Pakistan International Air Line by Wasif Rizvi

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION..................................................................................................
............5
1.1 THE AIRLINES INDUSTRY.........................................................................................................5
1.2 AIRLINE INDUSTRY IN PAKISTAN ..........................................................................................5
1.3 OVERVIEW OF PIA......................................................................................................................6
1.3.1 PIA Cargo...............................................................................................................................6
1.3.2 PIA Courier ...........................................................................................................................7
1.3.3 PIA Ground Service Handling ...............................................................................................7
1.3.4 PIA Training Center................................................................................................................7
Functions.....................................................................................................................................................
.....7
1.3.5 Precision Engineering Complex.............................................................................................8
1.4 DESIGN AND DEVELOPMENT OF JOBS..................................................................................8
1.5 CORPORATE ORGANIZATIONAL STRUCTURE.....................................................................9
1.6 VISION, MISSION & VALUE.....................................................................................................10
Vision .............................................................................................................................................10
Mission statement ..........................................................................................................................10
Values ............................................................................................................................................10
1.7 HONOURS OF PIA......................................................................................................................10
1.8 SALES PERFORMANCE............................................................................................................11
CHAPTER 2: SALES DEPARTMENT OF PIA......................................................................
............12
2.1 MANAGEMENT STRUCTURE DEVELOPMENT .................................................................12
2.2 DEPARTMENTAL PROFILE .....................................................................................................12
2.2.1 Passenger Sales (International Network) ............................................................................12
2.2.2 Passenger Sales (Domestic Network)...................................................................................13
2.2.3 Cargo.....................................................................................................................................13
2.2.4 International Affairs..............................................................................................................13
2.2.5 Group Tours & Charters.......................................................................................................14
2.3 SALES DEPARTMENT ORGANOGRAM.................................................................................15
2.4 JOB DESCRIPTION & RESPONSIBILITIES:.........................................................................16
2.4.1 SVP Sales ...........................................................................................................................16
2.5 DELEGATION OF AUTHORITIES AND RESPONSIBILITIES...............................................16
2.6 NATURE OF ORGANIZATION STRUCTURE..........................................................................16
2.7 FEATURE OF STRUCTURE CONFIGURATION ....................................................................16
2.8 LEVEL OF MANAGEMENT ....................................................................................................17
CHAPTER 3: PASSENGER SALES DIVISIONS ......................................................
........................18
3.1 PRODUCT MANAGEMENT .....................................................................................................18
3.2 PASSENGER SALES CORPORATE...........................................................................................19
3.2.1 Job description & Responsibilities.......................................................................................19
A. General Manager Passenger Sales (Domestic & Corporate)..................................................................19
B. Product Manager Corporate Sales............................................................................................................19
C. Assistant Product Manager-Corporate Sales............................................................................................19
D. Product Officer-Corporate Sales...................................................................................................
...........20
E. Deputy General Manager Passenger Sales (Domestic & Corporate).....................................................20
CHAPTER 4: TICKET OFFICE SYSTEM ........................................................................
.................21
4.1 ORGANIZATION CHART.......................................................................................................................21
4.2 JOB DESCRIPTION & RESPONSIBILITIES OF TOM....................................................................................21
4.3 OPERATIONS OF TOS.........................................................................................................................22
4.3.1 Complaints handling .........................................................................................................22
4.3.1.1 Handling Complaints link with Customer........................................................................................22
4.3.1.2 Handling Complaints linked with Stations.......................................................................................22
A. Flow chart of Handling Complaints...................................................................................................23
4.3.2 Monitoring Complaints .....................................................................................................23
4.3.2.1 Chart of Monitoring the Complaints................................................................................................24
4.3.3 Dealing with Intended...........................................................................................................24
4.3.3.1 How to Create Inended Customers...................................................................................................24
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a. Flow Chart of Intended Customer .....................................................................................................25
4.3.3.2 How to Recover Penalty..............................................................................................
.....................25
A. Flow Chart of Recovering Plenty:............................................................................................. .........26
4.3.4 Dealing with Ticket Offices...................................................................................................26
4.3.4.1 Monitoring the Shift Performance....................................................................................................26
4.3.4.2 Handling Incoming Customer.......................................................................................................
....26
4.3.4.3 Handling Prepaid Ticket Advice. (PTA)...........................................................................................27
4.3.4.4 Handling Re-routing / Change of Class Request.............................................................................27
4.3.4.5 Monitoring the Queue Timings of the Passengers at the District Office.........................................27
4.3.4.6 Monitoring the Staff Appearance...................................................................................................
...27
CHAPTER 5: TARIFF, IATA AFFAIRS AND AUDIT COMPLIANCE .........................................28
5.2 JOB DESCRIPTION & RESPONSIBILITIES...................................................................................................28
5.3 OPERATIONS .....................................................................................................................................29
5.3.1 How to set Tariff....................................................................................................................29
5.3.1.1 Flow Chart..............................................................................................................................
...........29
5.3.2 IATA Affairs .........................................................................................................................29
5.3.2.1 Flow Chart..............................................................................................................................
...........30
5.3.3 Meeting with IATA.................................................................................................................30
5.3.3.1 Flow Chart of ATAT Affairs .....................................................................................................
........31
CHAPTER 6: PASSENGER DIVISION COMPARISON..................................................................32
6.1 ABOUT THE COMPARISON ....................................................................................................32
6.2 COMPARISON .........................................................................................................................32
6.2.1 Product..................................................................................................................................32
6.2.2 2006 Award Winners.............................................................................................................32
6.2.3 Aircrafts ................................................................................................................................33
6.2.4 Services.................................................................................................................................34
6.2.4.1 Emirates’ Services.................................................................................................................
............34
6.2.4.2 PIA’s Services.............................................................................................................................
......35
6.2.5 Promotion.............................................................................................................................35
6.2.5.1 PIA .....................................................................................................................................
..............36
6.2.5.2 Emirates ..................................................................................................................................
..........36
6.2.6 Sales Promotion....................................................................................................................36
6.2.6.1 PIA Award +Plus.............................................................................................................. .................36
A. Benefits & features ............................................................................................................................. 36
6.2.6.2 Emirates Affinity Programs..............................................................................................................37
A. Skywards.............................................................................................................................
................37
B. Emirates Lounges....................................................................................................................... .........39
6.2.7 Price .....................................................................................................................................39
6.2.8 Financial Performance ........................................................................................................39
6.2.8.1 Emirates.............................................................................................................................................39
6.2.8.2 PIA...........................................................................................................................................
..........40
6.2.9 Market Shares ...................................................................................................................40
6.2.9.1 Market Shares Of Paksitan( 2005-06) .............................................................................................40
6.2.9.2Market Share of “Dubai-Mumbai” Airline Market...........................................................................41
CHAPTER 7: CARGO........................................................................................................................
.......42
7.1 PIA CARGO DIVISION...............................................................................................................42
7.2 OFFICIAL ORGANOGRAM OF PIA CARGO DIVISION ...........................................................43
7.3 EXISTING ORGANOGRAM ...................................................................................................43
7.4 ABOUT THE ORGANIZATION STRUCTURE.........................................................................44
7.4.1 Job Description & Responsibility Of GM Cargo ................................................................44
7.4.2 Function of GM Cargo..........................................................................................................44
CHAPTER 8: CARGO MARKETING & PLANNING SECTION ...................................................45
8.2 JOB DESCRIPTION & RESPONSIBILITIES ................................................................................................45
8.2.1 DGM Marketing & Planning ...............................................................................................45
8.2.2 Manager Marketing Planning ..............................................................................................46
8.2.3 Assistant Manager Cargo Marketing Planning....................................................................46
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8.3 OPERATIONS......................................................................................................................................46
8.3.1 Scheduling of freighters........................................................................................................46
8.3.1.1 Flow Chart for Scheduling .........................................................................................................
......47
8.3.2 Efficient Utilization of Space................................................................................................47
8.3.2.1 Flow Chart for Efficient Utilization of Space..................................................................................48
8.3.3 Handling One Shot Deals.....................................................................................................48
CHAPTER 9: CARGO SALES & STATION SUPPORT ...............................................................49
9.2 JOB DESCRIPTION & RESPONSIBILITY ..................................................................................................49
9.2.1 Manager Cargo Sales & Station Support ............................................................................49
9.2.2 Assistant Manager Cargo Sales............................................................................................49
9.2.3 Senior Cargo Sales Officer...................................................................................................49
9.3 OPERATIONS .....................................................................................................................................50
9.3.1 Setting cargo tariff................................................................................................................50
9.3.1.1 How is Cargo Tariff Calculated?......................................................................................................50
A. Flow Chart of Calculating the Cargo Fare.........................................................................................51
9.3.2 Post Mail ..............................................................................................................................51
9.3.3 Developing A Marketing Plan ..............................................................................................51
CHAPTER 10: CARGO OPERATION SECTION ....................................................................
..........52
10.1 ORGANIZATION CHART.....................................................................................................................52
10.2 JOB DESCRIPTION & RESPONSIBILITY ................................................................................................52
10.2.1 Manager Cargo Operation...............................................................................................52
10.2.1 Assistant Manager Cargo Operation..................................................................................52
10.3 FUNCTIONS.....................................................................................................................................53
10.3.1 SHIPMENT ........................................................................................................................53
10.3.1.1 Loading / Unloading: ....................................................................................................
................53
10.3.1.2 Protect from damage or loss...........................................................................................................53
10.3.1.3 Arrange Extra Service.......................................................................................................
..............54
10.3.2 Claim Handling...................................................................................................................54
10.3.2.1 Flow chart of Claim Handling: ......................................................................................................55
10.3.2.2 Processing Claim Case of Cargo Settlements ...............................................................................55
10.3.2.3 Responding to Customer Complaints.............................................................................................56
10.3.2.4 PIA Offers Compensation for Damage or Loss ...........................................................................56
CHAPTER 11: CARGO AUTOMATION SECTION, CARGO COMPLEX SECTION &
COMPARSION OF PIA CARGO......................................................................................
.57
11.1 CARGO AUTOMATION SECTION..........................................................................................57
11.1.2 Organization Chart.............................................................................................................57
11.1.3 Job Description & Responsibilities ....................................................................................57
11.1.3.1 Manager Cargo Automation.....................................................................................................
.......57
11.1.5 OPERATIONS.....................................................................................................................57
11.2 CARGO COMPLEX SECTION ................................................................................................57
11.2.1 Job Description & Responsibilities.....................................................................................58
11.2.1.1 DGM Cargo Complex.......................................................................................................
..............58
11.2.1.2 Manager Air Cargo Center...................................................................................................
...........58
11.2.1.3 Cargo Terminal Manager Export ...................................................................................................58
11.2.1.4 Cargo Terminal Manger (Import)...................................................................................................58
11.3 .2 Cargo Complex Devises: ...................................................................................................58
11.3 COMPARSION ANALYSIS ......................................................................................................59
11.3.1 PRODUCT..........................................................................................................................59
11.3.2 Awards:................................................................................................................................60
11.2.3 FEATURE OF EMIRATES SKYCARGO ............................................................................60
11.2.4 MARKET SHARES..............................................................................................................60
CHAPTER 12: INTERNATIONAL AFFAIRS DIVISION & THEIR
COMPARSION.........................................................................................................................................
...61
12.1 TERMINOLOGY........................................................................................................................61
12.2 ORGANIZATION CHART....................................................................................................................62
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12.3.1. GM International Affairs...................................................................................................62
12.3.2 DGM ..................................................................................................................................63
12.3.3 MANAGER..........................................................................................................................63
12.4 OPERATIONS............................................................................................................................63
12.4.1 Dealing for Air Service Agreements ...................................................................................63
12.4.1.1 Flow Chart for Dealing with Governments:...................................................................................64
12.4.2 Dealing for The Commercial Agreements .........................................................................64
12.4.2.1 Flow chart of Commercial Agreements..........................................................................................65
12.5 COMPARATIVE ANALYSIS.....................................................................................................65
12.5.1 Code sharing Agreements ...............................................................................................65
12.5.1.1 PIA..........................................................................................................................................
.........65
12.5.1.2 Emirates...........................................................................................................................................66
12.5.2.3 Qatar ...........................................................................................................................
....................66
CHAPTER 13: GROUP TOURS & CHARTER DIVISION .............................................................67
13.1 PIA HOLIDAY............................................................................................................................68
13.2 ORGANIZATION CHART.....................................................................................................................68
13.3.1 Product Manager ...............................................................................................................68
13.4 OPERATIONS ...........................................................................................................................69
13.4.1 Formulation of Tours..........................................................................................................69
13.4.1.1 Flow Chart for Formulate Tours:....................................................................................................70
13.4.2 Selling of Tours................................................................................................................
..................70
13.4.2.1 Flow Chart For Selling Tours:........................................................................................................71
13.4.3 Charter The Plane...............................................................................................................71
13.4.3.1 Flow chart of chatter the Plane:......................................................................................................72
13.4.4 Increasing the Outbound/In-bound Group Movement.......................................................72
13.4.5 Facilitating the Stations for the Holiday Packages............................................................73
CHAPTER 14: SWOT ANALYSIS.......................................................................................
...................74
14.1 STRENGTHS .............................................................................................................................74
14.1.1 Passenger Sales ..................................................................................................................74
14.1.2 Group Tours & Charters ....................................................................................................75
14.1.3 International Affairs ...........................................................................................................75
14.2 WEAKNESSES .........................................................................................................................75
14.2.1 Passenger Sales ..................................................................................................................76
14.2.2 PIA Cargo..........................................................................................................................77
14.2.3 International Affairs ........................................................................................................77
14.3 OPPORTUNITIES .....................................................................................................................77
14.3.1 Passenger Sales ..................................................................................................................77
14.4 THREATS ................................................................................................................................78
14.4.1 Passenger Sales ..................................................................................................................78
14.4.3 International Affairs ..........................................................................................................79
CHAPTER 15: CONCLUSION, SUGGESTIONS & COPYRIGHT................................................79
15.1 SUGGESTIONS.......................................................................................................................79
15.1.1 Passenger Sales ..................................................................................................................80
15.1.3 PIA Cargo...........................................................................................................................81
14.1.4 International Affairs ..........................................................................................................81
14.2 CONCLUSION...........................................................................................................................82
14.3 BIBLOGRAPHY........................................................................................................................83
14.4 COPYRIGHT .............................................................................................................................84
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Chapter 1: INTRODUCTION
1.1 THE AIRLINES INDUSTRY
Air travel remains a large and growing industry. It facilitates economic growth, world
trade, international investment and tourism and is therefore central to the globalization
taking place in many other industries.
In the past decade, air travel has grown by 7% per year. Travel for both business and
leisure purposes grew strongly worldwide. Scheduled airlines carried 1.5 billion
passengers last year.
Worldwide, IATA, International Air Transport Association, forecasts international air

travel to grow by an average 6.6% a year to the end of the decade and over 5% a year
from 2000 to 2010. These rates are similar to those of the past ten years. In Europe
and North America, where the air travel market is already highly developed, slower
growth of 4%-6% is expected. The most dynamic growth is centered on the
Asia/Pacific region, where fast-growing trade and investment are coupled with rising
domestic prosperity. Air travel for the region has been rising by up to 9% a year and is
forecast to continue to grow rapidly, although the Asian financial crisis in 1997 and
1998 will put the brakes on growth for a year or two. In terms of total passenger trips,
however, the main air travel markets of the future will continue to be in and between
Europe, North America and Asia.
Despite this, the airline industry has proceeded along the path towards globalization
and consolidation, characteristics associated with the normal development of many
other industries. It has done this through the establishment of alliances and
partnerships between airlines, linking their networks to expand access to their
customers. Hundreds of airlines have entered into alliances, ranging from marketing
agreements and code-shares to franchises and equity transfers.
The outlook for the air travel industry is one of strong growth. Forecasts suggest that
the number of passengers will double by 2010. For airlines, the future will hold many
challenges. Successful airlines will be those that continue to tackle their costs and
improve their products, thereby securing a strong presence in the key world aviation
markets.
1.2 AIRLINE INDUSTRY IN PAKISTAN
There are 36 operational airports. Karachi is Pakistan's main airport but significant
levels of both domestic and international cargo are also handled at Islamabad and
Lahore. Pakistan International Airlines (PIA), the public sector airline, though facing
the competition from a few private airlines, carries approximately 70 percent of
domestic passengers and almost equal domestic freight traffic.
The transportation sector accounts for about 10.5 percent of the country’s GDP and
27.4 percent of Gross Fixed Capital Formation (GFCF) in FY06. It provides over 6
percent of employment in the country and receives 12 to 16 percent of the annual
Federal Public Sector Development Program (PSDP). Government agencies dominate
the sector.
5
Airports 42
International 4
Bhoja, Hajvery, Safe and Raji, have wrapped up their operations years ago leaving the
market open to the remaining operators, the national flag carrier Pakistan International
Airlines (PIA) and private Shaheen Air International, Air Blue & Aero Asia.
All of these private airlines, besides PIA, are operating on international routes. The
Gulf sector is an important and lucrative sector for airlines due to the large ethnic
expatriates living in those countries. The European especially U.K and North
American destination are another profit making routes where apart from PIA, Air
Blue is also conducting its operations.
The second new airline AirBlue has conducted the operation on Karachi-Lahore-
Islamabad sector and is stage of capturing the domestic market by offering compatible
fare. AirBlue have offered discount on early booking and introduce the E-ticketing for
the first time in the history of Pakistan.
The major focus of AirBlue is on customer comfort, it have trained its employee in
foreign countries in line with providing the maximum customer satisfaction. The
airline’s management has claimed that they would provide in flight entertainment not
offered by other airlines.
Another land mark of AirBlue airline is innovative e-ticketing technology, through
web base technology customer can make reservation on-line 24 hours a days and 7
Days a week. The convenience of air travel reservation by new system will enhance
the customer satisfaction, and new innovative technologies would encourage other
operators to introduce similar technologies for its survival in the market.
Another private airline SafeAir is going to start its operation soon in Pakistan, the
company incorporated in Pakistan in 1999, but cancelled its operation soon, due to
unpaid taxes of CAA, later on some foreign group have invested in order to re
launched their operation
1.3 OVERVIEW OF PIA
Pakistan International Airlines Corporation, through its subsidiaries, provides

passenger, cargo and Group Tours air transport services. It also offers couriers,
engineering, baggage, charter, mail and telephone, and handling and related services.
In addition, the company operates as a promoter and investor in projects related to
construction, development, and operation of hotels, motels, and restaurants; and
manages an airport hotel at Karachi. It operates in the United States, Canada, Europe,
the Middle East, Africa, and Asia. The company was founded in 1946 and is
headquartered in Karachi.
1.3.1 PIA Cargo

PIA Cargo commenced operations in 1974, with flights to the USA, Europe, and
Hong Kong on the B-707 aircraft. PIA Cargo has the unique distinction of introducing
Pakistan's fruits to international markets and pioneered the exports of fresh fruits and
vegetables to global destinations. Operating as the air freight division of Pakistan's
national carrier, PIA Cargo has achieved rapid growth and reaches out to destinations
spanning the globe through its passenger scheduled flights and freighter services.
PIA Cargo earns valuable revenue for Pakistan International Airlines and provides a
massive boost to Pakistan's wide spectrum of exports. The aggressive growth of PIA
6
Cargo coupled with PIA's rapidly expanding passenger operations, empowers
customers with a range of cutting-edge cargo products and services. In addition to
offering cargo services, PIA Cargo also arranges charter flights to lift meat, livestock
and relief goods within and outside Pakistan.
1.3.2 PIA Courier

In the 1970s, Pakistan International Airlines pioneered the express delivery of
shipments across Pakistan. The Air Express service delivered documents and parcels
from one airport to another, ushering in the dawn of the courier industry in Pakistan.
In 2003, PIA expanded the scope of Air Express and launched a full-fledged courier
service, and PIA Speedex was born. Initially serving Karachi, Lahore, and Islamabad,
PIA Speedex grew rapidly and another 12 major cities were added to the network.
Today, PIA Speedex offers premium courier services in 70 cities across Pakistan, and
shipments are collected from and delivered to the doorsteps of our customers.
Capitalizing on PIA's cutting-edge information technology infrastructure, PIA
Speedex pioneered the online tracking and tracing of shipments in Pakistan, enabling
customers to track the status of their parcels at each transit point, until delivery. A
range of delivery options also catapulted PIA Speedex to the position of a credible
and reliable industry leader, giving customers flexibility and choice at highly
affordable rates.
PIA Speedex will soon branch out into the international marketplace, offering
customers a unique mix of speed, reliability, and affordability.
1.3.3 PIA Ground Service Handling
Ground handling at an airport is amongst the most complex and time-critical

processes in the aviation industry. Even moments of delay in a single activity can
cause major problems, leading to a substantial waste of resources and delays to the
entire system. Backed by decades of operational experience, PIA offers premium
ground handling services to customers.
PIA's ground handling services include:

1.3.4 PIA Training Center
We are leading Airline Training Institution. Join us to build your career in Airline
Industry. We offer Airline Training in all areas of the Airline Industry. We have one of
the most advanced Airline training infrastructures approved by local and international
regulatory authorities such as CAA, ICAO and IATA.
Functions
• To develop and conduct quality training as per the requirements of

user departments and regulatory authorities
• To maintain centralized training database of all PIA personnel for
organizing HR activity
7
• To maintain regular contact with vendors regarding new
functionalities, modifications and additions to update training
programmes and train the instructors
• To formulate criteria which will enable the training of PIA
personnel to achieve excellence in their respective fields/functions
• To conduct courses, workshops, seminars, workouts, conventions,
and to present papers so as to make PTC prominent in aviation
training, particularly in this region
1.3.5 Precision Engineering Complex
The Precision Engineering Complex (PEC) at PIA manufactures high precision parts
for the aerospace industry and a number of other industries.
The PEC is an integrated facility that houses major engineering disciplines under one
roof, including investment casting, conventional and CNC machining, Optics, PCB,
Electrical, Electronics and Composites. Multi-disciplinary teamwork enables
intelligent decision making and high quality output in all phases of product
development and manufacturing.
Across the globe, PEC products take to the skies every day. The PEC is a supplier to
USA and Europe and serves companies such as General Electric, Airbus Industries
and Boeing. Services run the gamut from simple machining jobs to complex shaping
using high precision CNC controlled equipment. The team is experienced in cutting
large varieties of basic and exotic materials including hard steels, aluminum alloys,
and the machining of a wide range of castings, forging and extrusions.
1.4 DESIGN AND DEVELOPMENT OF JOBS
The designing of jobs for an individual is highly complex task. Personnel are
appointed and posted according to the requirements of the concerned department.
Pakistan International Airline is well structured and matured public enterprise,
therefore, here jobs are assigned to the employee rather than to design the jobs for an
individual.
Initially jobs are specified with full description to an employee to undertake the
responsibility of particular work after his or her induction into the company, all of this
work is done by the concerned General Manager.
Because of innovations in technology or methods adopted by the company or

departmental requirements, jobs of an employee are developed accordingly.
Restructure organizational
8
1.5 CORPORATE ORGANIZATIONAL STRUCTURE
Chairman
SA to Chairman (1) SA to Chairman (E)
G.M. PA Secretary
DMD G.M. PA
(C) PIAC
Deputy Managing Deputy Managing

Director Director
SVP SVP SVP SVP SVP SVP SVP SVP

SVP
Corporate
SVP
HR &
Procurement, SVP Flight Flight
SVP
Information
SVP SVP
Quality Flight Safety
P.E.C Commercial Logistics &
Sales Engineering Finance FM & A
Planning Admin Coordination Services Operations Technology Assurance & HSE
G.M. Chief G.M. Proc- G.M. Pax G.M. G.M. Chief Pilot Chief Engr G.M. G.M.
G.M. G.M. Chief Pilot Chief Engr. G.M. G.M.
Fleet e-solution urement & Sales Inter- Pax Sales Flight Computer G.M. Flight
North Line Base Mai- Quality A-
Org. Dev. HRM Domestic Technical Accounting FM & A Safety
Planning officer Logistics National Services (ISB) Maintenance ntenance Services ssur &HSE
G.M.
G.M G.M. Chief G.M. Gr- G.M. Chief Pilot Chief Chief Engr. Chief G.M. Chief Engr. G.M.
SITE G.M. G.M. Cargo G.M. G.M.
Schedules & Recruitment & Medical oup Tou- Food Standards, Flight Avi- onics Engr.Pow- Marketing Qua- lity Health Saf-
Net/Planning Security Placement Sales O/H er Plant Comm. Revenue
Officer rs&chart: Services Inspection Engineer Planning Assur ety & Env.
G.M. G.M. Int- G.M. Pax Chief Pilot G.M. Chief Engr. Chief ngr. G.M. Net- G.M. Fun-
Principal G.M. G.M.
G.M. P.E.C FFP & ernational Handling Planning & Central Maintenance Developme ork & Sy- ds Manag-
PTC Welfare Planet aria Ops. Centre
Alliances Affair Services Scheduling Control nt Enginee: tem Suport ement
Executive Chief Chief Pilot Chief Engr Chief Engr

G.M. G.M. G.M. G.M. Engineering G.M.
Director Pilot Coordinat- Cabin
Speedex Projects Fuel Facilitation Bus. Budget
Airport Hotel Training ion Dev./MRO Maint.
D.G.M. G.M. Brand Chief Engr

Customer Mngmt Chief Engr. Chief Engr.
Ramp Projects
Services Training
Services
9
1.6 VISION, MISSION & VALUE
Vision
PIA to be a world class profitable airline exceeding customer expectations through

dedicated employee committed to excellence.
Mission statement
Employee teams would contribute towards making PIA a global airline-of-choice:
 Offering quality customer services and innovative products

 Participating in global alliances
 Using state-of-the-art technologies
 Ensuring cost-effective measures in procurement and operations
 Achieving adequate returns for all stake holders
 Being an equal opportunity employer
 Providing competitive compensation and a congenial work environment
 Adhering to business ethics and zero tolerance for corruption
 Linking remote regions of Pakistan
 Fulfilling our corporate Social Responsibility (CSR) in all fields.
Values
 Customer Expectations, Convenience, Caring, and Competitive Tariff
 Service, Personalized and Courteous
 Innovation, Cherishing New Ideas, Translated Into Action
 Cohesiveness, Respect for Individuals, Teamwork, and Effective
Communication
 Integrity, Business Ethics, Accountability, and Transparency
 Reliability, Loyalty and Consistency
 Safety, Passengers, Employees, Environment, and Health
1.7 HONOURS OF PIA
 The first Asian airline to operate a pure jet aircraft.

 The first non-communist airline to fly to the People’s 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 People’s 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 Pakistan’s 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.
10
1.8 SALES PERFORMANCE
Pakistan International Airlines has posted RS 5.6 billion losses during the first six
months, despite stable fuel prices. The airline had sustained a loss of Rs13.1 billion
during 2006, while the loss during last year’s first quarter was Rs3.08 billion. PIA
management for the first time has acknowledge that the losses continue to mount
despite the fact that fuel prices during this period remained below the 2006 level.
Previously, the management had been holding the high fuel prices as main reason
behind the losses and had even claimed that the airline could have posted a huge
profit without the increases in fuel cost The factors being attributed to the Rs3.95
billion losses are hike in salaries of employees, increased cost of leased aircraft and
higher maintenance cost of the fleet resulting in 19 per cent increase in operating
expenses. At the same time, 5pc growth in revenue because of 7.6 per cent increase in
passenger revenue was partially offset by 10 per cent reduction in cargo revenue. A
statement issued by PIA said that the airline’s board which met on Friday expressed
concern over the deteriorating financial situation.
11
Chapter 2: SALES DEPARTMENT OF PIA
2.1 MANAGEMENT STRUCTURE DEVELOPMENT
Pakistan's Ministry of Defense created Pakistan International Airlines (PIA) as a

government department in 1951. The government combined Orient with PIA on
October 1, 1953. PIA became a state corporation on March 11, 1955.
Mr. Tariq Kirmani, chairman and CEO. (2006), he recognized the need of change the
organization structure of market department therefore he divided the market
department in tow department one is sales and other is commercial department in
2006, management is perceive that to adequate the function of marketing and to
improve function of marketing.
2.2 DEPARTMENTAL PROFILE
Sales Department is headed by Senior Vice President (Sales) who is responsible for
all sales activities pertaining to passenger & cargo segments / products of the airline.
Following divisions report to SVP (Sales):
 Passenger Sales International Division
 Passenger Sales Domestic Division
 Group Tours & Charter
 Cargo Division
 International Affairs Division
Sales Department implements marketing plans and sales strategies geared to achieve
the corporation’s business objectives. To achieve these objectives, Sales Department
carries out sales activities pertaining to passengers, cargo, Group Tours & Charters
and new markets/products on a regular basis.
The aim of the Department is to optimize the available capacity through increased
Passenger / Group Tours & Charter and Cargo loads and effective yield management.
Sales objectives are established and strategies formulated to meet those objectives in
an effective and efficient manner. The department also provides effective support to
all domestic/International stations to meet revenue targets by providing the necessary
resources and support including convenient scheduling, flight frequency, competitive
fares, required capacity and advertising.
A brief overview of the different divisions within the department is as follows:
2.2.1 Passenger Sales (International Network)
Passenger Sales International Division carries out sales activities pertaining to

passengers by implementing marketing/sales strategies. It develops and implements
pricing strategies and sales incentive programs to capitalize on marketing
opportunities. Passenger revenue is the major contributor to the total revenue (around
85%) of the airline with the result that the function is divided into six key territories
i.e. Americas, UK, Europe, Gulf and Saudi Arabia, Pakistan, South Asia and Far East
12
& Australia. Product Manager Business Class looks after the Business Class product.
Each After by a Product Manager who is responsible for pricing strategy, productivity
incentive schemes (Travel Agents), trend analysis, sales performance, flight
monitoring, and product awareness. Product Managers also coordinate with the
scheduling section to effectively maximize aircraft utilization and to attain capacity
loads as per the required seat factor for the territory through scheduling section. They
are also responsible to provide convenient connections to their target market keeping
in view competitor’s services. The division is also responsible to finalize Special
Prorate Agreements (SPA) in coordination with International Affairs division.
2.2.2 Passenger Sales (Domestic Network)

Passenger Sales Domestic Division carries out sales activities pertaining to passengers
by implementing marketing/sales strategies. It develops and implements pricing
strategies and sales incentive programs to capitalize on marketing opportunities that
function is divided into six key territories i.e. Corporative Sales, Managing Ticket
offices system , Product Management Pakistan, Managing Districts Station and
managing staff ticketing. Supervise the preparation and analysis of the relevant
information / market intelligence for developing effective action plan for guidance in
achieving the domestic sales targets.
2.2.3 Cargo
Cargo Division is the only division in PIA that performs Sales and Services functions
under one head. It carries out activities pertaining to cargo business by implementing
marketing/sales strategies and developing and implementing pricing strategies and
sales incentive programs to capitalize the marketing opportunities. The division’s
main aim is to provide optimal freight services by establishing a market oriented
freight policy and arranging proper timetable coordination, terminal services and
capitalizing on market opportunities. The division strives for on time cargo delivery,
proper cargo storage, on-line/off-line tracking and efficient cargo handling to the
expectations of the customers. The division is equipped with professional staff
providing high quality services to customers. Cargo Divisions generates revenue from
a number of sources including freight (core business), post office mail, courier and
ground handling services that it renders to other airlines.
2.2.4 International Affairs
International Affairs Division is responsible for creating business opportunities for

mainstream marketing (sales & commercial) through commercial agreements
including code-share agreements and alliances with other airlines and coordinating
with regulatory authorities of Pakistan for concluding new air services agreements
and/or amendments to the existing air services agreements with the objective of
obtaining additional traffic rights where so required by PIA. This division is
responsible for concluding annual Hajj agreement with Saudi Arabian Airlines. The
Division liaises with regulatory authorities to protect the business interests of PIA
while negotiating Air Services Agreements with other states.
The division guides other divisions of sales department regarding availability of
traffic rights on various new sectors under consideration and ensures that PK flights
are not scheduled in violation of air services agreements. This division is responsible
13
for preparing proposals on National Aviation Policy. It monitors the implementation
of Air Services Agreements and Aviation policy by monitoring operation of foreign
carriers and other Pakistani carriers.
The International Affairs Division is responsible for coordinating and preparing
response to all letters/queries relating to Bi-lateral and Aviation Policy received from
Ministry of Defense, Ministry of Foreign Affairs, other Ministries and members of
senate/National and provincial assemblies and to provide all inputs that may be sought
by Civil Aviation Authority Pakistan and various ministries of Government of
Pakistan regarding air services agreements, traffic rights, and opening of new routes
etc. International Affairs Division coordinates with various domestic and International
bodies and represents PIA in different forums to ensure smooth working relationship.
2.2.5 Group Tours & Charters
Group Tours & Charter (GTC) has been created as a new strategic business unit
(SBU) in August 2005 with distinctive goals and smart targets. Headed by a General
Manager, it is entrusted with the challenging job to improve PIA’s market share,
enhance national image building and strengthen its revenue base. The GTC work
portfolio includes design and marketing of travel packages for inbound, outbound and
domestic tourism.
Almost all the leading exhibition events in the country are being sponsored by PIA
and are effectively being organized by GTC. In product designing GTC has to
coordinate with a diverse mix of stakeholders like hotels, tour operators, ground
transporters, civic bodies, Ministry of Tourism, event management companies, etc.
To work as a driving GTC product line is best contributing in enhancing national
image and destination selling. The width of product line encompasses vital market
segments like adventure, religious, sports, corporate sector, event management
companies, VFR, government organizations, commercial and business houses,
cultural groups, academia, wedding group etc.
14
SVP SALES
2.3 SALES DEPARTMENT ORGANOGRAM

Manager SVP Quality Assurance
Secretariat Manager
Human Resource Manager Training

Manager Sales & Development
General Manager General Manager General Manager General Manager

Marketing Services General Manager General Manager
Pax Sales Pax Sales Group Tours &
& Planning Cargo Sales Int’l Affairs
(International) (Domestic) Charters
Deputy General Deputy General

Deputy General Deputy General Deputy General
Manager IATA & Manager Pax sales Deputy General
Tariff Affairs Manager Domestic Manager Manager
Development Manager GTC
Cargo Automation Air Services
Agreements
Deputy General Deputy General Product Manager Deputy General Deputy General Product Manager
Manager Manager Marketing Pakistan Manager Manager GTC
Agency Affairs Intelligence Cargo Operation Commercial
Agreements
Manager Market Product Manager Product Manager Deputy General

Planning United Kingdom Corp. Sales Manager Deputy General
Manager Audit
Cargo Complex Manager
Compliance
Govt. Affairs
Product Manager Manager Product Manager
Europe Ticket Offices USA & Europe
(System) Cargo Market Planning
Product Manager
SAFEA District Manager Product Manager
Domestic stations ME, FE & Regional
Cargo Sales Support
Product Manager
Gulf & KSA
Product Manager
The Americas
Product Manager
Business Class
Product Manage
Competitive Analysis
Country Manager
Int’l Stations
GM PAX SALES INTL SVP SALES GM HR & ADMIN SVP HR & ADMIN DMD
15
2.4 JOB DESCRIPTION & RESPONSIBILITIES:
2.4.1 SVP Sales
 Advises the Chairman, CEO and DMD on the development of the corporate
plans and long-term strategy in coordination with corporate planning
particularly from a marketing/sales point of view.
 To ensure strict compliance (by own self and by the subordinate staff) with all
HSEQ standards and other legal or regulatory bodies requirements; applicable
to operational areas under their jurisdiction at all times during conduct of
normal operations.
 Direct the compilation of the annual revenue budget and marketing plan, for
both passenger and cargo, ensuring that specific plans for advertising,
promotion, sales service and fares take into account the constraints faced by
his own and other departments.
 Ensure that training needs are adequately met in the department.
2.5 DELEGATION OF AUTHORITIES AND RESPONSIBILITIES
The chairman PIA Corporation is entirely responsible for all the corporate activities of
company. Therefore to undertake this responsibility Chairman, being a Chief
Executive Officer of the company possesses authorities to make decisions, supervise
and control all corporate activities and to allocate resources.
Consequently to accomplish corporate goal and objectives the authorities have been
delegated downward to the SVP, Deputy Managing Director and Chief Financial
Officer who is responsible for whole division, General Manager who is responsible
for their section’s performance or assigned tasks.
2.6 NATURE OF ORGANIZATION STRUCTURE
Pakistan International Airline is public limited aviation marketing organization. Its

sales organizational structure is the Functional Organizational Structure, as the
Organization’s activities have been segmented into its functional areas of Product
Management, Ticket Office Management, International Affair, Group Tours and
Charters, Marketing Intelligence, International Stations, Corporative Sales, Domestic
Product, Cargo Sales and Staff Ticketing.
2.7 FEATURE OF STRUCTURE CONFIGURATION

1. It is decentralized organization setup because of authorities and power of
decision remains with the Top Management.
2. PIA is the public enterprise and highly formalized organization.
3. The Company’s structure has been designed according to functions, which is
simple and changeable.
4. Company is working in a large hierarchy of management from group-I to
group XI which comprises of three management level as depicted in figure
16
2.8 LEVEL OF MANAGEMENT
BOARD OF
MANAGEMENT
T
CHAIRMAN
O
P
DEPUTY
MANAGING
L DIRECTOR
E
V
E SVP
L
GENERAL
GROUP X
MANAGER
M DEPUTY GENERAL
I GROUP IX MANAGER
D
D
L
E
GROUP VIII MANAGER
L
E
V
E
ASISTANT
GROUP VII
L MANAGER
SENIOR
GROUP VI
L OFFICER
O
W
E GROUP V OFFICERS
R
L GROUP IV SUPERVISOR
E
V
E
III
OFFICE
L GROUP
ATTENDED
17
Chapter 3: PASSENGER SALES DIVISIONS
Passenger Sales Division carries out sales activities pertaining to passengers by

implementing marketing/sales strategies. It develops and implements pricing
strategies, monitoring / evaluation of sales promotion activities, maintenance of
service standard, co-ordination with stations to resolve their problems, extend full
support / guidance to the stations in achieving assigned passenger sales targets and
sales incentive programs to capitalize on marketing opportunities. Passenger revenue
is the major contributor to the total revenue (around 85%) of the airline with the result
that the function is divided into six key territories i.e. Americas, UK, Europe, Gulf
and Saudi Arabia, Pakistan, South Asia and Far East & Australia. Product Manager
Business Class looks after the Business Class product. Each territory is being looked
after by a Product Manager who is responsible for pricing strategy, productivity
incentive schemes (Travel Agents), trend analysis, sales performance, flight
monitoring, and product awareness. Product Managers also coordinate with the
scheduling section to effectively maximize aircraft utilization and to attain capacity
loads as per the required seat factor for the territory through scheduling section. They
are also responsible to provide convenient connections to their target market keeping
in view competitor’s services. The division is also responsible to finalize Special
Prorate Agreements (SPA) in coordination with International Affairs division.
Passenger Sales Division is headed by a General Managers and following sections
report to him:
 Product Management
 Passenger Sales Corporate
 Ticket Office System
 Tariffs, IATA Affairs & Audit Compliances
 District Sales Offices (Domestic)
3.1 PRODUCT MANAGEMENT
Product Management function is divided into six key territories and club class. I.e.
Americas, UK, Europe, Gulf and Saudi Arabia, Pakistan, South Asia and Far East &
Australia. Each territory is being looked after by a Product Manager who is
responsible for pricing strategy, productivity incentive schemes (Travel Agents), trend
analysis, sales performance, and flight monitoring and product awareness. Product
Managers also coordinate with the scheduling section to effectively maximize aircraft
utilization and to attain capacity loads as per the required seat factor for the territory
through scheduling section. They are also responsible to provide convenient
connections to their target market keeping in view competitors services. Product
Manager Competitive Analysis arranges SPAs in coordination with the International
Affairs division. Product Managers are also responsible for providing support to their
area District Managers in achieving their sales targets. They also liaise with Brand
Management for the supply of the required promotional material at their area district
offices.
18
3.2 PASSENGER SALES CORPORATE
Corporate Sales has been given the task to bring into the folds the maximum
Commercial Houses making them loyal customers and as result generate additional
revenues for the airline. It will formulate and execute strategies & tactical plans to tap
all micro markets for incremental revenues streams while sustaining the existing
revenue flow. Passenger Sales Domestic & Corporate Division capitalizes Travel
Agents & Corporate Houses potential using Relationship exercise and innovative
selling techniques/tools. New Channels like Electronic selling, Web selling, Loyalty
Programs, Alliances and Relationship Marketing shall be used to produce new lasting
revenue streams through selling all present and upcoming products. This division
shall provide utmost convenience, competitive packages and total travel solutions to
Corporate Houses, Domestic travelers & Ex Pakistan Travelers destined for out
stations in line with the 3Cs corporate concept.
3.2.1 Job description & Responsibilities
A. General Manager Passenger Sales (Domestic & Corporate)
 Open up and suggest ‘New Revenue Streams” for PIA by sustaining the
present flows and while producing incremental revenues by opening up new
and innovative channels.
 Suggest Management the new and innovative selling channels; adding value to
all products while controlling distribution cost.
 Analyze the market trends; evaluate activities of network wise over all
Passenger sales/ Corporate Sales teams in order to plan for continuous
increase PIA market share. Provide on the spot guidance in achieving
assigned targets to Passenger Sales Domestic & Corporate Division.
 Ensure working of Division based on Corporate Rules & Standards.
B. Product Manager Corporate Sales
 Acquire maximum share of corporate travel markets through activating and

assisting sales force.
 Secure new revenue streams through network wide innovative channel selling.
 Provide Market Feedback to Management on Corporate products and suggest
new products tuned to corporate travel needs.
 Execute and guide network wide Corporate Sales teams in order to achieve
PIA Corporate Sales Goals creating harmony among all team members.
 Create and capitalize on new revenue producing opportunities.
C. Assistant Product Manager-Corporate Sales

 Perform and Supervise subordinate teams’ Corporate Sales activities and
timely achievement of Corporate Sales Targets.
 Projecting PIA as Customer caring Airline
19
D. Product Officer-Corporate Sales
 Perform Corporate Sales management activities for timely achievement of

Corporate Sales Targets for effective selling of PIA products for Corporate
Clients.
 Projecting PIA as Customer caring Airline.
E. Deputy General Manager Passenger Sales (Domestic & Corporate)
 Advice G.M and guide all sections of division for opening ‘New Revenue
Streams” for PIA and ways to sustaining the present revenue flows.
 Suggest opening up new and innovative channels selling channels for
controlling distribution cost.
 Oversee the market trends; activities of domestic networks’ over all Passenger/
Corporate Sales teams in order to plan for continuous increase PIA market
share.
20
Chapter 4: TICKET OFFICE SYSTEM
Ticket offices system functions under the domain of Sales Department. The section
which is headed by a Manager and reports to the both GM international and domestic,
Ticket Office System encompasses/ monitors as well as takes corrective actions for
timely processing of the complaints from all over PIA network. The section has the
following hierarchy in terms of delivering the services.
The complaints are forwarded to customer services section by the passengers through
Email, Comment cards, PIA Web or Contact Center. These serially numbered
comment cards and complaints are collected as well as recorded in the Complaint
Management system (CMS) by Manager Customer Relations. These complaints are
then automatically forwarded to their concerned station(s) for their necessary actions.
The ticket office system office is responsible for the timely processing as well as
closing of the complaints from all over the PIA network.
Manager TOS is responsible to take corrective actions for all the functions linked with
PIA ticketing offices for ticket reservation services, SOPs, mishandled passengers,
staff training, inadmissible passengers, lost/stolen tickets,
staff grooming (RTOs, RTAs, & RTSs) etc.
4.1 Organization Chart
Manager Ticket
Office System
SRTO SRTO RTO AT P/M RTS RTA

Manager
SRTO: Senior Reservation Ticket Officer

RTO: Reservation Ticket Officer
P/M: Product/Marketing Manager
RTS: Reservation Ticket Supervisor
RTA: Reservation Ticket Assistant
AT: Assistant Typeset
4.2 Job description & Responsibilities of TOM

 To ensure prompt and courteous service to customers on the counters/ in all
areas of respective Booking Offices.
 To make spot checks and monitor ticket preparation and services extended to
customers.
21
 To effectively control and supervise functions of all officers/staff working
under him.
 To ensure proper handling of Revenue Documents and that sale proceeds
collected are properly deposited with the cashier. Ensure that each individual
receiving Revenue Documents prepares a Sales Report.
 To ensure that premises under him/her is kept neat and tidy and maintain
proper discipline in the office and that all officials maintain proper
uniforms/attire.
4.3 Operations of TOS
The Ticket Office System Section performs four major functions:

4.3.1 Complaints handling
4.3.1.1 Handling Complaints link with Customer
Step 1st: The process is start when Complains request comer from customer there are
Four sources form which customer complains comes.
1. CMS (Complains Management System): It is computer base system

which is PIAC website. Through that customer can claim 24 hours and
complains are automatically forwarded to the concerned station for their
necessary processing.
2. Comment Cards, which are placed in the aircrafts. Manager Customer
services, is responsible to collect the Comment cards as well as register
the same in the CMS.
3. Direct to the Chairman: VVIP Customer can direct claim to the
Chairman by Phone.
4. Clams also come through by Phone.
Step 2nd: Assessment of Complains: collect the data from different source regarding
com plain because make sure that clam is legal or bias.
Step 3rd: Take Action: If complain is legal then deal with customer and to take a
action on concern person responsible for complain. Try to satisfy customers
regarding complain and provide guaranty for next time
4.3.1.2 Handling Complaints linked with Stations
 All the complaints are forwarded to the customer services through Comment
Cards, which are placed in the aircrafts.
 Manager Customer services, is responsible to collect the Comment cards as
well as register the same in the CMS. (Complain Management System).
 Complains are then automatically forwarded to the concerned station for their
necessary processing.
22
 After investigation appropriate corrective/preventive measures are taken and
then same are entered into the CMS.
 The Manager Ticket Office (Systems) monitors all the stations’ complains in
order to ensure the timely resolution and ensuring that appropriate actions are
taken by all Stations.
 All complaints, which come through Chairman Office / concerned SVPs /
Quality Assurance Office, are process accordingly.
A. Flow chart of Handling Complaints
Request for Complain
If
Compla
NO
Leave it
in
related
Yes
Collect Information
Assess
The
Complain
No
If
Compla Close it
in is
Legal
Yes
Take Action
4.3.2 Monitoring Complaints

This section also regulate the complain, how many complaints are remaining why it is
don’t solve, the following procedure for monitoring complaints.
Step 1st: Search the pending complaints, look carefully how many complaints is
remain regarding Sales.
Step 2nd: Analyze responsible office which office is not solve the customer clams or
monitoring for don’t same clam again.
Step 3rd: If they repeat unwanted practice or don’t satisfy customer then take an
23
action and report to the Top Management.
4.3.2.1 Chart of Monitoring the Complaints
Search Pending
Complain
If any
complai
NO Close the
n in process
pending
Yes
Analyze
responsibl
e Office
Caution to Concern
Office
Yes
If they
Yes Close the
take
action Case
No
Take Action
4.3.3 Dealing with Intended
4.3.3.1 How to Create Inended Customers

Procedure: Basically that is problem occur due to mistake of Agent or sales office
they don’t get all documents of passenger therefore on the spot Airline pay plenty. The
following procedure for inended customers
Step 1st: Passenger travel from origin to destination.

Step 2nd: On Airport police can check the documents. If customer has uncompleted
documents then PIA office pay the plenty.
Step 3rd: Customer back to the origin.
24
a. Flow Chart of Intended Customer
Passenger Travel
From Orion
Arrival at
Destination
Assess the
Document
If Yes Enter the

Comple
te Country
No
PIA Ticket Office Pay
a plenty
Customer back to the

Origin
4.3.3.2 How to Recover Penalty
Procedure: Following Steps
Step 1st: At the starting of process aggressive complaints come from customer and
take complaints concern SRTO or RTO.
Step 2nd: After that SRTO or RTO collect information regarding claim
Step 3rd: Assess the who is responsible for claim if PIA Ticket Office is responsible
then
Take charge from responsible officer if not go to next step.
Step 4th: Negotiate with Agent for recovering plenty and collect.
25
A. Flow Chart of Recovering Plenty:
Receive Complain
Collect Information
Assess
how is
responsibl
If No
Agent PIA Pay
s
Yes
Report to
Agent/Persuade Agent
Get Rupees
4.3.4 Dealing with Ticket Offices
4.3.4.1 Monitoring the Shift Performance

Procedure
 Duty Officer is to monitor the staff performance through the frequent visits as
well as number of complains been raised against each and every employee.
 Duty Officer monitors the performance through the Quematic system by
analyzing the average time been spared with one customer.
 TOM is to monitor staffs’ performance by checking their training records.
4.3.4.2 Handling Incoming Customer

Procedure.
 Customer gets a Quematic ticket and wait for his turn.
 Upon his turn he interacts with the counter staff.
 Counter staff facilitates him up to the seat confirmation / ticketing for
international.
26
 Domestic counter staff handles the passenger completely up-to the ticket
handling.
 Domestic cash handling (E-ticketing) is handled by the counter staff. (He / she
should be furnished with enough petty cash to exercise the cash functions
properly.)
 The cashier looks after international cash and ticket handling.
4.3.4.3 Handling Prepaid Ticket Advice. (PTA)
Procedure
 Passenger asks for the rates / procedures for PTA.
 A PTA is to be sent to the respective office after the required payment.
 The station where the PTA is sent contacts the person to get a ticket against the
authority / PTA.
 Stations send a confirmation to the issuing office after a ticket has been
collected.
4.3.4.4 Handling Re-routing / Change of Class Request
Procedure
 Passenger requests for a re-routing/ change of class facility on his/her turn at
the booking/reservation counter.
 Dealing RTO will suggest re-routing or change of class of class to passenger
in case of non availability of seats or any other operational reason.
 The RTO (counter staff) will request a copy of the issued ticket and passport
from the passenger for processing the re-routing request / change of class.
 At acceptance, RTO processes re-routing / change of class.
 Passenger preferring refund will acquire the due refunds from concerned
Travel Agents / PIA booking offices.
4.3.4.5 Monitoring the Queue Timings of the Passengers at the District Office
Procedure
 Duty Officer is to monitor the waiting area of the customers.
 Duty Officer is to monitor the average customer handling time by reservation
staff.
 Duty Officer is to monitor the information counter that all the relevant
information is given to the passengers.
 TOM is to visit all the counters time-by-time in order to get acquaintance of
the workings of the counters.
4.3.4.6 Monitoring the Staff Appearance

Procedure
 TOM is to monitor the staff appearance / uniform where it is applicable to the
counter staff.
27
 In case if the staff is not provided with the new uniform, the TOM has to
contact with the Manager Uniform cell in coordination with the Manager
Ticket Offices (System).
 TOM has to make sure that all the staff follows the dress code.
Chapter 5: TARIFF, IATA AFFAIRS AND AUDIT COMPLIANCE
Tariff IATA affairs and audit compliance functions under the domain of Sales
Department. The section which is headed by a Manager and reports to the General
Manager Passengers Sales International division encompasses/ monitors as well as
takes corrective actions for timely processing of tariff matters / issues concerning
domestic and international transportation, represent PIA at various IATA meeting as
accredited delegate and handle audit compliance from all over PIA network.
Manager Tariff,
ITTA Affairs and
Audit Compliance
Office Manual
STO AO AO
Attended officer
STO: Senior Tariffs Officer

AO: Audit Officers
5.2 Job description & responsibilities
(1) Manager Tariff, ITTA Affairs and Audit Compliance

 Keep a constant watch on the activities and market fares structure of
international carriers operating ex-Pakistan to match their fares and
recommend revision in IATA fares to the management.
 Prepare various proposals regarding revisions in IATA fares and changes in
applicable rules and forward them to IATA for discussion/approval in various
IATA passenger Tariffs coordination conferences which take place regularly
in IATA offices at Geneva, Bangkok and Singapore.
 Circulate/ disseminate IATA fares increase/revisions and changes in
applicable rules to entire network of PIA through IATA tariff bulletins.
 Circulate domestic fare increases, changes in taxes/surcharge/levies and
Central Excise Duty (CED) to all domestic and international stations through
tariff bulletins.
 To determine Excess Baggage Charges (EBC) ex-Pakistan and their
circulation to entire network through bulletins.
28
5.3 Operations
Tariff, ITTA Affairs and Audit Compliance Section perform four major functions
 How to fixed Tariff
 IATA Affairs
 Audit Compliance
5.3.1 How to set Tariff
Basically there are tow type of fare one is IATA fare 2nd is Market fare so this section
deal with IATA fare.
Following Procedure for set IATA fare
Step 1st: Assessing the Environment: Fuel cost, Taxes and etc.
Step 2nd: If environment is change then collect information after that prepare the \
report for management.
Step 3rd: Take a approve from Top Management and recommended to IATA.
Step 4th: If CAA and IATA approve then they publish their books.
Step 5th: Circulation to all Domestic, International Station and all section of PIA
sales departments.
5.3.1.1 Flow Chart
Assess The
Environment
If
Environ
ment
No
Change The fair
If IATA
No
Approve
Approve
From Top
Manageme Yes
nt
Yes Publish their Books
Recommended to
IATA
Circulation to all
Networks
5.3.2 IATA Affairs

The Following steps involve into book dealing with IATA procedure:
Step 1st: Request from Top Management, top management suggest for increase or
decrease the books of IATA.
Step 2nd: Assessing the book need of PIA, according to need of stations and offices.
29
Step 3rd: If book increase or decrease the then prepare the report.
Step 4th: If Top management is approve then send to request IATA and if they don’t
approve then again go to 2nd step.
5.3.2.1 Flow Chart
Request form Top

Management
Analysis
the Book
Need
Increase or Decrease
Prepare the report
Top No
Managem
ent
Approv
Yes
Request To IATA
5.3.3 Meeting with IATA
Following step is involve in meeting with IATA

Step 1st: Request come from the IATA for meeting.
Step 2nd: Assess the important of conference for PIAC.
Step 3rd: If it is important for then prepare the report and send to Top Management
for approving.
Step 4th: If Top Management is approved then acknowledge to the IATA if not then
refused to IATA.
30
5.3.3.1 Flow Chart of ATAT Affairs
Request
From IATA
Analysis
the
request
If it is No
benefici Close the Process
al for
PIA
Acknowledge
to IATA Prepare the
Report
Delegating go to
Meeting
Yes Top No
Managem
ent
Refused to IATA
Approv
31
Chapter 6: PASSENGER DIVISION COMPARISON
6.1 ABOUT THE COMPARISON
This comparison is a comprehensive comparison of passenger sales division of PIA
sales department which include airplanes, offices destinations, ranking of airline, star
Ranking, when airline founded, 2006 awards, services, market shares, marketing
activities, sales promotion, cheaper airline in Pakistan and financial performance
comparison among PIA, Emirates, Qatar, Gulf Airline and Etihad.
6.2 COMPARISON
This part I compare four P’s with PIA Passenger.
6.2.1 Product
PIA is service oriented product so I compare service of PIA with Emirates, Etihad,
Qatar and Gulf Air and what kind of thing which makes service explants.
Airline Founded Star Airplanes Offices Destinations

Ranking
have order
PIA 1946 47 3 66
Emirates 1985 99 116 144 99
Etihad 2003 25 21 44 43
Qatar 1993 58 150 77
Gulf Airline 1950 29 50
 A 5 Star ranking recognizes highest standard of Product across the

different quality assessment categories, and consistently high standards
of Staff Service delivery in Onboard and Airport environments.
 A 4 Star ranking signifies airlines providing a good standard of Product

across all travel categories - and a good standard of Staff Service
delivery in Onboard and Airport environment.
 The 3 Star ranking signifies a "satisfactory" standard of core Product

across most travel categories - but reflects poor or less consistent
standards of Staff Service / Product quality in selected Onboard or
Airport features
6.2.2 2006 Award Winners

AWARD WINNER Major Airlines : Category
THAI AIRWAYS Cabin Staff Service Excellence
ANA Airport Service Excellence
32
AIR BERLIN Low-cost Airline Service Excellence
AEROFLOT Onboard Service Improvement
Excellence
GULF AIR Onboard Catering Excellence
QATAR AIRWAYS Inflight Service Consistency Excellence
CATHAY PACIFIC Airport Lounge Service Excellence
EMIRATES Inflight Entertainment Excellence
MALAYSIA AIRLINES Economy Class Onboard Service
Excellence
CHINA AIRLINES Business Class Onboard Service
Excellence
ASIANA AIRLINES First Class Service Onboard Excellence
AWARD WINNER Smaller Airlines : Category
BANGKOK AIRWAYS All-round Service Excellence for a
Regional airline
AIR TAHITI NUI Onboard Service Excellence for a Small
airline
KINGFISHER AIRLINES Service Excellence for a New airline
6.2.3 Aircrafts
PIA Emirates Etihad Qatar Gulf Air
Aircraft
Airbus 9(4 order) 6
29 13(10 orders)
A330-200
Airbus 9
8 1
A340-300
Airbus
10 4
A340-500
Airbus 4
0(18 orders) 1(7 orders)
A340-600
Airbus
0(55 orders) 0(4 orders)
A380-800
Airbus 8
A300-600R
Airbus 2(2 order)
A319CJ
Airbus 2
A319-100
Airbus 13(1 lease) 10
A320-200
Airbus 7( 5 lease)
A321-100
Airbus 350- 0(2 order)
800XWB
33
Airbus350- 0( 40 order)
900xwb
Airbus 350- 0(2 order)
1000XWB
Airbus 350 0(5 order)
A380-800
Airbus 14
A310-300
7
ATR 42-500
Boeing 777-
3
200
Boeing 777- 4
6
200ER
Boeing 777- 2 0( 6 order)
(10 orders)
200LR
Boeing 777-
12
300
Boeing 777- 2(1order) 5 0( 14 order)
31 (33 orders)
300ER
Boeing 767- 1 300
300ER
Boeing 737- 7
300
Boeing 747- 2
200
Boeing 747- 6
300
0(30 order)
Boeing 787
44(4order) 25(21orders) 57(113order) 29

Total 99 (116 orders)
6.2.4 Services
6.2.4.1 Emirates’ Services

 In November 2006 it was announced that Emirates had signed a deal
with mobile communications firm AeroMobile. This will allow
passengers on board Emirates flights to use their mobile phones to
call or text people on the ground.
 Emirates won the award for best in-flight entertainment in 2006 from
Skytrax, because of their ICE (information communication
entertainment) system, with the biggest selling point being over 500
channels of movies, television and music.
 Emirates has begun construction on its own luxury five star hotel
and towers. It is located next to Dnata headquarters on the Sheikh
Zayed Road
34
 In mid-2007, Emirates will feature docking capability for Apple
Inc.'s iPod portable music and video player. This will allow the
device's battery to be charged, but will also allow integration with
Emirates' in-flight entertainment (IFE) system. This will also enable
the IFE system to play music, television shows, or movies stored on
the iPod, as well as function as a control system.
 Emirates to Launch Services to Ahmedabad, DUBAI, U.A.E., 11th

July 2007 – Setting the stage yet again for increased co-operation
between the U.A.E. and India, Emirates Airline has announced its
plans to start non-stop services.
 Italian Authorities Back Venice Launch As Emirates’ Chairman

Leads Official Inaugural Flight, Dubai, UAE, 10th July 2007 – The
Italian authorities have voiced their strong support for Emirates' new
route into Venice, saying it presents a strategic opportunity to further
develop tourism
 Emirates is a 4 Star ranking airline, signifies airlines providing a

good standard of Product across all travel categories - and a good
standard of Staff Service delivery in Onboard and Airport
environment.
6.2.4.2 PIA’s Services

 PIA is the national flag carrier airline of Pakistan, based in Karachi.
It operates scheduled services to 46 destinations throughout Asia, the
Middle East, Europe and North America, as well as an extensive
domestic network linking 24 destinations
 PIA operates an extensive two-month (pre and post) Hajj operation

each year to and from Jeddah in Saudi Arabia. PIA transports 90,000
pilgrims each year from Karachi, Lahore, Islamabad, Peshawar,
Quetta, Faisalabad, Multan, Sukkur to the Kingdom of Saudi Arabia.
In 2000, PIA operated a total of 306 flights, in its pre-Hajj and post-
Hajj operations, which extended over a period of 26 days. A total of
88243 Hajjis (pilgrims) were transported from 12th Feb 2000 to 14th
April, 2000.
 PIA also operates flights from Pakistan to Jeddah and other

destination in Saudi Arabia during the Umrah season. In order to
deal with the demand the airline leases many different aircraft
including Boeing 747-200s, Airbus A300B2s and Boeing 737-400s.
 PIA is the 3 Star ranking airline, signifies a "satisfactory" standard

of core Product across most travel categories - but reflects poor or
less consistent standards of Staff Service / Product quality in selected
Onboard or Airport features.
6.2.5 Promotion
35
6.2.5.1 PIA
• Pakistan International Airlines (PIA) supports a first-class cricket team that

plays in the ABN AMRO Patron's Trophy in Pakistan.
• PIA is also sponsoring the Pakistani team for the A1 Grand Prix.
• PIA also promotes the Shandur Polo Gala, that takes place every year in the
Chitral and Gilgit regions of northern Pakistan during the summer period.[16]
• PIA is one of the official sponsers of the "Destination Pakistan 2007"

festivals.[17]
• PIA also supports non-profit organizations within Pakistan such as; Al-Shifa
Trust, Zindagi Trust, The Citizens Foundation and Sind Institute of Urology
and Transplantation (SIUT). [18]
6.2.5.2 Emirates
Emirates is a big global sponsor of sports clubs and events, both at its home base and
in the main overseas markets it serves. It also sponsors the annual "Dubai Shopping
Festival" and the "Dubai Summer Surprises Festival". As the airline lacks a "ready-
made" clientele in its almost non-existent home market, this type of corporate
sponsorship is its most effective marketing tool. Perhaps not surprisingly, for Emirates
marketing expenses account for a far greater share of its total costs than for most of its
competitors. In the English-speaking world the sponsorship always carries the words
"Fly Emirates". At present the company provides the following sponsorships:
6.2.6 Sales Promotion
6.2.6.1 PIA Award +Plus
PIA Award +Plus is the frequent flyer programme of Pakistan International Airlines.
The program allows passengers to get free tickets, excess baggage vouchers, cabin
upgrades, and a variety of exciting rewards and special deals. Awards +Plus offers
three tiers of membership to frequent flyers that include Emerald, Sapphire and
Diamond. The deal is the more often you fly PIA, the more A+ Miles you will
accumulate, bringing you a step closer to the next tier of membership. You can also
earn and redeem A+ miles not just by flying PIA, but also by using the products and
services of PIA's partners.
A. Benefits & features
 All Emerald, Sapphire, and Diamond Members can earn 25% bonus
A+ Miles if traveling Business Class and 10% bonus A+ Miles if
traveling Economy Plus Class. Passengers traveling in the upper
classes can benefit from faster accruals through bonus A+ Miles.
 As an A+ Member, you can now also earn A+ Miles on chartered

flights.
36
 A+ Emerald Benefits: As an Emerald Member, you are entitled to the
following benefits:
 500 bonus A+ Miles upon becoming an Awards +Plus Member

 10% bonus A+ Miles for traveling in Economy Plus Class
 25% bonus A+ Miles for traveling in Business Class
 Check-In at Awards +Plus counter where available
 A+ Sapphire Benefits, As a Sapphire Member, you will enjoy the

following value added benefits:
• 25% bonus A+ Miles on all PIA trips

• 10% bonus A+ Miles for travel in Economy Plus Class
• 25% bonus A+ Miles for travel in Business Class
• 10kg Extra baggage allowance in addition to entitlement as per ticket (not
applicable on journeys to/from US & Canada)
• Check-In at Awards +Plus counter (Business Class counter in the absence
of Awards +Plus counter)
 A+ Diamond Benefits, As a Diamond Member, you will enjoy
privileged status. You are entitled to the following special benefits:
 50% bonus A+ Miles on all PIA trips

 10% bonus A+ miles for travel in Economy Plus Class
 25% bonus A+ miles for travel in Business Class
 20kg Extra baggage allowance in addition to entitlement as per ticket
(not applicable on journeys to/from US & Canada)
 Check-In at Awards +Plus counter (Business Class counter in the
absence of Awards +Plus counter)
 Access to Business Class airport lounge except at Karachi Airport
where members shall have access to CAA's CIP lounge
 Kerb-side check-in facility for members without baggage in Pakistan
where available
 Access to fast track immigration counter at airports in Pakistan where
available.
6.2.6.2 Emirates Affinity Programs
A. Skywards
Skywards is an exclusive club for frequent flyers with Emirates and SriLankan
Airlines, designed to offer you benefits over and above what you would normally
expect, because we truly appreciate your loyalty. Each time you fly, whether for
business or pleasure, you accumulate Skywards Miles towards a variety of inspiring
rewards such as free travel, upgrades and other benefits with Emirates, Srilankan or
our partners. There are three tiers of membership - Skywards Blue, Skywards Silver
and Skywards Gold - each offering a greater degree of privilege, reward and
37
recognition.
1. Benefits & features
 Pre-Assigned Seating
To ensure as much comfort and enjoyment as possible during the journey,

passengers can specifically request any particular seat at the time of booking, in
any class of travel, subject to availability. And as a Skywards member, you are
able to record your preference for an aisle or window seat, and this will be
accommodated whenever possible.
• Specific seat request will be guaranteed up to 45 minutes before departure
for First Class passengers, up to 60 minutes for Business Class passengers
and up to 90 minutes for Economy Class passengers.
• For safety reasons, seats alongside the emergency exit can only be
assigned at the airport, and preference for bulkhead seats will be given to
passengers with infants.
 Dubai Visa Services

If you're flying with Emirates to Dubai and need a visa, simply call the Emirates
reservations office at least ten days before your flight and, for a small fee,
Emirates will happily arrange an electronic visa for you.
 Special meals
You can select from a list of over 20 meals designed to meat your dietary,
religious or medical requirements, when you book your flight or at least 24 hours
prior to departure*. You can record your meal preference as part of your profile.
 Chauffeur Drive Service

Fly First or Business Class with Emirates and take advantage of a complimentary
chauffeur service to and from any of the airports listed below:
Abu Dhabi Auckland Alexandria

Athens Christchurch Birmingham
Brisbane* Doha Dubai
Frankfurt Düsseldorf Hong Kong
Johannesburg Glasgow London Gatwick
London Heathrow Manchester Milan
Munich Malta Nice
Paris Melbourne* Rome
Singapore New York Vienna
Zurich Perth*
Sydney*
*Not applicable for group travel
 Fast Track
38
Exclusively for Business and First Class passengers traveling with Emirates, Fast
Track streamlines the immigration process for arrivals in Dubai. On Srilankan
flights, Business Class passengers will receive invitations in-flight for Fast Track
in Colombo airport. Simply look for the Fast Track signs as you approach
Passport Control.
 Stop-Over Services
If you're flying with Emirates via Dubai and your ticket permits a stop-over, you
can take advantage of preferential rates on hotels, car hire, golf packages and
tours.
 The benefits of Skywards Gold:
• Guaranteed seat reservations, even on fully-booked flights

• Personal travel assistance from our dedicated Gold Desk
• Complimentary E-gate access at Dubai International Airport
• Complimentary lounge access throughout the Emirates and SriLankan
network
• Premium Skywards Opening Doors benefits from our worldwide
partners
B. Emirates Lounges
First and Business class passengers, as well as Skywards Gold and Silver members,
have access to Emirates Lounges, located at several airports throughout the airline's
network. In addition to the Emirates Lounge, Emirates passengers are able to use the
Department of Civil Aviation's (DCA) First Class lounge in Dubai.
6.2.7 Price
List of Low Cost Airlines in Pakistan
 Aero Asia International
 Air Blue
 Shaheen Air
6.2.8 Financial Performance
6.2.8.1 Emirates
The airline has recorded a profit every year since its inception, except the second.
Growth has never fallen below 20% a year. In its first 11 years, it doubled in size
every 3.5 years, and has every four years since. The Emirates Group announced a net
39
profits of Dhs 2.8 billion (US$ 762 million) for the financial year ended 31 March
2006.
For 2004–05, Emirates paid an increased dividend of Dhs368 million to the

Government of Dubai, compared to Dh329 million the year before. In total, the
ownership received Dh1.1 billion from Emirates since dividends started being paid in
1999. Having provided an initial start-up capital of US$10m plus and an additional
investment of circa US$80m at the time of the airline's inception, [16] the Dubai
government is the sole owner of the company. However, it does not put any new
money into it, nor does it interfere with running the airline.
6.2.8.2 PIA
During the first quarter of 2007, the airline achieved a 5% growth in overall revenue
mainly supported by 7.6% increase in passenger revenue which was partially lowered
by a 10% reduction in cargo revenue. The revenue growth was reduced due to the EU
ban from early March which meant only the Boeing 777 were able to operate into
Europe. This caused many of the European services to be put on hold until the aircraft
that were considered to be inefficient to be brought up to EU standards so they can
continue flying. Even with the fuel cost remaining at the 2006 level due to stable oil
prices in the first quarter 2007, the operating and financing cost increased in
proportion. The impact of 2006 salary hike, increased cost of leased aircraft and
higher maintenance cost of PIA fleet increased the overall operating expenses by
19%. Consequently, the airline suffered an operating loss of Rs 2.5 billion in the first
quarter.
6.2.9 Market Shares
6.2.9.1 Market Shares Of Paksitan( 2005-06)
Domestic
PIA 71.3
Airblue 17.6
Aero Asia 10.2
Others .77
40
International
PIA 50.277
Emirates 11.70
Saudi 10.254
Others 27.76
6.2.9.2Market Share of “Dubai-Mumbai” Airline Market

Airline Market Share
Air India 22%
Emirates 44%
Ethiopian Airlines 9%
Cathay Pacific Airways 11%
Indian 0.2%
Gulf Air 3%
Qatar Airways 6.11%
Oman Airlines 0.4%
Biman Bangladesh 2.5%
Pakistan Airlines 0.2%
41
Chapter 7: CARGO
Air Cargo means anything which is carried or needs to be carried in an aircraft,
booked from one destination to another, under an Airway Bill.
7.1 PIA CARGO DIVISION
PIA Cargo Division functions under the domain of Sales Division. The division which is
headed by a General Manager Cargo Sales and reports to the SVP Sales encompasses/
processing of the all cargo activities and responsible for monitoring performance of
the network. Our network includes both domestic and foreign stations. Salient
features of Cargo Division’s monitoring activities are as follows:
1. Coordinate with Corporate Planning and Finance Departments to finalize

Corporate budgets and AFTKs and RFTKs.
2. Develop Cargo market plans and endeavor to meet the Corporate Objectives.
3. Ensure availability of Cargo capacity / deploy leased capacity to meet the market
demand as per corporate requirements.
4. Provide policy guidelines to all stations.
5. Coordinate and regulate sales on scheduled passenger flights and on freighter
flights.
6 Maximize Cargo Revenue based on segmentation, Yield Management and
Effective capacity utilization as per marketing plan.
7. Provide all assistance to valued clients in case of discrepancies / complaints on
account of mishandling of Cargo.
8. Develop standards of operations based on IATA requirements ensuring safety
and security of the aircraft, Passengers and Cargo.
9. To Plan and impart Cargo Training as per the Cargo Training Manual.
10. To improve upon service standards.
42
7.2 OFFICIAL ORGANOGRAM OF PIA CARGO Division
SVP
Sales
GM
Cargo
Product Manger DGM Product DGM Cargo

Manager
DGM Cargo SAFEA & Middle USA/Europe/UK/ Manager Business Operations
Automation
Complex East Saudi Arabia Pakistan Development
Cargo Terminal Manger Cargo MC Domestic/ Manger Cargo

Manager Karachi Sales Network International Sales Network
Manager Space MCS MCS Internatio- Cargo Officers/ Cargo Terminal

Control Domestic Station nal Station Staff Manager
Sales Promotion Sales Promotion Cargo Officers/

Officers / Staff Officers / Staff Staff
7.3 EXISTING ORGANOGRAM
SVP
Sales
GM
Cargo
Manager Cargo Manager Cargo

DGM DGM DGM Cargo
Marketing & Sales & Station
Cargo Complex Product Operation
Planning Support
Manager Cargo
Operation
43
7.4 ABOUT THE ORGANIZATION STRUCTURE
GM report to the SVP Sales. GM International Affairs encompasses/ monitors as well

as to coordinate with corporate planning and finance department for finalization of
targets and cargo space availabilities on different routes, to prepare marketing plans
and implementing them on the network and to monitor revenue generation and
administrative and service standards on the network.
GM Cargo Sales is responsible to take corrective actions for all the functions linked
with Cargo Sales division. Manager Cargo Marketing Planning, Manager Cargo Sales
& Station Support, Manager Cargo Operation, Manager Product and Manager
Complex report to the GM Cargo sales.
7.4.1 Job Description & Responsibility Of GM Cargo
 Ensure that all appropriate data and assumptions are taken into consideration
in formulation of the annual cargo marketing plan.
 Ensure consistency in the cargo service standards.
 Evaluate centrally all cargo service facilities through out the network to
ensure that standards of service are consistent and that investments are made
in those areas where improvement are most needed.
 Identify charter opportunities in the field and work closely with cargo
managers to take advantage of them.
 Identify opportunities for increasing sales coverage and increased revenue
and provide support to the cargo managers in counteracting competitor’s
action and provide guidance to field.
 Be customer focused, both internal and external customers.
7.4.2 Function of GM Cargo
Yearly Target Setting For Cargo

Procedure
 Target setting activity initiates in November and ends by January each year.
 Targets are allocated on the basis of previous years Revenue & Load
performance achieved by the stations keeping in view expected available
capacity and market potential.
 Previous year’s cargo sales would form the basis for the current year’s
performance targets both in terms of revenue and tonnage.
 Feedback is taken from station cargo manager and incase of provision of
agreeable reasons targets can be changed/altered.
 Telex is then sent to stations for their action plan for the current year in terms
of) Performance ii) Adjustments iii) Seasonal allocations iv) Frequency v)
Strategy vi) Suggestions
44
Chapter 8: CARGO MARKETING & PLANNING SECTION
There are five section in PIA Cargo Division Cargo Marketing & Planning, Cargo
Sales & Station Support, Cargo Operation, Cargo Automation and Cargo Complex so
each and every section is define in four coming section.
 Cargo Marketing & Planning

 Cargo Sales & Station Support
 Cargo Operation Section
 Cargo Automation
 Cargo Complex
Cargo Marketing & Planning section functions under the domain of Sales Department.
The section which is headed by a Deputy General Manager and reports to the General
Manager Cargo division encompasses/ monitors as well as to prepare cargo market
plans in collaboration with all station and in line with the overall strategies and
objectives of the corporation.
DGM
Marketing &
Planning
Manager
Marketing &
Planning
Assistant Senior Cargo Cargo

Manager Officer Officer
8.2 Job Description & Responsibilities
8.2.1 DGM Marketing & Planning

 Assigning targets to the stations, approval of annual cargo rebate clearances
and spot rates, monitoring of station performance. Develop cargo sales
services and procedures.
 Supervision of freighter operation to check and prepare analysis of leased
capacity utilization.
 Negotiation of cargo special prorates agreements with other airlines.
 Allocation of space to the stations to maximize sector wise yields and to
optimize capacity utilization on PK flights.
45
8.2.2 Manager Marketing Planning
 Evolves and monitors implementation of cargo marketing plans.

 Preparation of Cargo traffic, revenue and yields projections based on
corporate annual budgetary requirements.
 Preparation of route wise industry and PIA‘s market share statistics.
8.2.3 Assistant Manager Cargo Marketing Planning

 Evolves and monitors implementation of cargo marketing plans.
 Coordinates with other sections of cargo division in order to ensure better
utilization of available cargo space and secure maximum commercial benefits.
 Assist in developing marketing strategies.
8.3 Operations
There are four kinds of Operations perform by Cargo Marketing & Planning section:
 Scheduling
 Efficient Utilization of Space
 Handling One Shot Deals
8.3.1 Scheduling of freighters
PIA have four freighters which are charter from Turkish company so it is one of the
challenging job to schedule the freighter because environment is very dynamic there
are so many problem occur for ex: may be country independent day therefore then
can’t not permission for lending, some time security problems. PIA cargo weekly four
go for Germany and one for UK. They Schedule two time two year one in summer
and another is winter but 20 to 26 changes occurs because due to weather or Holiday,
etc.
The Procedure for Scheduling: Following step involve in scheduling
Step 1st: It the binging step collect the information from primary, current year sales
performance and secondary sources, CAA or others sources.
Step 2nd: Analyze demands of routes and what are the our current customers
requirements and formulate the target market.
Step 3rd: Communicate with International affairs for getting know how about the and
approve from them. If they approve.
th
Step 4 : Formulate the schedule for routes according to demand of market.
Step 5th: Send report to the International Affair and they communicate foreign
countries for to full fill the requirement of cargo marketing & planning
division. If they agree then go to next steps.
th
Step 6 : PIA Cargo freighter goes to routes.
46
8.3.1.1 Flow Chart for Scheduling
Collect Information
Make the
Schedule
Analyze for
Demand of Freighters
Routes
They negotiate with

other Govt.
Communicate the
International Affairs
If they
No got
If they success
approv
e
Yes
They report to the
Cargo Division
8.3.2 Efficient Utilization of Space

It is again one of challenging task for Cargo Marketing & Planning section to utilize
space affective and efficient manner and it’s too much important because cargo sales
give a cargo from different customer so customers give a cargo in different quantity
therefore to manage the space for different customers. Some time customer give order
but due to some problem he don’t send ship therefore that is also responsibility of this
section to deal with such kind of situation for full the whole cargo plane.
The Process for Efficient Utilization of Space: The Following Steps are involving
Efficient Utilization of Space:
Step 1st: Different Shipper gave an order for ship send a ship information.
Step 2nd: Analyze the all shipper requirements and closely watch the plane
space.
Step 3rd: if space is available then call to customer sends cargo to PIA
Terminal.
Step 4th: if customer not sent to cargo due to some problems then get cargo
from back look.
Step 5th: Load cargo to freighter and freighter is fly.
47
8.3.2.1 Flow Chart for Efficient Utilization of Space
Get Orders
Analyze
quantity & Yes
If
Space Shipper
not send
Cargo
Yes
No If space
Get form
is
Back Look
availab
Yes
Load to Plane
Acknowledge to
shippers
8.3.3 Handling One Shot Deals
Procedure
Upon Station’s Cargo Sales Manager’s recommendation, Product Managers assess the
sale with respect to volume, space available etc and based on space available
approves/ rejects the station’s one shot deal request.
The following criteria are kept in mind while analyzing a one shot deal
 commodity density- high or low
 volume of business
 competitors rates/ market conditions
 agents
 available capacity
 destination
48
Chapter 9: CARGO SALES & STATION SUPPORT
Cargo Sales & Station Support functions under the domain of Sales Department. The
section which is headed by a Deputy General Manager and reports to the General
Manager Cargo division encompasses/ monitors as well as to implement market plan on
network, control segmentation, market shares and yields and to monitor sales
functions and promote business.
Manager Cargo
Sales & Station
Support
Assistant Assistant Senior Senior

Manager Manager Officer Officer
9.2 Job Description & Responsibility
9.2.1 Manager Cargo Sales & Station Support

 To supervise cargo sales manager on the network and giving them policy
decisions from time to time for achieving service standards.
utilization of available cargo space and secure maximum commercial
benefits.
 Attends customer complaints and ensure rectification of discrepancies.
9.2.2 Assistant Manager Cargo Sales
 Dealing with Charges Collect Shipment.

 Preparation of statistical information for reporting.
 Any other assignment given by Manager.
9.2.3 Senior Cargo Sales Officer
 Collection / compilation of cargo uplift data of incoming flights on the

network.
49
 Investigation of cargo agents as per instruction of IATA.
 Load preparation for incoming and outgoing MNG freighters.
 Collection, compilation of data and coordination with sales office.
9.3 Operations
Cargo Sales perform following Operations:

1. Setting Cargo Tariff
2. Post mail
3. Developing a Marketing Plan
9.3.1 Setting cargo tariff
Basically cargo Tariff set the IATA for all airlines and PIA set the fare according to
the rules and regulations of IATA and it is not necessary to follow the fare of IATA
but airline set according to demand and supply but it important writes fare of IATA in
Air Way Bill.
9.3.1.1 How is Cargo Tariff Calculated?

Cargo Tariff is charged on per Kilogram basis; on either the weight or the volume
(which ever is higher). Goods, for example, Live Animals, Dangerous Goods,
Perishables, and Valuables etc which require special handling are charged accordingly.
The process of calculating the Cargo fare
1. Calculation the Gross weight and Volume

2. Change volume in weight by IATA formula if you want to calculate in
inches then this formula, total volume / 366. if you want to calculate in
centimeter then this formula, totals volume / 600.
3. Compare the gross weight with result of step no: 2. and evaluate which is
Grater if gross weight is greater then calculate fare with gross weight else
calculate fare with result of step no: 2nd.
4. Open the IATA book which name is TACT and find which kind of goods,
what are sector, destination and origin.
5. get a one KG weight and multiply with result of Step 3 rd and we got the fare
of cargo.
50
A. Flow Chart of Calculating the Cargo Fare
Calculate GW &
Volume
Change If u Yes
Know the Calculate
Volume in
one KG fare
Weight rate
No
Compare the GW with the

Volume weight Read the
IATA book
Analyze Find the goods

which is no: and sector
greater
Take one kg fare and
multiple with greater
Calculation fare with
Greater
9.3.2 Post Mail

In post mail PIA only deal with Pakistan Post Office and Speed X and Airline take
charges according to distance of mail.
It is very simply to calculate the fare for the post mail below is formula which
formulated by IATA.
Fare = Destination X .426 / 1000
9.3.3 Developing A Marketing Plan

Procedure
 Cargo Sales Managers to submit marketing plans to Product Managers Head
Office by January containing the following information:
1. Cargo Load Performance of previos year with given prev year’s Target vs.
Achieved along with Variation.
2. Cargo Revenue Performance of Previous year with given prev year’s
Target vs. Achieved along with Variation.
51
3. Capacity utilization.
4. Cargo yield.
5. Commodity wise movement.
Chapter 10: CARGO OPERATION SECTION
Cargo Operation Section functions under the domain of Sales Department. The
section which is headed by a Manager and reports to the General Manager Cargo
division encompasses/ monitors as well as to look after cargo handling facilities
and cargo terminal facilities.
DGM Cargo
Operation
Manager Cargo
Operation
Senior Cargo Assistant Cargo

Officer Manager Officer
10.2 Job Description & Responsibility
10.2.1 Manager Cargo Operation

 Evolve and monitor implementation of cargo handling procedures
utilization of available cargo space and secure maximum commercial benefits.
 Processes cargo claims within shortest possible time.
 Ensures distribution of cargo handling manual/circular, other reference
materials pertaining to cargo handling.
10.2.1 Assistant Manager Cargo Operation
 Handling all claims cases domestic and international.

 Coordinating with legal department and attending to court cases.
 Handling all claims cases domestic and international.
 Coordinating with legal department and attending to court cases.
52
 To look after terminal facilities and process CS for infrastructure development
and equipment procurement.
10.3 Functions
Cargo Operations performing several functions, few of which are given below:
10.3.1 SHIPMENT
Sales section just only get the business but operation section is responsible for
smoothly moving of goods form shipper to end user in this process involve the several
operation which are below.
10.3.1.1 Loading / Unloading:

it is too difficult task because there are many kind of goods such as Danger Goods,
Perishable, Human Remains, Gases, Radioactive Materials, Corrosives, Live Animals,
Heavy equipment, electronic goods and chemical goods therefore deferent technique
used of loading and unloading. There are several equipment used in loading and
unloading few of below and all equipment is recommended from IATA.
• ULD( Unit Load Device) Any type of container, container with integral
pallet, aircraft container or aircraft pallet.
• Plate: That is sheet through which labor move cargo to airplane
Whit the help of these devise load and unload the cargo.
10.3.1.2 Protect from damage or loss
After loading it is also important to safely goods transfer from origin to destination.
So PIA used IATA certified device or cartoon for packing such as Dry cartoon, DGR
cartoon and perishable cartoon and Human Remain. PIA also handle the live Animal,
each kind of animal has go different requirements for air shipment regarding the size
& type of the cage, health certificates and other documentation. Theses regulations
vary from country to country. Each type of Dangerous Good has been allocated a
specific UN number. Specified cargo instructions must be followed for their
Documentation, Handling, Packing and Loading.PIA strictly complies with the IATA
Dangerous Goods Regulations (as given in the IATA DGR Manual).
53
10.3.1.3 Arrange Extra Service
Some time airline plane doesn’t go to destination city then PIA arranges
transport for reaching cargo to destination.
10.3.1.4 Flow chart of Shipments:
Shipper give
cargo
Packaging to goods
Analyze the
what kind
of Cargo Load &
unload
form Plane
Checked the
Documents
No
If plane
away Give to
No If from owner
Talk with Documen destinatio
shipper t is
complete
Yes
Yes
Provide Transport
Analyze the facilities
goods
10.3.2 Claim Handling

There are three type of claim come from customers Damage, Loss and Late. If cargo
is lost, damage or late then PIA offer compensation for Lost / Damaged cargo.
Process for Claim Handling

There are following steps involved in Claim Handling:
Step 1st: request come from the customers and assistant manager handle the claim
Step 2nd: Assistant manager collect the data for claim if claim is legal then prepare the
minute.
Step 3rd: Calculating the claim by formula 20 dollar per KG for international and 500
rupees per KG for domestic but that is vary to vary by important of goods which are
mention in air way bill.
Step 4th: If claim is within a 1500 dollar then compensation area manager can pay
If claim is within a 1000 dollar then approve from Manager
If Claim is 2000 dollar then approve from GM
If claim is 3000 dollar then approve from SVP sales
If claim is grater then 3000 dollar then approve from chairman
th
Step 5 : Report to the finance department for paying compensation to customer.
54
10.3.2.1 Flow chart of Claim Handling:
Request form
customer
Collect the
information
No
No If
Stop the If they
claim is approve
Process
legal
Yes Yes
Report to the Finance

Prepare the minute
department
Approve from They send amount

management their account
10.3.2.2 Processing Claim Case of Cargo Settlements

Procedure
From customer:
 All claims for Loss whether complete or partial must be filed with PIA within
120 days of sending shipment.
 In cases of Damage, PIA must be notified in writing within fourteen (14) days
of delivery or the claim will likely be declined.
 Claimant to attach a letter of explanation if there are any special circumstances
that PIA should know about.
 Provide a copy of the signed Delivery Receipt, Airway Bill, Original Invoice,
Invoices for repairs or replacements, and pictures (if available) , packing list,
joint survey report, independent survey report indicating extent of damage
when filing a claim. Pictures to be sent via post or email them to PIA
From PIA:
 PIA will send an Acknowledgement of Claim when claim is received. In no
case will carrier accept responsibility for Consequential Damages or Special
Damages beyond the value of the goods that are the subject of a claim.
 Prior to any settlement, PIA will request applicable salvage rights. If salvage
rights cannot be obtained, the claim will likely be declined.
55
 Prior to any settlement, all freight charges must be paid in full applicable
freight charges must be included in claim presentation. Settlement claim
would be processed within 30 days under normal circumstances after
obtaining claim release forms from claimant.
10.3.2.3 Responding to Customer Complaints

Procedure
 Upon receipt of a customer complaint, Product Manager should identify the
relevant area concerned with the issue and forward the same for comments/
actions and ensure their timely redressal from the concerned office.
 Acknowledgement of receipt of complaint / querry to be sent within 24 hours
to the customer
10.3.2.4 PIA Offers Compensation for Damage or Loss

PIA Cargo is committed to take good care of the Cargo Shipments. However due to
any unforeseen reason, if the shipment is damaged or lost, PIA does offer
compensations to the shipper. The compensation is offered as per the international
conventions like the Warsaw Convention and the Hague Protocol. Generally the legal
liability is;
• US $ 20 / Kg on International Sectors*
• Pak Rs. 500/Kg on Domestic Sectors*
*Conditions may apply.

For valuable items, the value of the goods must be declared at the time of the booking
of Cargo. In this case, Valuable Goods Handling Charges and Insurance will have to
pay by the shipper. The compensation will be according to the Declared Value of the
Shipment.
56
Chapter 11: CARGO AUTOMATION SECTION, CARGO
COMPLEX SECTION & COMPARSION OF
PIA CARGO
11.1 CARGO AUTOMATION SECTION

Cargo Automation Section functions under the domain of Sales Department. The
section which is headed by a Deputy General Manager and reports to the General
Manager Cargo division encompasses/ monitors as well as to assist and prepare
automated systems for cargo handling at network.
11.1.2 Organization Chart
Manager Cargo
Automation
Senior Cargo
Assistant Senior Cargo Senior Officer
Cargo Officer
Manager Officer Cargo Officer
11.1.3 Job Description & Responsibilities
11.1.3.1 Manager Cargo Automation
 Assist GM Cargo in automation related functions and activities and

supervise automation unit.
 Coordinate with IT department for automated systems development and
implementation.
 Coordinate with SITA regarding SITA FAST-IV cargo reservation system.
 Coordinate with outside agencies such as custom department in providing
the cargo related data for their PRAL system.
11.1.5 OPERATIONS
11.1.6 Authorities Designation To Access the Database
Procedure
 Upon request of station Manager/ Terminal Manager Reservation station is
granted for its reservation staff against their P-Numbers, codes of RS & RA
and for Terminal services staff codes of TS, WS and RS.
 Head Quarters functions such as feeding & maintaining of schedule changes/
tables rest with Cargo Automation Manager Head Office.
11.2 CARGO COMPLEX SECTION
57
Cargo Complex Section functions under the domain of Sales Department. The section
which is headed by a Deputy General Manager and reports to the General Manager
Cargo division encompasses/ monitors as planning and supervising all cargo related
activities at the station and keeping the management abreast of the industry emerging
trends and competition.
11.2.1 Job Description & Responsibilities
11.2.1.1 DGM Cargo Complex

 Planning, evaluation, guidance and implementation of all cargo operational
and Administrative functions and financial heads for budgetary approvals of
cargo complex.
 Liaison with all operational units (traffic / TGS / ENG / Operations)
concerning cargo related activities.
 Coordination / liaison with ASF / Customs and civil aviation authority
regarding policy matters.
11.2.1.2 Manager Air Cargo Center

 To look after supervisor the load plan/booking advised by cargo sales
manager (CSM)
 To accept cargo ensuring completion of all import / export documentation
requirement.
 To look after the daily booking of intake of dry cargo/perishable/courier
booking.
11.2.1.3 Cargo Terminal Manager Export

 Monitoring all cargo related activities at the station ensuring that the
management is always in picture of industry trends.
11.2.1.4 Cargo Terminal Manger (Import)

 To look after all international import, arrange distribution of cargo for delivery
and manage transshipments.
11.3 .2 Cargo Complex Devises:
There are several ULD and device used in cargo complex function such as LD36,
LD3, LD6, AMA, AMD, PMC, PLA, PYB, PKC, PGA, PZA, PMC Q7, PMC Q6,
Horse Stall, Cool Dolly and Pallet.
58
11.3 COMPARSION ANALYSIS
11.3.1 PRODUCT
Cargo Fleet
PIA Emirates Etihad
Type Have Order Have Order Have Order
Airbus A310-300F 3
Boeing 747-400RF 3
Boeing 747-400F 5
Boeing 747-8F 10
777 Freighter 8
Airbus A300B4- 4
200F Lease
Airbus A300- 2
600RF
Airbus A330-200F 3
Total 4 8 21 2 3
59
11.3.2 Awards:
Emirates win Best Cargo Airline to the Middle East for an unequalled 18 years in a
row.
11.2.3 FEATURE OF EMIRATES SKYCARGO
1. Today, we continue to set the standard. Flying to over 80 destinations worldwide

2. SkyCargo facilitate customers Through SkyChain, our online cargo logistics
system.
3. SkyCargo fleet, too, demonstrates our commitment to excellence. Amongst the
youngest of any airline, it comprises the latest wide-body jets from Airbus and
Boeing. It is the first major airline to place an order for the revolutionary Airbus
A380 super jumbo.
4. Our cargo solutions have been developed to provide our customers with cutting-
edge air freight services.
11.2.4 MARKET SHARES
Domestic
PIA 72.886%
Airblue 13.47 %
Aero Asia 9.18%
Others 4.46%
International
PIA 36.05%
Emirates 21.5%
Saudia 7.3%
Others 35.31%
60
Chapter 12: INTERNATIONAL AFFAIRS DIVISION & THEIR
COMPARSION
International Affairs functions also under the domain of Sales Department. The division
which is headed by a General Manager and reports to the SVP Sales International Affairs
division encompasses/ monitors as well as to enhance opportunities of operations to
other countries and regions of the world through ASAs and help PIA increase its
revenue through commercial agreements with other airlines. To liaise with
government agencies to safeguard PIA’s interest.
12.1 TERMINOLOGY
Freedoms of Air
Five basic freedoms recognized by almost all countries, two others less widely
accepted. Each is subject to specific conditions, which are determined through
bilateral agreements between any two of the countries.
 First Freedom:
The right to fly and carry traffic over the territory of another partner to the
agreement without landing
 Second Freedom
The right to land in those countries for technical reasons such as refueling
without boarding or deplaning passengers.
 Third Freedom
The right to land in those countries and de-plane passengers coming from the
airline’s own country.
 Fourth Freedom
The right to land in those countries and board passengers going to the airline’s
own country.
 Fifth Freedom
Disembarking and embarking Passengers in the territory of third Country.
For instance, US Airline flying between New York and Athens and carrying
passengers boarding in London and disembarking in Rome.
 Sixth Freedom
The right to carry traffic from one state through the home country to a third
state.
 Seventh Freedom
A right to operate stand-alone services entirely outside the territory of the
Airline’s home country to carry traffic between two foreign countries.
 Eight Freedom
To carry traffic between two points within the territory of a foreign country,
commonly known as Cabotage rights.
Chicago Convention
61
An International agreement made in 1944 where, interalia confirms the doctrine that
airspace above sovereign territory was within the jurisdiction of sovereign country
and defined the so-called Freedoms of Air.
Code-share
An agreement between airlines to sell space on each other’s flights. The flights will
have both the operating carrier’s flight number (the airline that is using its aircraft for
the flight), and the code-sharing flight number (the partner airline in the agreement
sells space on the flight as if it were its own, and has its own flight number).
Hub
Airport at which an airline has major operations and connecting flights to smaller
destinations
Air Services Agreements
It is agreement between tow governments, which include safety, aviation security,
security of travel documents, custom duties, safeguard, fair competition, environment
protection, ban on smoking, sales and marketing of air service and capacity etc.
Commercial Agreements:
It is further description of ASA, it means what airline follow which freedom, which
airport airline plane come.
Open Sky Agreements:
It means any plan come on airport without freedoms restriction.
For ex: Dubai Airport is open sky of and airline.
GM
DGM
Manager
SOCA SOCA Office

SOCA Attended

12.3.1. GM International Affairs
 To be aware of all safety and service quality requirements and to be
responsible for the outcomes and findings of all internal and external
safety/quality audits.
62
 To liaise with CAA and Government Departments on Aviation Policy.
 Represent PIA in Government negotiations pertaining to Air Services
Agreements and assist governmental agencies for obtaining favorable traffic
rights under the Air Services Agreements with other countries.
 Monitor Foreign Airlines operation to/from Pakistan.
 Respond to all queries from Parliamentarians, Ambassadors, Government
Departments, and Community leaders regarding operation, frequencies,
capacity etc.
12.3.2 DGM
 Maintain record of all service agreements.

 Identify opportunities for PIA with regards to Commercial Agreements
(Alliances, Code share, Pools, Royalties, Interline Pricing)
 Coordinate and monitor implementation of commercial agreements.
 To study the impact of all agreements concluded by PIA.
 Keep record of frequency / capacity operated by foreign airlines and analyze
vis a vis operations of PIA and other Pakistani Airlines.
 Prepare recommendations / comments on national aviation policy.
 Respond to all queries received from Senate, Assemblies, Pakistani Missions
abroad and Community leaders regarding PK operation, especially
frequency/capacity issues.
12.3.3 MANAGER
 Assist DGM in reviewing all Pool/ Commercial/ Code-share and looking for
required changes in it with a view to safeguard PIA’s best interest and business
growth. The manager should also devise strategies with DGM Commercial to
sign new agreements with countries that need to be renewed.
 Assist DGM to maintain record of all air service agreements.
 Review existing Commercial agreements in accordance with the long term
plans and recommend specific changes for future negotiations.
 Ensuring proper agreements are conducted with regards to capacity for Hajj
operations.
 Keep close ties with interline pricing and have all the info updated for DGM
commercial to work on and plan and kept in a way that its utility to the airline
while negotiating rates with other carriers relating to all commercial
agreements.
12.4 OPERATIONS
12.4.1 Dealing for Air Service Agreements
Following Steps involve in Dealing with Governments

Step 1st: It the beginning step request to the CAA or Ministry of Defense for expend
operation to other country.
Step 2nd: Ministry of Defense start the negotiate with the other government for new
agreements.
63
Step 3rd: Ministry of Defense try to persuade for conference if they are agree then
they give a date for conference.
Step 4th: PIA and govt. envoy try to persuade new agreement and safeguard the
PIA’ s interest.
Step 5th: If they are agree then PIA start the negotiate for commercial agreement.
12.4.1.1 Flow Chart for Dealing with Governments:
Send request to the

Government
Govt. Start
the
negotiate
with other
If they No
Try to persuade them are

agree
Yes
If they No Announcement of date for

persuad conference
ed
Yes PIA & govt..’s

envoy
PIA start the negotiate for negotiate with
commercial agreement other envoy
12.4.2 Dealing for The Commercial Agreements
The Following step include in Agreement with other airlines

Step 1st: Request come from sales or commercial division for get permissions for
sales and commercial operation perform to other country.
Step 2nd: After that they assess the previous agreements if it is already done then
Go to next step if not prepare the report to government. If that is already
mention in ASA then go to next step
rd:
Step 3 Prepare the report and get approve from the Top Management
Step 4th: If Top Management approve the start the negotiate with airline and try to
persuade for next agreements.
64
12.4.2.1 Flow chart of Commercial Agreements
Request From Sales

GM or Commercial
Assess
Previous
Agreements
IF It is No
mentio Prepare the report
n in
ASA
Yes
Prepare the report
Approv No
e From
Top
Level
Yes
Report To the
Airline
12.5 COMPARATIVE ANALYSIS

In this part I compare PIA agreements with Emirates, Etihad, Gulf Air and Qatar.
12.5.1 Code sharing Agreements
12.5.1.1 PIA
No: Airlines Routes
65
1 Aerovist Airlines Karachi/ Dubai/Kiev
2 China Southern Airlines Islamabad/ Urumqi /Beijing
3 Thai Airways International Karachi/Lahore/Islamabad/Bangkok
4 Turkish Airlines Karachi/Istanbul/Frankfurt
5 Singapore Airline
6 Malaysia Airline
7 North Korean Airlines
8 Qatar Airlines
12.5.1.2 Emirates
No: Airlines Routes

1 Air India Chennai & Cochin
2 Air Malta Larnaca & Malta
3 Air Mauritius Mauritius
4 Continental Airlines Newark New York & Houston via London
Gatwick
5 Japan Airlines Tokyo Haneda, Fukuoka & Sapporo
6 Korean Airlines Seoul
7 Oman Air Dubai and Muscat
8 Philippine Airlines Manila
9 Royal Air Maroc Casablanca
10 South African Airways Johannesburg
11 SirLankan Airways Colombo, Dusseldorf, Frankfurt, Jakarta,
Male, Munich & Singapore
12 Thai Airways Bangkok
The advantage for our passengers is a wider choice of destinations plus the security of
flying with an airline specifically picked by Emirates to operate on its behalf
guaranteeing levels of service and facilities.
12.5.2.3 Qatar
1. Air China 10. Myanmar Airways International

2. Alitalia 11. Philippine Airlines
3. All Nippon Airways 12. Saudi Arabian Airlines
4. Asiana Airlines 13. Swiss International Airlines
5. BMI 14. Thai Airways International
6. Garuda Indonesia 15. Tunisair
7. Lufthansa 16. United Airlines
8. Malaysia Airlines 17. US Airways
9. Middle East Airlines 18. Yemenia
66
Chapter 13: GROUP TOURS & CHARTER DIVISION
Group Tours & Charter(GTC) has been created as a new strategic business unit(SBU)
in August 2005 with distinctive goals and smart targets. Headed by a General
Manager, it is entrusted with the challenging job to improve PIA’s market share,
enhance national image building and strengthen its revenue base. The GTC work
portfolio includes design and marketing of travel packages for inbound, outbound and
domestic tourism. This wide array of packages covers major tourist spots in the world
and domestic destinations too.
Following are:
Almost all the leading exhibition events in the country are being sponsored by PIA
and are effectively being organized by GTC. In product designing GTC has to
coordinate with a diverse mix of stakeholders like hotels, tour operators, ground
transporters, civic bodies, Ministry of Tourism, event management companies, etc.
67
To work as a driving GTC product line is best contributing in enhancing national
image and destination selling. The width of product line encompasses vital market
segments like adventure, religious, sports, corporate sector, event management
companies, VFR, government organizations, commercial and business houses,
cultural groups, academia, wedding group etc.
13.1 PIA HOLIDAY

PIA Holiday is our new offering with many attractive domestic and international
destinations. It cover international destinations enriched with cheerful and thrilling
experiences. The domestic tourism packages are developed to promote the activities
like steam Safari, Air Safari, Shandur Polo, Gandhara civilization Packages, Basant
event etc. An innovation based promotion mix is supportion our this product line,
which is characterized by smartly-designed brochures, leaflets and fliers which have
been placed at all strategic locations our on-line and off-line stations. A wide and
effective distribution mix is employed to reach target customers with all comforts and
convenience
witness the majestic beauty of Pakistan's Northern Areas, or take a unique old-
fashioned train ride through the legendary Khyber Pass. Travelling outside Pakistan
this year? Wander through Chiang Mai's Night Bazaar or laze on the beach in
Malaysia. If Shopping is what get you going, there's no place like New York.
The GTC work includes design and marketing of ravel packages for inbound,
outbound and domestic tourism. In product designing GTC has to coordinate with a
diverse mix of stakholders like hotel, tours operators, ground transporters, civic
bodies, Ministry of Tourism, event management companies, etc. To work as driving
catalyst GTC product line is best contribution in enhancing national image.

GM
GT&C
Product
DGM
Manager
Senior Assistant
Officer Manager
Senior Senior
Officer Officer
13.3.1 Product Manager
68
 Develop action for providing direction and support to the field marketing
personnel in developing inclusive Tours, Brochures for tours destinations in
order to meet the targets.
 Work closely with National Tourist Organizations and provide information on
interesting developments to the field staff.
 Analyze market potential of IT and Group Travels and develop revenue
targets in coordination with stations.
 Recommend the desired pattern of PIA schedules in order to meet the
station’s requirements relating to bulk and group tours traffic.
 Organize the educational tours for IT / Group Travel promoters to place of
tourist interest in collaboration with the respective International Tourist
Organizations.
 Monitor Station’s monthly performance and suggest guidelines for making
improvements in group tours.
13.4 OPERATIONS
Main Functions is to developed tours promotion programs ensuring effective
utilization of carrier tours to achieve optimum share of market.
 Group Tours and Charter perform three types of Operations:

 Formulation of Tours
 Selling of Tours
 Charter The Plane
 Increasing the Outbound/In-bound Group Movement
 Facilitating the Stations for the Holiday Packages
13.4.1 Formulation of Tours

There are several steps perform during the formulation of tours which perform by
Group Tours & Charter.
A. Collect the Information form
 Marketing Intelligence Section
 Secondary source
Information collect form Marketing Intelligence regarding freedoms, country laws
and govt. rules and regulation you also collect information regarding Visa policy,
which country visa easily available from deferent sources.
B. Collect Information regarding country tour place, Hotel fare and Transport fare,
country map of tour place and climate of county.
C. Prepare a schedule, time table of tour, places, foods and transport.
D. Set the fare of tour include all charges, hotel, transport, flight fare charges
E. Set the terms and condition for tourists
F. Finally promote the packages
69
13.4.1.1 Flow Chart for Formulate Tours:
Collect Information
Country
Permissio
n
Get Information about

country
No
If it is
suitable
Prepare a for
Schedule Target
Yes
Set the Price Promote the package
13.4.2 Selling of Tours

Following steps include in selling of tours
Step1. When request is come to the Group Tours and Charter then Group
Tours
officers is evaluate, which package is require to the customer or
package
is full fill the requirements of customer if yes then go the next 2nd step.
Step 2. Collect the all relevant information from customer, when customers
want to go, which additional place for tours.
70
Step 3. Create the Package for customers, include all additional things which
which customer want.
Step 4. Send package to the customer if customer agree on package then sell to
customer if not then again go to 2nd step
13.4.2.1 Flow Chart For Selling Tours:
Request Receive
Assess
Packag
es
Collect Information from

Customers
Formulate Package
No
Persuad
e
Custom
er
Yes
Sell
13.4.3 Charter The Plane

Following Steps involve in the process of charter the plane:
Step 1st: Request come form the charter the plane
Step 2nd: Get routes Knowledge from International Affair if they say PIA can
71
perform operation on this country then go to next step else refused to
customers
Step 3rd: Get information from Flight Operation Section about plan If they say yes on
this date plane is free then go next steps else try to persuade customer for
another date.
th
Step 4 : Find the less cost routes which give more profit to PIA and set the price
Step 5th: Try to persuade customer on price If customer is persuaded then sales the
space else go to 3rd step.
13.4.3.1 Flow chart of chatter the Plane:

Request
Approve No
From Tells for routes needs
Internati
onal
Yes
Get Information from

flight Operation
If Space No
is Ask for another date
No Availab
le
If
Custom
er Yes
Persuad
Find the Less Cost
Route
Yes
Give Schedule to
customer
Set the
Price
Sell the Space
13.4.4 Increasing the Outbound/In-bound Group Movement
72
Procedure
 GTC (commercial department) gets the group-handling request from
Domestic/International District offices/Tour operators/Travel agents and sorts
out the information about the group.
 GTC Product Officer checks for the flight status for the desired traveling
dates.
 GTC Product Manager coordinate with the stakeholders i.e. hotels/resorts, tour
operators etc. for the availability of space.
 Product Manager/Officer GTC coordinates with CRC for confirmation of
seats.
 Product Manager GTC coordinates with concerned Product Manager for
processing the requests for group discounts and sends it for the top
management’s approved.
 GM GTC also offers a complete tour Packages to clients inclusive of airport
transfer, discounted airfare, hotel accommodation and sight seeing tours. A
travel guide may also be provided, if required.
 Product Manager GTC informs the District Manager about the seat
confirmation which in turn is communicated to the traveling group
members/leader. The District Manager requests for full package payment form
the client.
 The Product Manager GTC communicates the travel itinerary of the group to
the concerned stations/tour operators /hotels
 Product Manager GTC forwards any special group request such as special
meal, handling etc. to the concerned section/division and seeks their
confirmation.
 Product Manager GTC usually arranges for Special handling of the group at
stations with effective coordination with the concerned district manager.
 Product Manager GTC collects feedback from the traveling group members
through concerned District Manager.
13.4.5 Facilitating the Stations for the Holiday Packages
Procedure
 GTC gathers Information about tour operators & hotels that are or can be
involved in holiday businesses.
 Product Manager GTC selects competitive & best service provider tour
operators & hotels.
 GM GTC / Product Manager GTC personally meeting them & making
contracts/agreements for whole one year & involve PIA Legal department in
legal activities.
 GTC also coordinates with the Competitive Analysis section for the fares,
which are to be quoted in preparing the packages.
 Finalization of packages along with terms & conditions and forwarded across
the Network.
73
Chapter 14: SWOT ANALYSIS
14.1 STRENGTHS
 In the past decade, air travel has grown by 7% per year. Travel for both business
and leisure purposes grew strongly worldwide. Scheduled airlines carried 1.5
billion passengers last year.
 PIA offer different type of service which gives competitors advantages in market
such as ground service handling and Training Center etc.
 Many new appointed Senior Officer is hard worker but they are unable to do for
PIA due to poor management.
 PIA organize different Travel Agents awards ceremony which motivate agent for
ticket selling.
 PIA introduces Kerb Side counter for its economy plus passenger, this facility
will allow passengers to save time and have a hassle free journey.
 The Company’s structure has been designed according to functions, which is

simple and changeable.
14.1.1 Passenger Sales
 PIA has still major market share in domestic, 71% and international is
50% in Pakistan which is show still PIA is dominates in Pakistan.
 5pc growth in revenue because of 7.6 per cent increase in passenger

revenue
 PIA introducing with travel agent in Turkey
 PIA has introduced group discount packages for its business class
passengers traveling on international routes
 Passenger revenue is the major contributor to the total revenue (around

85%) of the airline
74
 Ticket Office System used the Consumer Management System which work
through Information Technology
 PIA is the national flag carrier airline of Pakistan
 PIA Award+Plus is the frequent flyer programme allows passengers to get

free tickets, excess baggage vouchers, cabin upgrades, and a variety of
exciting rewards and special deals
 PIA During the first quarter of 2007, the airline achieved a 5% growth
 GTC is offering very beautiful packages for Tourist which attract domestic
and international
 They got success in code sharing agreements with five airline Singapore
airline, Malaysian Airline, Qatar Airline and North Korean Airline.
 PIA is code sharing agreements only eight airline
14.2 WEAKNESSES
 Top management is change year to year due to union problems
 Organization structure is decentralized, this organization structure is not

customer focus.
 Head office expenses is more then their product expenses.
 In head office employee perform work paper and computer base therefore it is
cause for two side expenses.
 If one employee is not there seats then another employee don’t take there
responsibilities therefore they loss their business
 The airline had sustained a loss of Rs13.1 billion during 2006
 PIA suffer from over employment due to this PIA take loss
 Management is unable to utilize resources effective and efficient manor, many

new appointed Senior officer want to do for PIA but management is not proper
utilize them.
75
 Managers and employee have lack of motivation toward there work, they don’t
perform there job willingly only time pass.
 PIA was born 1946 and other airline was born few years ago but they are too
strong now so why PIA is still suffer from losses
 Mostly employee don’t work for their corporative vision and mission statement
 Mostly Airplane late arrive form engineering section for takeoff so

passengers are frustrate due to inefficient staff of engineering
 Agents involving in fraud case, they get charges for business class but
reserve seats in economy class when customer claim then they accuse on
PIA
 Attitude of front line staff is not good which are dealing with customers.
 Agent accused that PIA call center not give a information to us. They only
one time attaint the phone.
 Agent not pay the ticket revenue on time due to not proper control or
agents are very sours able business man.
 If agent catch in fraud case then they don’t pay plenty easily they take lot
of time.
 Affective and efficient not utilization of human resource in Ticket Office

system
 PIA Airline is three star airline but Qatar is five start airways
 PIA have 47 aircrafts but emirates have 147 and Qatar have 150 aircarfts
 Emirates, 144 and Qatar, 44 sales office is day by day increases but PIA
sales office is day by day decrease
 Emirates win awards, In-flight Entertainment Excellence in 2006 but

within 10 years not win any awards
 PIA mostly aircraft is Boeing which inefficient in fuel and Emirates, Qatar
and Etihad have mostly Airbus aircraft which are fuel efficient.
76
 PIA is not sustain current service but Emirates day by day increases there
service, mobile communication which allow passengers on board Emirates
flights to use their mobile phones to call or text people on the ground
 Competitors is vastly involve in marketing activities to win the customers
 ON many website show the very expenses airlines is PIA
14.2.2 PIA Cargo
 10 per cent reduction in cargo revenue
 In post mail PIA cargo only deal with Pakistan
 There is no section for competitor analysis

 PIA is only eight code sharing agreements but other airline is many code
sharing agreements
14.3 OPPORTUNITIES
• In the past decade, air travel has grown by 7% per year. Travel for both
business and leisure purposes grew strongly worldwide. Scheduled airlines
carried 1.5 billion passengers last year.
• Air travel has grown by 9% per year in centered on the Asia/Pacific region and
forecasts suggest that the number of passengers will double by 2010.
• Pakistan is the Muslim country therefore PIA get billion of revenue in Hajj
and Umra seasons
• PIA national flag airline that give concept be Pakistani and buy Pakistani
• Now a days countries going to adapt Open-Sky policy
• EU take a ban from PIA fleet that is first symbol of Top management success
77
 Emirates growth fallen below 20% a year
 Heritages places, civilizations, northern areas, religious events and Indian

oceans of Pakistan is attract tourist that is create business for PIA.
14.4 THREATS
 Aggressive competition face in domestic and international market.
 Fuel cost is increase day by day due to this problems price is going to increase
 Major thread of our whole industry that is the load shading of electronic
energy which make us PIA inefficient.
 It has posted RS 5.6 billion losses during the first six months, despite stable
fuel prices
 Always America pressurized to our government for purchasing Booing aircraft

due to this problem PIA is not full efficient airline
 Emirates offer Lounges for their passengers, located at several airports

throughout the airline's network
 The Emirates Group announced a net profits of Dhs 2.8 billion (US$ 762
million) for the financial year ended 31 March 2006.
 Emirates Skywards is an exclusive club for frequent flyers with Emirates

and SriLankan Airlines it means emirates is offer frequent flyers also with
other airline
 Emirates skywards is offer Chauffeur Drive Service on many airport
 Emirates arrange an electronic visa for you for Dubai.
78
 Terrorism and instability in politics is resistance in the eyes of tourist
 Visa is not easily available for western countries
 Competitor is day by day is increase the services such as Emirates allow

passengers on board Emirates flights to use their mobile phones to call or
text people on the ground

 American government not provide nonstop facilities due to security
problems
 PIA competitor day by day increase the code sharing agreement such as
Emirates,12 and Qatar,18
Chapter 15: CONCLUSION, SUGGESTIONS & COPYRIGHT
15.1 SUGGESTIONS
Internship program have provided to me useful learning experience and opportunities

to work in such organization and saw how it actually operates. The Officers / Officials
of each department were very cooperative during my Eight weeks internship program.
After going through the process of said training the suggestions are made in the
following order:
 Decentralize the organization structure and make on customer base organization

structure
 PIA should implement the solar energy system
 Formal training should be provided to engineering departments for making

airplanes according to international standers
 PIA should develop paper less environment within a head office and around the
network.
 It should be define in job description and responsibility if one employ is not

there seat then who one is responsible for their job.
 To compete and retain leadership in Airline industry in Pakistan, they should be

improved the dealing with agents.
 Top management should take action again those manager which are don’t utilize
affective and efficient resources
 Profitability can be improved by effective and efficient operation, selective

marketing, and proper product mix in airline.
79
 PIA should increase the counter which wills facility passengers to save time.
 Top management should make strengthen PIA Engineering’s position as a world

class, reliable Engineering Aviation and Logistic services Company, offering its
customers a full range of cost efficient and high quality aircraft maintenance and
engineering solutions
 Top management should educated employee for their vision and mission
statement because employee work for their organization vision and vision is
guide employee
 Top management should take action regarding employee because few of

employee have don’t work they involving in other discussion , sleeping and
smoking.
 They should develop the managerial body which are catch the fraud of
agents.
 To utilize affective and efficient human resource and Ticket Office system
or downsize through golden hand shake
 To formulate new complain handling system through this system complain

handle in one section
 Top management is take action against those ticket office which are closed
 PIA should be involved broadly in promotion activities
 PIA managements should work for to win a awards of 2007-08 it is

necessary for build the image
 PIA should offer Chauffeur Drive Service on profitable routes
 PIA should offer Guaranteed seat reservations, even on fully-booked

flights for their Award plus customers
 PIA should offer Lounges for their passengers, on Manchester and New
York airport or more profitable airport.
 IT section should take action against those website which are show PIA is
high cost airline
 Audit compliance should comprehensive information send to tariff audit

compliance section for solving the problems.
80
 They should promote there packages domestic and international.
15.1.3 PIA Cargo
 PIA should launch the eCargo and frequent cargo programme for sales
promotion which make shipper more loyal
 They should increase the business in post mail not limited with one
organization such as Pakistan Post
 They should develop the managerial boy for competitor analysis
 They should start negotiation with government for don’t fully

implement the Open-Sky’s policy due to foreign airline pressure
 They should start the work for code sharing agreement with India
Airline and others
 They should negotiate with American government for non stop service
in their country
81
14.2 CONCLUSION
• Pakistan International Airline is the largest Airline of the Pakistan with 71%
domestic and 51% international of market share in airline industry in Pakistan.
It sales performance is show that it is still suffer from loses.
• The most dynamic growth is centered on the Asia/Pacific region, where fast-
growing trade and investment are coupled with rising domestic prosperity. Air
travel for the region has been rising by up to 9% a year and is forecast to
continue to grow rapidly which create opportunities for PIA.
• PIA Sales Department is divided in five division, Domestic, International,

Group Tours & Charters, International affairs and PIA cargo.
• PIA Sales Department has responsible for three SBU Group Tours and
Charters, PIA Passenger and PIA Cargo.
• PIA Passenger sales division is further divided in product management, Ticket

Office System, Tariff, IATA affair, Audit compliance, marketing intelligence
and Ticketing Staff.
• Group Tours & Charters division is responsible, formulate tours, advertise

tours, sales the packages and charter the plane.
• PIA Cargo division is one of the independent division of PIA and perform five
function Selling, Operation, Marketing & Planning, Product Management and
Handling Cargo Complex.
• The whole report suggested that PIA employee have lack of motivation toward
there job.
82
• Recourses are not utilized affective and efficient manner mostly human
resources.
14.3 BIBLOGRAPHY
1. PIA Website www.piac.com.pk
2. Interview from Agents Fareed Traveles(DM Mr. Zafar Hasan Khorasany)
Fareed Traveles(CA Mr. Kamaran Yousuf)
3. Magazines Air World ( May 2007), Flyer (April 2007)
Aviation Week & Space Technology, Vision
Marketing Bulletin
4. Internet www.wikipedia.org, www.expedia.com
www.answere.com, www.airlinequality.com &
www.emirates.com.
5. News Papers Holiday, Dawan Sunday, June 24,2007
83
6. PIA Basic Facts 2003-04 and Basic Fact 2005-06
14.4 COPYRIGHT
“Attention is drawn to the fact that copyright of this report rests with the
author. This copy of report has been supplied on condition the anyone
who consult it is understood to recognize its copyrights rest with its
author and no quotations from report and no information derived from it
may published without the prior written consent of the author”
“The report content material, which is the property of PIA and that have
given me permission for its reproduction, this material remains protected
under their copyright”
84

Pakistan International Air Line by Wasif Rizvi

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TABLE OF CONTENTS

Worldwide, IATA, International Air Transport Association, forecasts international air

1.2 AIRLINE INDUSTRY IN PAKISTAN

1.3 OVERVIEW OF PIA

Pakistan International Airlines Corporation, through its subsidiaries, provides

1.3.1 PIA Cargo

1.3.2 PIA Courier

1.3.3 PIA Ground Service Handling

Ground handling at an airport is amongst the most complex and time-critical

PIA's ground handling services include:

• To develop and conduct quality training as per the requirements of

1.3.5 Precision Engineering Complex

1.4 DESIGN AND DEVELOPMENT OF JOBS

Because of innovations in technology or methods adopted by the company or

Deputy Managing Deputy Managing

SVP SVP SVP SVP SVP SVP SVP SVP

Executive Chief Chief Pilot Chief Engr Chief Engr

D.G.M. G.M. Brand Chief Engr

PIA to be a world class profitable airline exceeding customer expectations through

Employee teams would contribute towards making PIA a global airline-of-choice:

 Offering quality customer services and innovative products

1.7 HONOURS OF PIA

 The first Asian airline to operate a pure jet aircraft.

2.1 MANAGEMENT STRUCTURE DEVELOPMENT

Pakistan's Ministry of Defense created Pakistan International Airlines (PIA) as a

2.2 DEPARTMENTAL PROFILE

A brief overview of the different divisions within the department is as follows:

2.2.1 Passenger Sales (International Network)

Passenger Sales International Division carries out sales activities pertaining to

2.2.2 Passenger Sales (Domestic Network)

2.2.4 International Affairs

International Affairs Division is responsible for creating business opportunities for

2.2.5 Group Tours & Charters

2.3 SALES DEPARTMENT ORGANOGRAM

Human Resource Manager Training

General Manager General Manager General Manager General Manager

Deputy General Deputy General

Manager Market Product Manager Product Manager Deputy General

2.4.1 SVP Sales

2.5 DELEGATION OF AUTHORITIES AND RESPONSIBILITIES

2.6 NATURE OF ORGANIZATION STRUCTURE

Pakistan International Airline is public limited aviation marketing organization. Its

2.7 FEATURE OF STRUCTURE CONFIGURATION

Passenger Sales Division carries out sales activities pertaining to passengers by

3.1 PRODUCT MANAGEMENT

3.2.1 Job description & Responsibilities

A. General Manager Passenger Sales (Domestic & Corporate)

B. Product Manager Corporate Sales

 Acquire maximum share of corporate travel markets through activating and

C. Assistant Product Manager-Corporate Sales

 Perform Corporate Sales management activities for timely achievement of

E. Deputy General Manager Passenger Sales (Domestic & Corporate)

4.1 Organization Chart

SRTO SRTO RTO AT P/M RTS RTA

SRTO: Senior Reservation Ticket Officer

4.2 Job description & Responsibilities of TOM

4.3 Operations of TOS

The Ticket Office System Section performs four major functions:

4.3.1.1 Handling Complaints link with Customer

1. CMS (Complains Management System): It is computer base system

4.3.1.2 Handling Complaints linked with Stations

A. Flow chart of Handling Complaints