to date is regarded as one of the milestones in the history of the airline. On 29th April 1964, with a Boeing 720B, PIA had the distinction of becoming the first airline from a non-communist country to fly into the Peoples Republic of China. The first service to China was from Karachi to Shanghai via Canton. In 1964-65, PIA expanded its fleet further with the addition of a fourth Boeing 720B and two Fokker F-27s. Things were happening, PIA was developing. People were moving ahead with their plans, goals, and ambitions for the national flag carrier.

A collective pride, joyous buoyancy seemed to pervade the PIA family. Riding high on the crest of success, PIA became a household name in Pakistan in the mid sixties. The war between India and Pakistan during 1965 served as a catalyst for PIA as the national airline had an additional role to perform. It played a major role in logistical support. PIA's Boeings, Super Constellations, and Viscounts operated special flights on behalf of the Armed Forces. The foresight of the Father of the Nation, Mr. Jinnah, that the air force would one day need a civil airline as a back-up had been evidenced. Later, in 1966, a system of feeder services linking eight new points in West Pakistan was introduced. By this time, the airline's Viscounts were proving inadequate due to the sizeable traffic growth and as such, had to be replaced by Tridents. The airline continued to grow, receiving two additional Fokker F-27s, two Boeing 707s and one Trident in the following year.

PROJECT OF PAKITAN INTERNATIONAL AIRLINES This was also the time that the airline saw a change in the top slot. A number of highpoints are relegated to this period. The most colorful, if not the most significant, happening for PIA was the introduction of a new air-hostesses' uniform designed by none other than the renowned French designer, Pierre Cardin. This, more than any other singular factor imprinted PIA's name on the international market. It took the aviation world by storm. It was an instant hit, both, at home and abroad. PIA's run for recording historic firsts was not yet over. Pakistan's first computer, an IBM1401, was installed by PIA in 1967.PIA's first Engine Overhaul Shop, located near the Head Office building, was also completed and commissioned around this time. The Ground Training School (GTS) now known as PIA Training Centre (PTC) was first conceived and developed sometime in 1961-62.Training was initially imparted, interestingly-enough, in the T-shaped building which has now become the PIA Dispensary in the vicinity of the Head Office. Besides the visible development and growth in traffic and revenues

in the sixties, PIA saw the advent of new destinations, new equipment, and new technology. A new Jet Hangar for Boeings with a supporting airframe overhaul shop was completed and commissioned in 1968. In 1970, PIA set up its own Flight Kitchen at Karachi, which caters even today to other carriers as well as to all PIA flights. Over the years, with the airline's expansion and increased capacity, the need for a second Flight Kitchen became imperative. PIA heralded the 90's decade by donning a bright new corporate identity. Old-timers may remember the flutter the earlier green and gold livery had created when it was first introduced in 1974. But, in keeping with the changing times, PIA came up with its smart sporty 90's look. The familiar PIA green was reinforced with moss green and pale blue stripes in the new corporate identity. The stripes, a universal symbol of sport, highlighted PIA's active participation and sponsorship of a diverse variety of national games. PIA players are in the forefront in Pakistan Cricket, Hockey, Squash, Football, Chess, Bridge, Polo and Table-Tennis teams. Nineties have also seen the expansion of PIA's massive Hajj and Umrah operations to

Pakistan's smaller cities besides the operations from the major cities of Islamabad, Peshawar, Lahore, Quetta and Karachi. At present, PIA operates to 70 destinations (38 international and 37 domestic) in countries spread over 4 continents of the globe. Impressive statistics for a comparatively young 4

PROJECT OF PAKITAN INTERNATIONAL AIRLINES airline. One could say that since its inception in 1955, PIA has indeed, come a long way. PIAs offices are all over the world.

INTERNATIONAL AIR TRANSPORT ASSOCIATION (IATA)

INTRODUCTION
IATA is an international regulatory body without inclusion of any government. In its modern form, the International Air Transport Association (IATA) developed from a conference in Havana in 1945 where scheduled airlines, operating international services and domiciled in states signatory to the Chicago convention were able to join as full or associate members. Airlines operating solely domestic services were allowed to join as associate members. Airlines not operating scheduled services at all were not allowed to join. It is a free association of willing participants, and the distinction between full and associate membership is that while all may enjoy the use of the many facilities that IATA can offer, only full members have voting rights in respect of IATA business. It is voluntary, non political and democratic in nature. Any company operating a scheduled air service, licensed by its government, which is eligible for ICAO membership, can become member of IATA. It takes over where the respective government has reached an agreement. Each airline, big or small has a single vote. All decisions by IATA are to be made by unanimous vote. An airline operating scheduled international services is an active member otherwise an associate member. In its role, it performs a very valuable function in coordinating technical standards and services, in its cooperative approach to technical problems, and in respect of its negotiations with Government on matters of common interest such as the scale of landing fees, etc. It has evolved a complex system whereby such documentation is freely accepted by participating carriers without the need for one to prepare its own documents for carriage on its own sectors. Through the IATA clearinghouse, which is analogous to be clearing bank, accounts between

PROJECT OF PAKITAN INTERNATIONAL AIRLINES participating airlines can be cleared thus eliminating a host of individual transactions between each and every airlines.Twice a year IATA holds a timetable meeting to enable all airlines and some key airports to integrate their schedules. This task, without such a forum, would be unthinkable.

MAJOR COMPETITORS OF THE ORGANIZATION

Nowadays in Pakistan airline industry is growing readily. New airlines are introduced, and the existing are strengthening their position in the market and expanding their network. PIA has two types of competitor in the domestic market as well as international market.

In domestic market
Air blue Aero Asia Shaheen airline

International market
Emirates airline Saudi airline British airways Singapore airline Air blue Cathay Pacific, Hong Kong Qantas Airways, Australia Malaysia Airlines, Malaysia Thai Airways, Thailand Qatar Airways, Qatar Asian Airlines, South Korea

PROJECT OF PAKITAN INTERNATIONAL AIRLINES

PIA's ACHIEVEMENTS AND DEVELOPEMENTS

The first Asian airline to operate a pure jet aircraft. The first non-communist airline to fly to the Peoples Republic of China, and to operate a service between Asia and Europe via Moscow. The first airline in Asia to induct the new technology Boeing 737-300 aircraft. An IBM 1401, the first computer in Pakistan, was installed in PIA. The first airline, to introduce a second route to Peoples Republic of China over the Karakoram ranges. The first airline in the world to operate scheduled helicopter services. The first airline in Asia to show in-flight movies on international routes.PIA set up Pakistans first planetarium at Karachi and later at Lahore .The first airline in South Asia to introduce auto-ticketing facility .The first airline in the world to fly to Tashkent, capital of the newly independent state of Uzbekistan .First Airline in the world to start Air Safari with Jet Aircraft.

ISSUE OF TERM FINANCE CERTIFICATES (TFCS)

As reported in the Annual Report 2002 the airline launched Term Finance Certificates (TFCs) for Rs. 15.14 billion in February 2003. The issue was the largest in the history of Pakistan financial market. Despite the size, the issue was over subscribed up to the extent of 40% showing confidence in the policies followed by the airline Management. The airline has utilized the money wised through TFCs to pay off bridge financing of Rs. 7.73 billion borrowed earlier. The airline has also liquidated its liabilities towards employees fund over due creditors amounting to Rs. 4.27 billion.

OBJECTIVES FORMULATION
As there is formal hierarchy and centralization decisions in the organizations, so the objectives are said by the top management and then implemented throughout the organization.

PROJECT OF PAKITAN INTERNATIONAL AIRLINES

GOAL SETTING
The top management set the clear defined goals, so that subordinates put their efforts to achieve these goals in the positive manner. As there are defined goals, so management put their best efforts to achieve these goals.

POLICIES
In PIA, the policies are made with the combinational of both govt. And top management.

CENTRALIZATION
As there is formalized organizational structure so the top management makes the decisions in the hierarchical manner. So there is concept of centralization of decisions in the organizations.

BOARD OF DIRECTORS
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PROJECT OF PAKITAN INTERNATIONAL AIRLINES Ch. Ahmed Mukhtar Minister for Defence and Chairman

Mr. Mueen Afzal

Syed Mohammad Fazal Agha

Malik Nazir Ahmed

Mr. Shahzad M. Husain

Mr. Mubashir Iftikhar

Mr. M. Hidayatulla Khan Khaishgi

Maj. Gen. Mir Haider Ali Khan Additional Secretary-I, Ministry of Defence

Mr. Javed Saifullah Khan

Mr. Farrakh Qayyum Secretary Finance

Mr. Farooq Rahmatullah Director General CAA

About PIA - Management

PROJECT OF PAKITAN INTERNATIONAL AIRLINES Managing Director Captain Mohammad Aijaz Haroon Director - Corporate Planning Mr. Shahnawaz Rehman Acting Director - Engineering and Maintenance Mr. M.Tariq Farooq Director - Finance & Chief Financial Officer Mr. Arif Majeed Director - Flight Operations Capt. Shuja Naqvi

Acting Director - Information Technology Mr Shahid Sarwar Director - Human Resource & Administration Mr. Hanif Pathan Director - Marketing Mr. Salah uddin Director - Precision Engineering Complex AVM Muhammad Kamal Alam Siddiqui Director - Procurement, Logistics and Co-ordination Mr. Imran Ahmed Khan

MAJOR DEPARTMENTS

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES Following Departments of PIA Marketing Sales and reservation Cargo Accounts Admin Communication and IT Security Stores
Engineering

HUMAN RESOURCE MANAGEMENT DEPARTMENT

HR STRENGTH
PERSONNEL 1. Captains / Co-Pilots / Cadet Pilots 2. Aircraft Engineers 3. Flight Engineers 4. Female Cabin Crew 5. Male Cabin Crew 6. Others Total Number of Employees JAN 543 605 93 1093 999 15,314 18,647 01, 2009

Functions of HRM
Org. Development Hiring Policies Implementation 11

PROJECT OF PAKITAN INTERNATIONAL AIRLINES How employees are working Files and Documents arrangement

TRAINING & DEVELOPMENT Training Policy

The competent authority may at any time require an employee to under go such training/courses with in Pakistan or out side Pakistan at the expense of the corporation, as it may deem necessary in the interest of the corporation. The selected employee is requiring executing a surety bond to serve the corporation on return from training for a prescribed period of time. The departmental heads should determine the training requirements of their respective departments and make necessary provision in budget estimates .Competent Authority for approving duration of training abroad for employees shall be as follow: A- Area/Station head at foreign stations within their respective territories: Up to 15days. B- Directors: up to 30days. C- Deputy Managing Directors: up to 60days D- Managing Directors: Above 60days

RECRUITMENT POLICY
Recruitment policy of PIA is as follows: Recruitment will be on merit and no other consideration would be applicable A person who is dismissed from some other employer will not be eligible for employment Age limit is not below 18 and not above 40 For appointment a medical fitness certificate is an essential requirement Age limit for air hostess is 18-30

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES Employee needs to submit a police clearance report regarding his character with the rest of employment forms.

JOB SPECIFICATIONS
1. General Manager Manpower planning/manager staff planning shall develop job specifications for each post in consultation with the department concerned. 2. Job specifications shall not be tailored to suit individuals. Job specifications shall have wider alternates so as to provide a fair opportunity to internal candidates holding equivalent/comparable qualifications to apply, and selection board to have a wider choice of selection. 3. Where only one candidate has applied against internal advertisement, the post shall be externally advertised and decision taken on the basis of combined merit list.

PASSAGE
Rebated passage to an employee may be granted by the competent authority at its discretion. It shall not be claimed by an employee as a matter of right. An employee and his family will be entitled to such rebated passage as approved by the board, from time to time. Passage authority forms for issuance a ticket will be signed/ cleared by the respective admin managers and an authorized officer after approval of the competent authority has been obtained. Concerned admin managers / officers are authorized to cancel tickets unutilized due to reasons specified in righting subject to surrounding of tickets. Set of sublo tickets each set shall not exceed four round trip tickets. Availed By any for eligible member of the family for unmarried employees set will be treated as ticket. Passages shall be available on the basis of entitlement year from 1st march to the last day of the February.

PROMOTION
Promotion policy Promotion shall be on the basis of merit and corporations recruitment, against available approved permanent posts/vacancies only, in accordance with requite qualifications or specifications, as the competent authority may prescribe from time to time. 13

PROJECT OF PAKITAN INTERNATIONAL AIRLINES Merit shall be determined by the management whose decisions shall be final and binding. No employee shall have a vested right to be promoted to a particular post, grade or PG by virtue of seniority or possession of certain prescribed minimum qualifications or specifications. Promotion of pilots, flight engineers and air craft engineers shall be governed by their respective agreements. Those cleared as stand by will be eligible for promotion in the current year but in case they dont get the promotion in the current year they will be available to him with other eligible candidates in case of vacancy.

INTRODUCTION OF COMMUNICATION & IT DEPARTMENT

IT department is one of those departments that is considered to be the backbone of the whole organization. IT department in PIA RWP Station is not only responsible for maintaining network among different stations but it deals with different operations like Telephone Billing, E-ticketing ,managing Inventory and the whole Communication structure. Following are the Subsections that work under IT department. Data Communication. Telephone Exchange.

NETWORK SUBSECTION
Network subsection is responsible for maintaining and executing network throughout 24 Hours. The most complex task over here is the Network Infrastructure Planning & Maintaince. For it alternate routes are chose. These alternate routes are very necessary to avoid uncertain situations. In case if one system get down other alternative should be in a position to maintain network They serves as a backup lines to keep continuing the network & to route the traffic. For it multiple alternatives are available like:

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES

TELEPHONE EXCHANGE SECTION

This subsection is responsible for carrying out the following operations: It is responsible for the installment of Telephone lines for every employee. Along with the installment, the major maintenance of telephone lines is done by telephone exchange section

Telephone Exchange subsection monitors direct numbers given to the PIAs employees They make check and balance over employees if they are misusing telephone facility. For it Bills are monitored regularly. And all billing is done by telephone exchange. They are responsible to send report to Head offices about the Billings.

DATA COMMUNICATION SECTION

The data communication section as named suggests provide the communication between the station and the Karachi Head Office. They use the CISCO routers and switchers to communicate, because when the data packets are received, it is not possible to recognize that which packet is for which area or station. So in such cases CISCO Routers are the one who identify the packet and send it to the required place. Cisco routers provide high availability, comprehensive security, integrated wireless, ease of management, and advanced quality of service for todays most demanding network services. In Data Communication section the request is transmit in a proper process. Either the request is for internet site of some other application or the request is for other purpose. Firstly when the request is made the request would pass through PCM (Prime control modulation) then it passes through MDF (master Distribution Frame), then NMS and then to router, where the router would attach a header file with the packet, in which the address of location etc would be mentioned. So in such a way a request generated from a computer would pass through different switches and reached to router. For example, if a Google site request is made, from that computer it would be shifted to 15

PROJECT OF PAKITAN INTERNATIONAL AIRLINES Switches , they would attach their header then it moves to router and then sent to Karachi.

ROSTER SOFTWARE PROJECT

Roster software is meant for Employee Duty scheduling system. Its purpose is to automate the duty scheduling which was working manually. It is developed in such a way that it automatically manages SL (sick leave), CL (Casual leave), and PL (Privilege leave) & assign duty in case if any employee suddenly take a leave. Along with it, it not only serves & manages PIA Rawalpindi Station but also manages and keeps database of employees of Islamabad Airport station.

TOOLS USED
MICROSOFT SQL SERVER. VISUAL BASIC 6.0

MANAGEMENT FUNCTIONS IN PIA

PLANNING
In PIA most of the times planning is done at the top management and little autonomy is given to the lower level employees to do so. Top management, which includes the chairman and board of directors and functional heads, takes the strategic decisions on which future strategies are formulated and plans are developed. Here, the policies are said by Govt. With the help of top management. The decision-making power for some operational matters has been delegated to the management. But they have weakness in incorporating complex activities which require extensive professionalism, sophisticated coordination and decentralization of decision power. Here the decision making is not so quick as well as its implementation. The planning is said to be in the hands of the seniors. As there is formal hierarchy the objectives are set by the top management and government. According to one executive, the see business as deal making and opportunism.

ORGANIZING
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PROJECT OF PAKITAN INTERNATIONAL AIRLINES According to managers, organization is very much organized as both individual and group tasks are assigned here in PIA. The jobs are assigned in such a way that every one is asked to organize and work around his own duty and work. Here the culture of Mutual work has been developed. Here all the departments are organized in a hormonal way which ends in a synergic effect for the whole organization. All the functional things are very much organized and disciplined is maintained here.

LEADING
The PIA's leader consults their subordinate on proposed action and decision and encourages participation from them. This thing is very much prominent on departmental level and also on regional level i.e. the D.M. (District Manager) very much active in leading the people. Some important characteristics of the managers/leaders in PIA are: Consult employees about important decisions. Have harmony among its members (management/labor). Have employees who are well informed about decisions. Are responsive to employees needs. Make decisions after bargaining/negotiating among managers of different units. Try to motivate the employees by satisfying them with monetary benefits and with other fringe benefits like recognition, friendly environment, appreciation letters, problem solution with consultancy etc.

CONTROLLING
In PIA, the controlling function is performed by the seniors who are up in the hierarchy level. They keep the records of all the things. For sales and marketing department they have targets to be achieved by the sales force. Then they

Continuously keep the check on it. They take the feedback from employees. They have the employee's performance appraisal system thought which they come to know About the areas which are needed to be developed. They also take corrective and preventive actions where they are required.

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES

PERSONNEL MANAGEMENT
PIA has stressed the principle of understanding counterparts for every success, advocating the importance of understanding the characteristics of subordinate, task and situations in management. They too have a comprehensive system of personnel Examination and selection .The emphasis is on multi-level screening, competitive selection. The personnel examination system became more complicated, incorporating three aspects of assessment: Ability Morality Performance

TEAM MANAGEMENT
Another principal used in management is the team approach, including group decision making, group reward, group responsibility and team management. The team work in PIA has been especially effective in the field of quality management, and where the collective efforts is needed to get something like sales and marketing, ticketing and customer handling. Good interpersonal relationships within teams are emphasized as crucial to a successful management. Another important feature of PIA is that Linking individual interests with group and organizational interests has been greatly encouraged to facilitate higher organizational commitment and effectiveness. Loyalty is further encouraged via the provision by organizations of housing, medical care, childrens daycare and services for retired employees.

TECHNOLOGY MANGEMENT
Innovation and the new technology development is a strong characteristic of PIA culture as they are automating their workings like ticketing, reservation system, kitchen, and all of its operations. A new management information systems are now being operated in PIA. They view skills or expertise, system link or networking and participation as three facets of an interface hierarchy among people, the computer system and an organization, interaction among which influences the effectiveness of technological innovations.

DOMESTIC COURIER (SPEEDEX)

SPEEDEX
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PROJECT OF PAKITAN INTERNATIONAL AIRLINES PIA newly introduce the courier product speedex, its operations is on the limited network but day by day its network is expanding all the time and divided the network into five zones which are shown below.

Features
Speed Reliability Affordability

When in comes to delivering on a promise, speedex can be trusted for speed reliability and affordability. Speedex the new courier services from PIA, offers a range of services that extend form a document to charter load of shipment via 204 flights a week. We provide our customer with the most comprehensive one stop shop for their courier needs. Our wide range of services special same day service to over night services covering major destination in Pakistan. Same day speed Ensuring that your shipment reaches your doorstep within hours. Over night speed Our early morning delivery helps you receive important shipment on time. Second Day Speed A cost effective alternative when your packages do not need overnight delivery. At speedex we believe in fulfilling our customer courier needs thats why we provide comprehensive solution for the specific requirements of our customers.

AIRWAY BILL (AWB)

Airway bill can also be referred as Airline Airway Bill. Preprinted issuing carrier identification This is a non-negotiable document consisting of 9 to 14 parts. The conditions of contract are shown in the AWB. It must be used for each domestic and international cargo and interlink with two or more airlines. It must be issued at the time when shipper brings the consignment. When AWB is completed the original is kept as a record in the issuing office and a copy of it is issued.

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES

Payment
All the charges of airfreight shipment are payable by shipper or by the consignee. The charges can be prepaid or the payment can be made when the cargo is delivered.

Documentation
Documentation is necessary for each and every type of cargo. Without it the process of delivering it cannot be carried out.

SPECIAL CARGO
Special cargo describe those commodities which due to their nature or value require special attention. These may be perishable items, flammable items etc. For the acceptance of these one should confirm that whether facilities for such cargo are available or not. List of special cargo is listed below: Live animals Perishables Oversized cargo Valuables Company cargo

MARKETING DEPARTMENT
The organization has a number of objectives and goals set for it by the Board of Directors or Owners and these develop into an overall company strategy. The Marketing team apply this to the marketing activities and develop marketing strategies. The success of any organization depends on its marketing system and selling process. To sell the product i.e. air in space and to facilitate its customers, PIA city office Multan has well established sales department which is performing following functions. Facilitates the Reservation process. Provides the services to the customers. Post flight analysis to avoid under flight or fictitious booking.

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES Helps in foreign currency earning.

The marketing department is the main department which undertakes the Sales promotion Reservation Cargo Award Plus PTA

SALES PROMOTION
Sales promotion is the department which promotes the sales of PIA. It is the section of the marketing department. First there was monopoly in the domestic market but now as the competition exists so there is a need of promoting its sales. The sales promotion helps in increasing the sales of PIA. It is the only section which works for this purpose. It is related to the other departments. The earning cannot be done without the help of the other departments. The main purpose of the sales promotion department is to meet the given sales target. The sales target is set by the head office which is located in Karachi.

PIA AWARDS + PLUS

PIA Award + Plus is an exclusive programmed for customers, who frequently travel with PIA. It allows members to earn points for traveling with PIA based on distance traveled, class of service purchased and membership tier status. These points can then be exchanged for free tickets, excess baggage vouchers, cabin upgrades and many other exciting rewards.

Membership Privileges
PIA Award + Plus Program offers the following three membership tiers based on point accumulation/ segments traveled: EMERALD TIER SAPPHIRE TIER DAIMOND TIER

EMERALD TIER

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES Emerald tier is a basic level for all new members offering the following benefits: 500 bonus points upon enrollment. 10% bonus points for traveling in Economy plus Class. 25% bonus points for traveling in Club Class.

SAPPHIRE TIER
Members acquire our sapphire tier upon accumulation of at least 30,000 points or 25 segments in a calendar year. In addition to Emerald Tier privileges, Sapphire status offers the following benefits: 25% bonus points for traveling on any PIA segment. Check-in at Business Class Counters. 50% extra free baggage allowance.

DIAMOND TIER
Members acquire Diamond Tier status upon accumulation of at least 70,000 points or 50 segments in a calendar year. In addition to Emerald Tier privileges, Diamond status offers the following benefits: 50% bonus points for traveling on any PIA segment. 100% extra free baggage allowance. Check-in at Business Class Counters. Access to all Business Class airport lounges, regardless of class of service traveled. Kerb-side check in facility at airports ,where available.

KEY FEATURES
The Awards Plus program has the following key features. Enrollment via mail, fax, e-mail or Website. 500 bonus points for new members. Accounts updated within 72 hours. Points flight date. Members must be 12 years or older. 22 expire on 31st December every three years from

PROJECT OF PAKITAN INTERNATIONAL AIRLINES Statements with travel activity & points accrual real time on Web Site.

accessible

Points purchase facility to top-up awards shortfall.

AGENTS
PIA gets 90% of its business through its travel agents. So we can say that most of the work is done by the travel agents. Maximum traffic is achieved through them. The sales improve through the travel agents. It is essential for the agents to get license and recognition from the ministry of tourism. It makes sure that the agents have Technical staff Good offices Registered body Bank guarantee Location

There are different types of agents that are

IATA agents
These agents are approved by IATA. For this purpose, they have to fulfill certain details from IATA regarding location, staff qualification, financial position, sales productivity %. Its bank guarantee is according to the share of the particular airline. etc. These approved agents can sell the tickets of all IATA member airlines. For PIA its commission is 9

GSA
General sales agent, it works for every airline. Sohail travels. The GSA gets 12% commission. These are the main contributors. There bank guarantee should be 6 million. It is nominated by the airline it self.

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES

PSA
These are the agents that sell only for PIA they get 9% commission. Its bank guarantee should be 2million.

DSA
These are the domestic sales agents. They sell on the basis of the location. There bank guarantee should be 0.5 million.

Non IATA agents

These only have got license, these are not directly related with PIA but with its tourism department. The tickets are issued to each of the agent on the basis of its bank guarantee. The main functions of the sales promotion department is To coordinate with the agents. The sales promotion officers duty is to coordinate with the agents. Help them and solve their problems. Problems faced by the agents The problems which the agents face are related to the System Fares Seats availability System communication Special fare

SPOs (sales promotion officers) the SPOs pick problems from the agents and convey it to the management. The problems are discussed in the meetings. The district manager takes it up to the head office in Karachi and wait for the response. Every thing depends on the managements policy.

RESERVATION
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PROJECT OF PAKITAN INTERNATIONAL AIRLINES Reservation means to reserve the seat on any particular route. PIA has world wide computer system for Reservation i.e. CRC at head office, Karachi, which is connected with other station through TNT lines . Data channels are in the form of microwaves, so Modems are used for the purpose of data transmission. Being an International Airline, PIA sells tickets for Domestic as well as International travel. Procedure for the reservation is same but only difference is, PIA links it with other airlines and pays them obligations as required.

FUNCTION
The reservations function is to provide information related to all flights of PIA. It gives the following information Schedule of the flights of the particular routes Seats availability Fares The main function of the reservation department is to reserve the tickets for the people on there request. First of all the schedule of a particular route is checked the computer displays the schedule for 3 days and then the availability of the seats is checked for both the classes that are Business class Economy plus class Economy class

Economy class is further classified as Y T Class for International Passengers Class for domestic passengers

Then if the seats are available for that particular route the request is given for required number of seats and reservation is made. Then a computer number is given to the person that computer number is known as the PNR which stands for Person Name Request or record. This number is entered for the purpose of ticket issuance and record keeping. This PNR number is usually in alphabets. Its a 6 digit number. The REPAK system used to give the computer number both in numeric and alphabets so there used to be confusion among the letter I and O with 1 and 0 so thats why now only alphabets are used.

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES Similarly if there is no seat available then a computer number for chance is given. Certain other jobs are also performed by this department for example if a passenger wishes to change his route when he is coming back from somewhere then this gives rise to certain problems. To solve it rebooking is done.

TICKETING
After reservation, there comes the stage of ticket issuance. There are two ways to issue tickets. Manual Ticketing Auto Ticketing

Auto Ticketing saves time and avoids complaints from customer and it is to check sale for the purpose of verification of reserved seats to avoid seat blockage. When there is manual ticketing, the PNR is entered afterwards for record keeping and to check sale.

E-TICKETING
PIA has taken up E-ticketing as a project designed to achieve web based ticketing so as to propel its ticketing capability to keep pace with competition. Beyond own ticket offices, this is aimed to enable PIA agents on Global Distribution System to avail this facility. Booking is done through call enter, where PNR (Passenger, Name, Record is given. PNR is then put in queue. Payment is at the time of delivery in cash or through credit cadre-ticket is an electronic passenger ticket thats why passenger no longer retain flight coupons for their trips. All the information thats printed on a paper ticket is stored as an electronic record on computer database, so E-ticket is secure, hassle-free, and easy to use.

CARGO
Cargo means, transfer of baggage without passenger, under airway bill (AWB). This department is doing a lot for the organization. This is also a part of marketing department, which also constitute ticketing and cargo department. It deals with domestic as well as international cargo. PIA transfers cargo only to the city where operating airport is situated. PIA does not deal in motor transport transfer of baggage. Cargo rules are also like other IATA airlines. PIA is uplifting around 30,000 tons cargo per year including dry and perishables ex-Pakistan.

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Commodity

PROJECT OF PAKITAN INTERNATIONAL AIRLINES Percentage of Total Uplift 48% 29% 12% 25% 10% 3% 21% 52%

Dry cargo . . . . . . Garments/Textile Carpets Finished Leather/Leather products Surgical Sports goods General cargo Perishable cargo. . . . . . . .

PIA has specialized in uplift of special cargo like Relief goods, live animals (sheep, cows, camels, horses) shipments for cargo aircraft only etc.

INTERNATIONAL CARGO
Globally, for passenger-based carriers, cargo is a subsidiary or branch of the mainstream airline activity at PIA, which can boast of a rapidly expanding passenger sector, the pace and growth of cargo as a revenue-generating sector is noteworthy. Besides earning valuable revenue for the airline, PIAs efficient cargo services provide a massive boost to the countrys wide spectrum of exports. International Cargo has wide range of their products and services in their product line. They offer their products from international parcel to international documents, perishable commodities such as (fresh fruits, vegetable, fresh flowers, sea foods) dry fruits, carpets, leather Products, garments, surgical instruments, heavy shipments and charter cargo.

PIA Cargo Network

Besides country wide domestic network, cargo is directly serving 40 international destinations round the globe, while rest of the world is being served through interline carriage beyond PK points. PIA's average cargo revenue is around US dollar 82 million per year, with system uplift of approx. 75,000 tons, on an average system wide yield of US dollar 1.10 per kilogram. PIAs network is spread over internationally defined freedoms as mentioned in the chart below. Freedom-wise performance average tons uplift per year PIA has divided its network in 09 different regions according to the geographical location of the stations. Out of total revenue, 49% is earned in Pak rupees, while 51% of the system revenue are being earned in foreign exchange. Region wise revenue/tonnage contribution to the system is as given below.

PIA Cargos Role in Pakistans exports

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES PIA has played an active role in Pakistans export and has pioneered the opening of certain markets around the globe for Pakistani commodities, particularly perishables (fresh fruits, vegetables, fresh Flowers, seafood). Inspire of open sky policy since 1992, as a result of which other carriers have been able to induct capacity at will, PIA cargo has retained its market share in the uplift of perishables. Annually PIA is uplifting 13,000 tons of perishables, out of which significant movement is the uplift of mangoes during June-September, which is approximately 5000 tones. PIA keeps a very close liaison with Exporters of Pakistan directly and through various associations, Chambers of Commerce and Export Promotion bureau. As a national carrier, we remain aware of our responsibility to assist exports and we continuously plan and formulate policies to ensure efficient flow of exports. We have also actively participated in various export exhibitions of Pakistani goods all over the world, by carrying exhibition goods on special terms.

DOMESTIC PRODUCTS
Domestic Products/routs are those Products, which are offered in the domestic market or within Pakistan. Now a days PIA offered their products /Routs in 35 cities which

DOMETIC CARGO
The transfer of shipment from one place to another within a country is called domestic Cargo. Domestic cargo operation over 45 Cities in the Pakistan. Domestic cargo has a wide range of depth and width in their products on parcel/ dack, to heavy shipment. PIA cargo is based on reciprocal process the Higher the weight the lesser the price.

FINANCE DEPARTMENT
All organizations, either big or small, need financial resources to operate efficiently. Finance department is responsible to provide these resources and to get the maximum benefit from them through efficient utilization. PIA being a huge organization has an efficient finance department.

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES Financial statements are prepared and presented for the external and internal users by many enterprises around the world. Although such financial statements appear similar from country to country, difference occur due to variety of social, economic and legal circumstances, which have led to the use of a variety of definitions of the elements of financial statements, i.e. assets, liability, equity, income and expenses. The major function of the finance department is the reporting of all the financial events of all departments. All the departments in the organization give their reports to the finance department and it makes and presents the final report for the decision making purpose. The financial statements are also used to make the decisions. In order to make the reports the recording of each and every transaction is required. The recording is done on the basis of the fortnightly documents which are given by the agents and all the other departments. The finance department gets all the documents and then compiles them in the form of a report. There are four sections in the finance department that deals in different reports. The manuals are developed for every section in which they record all sales and payments. Finance department handles four types of sales: Cash ticket sales Credit ticket sales Cash cargo sales Credit cargo sales

There are two major portions of the Finance Department Finance Department

Collection

Disbursement

COLLECTIONS
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PROJECT OF PAKITAN INTERNATIONAL AIRLINES Collections are of different types. Collections from PIAs counters Collections from Agents Collections from Cargo counter Collections from cargo agents Collections from excess baggage

DISBURSEMENT
Refunds of tickets Salaries Utilities bills Works Others.

AUTOMATION
The Finance section is totally computerized and linked with Head Office. The COSSAP is using through out the department.

REPORTING SYSTEM
There 11 types of reports maintained by the Finance Department and in evening the whole closing must be done in order to avoid errors. R1R2R3R4R5R6R7R8Passenger sales report on counter & Agents (SAR & ASR) Cargo sales report Cargo receipt on the behalf of the other station Miscellaneous collection except credit Credit receipt reports Refund to passengers Except cargo other collections on the behalf of other stations Invoicing 30

R9-

PROJECT OF PAKITAN INTERNATIONAL AIRLINES All sorts of collections/passenger/cargo/others

R10- Sales reports from agents/receivable generation R11- Cargo sales receivables from agents

CREDIT ALLOWANCE
The credit sales either for the tickets or for the cargo is also recorded into computer system and relevant reports are generated and the whole records of these sales are also maintained.

AUTOMATION
Till 1979 PIA was doing manual ticketing then with the passage of time and with the need some system was developed in Karachi with the collaboration of America. In 1982 REPAK system was introduced which was semi automatic. It stands for reservation Pakistan system. It was bought for 30 crores. REPAK was PIAs system it did not operate other flights. As the system was semiautomatic, there was a need of checking the flights manually from a flight guide. The REPAK was a good system but it was under utilized. Now a new system SABRE is used by PIA. Its head quartered is Tulsa in America which hosts 60 airlines. It was purchased in 2001, no one knows for how much. 37 cents are paid to the system for every flown segment.

FINANCIAL HIGHLIGHTS
PAKISTAN INTERNATIONAL AIRLINES BALANCE SHEET AS ON 31ST DECEMBER 2008
2008 NON CURRENT ASSETS Fixed Assets Property-plant and equipment Intangibles Long term investment Long term advances and other receivables Long term deposits and prepayments CURRENT ASSETS Stores and spares Trade debts 2007 (Rupees in thousand) 49,530,139 74,254 49,604,393 334,295 7,196,914 1,754,854 58,890,456 2,416,290 3,997,758 31

51,263,914 112,421 51,376,335 323,705 6,635,933 1,804,977 60,140,950 2,790,137 5,222,534

PROJECT OF PAKITAN INTERNATIONAL AIRLINES Advances 513,917 679,771 Trade deposits and prepayments 581,175 549,454 Accrued interest 39,708 36,063 Other receivables 481,449 612,447 Short term investment 363,855 440,446 Taxation-advance tax net of provision 149,087 214,990 Cash and bank balance 2,614,691 10,838,898 12,756,553 19,786,117 72,897,503 78,676,573 SHARE CAPITAL AND RESERVES Share capital 17,980,659 16,529,926 Reserves 4,280,712 4,280,712 Unrealized(loss)/gain on remeasurement of investment-net Accumulated Loss NON CURRENT LIABILITIES Long term finance under mark-up arrangements Term finance certificate Liabilities against assets subjects to finance lease Long term murabaha finance Long term deposits Deferred liabilities CURRENT LIABILITIES Trade and other payables Accrued interest/mark-up Short term borrowing Current portion of : Long term finance under mark-up arrangement Term finance certificate Liabilities against assets subject to finance lease Long term murabaha finance CONTIGENCIES AND COMMITMENTS 72,897,503 78,676,573 -15,107 -11,799,966 10,446,298 1,621,099 14,003,940 21,706,064 768,075 290,236 2,824,690 41,214,104 14,983,921 607,769 362,075 1,621,103 756,970 2,067,363 837,900 21,237,101 18,863 -7,388,309 13,441,192 2,431,659 14,760,910 23,724,678 1,600,608 328,155 3,399,282 46,245,292 13,654,457 540,570 1,621,110 378,635 1,960,217 835,100 18,990,089

Profit and Loss Account

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES

PAKISTAN INTERNATIONAL AIRLINES Profit and Loss Account

For the year ended December 31,2008 2008 Turnover-Net Cost of service Aircraft Fuel Others -26,462,721 -32,478,115 -58,940,836 Gross Profit Other Operating Income Marketing and distribution costs Administrative expenses (Loss)/profit from operations Finance cost Other provisions and adjustments- net (Loss)/profit before tax Taxation (Loss)/profit for the Year 5,133,634 1,241,669 -3,809,169 -4,325,576 -6,893,076 -1,759,442 -2,787,399 33,605 -2,753,794 -4,513,236 101,579 -4,411,657 -17,913,327 -31,141,447 -49,054,774 8,715,063 3,162,830 -2,965,342 -3,851,970 -3,654,482 5,060,581 -2,199,067 -2,024,211 -4,223,278 837,303 1,469,295 2,306,598 64,047,470 2007 (Rupees in thousand) 57,769,837

RATIO ANALYSIS
CURRENT RATIO
Current Ratio is obtained by dividing current assets by current liabilities. It shows a firms ability to cover its current liabilities with its current assets. = Current Assets Current Liabilities

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Year 2008

PROJECT OF PAKITAN INTERNATIONAL AIRLINES Calculations Current Ratio =12756553000 21237101000 0.60

2007

=1971629000 1899009000

1.04

ANALYSIS
Result of this ratio is that during the year the ratio is declining rapidly.PIA could face problem if the current ratio will decline. As decline of current ratio shows weakening of financial position of the organization.

ACID-TEST RATIO
Current assets less inventory divided by current liabilities. It shows a firms ability to meet its current liabilities with its most liquid (quick) assets. = Current Assets Inventory Current Liabilities Year 2008 2007 Calculations =1275655000-279013000 21237101000 =19786117000-2416290000 18990089000 0.914 Acid-Test Ratio 0.46

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES

ANALYSIS
Here, the same case with acid test ratio. Ratio is decreasing continuously. Result shows that more proportion if asset as inventory in current asset with comparison to other assets. So, it this decrease is really harmful for the company because if it goes on decreasing in future it would not be possible for the company to meet its liabilities and result will be bank corrupting of the company.

DEBT TO EQUITY RATIO

The debt-to-equity ratio is computed by simply dividing the total debts of the firms (including current liabilities) by its shareholders equity. = Total Debt Shareholder Equity Year 2008 2007 Calculations =43352137000 10446298000 =47312996000 13441192000 3.52 Debt to Equity Ratio 4.15

ANALYSIS
According to this ratio analysis. firms debt equity ratio started to grow with high rate. This is another indicator that company is facing hard time because its creditors are increasing, means increase in liabilities.

DEBT-TO-TOTAL ASSETS RATIO

Dividing a firms total debt by its total assets derives the debt-to-total assets ratio. Total debt Total assets Year 2007 Calculations =43352137000 72897503000 Debt-to-total assets Ratio 0.594

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2008

PROJECT OF PAKITAN INTERNATIONAL AIRLINES =47312996000 0.601 78676573000

ANALYSIS
Not so much satisfied it is not so much effecting, as the increase in this ratio shows that company is borrowing money from financial institutions and is getting weakened.

INTEREST CHARGES RATIO

Earning before interest and taxes divided by interest charges. It indicates a firms ability to cover interest charges. Earning before interest and taxes (EBIT) Interest expense Year 2008 Calculations =1759442000 2787399000 2007 =5060581000 2199067000 2.301 Interest Charges Ratio 0.63

ANALYSIS
PIAs ability to meet interest obligations are not improving, rather it has decreased to an extent which shows that, so it is becoming very crucial for the company to pay its outstanding debts. As we know that if interest charges ratio is 1.5 or less than that it becomes a big question that how company will pay its debt. This much decrease can make PIA bank corrupt in future.

GROSS PROFIT MARGIN

= Net Sales Cost of Goods Sold Net Sales OR = Gross Profit/loss Net Sales 36 100

PROJECT OF PAKITAN INTERNATIONAL AIRLINES Year 2008 Calculations =5133634000 64074470000 2007 =8715063000 57769837000 15.08% Gross Profit Margin 8.01%

ANALYSIS
PIAs Gross Profit margin is low as compared to year 2007. So, it shows that PIA has not improved rather it has gone so down from last year which is not so satisfying for this kind of organization. All this scenario shows that PIA is not using its resources efficiently to generate revenue.

NET PROFIT MARGIN

A more specific measure of the sales profitability is the net profit margin: =Net Profit(loss) after Taxes Net Sales Year Calculations Net Profit Margin

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2008 2007

PROJECT OF PAKITAN INTERNATIONAL AIRLINES =(4411657000) (6.88%) 64074470000 =2306598000 57769837000 3.99% or 4%

ANALYSIS
PIA profit margin is decreasing in negative so PIA is running in hard time. Investors can easily see the financial position of the company by analyzing its profit margin which has negative. So, the bad result out of it is that investors will not invest in PIA in future which can give more harder time to PIA in future.

RETURN ON EQUITY (ROE)

ROE compares net profit after taxes (minus preferred stock dividends, if any) to the equity that shareholders have invested in the firm: =Net Profit After Taxes Shareholders Equity Year 2008 Calculations =(4411657000) 10446298000 2007 = 2306598000 13441192000 17.16% Return On Equity (42.23%)

ANALYSIS
PIA return on equity is also in negative. Which shows that company is not utilizing its equity base in a good way .In resulting the return on investment to the investors is not zero even its gone in negative. It means that PIA is going completely in losses. The future of PIA is in danger. As investors will not invest their money in PIA rather they will withdraw their investments which will give PIA more tough time.

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES

SWOT ANALYSIS
STRENGTHS
Huge traffic Religious traffic Infrastructure Latest fleet Latest system (sabre system) Quick services Sound reputation 1. PIA got the ISO 9001:2000 certifications that is Quality Management System Standard as of 6 th March 2006 2. PIA has 91% punctually barrier .It is the unprecedented punctuality rate in its 52 years entire history. 3. Main strength is that it is a Governmental organization. 4. PIA is having highly qualified and skilled labor. 5. It has a legal authority to check and balance of the industries 6. PIA begins campaign to hire cabin crew from various international destinations to attract the foreign travelers. 7. PIA is the one of the best airlines of the world. 8. Due to IATA rules PIA offers direct flights so people prefer PIA to fly with. 9. Well-educated and trained employees with high level of skills. 10. The reservation network over the years by providing direct link to a multitude of international, as will as domestic travel agencies. 11. The worldwide access to reservation system has also increased by virtue of links with the major Global Distribution System. 12. Eighteen thousand employees that means a very large and well organized organization. 13. PIA provides good salary package to the employees and some extra facilities to get the employees loyalty. 14. Strong communication network is the main strength of PIA. 15. Continuous updates the computer systems and latest technology.

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES 16. Modern computerized facilities are provided at all the Haji Camp. 17. PIA has a very good training system. PIA introduced Computer Based Training facility. Over 40 airlines from Asia, Africa and Europe have used these facilities for training of their pilots and engineers. 18. High quality control standards are maintained and inventory control, Menu planning MIS are implementing through computers. 19. PIA provides the life insurance for the employees and passenger as well.

WEAKNESSES
Centralization Low promotional activity 1. Low salaries 2. Lack of motivation 3. Inadequate manpower 4. Inadequate training 5. Attitude problem 6. Govt. interruption in the most of the PIA decisions. 7. PAI is in the loss from last two or three years due to improper planning. 8. The human resource department is not performing well in the organization. Selection process is not done on the merit due to which many competent persons cant get job in PIA. 9. Employees are in a less number, performing additional assigned work. They feel fatigue and cannot perform even their own work 10. Although PAI is provides good salary packages and facilities but still it could not get the employee loyalty. 11. Not all but some of the employees are not responsible.

12. Not all but some departments or the parts of departments are still using manual methods for the record keeping, which causes the time wasting and supplication. 13. Customers are not treated well as they should be at the PIA booking counters at the Lahore station.

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES

OPPORTUNITIES
1. Up gradation in the fleet 2. Expansion in the network 3. Innovation in the products 4. PIA can attain the five star quality service provider as it is three star. 5. By implementing the e-ticketing it can reduce the auto ticketing cost(that is approximately 10$). 6. Tour promotion is a small section and a few people are working honestly but it can enhance revenue by proper planning and taking it consideration. 7. Promoting it and advertising can increase the speed-ex sale.

THREATS
1. Rapid changes 2. Customer behavior 3. Competition 4. Governmental policies 5. Competition with the emirates, Saudi Airline and Golf. 6. It can lose regular customer due to not continuous improvement in competing the other airline.

SUGGESTIONS/RECOMMENDATIONS
PIA is a very large organization and working successfully but still there are some areas that should be given special attention. 1. No proper system to receive the customers when they enter in the town office Lahore at least there should a customer co-ordinator at the entrance to provide the information to the customers. They feel much problem to know where they have to go in large building.

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES 2. This is basically a service organization and in service organization your customer is your first priority, no doubt that during the flight customers are well treated and special care is taken but as for as I have observed customers are not well treated in the PIA counters (i.e. customers have to wait for there turn ranging from 10 minutes to 3hours). This is because shortage and irresponsibility or carelessness of employees. When customer is not happy how customer retention is possible. 3. Try to minimize the waiting time. 4. If possible some entertainment like play music etc at the waiting area of booking counters. 5. In the sale promotion the SPOS should not have fixed salary but there should be some extra benefits or commotions so that they should be motivated. There will be significant impact on sale. 6. For the domestic counter there should be another cash counter and, so that customer should not go to the international counter for ticket issuing and payment. 7. There are some conflicts between employees that should be resolved. 8. A proper work should be done and should make it a part of training as well. 9. There should be a proper check of monitoring the efficiency and performance of employees. 10. Bell curve is not a proper criteria to judge the performance of employees. So this criteria should be changed.

RECOMMENTIONS
PIA is and should be a profitable organization. We recommend following consideration for making it more profitable. Pea should increase its aircraft fleet and old aircraft should be replaced Should improve its reservation system 42

PROJECT OF PAKITAN INTERNATIONAL AIRLINES Should make measures to reduce its debts servicing. Fund and fuel management should be ruminated to incur reasonable cost. PIA needs to revision of certain policies pertaining to skilled and un skilled personnels.

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PROJECT OF PAKITAN INTERNATIONAL AIRLINES

REFERENCES AND SOURCES USE

Assistant manager corporate planning Passenger sales manager Sales promotion officers Cargo sales manager Finance manager Organization quarterly report Organization policy and planning department Organization annual report

BIBLIOGRAPHY
www.piac.com.pk www.iata.org

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