An Internship Report on

Prepared for: Mr. Nazik Hussain (In-charge Internship and placement) Prepared by:

Shoaib Ahmad Khan Roll no. 240

MBA (Finance) 4th Semester Session 2008-2009

Department Of Management Sciences The Islamia University of Bahawalpur

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Table of Content
CONTENTS
Preface Dedication Acknowledgement ------------------------------------------------------------------------------------------------------------------Page # ---06 08 !" !6 !( !( +, +. +. +6 "+ ", "8 .6 6! 6! 6+

SECTION I Introduction Aviation Industry Introduction ----------------------------History of PIA ------------------------------------------Mission, alues and ision ----------------------------SECTION II Management #rgani$ational %&art ----------------------------------Marketing De'artment ----------------------------------)ales 'romotion -----------------------------------------*eservation ------------------------------------------icketing -----------------------------------------/-ticketing -----------------------------------------%argo -----------------------------------------H* De'artment -----------------------------------------0inance De'artment ------------------------------------SECTION III Analysis 0inancial Analysis ---------------------------------------)1#- Analysis ---------------------------------------)uggestions 2 *ecommendations -----------------------%onclusion -----------------------------------------------Anne3ure ---------------------------------------------------

Preface
With the fundamental changes now taking place in business competition, a firms success in the current century will depend on equally fundamental changes in its available resources. Todays business environment ins one global competition scarce resources, rapid technological changes, constantly changing markets, increasing demands for social responsibility, and shrinking organi!ations. "n such a world, traditional concepts of strategic planning are still necessary, but no longer sufficient, for success. Department of management Sciences provided me this golden opportunity of #oining Pakistan International Airline company as internee. This internship pro#ect provides us an updated vision of the field of management sciences. $anagement science encompasses both series of quantitative techniques and a logical methodology for applying these techniques to decision making. The topic is oriented toward the utili!ation of the theory and methodology of management sciences within modern organi!ation. This report is qualitative in nature and written in an understandable manner that the reader does not leave it until he finishes it. This report has following sections which gives a comprehensive grip on the internship nature, purpose, and the report itself. "ntroduction %ection $anagement %ection &nalysis %ection Author

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Dedicated to: Two pillars of stability in the Era of turmoil ~~ my parents

Acknowledgement
I owe my felt t&anks to Alla& Almig&ty w&o ena4les me to disc&arge suc& res'onsi4ility wit& due care and caution5 My re'ort will remain incom'lete if I don6t mention t&e sincere efforts of t&ose gentlemen w&o &el'ed and guided me in com'letion of my interns&i' and t&is re'ort5 0irst of all I want to t&anks my wort&y teac&ers t&e main source of enlig&tenment of my minds and t&e develo'ment of natural 'otentials, Sir, Nazi !ussain 'rovided me t&is golden o''ortunity of 7oining Pa istan International Airline com"any as internee5 After &im I want to t&anks Mr# Ismail Per$aiz 8interns&i' Inc&arge PIA, *-#9 w&o &el'ed me in all matter5 At t&e end I want to say t&anks to w&ole staff and management of PIA% Multan station for t&eir coo'eration and for 'roviding a very friendly environment to gain 'ractical knowledge5

Shoaib Ahmad Khan

MBA !inance" %e"artment of Management Sciences, Islamia &ni$ersity 'a(a)al"ur#

I#T$ODU%TIO#
"nternational air transport is one of the most dynamic and fastest*changing industries in the world. "t needs a responsive, forward*looking and universal trade association, operating at the highest professional standards. "&T& is that "nternational &ir Transport &ssociation. "&T& brings together appro+imately 2,) airlines, including the worlds largest. -lights by these airlines comprise .( percent of all international scheduled air traffic. %ince these airlines face a rapidly changing world, they must cooperate in order to offer a seamless service of the highest possible standard to passengers and cargo shippers. $uch of that cooperation is e+pressed through "&T&, whose mission is to /represent, lead and serve the airline industry/. 0ontinual efforts by "&T& ensure that people, freight and mail can move around the vast global airline network as easily as if they were on a single airline in a single country. "n addition, "&T& helps to ensure that $embers1 aircraft can operate safely, securely, efficiently and economically under clearly defined and understood rules. -or consumers, "&T& simplifies the travel and shipping process. 2y helping to control airline costs, "&T& contributes to cheaper tickets and shipping costs. Thanks to airline cooperation through "&T&, individual passengers can make one telephone call to reserve a ticket, pay in one currency and then use the ticket on several airlines in several countries 3 or even return it for cash refund. "&T& is also a collective link between thir& parties and the airlines. 4assenger and cargo agents are able to make representations to the industry through "&T& and derive the benefit of neutrally applied agency service standards and levels of professional skill. 5quipment manufacturers and third*party service providers are able to #oin in the airline meetings, which define the way air transport goes about its business. "&T& allows airlines to operate more efficiently. "t offers #oint means 3 beyond the resources of any single company 3 of e+ploiting opportunities, reducing costs and solving problems. &irlines knit their individual networks into a world*wide system through "&T&, despite differences in language, currencies, laws and national customs. ,

"&T& is a useful means for governments to work with airlines and draw on their e+perience and e+pertise. Working standards within the aviation industry are developed within "&T&. "n fostering safe and efficient air transport, "&T& serves the stated policies of most of the world1s governments.

Overview of the Organi'ation (istory of PIA

4robably never has air transport been more important to the development of a new nation than in the case of 4akistan. "n the days when 4akistan was still in the offing 78une 1.(,9 $r. $ohammad &li 8innah, the -ounder of the upcoming :ation, instructed $r. $.&. "spahani, a leading industrialist, to set up a national airline, on priority basis. With his singular vision and foresight, $r. 8innah had foreseen that with the formation of the two wings of 4akistan, separated by 11;; miles, a swift and efficient mode of transport was imperative. The new airline was initially a pilot pro#ect, registered in 0alcutta as <rient &irways =td., on 2'rd <ctober 1.(,. With $r. &.$. "spahani as the 0hairman and &ir vice $arshal <.>. 0arter as the ?eneral $anager of the new air carrier, an operating license was obtained in $ay 1.(6 with 0alcutta as the base. -our @ouglas @0*'s had been purchased from Tempo of Te+as in -ebruary 1.(6 and operations first started on ( 8une 1.(6. The designated route was 0alcutta*&kyab*Aangoon, which also happened to be the first post*war international operation to be flown by an airline registered in "ndia. Within two months of <rient &irways1 operational beginnings, 4akistan was born. The birth of a new nation generated one of the largest transfers of population in the history of $ankind. <rient &irways, along with the help of some 2<&0 aircraft which had been chartered by the ?overnment of 4akistan, started relief operations and transportation of the population between @elhi and >arachi, the two capitals. =ater, <rient &irways transferred its base to 4akistan and established the vital, link between >arachi and @acca, the two capitals of the two wings of 4akistan. With a skeleton fleet of #ust two @0*'s, three crew and twelve mechanics, <rient &irways launched its scheduled operations in a fairy*tale fashion. The "nitial routes were >arachi*=ahore*4eshawar, >arachi*Buetta*=ahore and >arachi*@elhi 0alcutta*@acca. 2y the end of 1.(., <rient &irways had acquired 1; @0*'s and ' 0onvair 2(;s which it operated on these routes. "n 1.);, it had become increasingly apparent that additional capacity would have to be inducted in order to cater to the growing needs of the sub*continent. C

<rient &irways was a privately owned company, with limited capital and resources. "t could not be e+pected to grow and e+pand on its own. "t was then that the ?overnment of 4akistan decided to form a state*owned airline and invited <rient &irways to merge with it. The outcome of the merger was the birth of a new airline, named 4akistan "nternational &irlines 74"&9 on 11 $arch, 1.)). &part from transport activities, <rient &irways had established the nucleus of overhaul and maintenance facilities and acquired trained pilots, engineers and technicians which proved a great asset for 4"& during its teething phase. $oreover, with the provision of this service, 4"& could and did earn substantial foreign e+change, which in turn it invested in the purchase of aircraft and spare parts. -leet e+pansion was one of the airlines ma#or requirements. "n 1.),, orders were placed for two %uper constellations and five Discounts which were to be delivered by 1.).. 4"&, at this #unction, possessed a small fleet which comprised of 0onvairs, Discounts, %uper 0onstellations and @0*'s.

"n 1.,2, 4"& attempted to set a new record and succeeded. <n the =ondon*>arachi sector, finding the upper winds forecast favorable, 4"& set out to break the record for the fastest flight between =ondon and >arachi. With representatives of -&". 7-ederation &eronautic "nternational9 on board to monitor the official timings, 4"& completed the flight in , hours (' min )1 sec, the fastest record which to this day remains unbroken. 4"&1s run for recording historic firsts was not yet over. 4akistan1s first computer, an "2$1(;1, was installed by 4"& in 1.,6. 4"&1s first 5ngine <verhaul %hop, located near the Eead <ffice building, was also completed and commissioned around this time. The ?round Training %chool 7?T%9 now known as 4"& Training 0entre 74T09 was first conceived and developed sometime in 1.,1*,2. .

Training was initially imparted, interestingly*enough, in the T*shaped building which has now become the 4"& @ispensary in the vicinity of the Eead <ffice. 2esides the visible development and growth in traffic and revenues in the si+ties, 4"& saw the advent of new destinations, new equipment, new technology. & new 8et Eangar for 2oeings with a supporting airframe overhaul shop was completed and commissioned in 1.,C. "n 1.6;, 4"& set up its own -light >itchen at >arachi, which caters even today to other carriers as well as to all 4"& flights. <ver the years, with the airline1s e+pansion and increased capacity, the need for a second -light >itchen became imperative. 4"& heralded the .;1s decade by donning a bright new corporate identity. <ld*timers may remember the flutter the earlier green and gold livery had created when it was first introduced in 1.6(. 2ut, in keeping with the

changing times, 4"& came up with its smart sporty .;1s look. The familiar 4"& green was reinforced with moss green and pale blue stripes in the new corporate identity. :ineties have also seen the e+pansion of 4"&1s massive Ea## and Fmrah operations to 4akistan1s smaller cities besides the operations from the ma#or cities of "slamabad, 4eshawar, =ahore, Buetta and >arachi. &t present, 4"& operates to C' destinations 7'C international and '6 domestic9 in countries spread over ( continents of the globe.

PIA (istoric )st

The first &sian airline to operate a pure #et aircraft. The first non*communist airline to fly to the 4eoples Aepublic of 0hina, and to operate a service between &sia and 5urope via $oscow.

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The first airline in &sia to induct the new technology 2oeing 6'6*';; aircraft.

&n "2$ 1(;1, the first computer in 4akistan, was installed in 4"&.

The first airline, to introduce a second route to 4eoples Aepublic of 0hina over the >arakoram ranges. The first airline in the world to operate scheduled helicopter services.

The first airline in &sia to show in*flight movies on international routes.

4"& set up 4akistans first planetarium at >arachi and later at =ahore.

The first airline in %outh &sia to introduce auto*ticketing facility.

The first airline in the world to fly to Tashkent, capital of the newly independent state of F!bekistan.

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*ision+ Mission an& O,-ectives.

& corporation should have a clear Dision, a $ission, Dalues and a set of 0ode of 5thics, to function as an efficient and a vibrant organi!ation geared to meet the needs of its valued customers.

*ision
<ffering quality customer services and innovative products. 4articipating in global alliances. Fsing state*of*the*art technologies. 5nsuring cost effective measures in procurement and operations. &chieving adequate returns for all stakeholders. 2eing an equal opportunity employer. 4roviding competitive compensation and a congenial working environment. &dhering to business ethics and !ero tolerance for corruption. =inking remote regions of 4akistan and -ulfilling our corporate social responsibility G0%AH in all fields.

Mission
4"& to be a world*class profitable airline e+ceeding customer e+pectations through dedicated employees committed to e+cellence.

*alues %ustomer /0pectations

0onvenience, 0are and 0ompetitive tariff.

Service
4ersonali!ed and 0ourteous.

Innovation
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 0herishing new ideas, translating into actions

$elia,ility
=oyalty and 0onsistency.

Safety
4assengers, 5mployees, 5nvironment and Eealth

%ohesiveness
Aespect for individuals, team work and effective 0ommunication.

Integrity
2usiness 5thics, &ccountability and Transparency

OB1/%TI*/S O! PIA%

&ccording to 4"&0 &ct 1.),, following are the main ob#ectives of 4"& 0orporation. ". To provide and further develop safe, efficient, adequate, economical and properly coordinated domestic as well as international air transport system. "". To operate any air*transport service or any flight by aircraft for a commercial or other purpose, and to carry out all forms of aerial work. """. To acquire, own, run, manage or participate in the running of management of, any hotel or business connected therewith. "D. To provide for the instruction and training in matters connected with aircraft or flight by aircraft of persons employed or desirous of being employed either by the 0orporation or by any other person. D. With the previous approval of the -ederal ?overnment, to promote any organi!ation outside 4akistan for the purpose of engaging in any activity of a kind which the 0orporation has power to carry out. D". To acquire, hold or dispose of nay property, whether movable or immovable, or any air transport undertaking.

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D"". To repair, overhaul, reconstruct assemble or recondition aircraft, vehicles or other machines and parts, accessories and instruments thereof or therefore and also to manufacture such parts, accessories and instruments whether the aircraft, vehicles or other machines are owned by the 0orporation or by any other person.

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BOA$D O! DI$/%TO$S
h. Ahme! Mukhtar Minister for Defence and Chairman Mr. Mueen A"za# S$e! Mohamma! Faza# A%ha Ma#ik Nazir Ahme! Mr. Shahza! M. Husain Mr. Mu&ashir '"tikhar Mr. M. Hi!a$atu##a (han (haish%i Ma). *en. Mir Hai!er A#i (han Additional Secretary-I, Ministry of Defence Mr. +a,e! Sai"u##ah (han Mr. Farrakh -a$$um Secretary Finance Mr. Faroo. /ahmatu##ah Director eneral CAA

Mr. Muhamma! Shuai& Secretary-PIA

A&out 0'A - Mana%ement

1,

Mana%in% 1irector Captain Mohammad Ai!a" #aroon 1irector - or2orate 0#annin% Mr$ Shahna%a" &ehman Actin% 1irector - 3n%ineerin% an! Maintenance Mr$ M$'ari( Faroo( 1irector - Finance 4 hie" Financia# 5""icer Mr$ Arif Ma!eed 1irector - F#i%ht 52erations Capt$ Sh)!a *a(+i Actin% 1irector - 'n"ormation 6echno#o%$ Mr Shahid Sar%ar 1irector - Human /esource 4 A!ministration Mr$ #anif Pathan 1irector - Marketin% Mr$ Salah )ddin 1irector - 0recision 3n%ineerin% om2#e7 A,M M)hammad -amal Alam Siddi()i 1irector - 0rocurement8 9o%istics an! o-or!ination Mr$ Imran Ahmed -han

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MA$6/TI#2 D/PA$TM/#T
The organi!ation has a number of ob#ectives and goals set for it by the 2oard of @irectors or <wners and these develop into an overall company strategy. The $arketing team apply this to the marketing activities and develop marketing strategies. The success of any organi!ation depends on its marketing system and selling process. To sell the product i.e. air in space and to facilitate its customers, 4"& city office $ultan has well established sales department which is performing following functions. -acilitates the Aeservation process. 4rovides the services to the customers. 4ost flight analysis to avoid under flight or fictitious booking. Eelps in foreign currency earning.

The marketing department is the main department which undertakes the %ales promotion Aeservation 0argo &ward 4lus 4T&

SA4/S P$OMOTIO#
%ales promotion is the department which promotes the sales of 4"&. "t is the section of the marketing department. -irst there was monopoly in the domestic market but now as the competition e+ists so there is a need of promoting its sales. The sales promotion helps in increasing the sales of 4"&. "t is the only section which works for this purpose. "t is related to the other departments. The earning cannot be done without the help of the other departments. The

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main purpose of the sales promotion department is to meet the given sales target. The sales target is set by the head office which is located in >arachi.

PIA A?A$DS @ P4US

4"& &ward I 4lus is an e+clusive programmed for customers, who frequently travel with 4"&."t allows members to earn points for traveling with 4"& based on distance traveled ,class of service purchased and membership tier status. These points can then be e+changed for free tickets ,e+cess baggage vouchers, cabin upgrades and many other e+citing rewards.

Mem,ership Privileges
4"& &ward I 4lus 4rogram offers the following three membership tiers based on point accumulationJ segments traveledK /M/$A4D TI/$ SAPP(I$/ TI/$ DAIMO#D TI/$

/M/$A4D TI/$
5merald tier is a basic level for all new members offering the following benefitsK );; bonus points upon enrollment. 1;L bonus points for traveling in 5conomy 4lus 0lass. 2)L bonus points for traveling in 0lub 0lass.

SAPP(I$/ TI/$
$embers acquire our sapphire tier upon accumulation of at least ';,;;; points or 2) segments in a calendar year. "n addition to 5merald Tier privileges, %apphire status offers the following benefitsK 1.

2)L bonus points for traveling on any 4"& segment. 0heck*in at 2usiness 0lass 0ounters. );L e+tra free baggage allowance.

DIAMO#D TI/$
$embers acquire @iamond Tier status upon accumulation of at least 6;,;;; points or ); segments in a calendar year. "n addition to 5merald Tier privileges, @iamond status offers the following benefitsK );L bonus points for traveling on any 4"& segment. 1;;L e+tra free baggage allowance. 0heck*in at 2usiness 0lass 0ounters. &ccess to all 2usiness 0lass airport lounges, regardless of class of service traveled. >erb*side check in facility at airports ,where available.

7:ot applicable for #ourneys to F%& M 0anada9.

6/5 !/ATU$/S
The &wards 4lus program has the following key features. 5nrollment via mail, fa+, e*mail or Website. );; bonus points for new members. &ccounts updated within 62 hours. 4oints flight date. $embers must be 12 years or older. e+pire on '1st @ecember every three years from

2;

%tatements

with

travel

activity

points

accrual

accessible

real time on Web %ite. 4oints purchase facility to top*up awards shortfall.

A2/#TS
4"& gets .;L of its business through its travel agents. %o we can say that most of the work is done by the travel agents. $a+imum traffic is achieved through them. The sales improve through the travel agents. "t is essential for the agents to get license and recognition from the ministry of tourism. "t makes sure that the agents have * * * * * Technical staff ?ood offices Aegistered body 2ank guarantee =ocation

There are different types of agents that are

IATA agents
These agents are approved by "&T&. -or this purpose, they have to fulfill certain details from "&T& regarding location, staff qualification, financial position, sales productivity etc. These approved agents can sell the tickets of all "&T& member airlines. -or 4"& its commission is . L. "ts bank guarantee is according to the share of the particular airline.

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2SA
?eneral sales agent, it works for every airline. %ohail travels. The ?%& gets 12L commission. These are the main contributors. There bank guarantee should be , million. "t is nominated by the airline it self.

PSA
These are the agents that sell only for 4"& they get .L commission. "ts bank guarantee should be 2million.

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

#on IATA agents

These only have got license, these are not directly related with 4"& but with its tourism department. The tickets are issued to each of the agent on the basis of its bank guarantee. The main functions of the sales promotion department is To coor&inate with the agents. The sales promotion officers duty is to coordinate with the agents. Eelp them and solve their problems. Pro,lems face& ,y the agents The problems which the agents face are related to the %ystem -ares %eats availability

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%ystem communication %pecial fare

%4<s 7sales promotion officers9 the %4<s pick problems from the agents and convey it to the management. The problems are discussed in the meetings. The district manager takes it up to the head office in >arachi and wait for the response. 5very thing depends on the managements policy.

$/S/$*ATIO#
Aeservation means to reserve the seat on any particular route. 4"& has world wide computer system for Aeservation i.e. 0A0 at head office, >arachi, which is connected with other station through T:T lines . @ata channels are in the form of microwaves, so $odems are used for the purpose of data transmission. 2eing an "nternational &irline, 4"& sells tickets for @omestic as well as "nternational travel. 4rocedure for the reservation is same but only difference is, 4"& links it with other airlines and pays them obligations as required.

!U#%TIO#
The reservations function is to provide information related to all flights of 4"&. "t gives the following information %chedule of the flights of the particular routes %eats availability -ares

The main function of the reservation department is to reserve the tickets for the people on there request. -irst of all the schedule of a particular route is checked the computer displays the schedule for ' days and then the availability of the seats is checked for both the classes that are 2usiness class 5conomy plus class

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5conomy class

5conomy class is further classified as N T 0lass for "nternational 4assengers 0lass for domestic passengers

Then if the seats are available for that particular route the request is given for required number of seats and reservation is made. Then a computer number is given to the person that computer number is known as the PNR which stands for Person Name Request or record. This number is entered for the purpose of ticket issuance and record keeping. This PNR number is usually in alphabets. "ts a , digit number. The A54&> system used to give the computer number both in numeric and alphabets so there used to be confusion among the letter " and < with 1 and ; so thats why now only alphabets are used. %imilarly if there is no seat available then a computer number for chance is given. 0ertain other #obs are also performed by this department for e+ample if a passenger wishes to change his route when he is coming back from somewhere then this gives rise to certain problems. To solve it rebooking is done.

TI%6/TI#2
&fter reservation, there comes the stage of ticket issuance. There are two ways to issue tickets. $anual Ticketing &uto Ticketing

&uto Ticketing saves time and avoids complaints from customer and it is to check sale for the purpose of verification of reserved seats to avoid seat blockage. When there is manual ticketing, the 4:A is entered afterwards for record keeping and to check sale.

/7TI%6/TI#2
4"& has taken up 5*ticketing as a pro#ect designed to achieve web based ticketing so as to propel its ticketing capability to keep pace with competition. 2eyond own ticket offices, this is aimed to enable 4"& agents on ?lobal @istribution %ystem to avail this facility. 2ooking is done through call enter, where 4:A74assenger, :ame, 2(

Aecord is given. 4:A is then put in queue. 4ayment is at the time of delivery in cash or through credit cadre*ticket is an electronic passenger ticket thats why passenger no longer retain flight coupons for their trips. &ll the information thats printed on a paper ticket is stored as an electronic record on computer database , so 5*ticket is secure, hassle*free, and easy to use.

%A$2O
0argo means, transfer of baggage without passenger, under airway bill 7&W29. This department is doing a lot for the organi!ation. This is also a part of marketing department, which also constitute ticketing and cargo department. "t deals with domestic as well as international cargo. 4"& transfers cargo only to the city where operating airport is situated. 4"& does not deal in motor transport transfer of baggage. 0argo rules are also like other "&T& airlines. 4"& is uplifting around ';,;;; tons cargo per year including dry and perishables e+*4akistan. 0ommodity @ry cargo . . . . . . ?armentsJTe+tile 0arpets -inished =eatherJ=eather products %urgical %ports goods ?eneral cargo 4erishable cargo. . . . . . . . 4ercentage of Total Fplift (CL 2.L 12L 2)L 1;L 'L 21L )2L

4"& has speciali!ed in uplift of special cargo like Aelief goods, live animals 7sheep, cows, camels, horses9 shipments for cargo aircraft only etc.

I#T/$#ATIO#A4 %A$2O
?lobally, for passenger*based carriers, cargo is a subsidiary or branch of the mainstream airline activity at 4"&, which can boast of a rapidly e+panding passenger sector, the pace and growth of cargo as a revenue*generating sector is noteworthy. 2esides earning valuable revenue for the

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airline, 4"&s efficient cargo services provide a massive boost to the countrys wide spectrum of e+ports. "nternational 0argo has wide range of their products and services in their product line. They offer their products from international parcel to international documents, perishable commodities such as 7fresh fruits, vegetable, fresh flowers, sea foods9 dry fruits, carpets, leather 4roducts, garments, surgical instruments, heavy shipments and charter cargo.

PIA %argo #etwork

2esides country wide domestic network, cargo is directly serving (; international destinations round the globe, while rest of the world is being served through interline carriage beyond 4> points. 4"&1s average cargo revenue is around F% dollar C2 million per year, with system uplift of appro+. 6),;;; tons, on an average system wide yield of F% dollar 1.1; per kilogram. 4"&s network is spread over internationally defined freedoms as mentioned in the chart below.

-reedomwise

performance

average

tons

uplift

per

year

4"& has divided its network in ;. different regions according to the geographical location of the stations. <ut of total revenue, (.L is earned in 4ak rupees, while )1L of the system revenue are being earned in foreign e+change. Aegion wise revenueJtonnage contribution to the system is as given below.

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PIA %argoAs $ole in PakistanAs e0ports

4"& has played an active role in 4akistans e+port and has pioneered the opening of certain markets around the globe for 4akistani commodities, particularly perishables 7fresh fruits, vegetables, fresh -lowers, seafood9. "nspire of open sky policy since 1..2, as a result of which other carriers have been able to induct capacity at will, 4"& cargo has retained its market share in the uplift of perishables. &nnually 4"& is uplifting 1',;;; tons of perishables, out of which significant movement is the uplift of mangoes during 8une*%eptember, which is appro+imately );;; tones. 4"& keeps a very close liaison with 5+porters of 4akistan directly and through various associations, 0hambers of 0ommerce and 5+port 4romotion bureau. &s a national carrier, we remain aware of our responsibility to assist e+ports and we continuously plan and formulate policies to ensure efficient flow of e+ports. We have also actively participated in various e+port e+hibitions of 4akistani goods all over the world, by carrying e+hibition goods on special terms.

DOM/STI% P$ODU%TS
@omestic 4roductsJrouts are those 4roducts, which are offered in the domestic market or within 4akistan. :ow a days 4"& offered their products JAouts in ') cities which

26

DOM/STI% %A$2O
The transfer of shipment from one place to another within a country is called domestic 0argo. @omestic cargo operation over () 0ities in the 4akistan. @omestic cargo has a wide range of depth and width in their products on parcelJ deck, to heavy shipment. 4"& cargo is based on reciprocal process O the Eigher the weight the lesser the priceP.

DOM/STI% %OU$I/$ SP//D/B" SP//D/B

4"& newly introduce the courier product speed*e+, its operations is on the limited network but day by day its network is e+panding all the time and divided the network into five !ones which are shown below.

-eatures
%peed Aeliability &ffordability

When in comes to delivering on a promise, speed*e+ can be trusted for speed reliability and affordability. %peed*e+ the new courier services from 4"&, offers a range of services that e+tend form a document to charter load of shipment via 2;( flights a week. We provide our customer with the most comprehensive one 3stop shop for their courier needs. <ur wide range of services special same day service to over night services covering ma#or destination in 4akistan. Same &ay spee& 5nsuring that your shipment reaches your doorstep within hours. Over night spee& <ur early morning delivery helps you receive important shipment on time. Secon& Day Spee& & cost effective alternative when your packages do not need overnight delivery. &t speed*e+ we believe in fulfilling our customer courier needs thats why we provide comprehensive solution for the specific requirements of our customers. 2C

AI$?A5 BI44 A?B"

&irway bill can also be referred as O&irline &irway 2illP. Preprinted issuing carrier identification This is a non*negotiable document consisting of . to 1( parts. The conditions of contract are shown in the &W2. "t must be used for each domestic and international cargo and interlink with two or more airlines. "t must be issued at the time when shipper brings the consignment. When &W2 is completed the original is kept as a record in the issuing office and a copy of it is issued.

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

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

SP/%IA4 %A$2O
%pecial cargo describe those commodities which due to their nature or value require special attention. These may be perishable items, flammable items etc. -or the acceptance of these one should confirm that whether facilities for such cargo are available or not. =ist of special cargo is listed belowK =ive animals 4erishables <versi!ed cargo Daluables 0ompany cargo

2.

(A#D4I#2
Information regarding carriage of dead body should be disclosed to passenger traveling on the same flight. Documents of death certificate, packing certificate and other documents required by government. Loading and storage is the important function. %torage must be made on required temperature. Unloading shall be made after all passengers leave the A&$4. &nd it should be immediately transferred to warehouse. &rrangements for the delivery should be made quickly.

O*/$SI3/D %A$2O
"f the cargo is oversi!ed then it will not be acceptable. The measurement of si!e is made on the height and width of aircraft door. "f such aircraft is operating on specific sector whose si!e of the door is small than the cargo is not acceptable. The weight of goods are calculated by the following formula (4ength 0 wi&th 0 height">:== C weight

DA#2/$OUS 2OODS
This category includes that type of goods which may be harmful for the human beings, such asK 5+plosives ?asesK 0ompressed, liquefied, deeply refrigerated -lammable liquids -lammable solids Aadioactive material $iscellaneous ?oods

"mportant thing for the acceptance is its proper packing, documentation. The license for these dangerous goods is necessary. &ccording to "&T& rules, care must be taken while packing these items. @angerous ?oods Aegulation 7@?A9 applies on these items.

';

(UMA# $/SOU$%/ MA#A2/M/#T 1OB SP/%I!I%ATIO#S

1. 2.
?eneral $anager $anpower planningJmanager staff planning shall develop #ob specifications for each post in consultation with the department concerned. 8ob specifications shall not be tailored to suit individuals. 8ob specifications shall have wider alternates so as to provide a fair opportunity to internal candidates holding equivalentJcomparable qualifications to apply, and selection board to have a wider choice of selection

'.

Where only one candidate has applied against internal advertisement, the post shall be e+ternally advertised and decision taken on the basis of combined merit list.

$/%$UITM/#T A#D S/4/%TIO# PO4I%5

Aecruitment policy of 4"& is as followsK Aecruitment will be on merit and no other consideration would be applicable & person who is dismissed from some other employer will not be eligible for employment &ge limit is not below 1C and not above (; -or appointment a medical fitness certificate is an essential requirement &ge limit for air hostess is 1C*'; 5mployee needs to submit a police clearance report regarding his character with the rest of employment forms.

Training Policy

'1

&reaJ%tation head at foreign stations within their respective territoriesK Fp to 1)days. @irectorsK up to ';days. @eputy $anaging @irectorsK up to ,;days $anaging @irectorsK &bove ,;days

%OMP/#SATIO#
&ll the employee have pay group.4"& can pay the according to pay group. 4ay group are 1 *1;.according to the group, they provided different facility e.g. medical and loan

Performance evaluation
To evaluate the performance, they develop the annual confidential report on annually basis.

P$OMOTIO#
4romotion policy 4romotion shall be on the basis of merit and corporation1s recruitment, against available approved permanent postsJvacancies only, in accordance with requites qualifications or specifications, as the competent authority may prescribe from time to time. $erit shall be determined by the management whose decisions shall be final and binding. 4romotion of pilots, flight engineers and air craft engineers shall be governed by their respective agreements.

!I#A#%/ D/PA$TM/#T

'2

&ll organi!ations, either big or small, need financial resources to operate efficiently. -inance department is responsible to provide these resources and to get the ma+imum benefit from them through efficient utili!ation. 4"& being a huge organi!ation has an efficient finance department. -inancial statements are prepared and presented for the e+ternal and internal users by many enterprises around the world. &lthough such financial statements appear similar from country to country, difference occur due to variety of social, economic and legal circumstances, which have led to the use of a variety of definitions of the elements of financial statements, i.e. assets, liability, equity, income and e+penses. The ma#or function of the finance department is the reporting of all the financial events of all departments. &ll the departments in the organi!ation give their reports to the finance department and it makes and presents the final report for the decision making purpose. The financial statements are also used to make the decisions. "n order to make the reports the recording of each and every transaction is required. The recording is done on the basis of the fortnightly documents which are given by the agents and all the other departments. The finance department gets all the documents and then compiles them in the form of a report. There are four sections in the finance department that deals in different reports. The manuals are developed for every section in which they record all sales and payments. -inance department handles four types of salesK 0ash ticket sales 0redit ticket sales 0ash cargo sales 0redit cargo sales

There are two ma#or portions of the -inance @epartment

''

-inance @epartment

0ollection

@isbursement

%O44/%TIO#S
0ollections are of different types. 0ollections from 4"&s counters 0ollections from &gents 0ollections from 0argo counter 0ollections from cargo agents 0ollections from e+cess baggage

DISBU$S/M/#T
Aefunds of tickets %alaries Ftilities bills Works <thersQQQQQQQQ.

AUTOMATIO#
The -inance section is totally computeri!ed and linked with Eead <ffice. The %OSSIP is using through out the department.

$/PO$TI#2 S5ST/M
'(

There 11 types of reports maintained by the -inance @epartment and in evening the whole closing must be done in order to avoid errors. $)7 $;7 $:7 $97 $<7 $=7 $D7 $E7 $F7 4assenger sales report on counter M &gents 7%&A M &%A9 0argo sales report 0argo receipt on the behalf of the other station $iscellaneous collection e+cept credit 0redit receipt reports Aefund to passengers 5+cept cargo other collections on the behalf of other stations "nvoicing &ll sorts of collectionsJpassengerJcargoJothers

$)G7 %ales reports from agentsJreceivable generation $))7 0argo sales receivables from agents

%$/DIT A44O?A#%/
The credit sales either for the tickets or for the cargo is also recorded into computer system and relevant reports are generated and the whole record of these sales are also maintained.

AUTOMATIO#
Till 1.6. 4"& was doing manual ticketing then with the passage of time and with the need some system was developed in >arachi with the collaboration of &merica. "n 1.C2 A54&> system was introduced which was semi automatic. "t stands for reservation 4akistan system. "t was bought for '; cores. A54&> was 4"&s system it did not operate other flights. &s the system was semiautomatic, there was a need of checking the flights manually from a flight guide.The A54&> was a good system but it was under utili!ed.:ow a new system %&2A5 is used by 4"&. "t is head quartered in Tulsa in &merica which hosts ,; airlines. "t was purchased in 2;;1, no one knows for how much. '6 cents are paid to the system for every flown

')

segment. "t is an online system so the updating is online with no breakage. "n >arachi there is the hub.

',

!I#A#%IA4 (I2(4I2(TS
BA4A#%/ S(//T O! PIA ;GGE7;GGD

;GGE #O# %U$$/#T ASS/TS !i0e& Assets Property7plant an& eHuipment Intangi,les 4ong term investment 4ong term a&vances an& other receiva,les 4ong term &eposits an& prepayments %U$$/#T ASS/TS Stores an& spares Tra&e &e,ts A&vances Tra&e &eposits an& prepayments Accrue& interest Other receiva,les Short term investment Ta0ation7a&vance ta0 net of provision %ash an& ,ank ,alance

;GGD 7Aupees in thousand9

)1,2,',.1( 112,(21 )1,'6,,'') '2',6;) ,,,'),.'' 1,C;(,.66 =G+)9G+F<G 2,6.;,1'6 ),222,)'( )1',.16 )C1,16) '.,6;C (C1,((. ',',C)) 1(.,;C6 2,,1(,,.1 12,6),,))' D;+EFD+<G: 16,.C;,,). (,2C;,612 *1),1;6 *11,6..,.,, )G+99=+;FE 1,,21,;.. 1(,;;',.(; 21,6;,,;,( 6,C,;6) 2.;,2', 2,C2(,,.;

(.,)';,1'. 6(,2)( (.,,;(,'.' ''(,2.) 6,1.,,.1( 1,6)(,C)( <E+EFG+9<= 2,(1,,2.; ',..6,6)C ,6.,661 )(.,()( ',,;,' ,12,((6 ((;,((, 21(,..; 1;,C'C,C.C 1.,6C,,116 DE+=D=+<D: 1,,)2.,.2, (,2C;,612 1C,C,' *6,'CC,';. ):+99)+)F; 2,('1,,). 1(,6,;,.1; 2',62(,,6C 1,,;;,,;C '2C,1)) ','..,2C2

S(A$/ %APITA4 A#D $/S/$*/S Share capital $eserves Unreali'e& loss">gain on re7measurement investment7net Accumulate& 4oss #O# %U$$/#T 4IABI4ITI/S 4ong term finance un&er mark7up arrangements Term finance certificate 4ia,ilities against assets su,-ects to finance lease 4ong term mura,aha finance 4ong term &eposits Deferre& lia,ilities

of

'6

9)+;)9+)G9 %U$$/#T 4IABI4ITI/S Tra&e an& other paya,les Accrue& interest>mark7up Short term ,orrowing %urrent portion of I 4ong term finance un&er mark7up arrangement Term finance certificate 4ia,ilities against assets su,-ect to finance lease 4ong term mura,aha finance 1(,.C',.21 ,;6,6,. ',2,;6) 1,,21,1;' 6),,.6; 2,;,6,',' C'6,.;; ;)+;:D+)G)

9=+;9<+;F; 1',,)(,()6 )(;,)6; * 1,,21,11; '6C,,') 1,.,;,216 C'),1;; )E+FFG+GEF

%O#TI2/#%I/S A#D %OMMITM/#TS D;+EFD+<G: DE+=D=+<D:

Profit an& 4oss Account

Profit an& 4oss Account !or the year en&e& Decem,er :)+;GGE ;GGE Turnover*:et 0ost of service &ircraft -uel <thers *2,,(,2,621 *'2,(6C,11) *)C,.(;,C', 2ross Profit <+)::+=:9 *16,.1','26 *'1,1(1,((6 *(.,;)(,66( E+D)<+G=: ,(,;(6,(6; ;GGD 7Aupees in thousand9 )6,6,.,C'6

'C

<ther <perating "ncome $arketing and distribution costs &dministrative e+penses 4oss">profit from operations -inance cost <ther provisions and ad#ustments* net 4oss">profit ,efore ta0 Ta+ation 4oss">profit for the 5ear

1,2(1,,,. *',C;.,1,. *(,'2),)6, *,,C.',;6, 7)+D<F+99; *2,6C6,'.. '',,;) *2,6)',6.( 79+<):+;:= 1;1,)6. 79+9))+=<D

',1,2,C'; *2,.,),'(2 *',C)1,.6; *',,)(,(C2 <+G=G+<E) *2,1..,;,6 *2,;2(,211 *(,22',26C E:D+:G: 1,(,.,2.) ;+:G=+<FE

$ATIO A#A45SIS
%U$$/#T $ATIO
0urrent Aatio is obtained by dividing current assets by current liabilities. "t shows a firms ability to cover its current liabilities with its current assets. R 0urrent &ssets 0urrent =iabilities

Near

0alculations

0urrent Aatio

'.

2;;C

R126),))';;; 212'61;1;;;

;.,;

2;;6

R1.61,2.;;; 1C..;;.;;;

1.;(

A#A45SIS
Aesult of this ratio is that during the year the ratio is declining rapidly.4"& could face problem if the current ratio will decline.

A%ID7T/ST $ATIO
0urrent assets less inventory divided by current liabilities. "t shows a firms ability to meet its current liabilities with its most liquid7quick9 assets. R 0urrent &ssets 3 "nventory 0urrent =iabilities

Near

0alculations

&cid*Test Aatio

(;

2;;C 2;;6

R126),));;;*26.;1';;; 212'61;1;;; R1.6C,116;;;*2(1,2.;;;; 1C..;;C.;;;

;.(, ;..1(

A#A45SIS
Eere, the same case with acid test ratio. Aatio is decreasing continuously. Aesult shows that more proportion if asset as inventory in current asset with comparison to other assets.

D/BT TO /JUIT5 $ATIO

The debt*to*equity ratio is computed by simply dividing the total debts of the firms 7including current liabilities9 by its shareholders equity.

R Total @ebt %hareholder 5quity

(1

Near 2;;C 2;;6

0alculations R('')21'6;;; 1;((,2.C;;; R(6'12..,;;; 1'((11.2;;;

@ebt to 5quity Aatio (.1) '.)2

A#A45SIS
&ccording to this ratio analysis. firms debt equity ratio started to grow with high rate.

D/BT7TO7TOTA4 ASS/TS $ATIO

@ividing a firms total debt by its total assets derives the debt*to*total assets ratio. Total &e,t Total assets

(2

Near 2;;C

0alculations R('')21'6;;; 62C.6);';;;

@ebt*to*total assets Aatio ;.).(

2;;6

R(6'12..,;;; 6C,6,)6';;;

;.,;1

A#A45SIS
:ot so much satisfied it is not so much effective.

I#T/$/ST %(A$2/S $ATIO

5arning before interest and ta+es divided by interest charges. "t indicates a firms ability to cover interest charges. /arning ,efore interest an& ta0es /BIT" Interest e0pense

('

5ear 2;;C

%alculations R16).((2;;; 26C6'..;;;

Interest %harges $atio ;.,'

2;;6

R);,;)C1;;; 21..;,6;;;

2.';1

A#A45SIS
4"& Ss ability to meet interest obligations are improving but not so much effectively.

I#*/#TO$5 TU$#O*/$ $ATIO

R 0ost of goodsJservices sold "nventory Near 0alculations "nventory Turnover Aatio

((

2;;C

R)C.(;C',;;; 26.;1'6;;;

21.12

2;;6

R(.;)(66(;;; 2(1,2.;;;;

2;.';

A#A45SIS
PIA was in a good position in 2;;6 but after inventory turnover was decreased.

()

2$OSS P$O!IT MA$2I#

R :et %ales 3 0ost of ?oods %old :et %ales <A R ?ross 4rofitJloss :et %ales Near 2;;C 0alculations R)1'','(;;; ,(;6((6;;;; 2;;6 RC61);,';;; )66,.C'6;;; 1).;CL ?ross 4rofit $argin C.;1L T 1;;

A#A45SIS
4"&s ?ross 4rofit margin is low and it is also decreasing. and not so much effective,

(,

#/T P$O!IT MA$2I#

& more specific measure of the sales profitability is the net profit marginK R:et 4rofit7loss9 after Ta+es :et %ales Near 2;;C 2;;6 0alculations R7((11,)6;;;9 ,(;6((6;;;; R2';,).C;;; )66,.C'6;;; '...L or (L :et 4rofit $argin 7,.CCL9

A#A45SIS
4"& profit margin is decreasing in negative so 4"& is going in so much losses

(6

$/TU$# O# /JUIT5 $O/"

A<5 compares net profit after ta+es 7minus preferred stock dividends, if any9 to the equity that shareholders have invested in the firmK R:et 4rofit &fter Ta+es %hareholders 5quity Near 2;;C 0alculations R7((11,)6;;;9 1;((,2.C;;; 2;;6 R 2';,).C;;; 1'((11.2;;; 16.1,L Aeturn <n 5quity 7(2.2'L9

A#A45SIS
4"& return on equity is also in negative. "ts completely in losses

(C

%OMMO# SI3/ A#A45SIS */$TI%A4 A#A45SIS"

"t is an analysis of percentage financial statements where all balance sheet items are divided by total assets and all income statement items are divided by net sales or revenues.
BA4A#%/ S(//T AS AT D/%/MB/$ :)+ ;GGE ;GGE #O# %U$$/#T ASS/TS -i+ed &ssets 4roperty*plant and equipment 2'L "ntangibles ;.1)L 6;.(6L ;.((L ..1;'L 2.(6L E;.<K '.C2L 6.1,L 6.;)L 6..6L ;.;)(L ;.,,L ;.(..L ;.2;(L '.)C,L 16.(.L )GGK 2(.,,L ).C6L *;.;2;6L *1,.1CL )9.::K ;.;.(L ,'.;(L ;.(2(L ..1(6L 2.2'L D9.E<K '.;6L ).;CL ;.C,(L ;.,.L ;.;()L ;.66L ;.))L ;.26'L 1'.66L 2)1(L )GGK 21L ).((L ;.;2'L *..'.L )D.GEK ;GGD 7Aupees in thousand9

6;.

,2..)L

=ong term investment =ong term advances and other receivables =ong term deposits and prepayments %U$$/#T ASS/TS %tores and spares Trade debts &dvances Trade deposits and prepayments &ccrued interest <ther receivables %hort term investment Ta+ation*advance ta+ net of provision 0ash and bank balance Total &ssets S(A$/ %APITA4 A#D $/S/$*/S %hare capital Aeserves Fnreali!ed7loss9Jgain on re*measurement of investment*net &ccumulated =oss

(.

#O# %U$$/#T 4IABI4ITI/S =ong term finance under mark*up arrangements Term finance certificate =iabilities against assets sub#ects to finance lease =ong term murabaha finance =ong term deposits @eferred liabilities %U$$/#T 4IABI4ITI/S Trade and other payables &ccrued interestJmark*up %hort term borrowing 0urrent portion of K =ong term finance under mark*up arrangement Term finance certificate =iabilities against assets sub#ect to finance lease =ong term murabaha finance

2.22L 1..21L 2..66L 1.;)'L ;.'.CL '.C6L <=.<:K 2;.))L ;.C''L ;.(.,L 2.22L 1.;'CL 2.C'L 1.1(.L ;F.):;K

'.;.L 1C.6,L ';.1)L 2.;'L ;.(16L (.2'L <E.DDK 16.')L ;.,CL * 2.;,L ;.(C1L 2.(.L 1.;,L ;9.):K

%O#TI2/#%I/S A#D %OMMITM/#TS )GGK )GGK

Profit an& 4oss Account !or the year en&e& Decem,er :)+;GGE ;GGE Turnover*:et 0ost of service &ircraft -uel <thers (1.2. );.,C .1..6 2ross Profit <ther <perating "ncome $arketing and distribution costs &dministrative e+penses E.G) 1..' 7)..(9 7,.6)9 7'1.;;9 7)'..9 7C(..9 )<.GE ).(6 7).1'9 7,.,,9 1;; ;GGD 7"n 4ercentage9 1;;

);

71;.6)9 4oss">profit from operations -inance cost <ther provisions and ad#ustments* net 4oss">profit ,efore ta0 Ta+ation 4oss">profit for the 5ear ;.D9" 7(.')9 ;.;)2 7(.2.9 D.G9:" ;.1)C =.EE<"

7,.'29 E.D< 7'.C;9 7'.);9 76.'19 ).99 2.)( :.FF

)1

I#D/B A#A45SIS (O$I3O#TA4 A#A45SIS"

"nde+ &nalysis is also called as Eori!ontal &nalysis. This analysis is used to measure the performance of any business of any business over years. "t is useful tool to measure the performance of enterprises to make comparisons over years and to certain decisions regarding the business like what is trend of business now. "nde+ analysis is an analysis of percentage financial statements where all balance sheet or income statement figures for a base year equal 1;;.;7percent9 and subsequent financial statements items are e+pressed as percentage of their values in the base year.
BA4A#%/ S(//T AS AT D/%/MB/$ :)+ ;GGE ;GGE #O# %U$$/#T ASS/TS -i+ed &ssets 4roperty*plant and equipment "ntangibles =ong term investment =ong term advances and other receivables =ong term deposits and prepayments %U$$/#T ASS/TS %tores and spares Trade debts &dvances Trade deposits and prepayments &ccrued interest <ther receivables %hort term investment Ta+ation*advance ta+ net of provision 0ash and bank balance 1;'.) .,.C' .2.2; 1;2.C )G;.) 11).(6 1';.,' 6).,; 1;).6 11;.; 6C.,1 C2.,1 ,..'( 2(.12 ,(.(6 F;.=< 1;C.6 1;; C;.; *1)..61 DD.D) ;GGD 7"n 4ercentage9 2ase Near 1;'.) 1)1.( 1;; 1;; 1;; 1;; 1;; 1;; )GG 1;; 1;; 1;; 1;; 1;; 1;; 1;; 1;; 1;; 1;; )GG 1;; 1;; 1;; 1;; )GG

S(A$/ %APITA4 A#D $/S/$*/S %hare capital Aeserves Fnreali!ed7loss9Jgain on remeasurement of investment*net &ccumulated =oss #O# %U$$/#T 4IABI4ITI/S

)2

=ong term finance under mark*up arrangements Term finance certificate =iabilities against assets sub#ects to finance lease =ong term murabaha finance =ong term deposits @eferred liabilities %U$$/#T 4IABI4ITI/S Trade and other payables &ccrued interestJmark*up %hort term borrowing 0urrent portion of K =ong term finance under mark*up arrangement Term finance certificate =iabilities against assets sub#ect to finance lease =ong term murabaha finance

,,., .(.C6 .1.(. (6..C CC.(( C'.;. EF.); 1;..6' 112.('

1;; 1;; 1;; 1;; 1;; 1;; )GG 1;; 1;; *

..... 1.... 1;).(, 1;;.'' ))).E:

1;; 1;; 1;; 1;; )GG

%O#TI2/#%I/S A#D %OMMITM/#TS F;.=< )GG

Profit an& 4oss Account !or the year en&e& Decem,er :)+;GGE ;GGE ;GGD 7"n 4ercentage92ase Near Turnover*:et 0ost of service &ircraft -uel <thers 1(6.6 1;(.2. 12;.1) 2ross Profit <ther <perating "ncome $arketing and distribution costs &dministrative e+penses 4oss">profit from operations <E.FG '..2) 7'..2)9 7112.29 71CC.,9 :9.D=" 1;; 1;; 1;; )GG 1;; 1;; 1;; 1;; )GG 11;.. 1;;

)'

-inance cost <ther provisions and ad#ustments* net 4oss">profit ,efore ta0 Ta+ation 4oss">profit for the 5ear

712,.6)9 1.,, 7,).2;9 <:F.G" ,..1 )F).;="

1;; 1;; 1;; )GG 1;; )GG

)(

SWOT ANALYSIS
ST$/#2T(S
-ollowing are the strengths of 4"&. 4"& is as old as the nation itself. %o its reputation is its most valuable asset. 2eing the national flag carrier it has maintained goodwill. 4"& has the most comprehensive training centre to train its employees and also the non*4"& employees to generate some revenues. 4"& is semi*governmental organi!ation. %o its interests rest with that of the government. @ue to this reason 4"& has got protection form any unfavorable geo* political change. 4"& covers domestic and international destinations more than any other domestic airline in 4akistan. 4"& has started its very own courier service named SPEED-EX. 4"& has its own kitchen, which not only fulfills its own needs but also provides food to other airlines and hence is a source of revenue generation. 4"& sponsors famous players of cricket, hockey and squash, which add to its national fame.

))

 4"& moderni!es its aircrafts when it is required e.g. currently 4"& has signed an agreement with 2oeing 0ompany to purchase C 2oeing 666 aircraft and started its latest &TA service. 4"& has the most advanced communication system in the local industry. Aecently it has replaced its old A54&> system with new and more advanced system named %&2A5. -rom accounts point of view, all the accounts are managed through a self* developed accounting software 0<%%"4 """. 4"& has replaced its counter reservation with telephonic reservation keeping in view the customer convenience. :ow any passenger can get hisJher seat reserved by calling to 111*6C,*6C,. 4"& has recently started its e*ticketing service. 4"& is considered as the most attractive employer because it offers the most attractive salary packages and other facilities to its employees. 2esides its revenue considerations, 4"& flights also go to northern areas like ?ilgit and %wat while others dont. <ther domestic airlines like &ero &sia focuses only on profitable routes like ma#or cities of 4akistan like >arachi, "slamabad and =ahore. 4"& has its on*line and off*line offices in all ma#or cities of the world at the heart of those cities, which provides 4"& the appropriate promotion opportunity. 4assenger handling is very proper. 4"&s security department is doing e+tremely well and it is indeed its strength. Tour 4romotion department along with 4ublic Aelation department is doing e+tremely well by publishing the promotion material.

),

 4"& has the best and technologically proficient engineering department, which not only fulfills its own need but also generates revenue by providing assistance to other airline and also the facility of ground handling. 4"& publishes its own maga!ines including in*flight maga!ine OEamsafarP, which not only promotes 4"& globally but also provides the employees an opportunity to e+press their views. 4"& has the largest setup in the local industry and hence it would be quite difficult for a new airline to come into the competition with 4"&. 4"& has provided special printers to all of its agents to keep them up to date with the latest fares and also offers the most lucrative incentives to them. &uto ticketing facility is very convenient for the passenger.

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?/A6#/SS/S 2eing a semi*government corporation 4"& is a politici!ed organi!ation. 5very government wants to impose its own decisions on 4"&. Ead 4"& been given complete autonomy in its decisions it would have made much more progress. $ost of the 4"&s aircrafts are outdated and old fashioned. &lthough 4"& has planned to buy C 2oeing yet more and more should be replaced to cater to the increasing needs of the passengers. There is lack of corporate loyalty in 4"& due to highly centrali!ed structure, which is e+tremely ha!ardous. @ue to political influence 4"& has to schedule its flights to the unprofitable routs like northern areas and some other countries. Whereas other private airlines dont compelled to do this. 4"& flights are often late. %ome of the aircraft handling equipment is out of date. Targets are most of the time unachievable for %4<s. 4assenger sales development is not doing very well. Aude attitude of airhostesses has become a routine practice. 2udget for tour promotion is not sufficient. There is no separate cargo aircraft in the fleet. $2< 7management by ob#ective9 is not present and top down approach of management is adopted.

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 $anpower planning is not proper. %election and recruitment process is not transparent.

OPPO$TU#ITI/S %ince 4"& has a very well established training centre it can easily e+pand its business and can also add latest aircrafts. 4"& has got the lions share in domestic market. 4rivati!ation is being planned which can help improve its performance. 4akistan has got great potential for tourism industry which is also a great opportunity for 4"&. <n most of the international routes 4"& is the only domestic airline operating.
Fp gradation in the fleet

T($/ATS &ccording to an official 11;; employees are estimated to be retired this year, which may create a huge gap of human inventory so a massive recruitment is needed to be launched. Fndue political influences are the greatest threats to the autonomy of 4"&. -uel prices are fluctuating and have become quite uncertain especially after the 11*sep events which are threat. <ther airlines are entering in this industry like O IR!LUE which can be a challenge for 4"&. Terrorism is also a threat for 4"&.

%onclusions
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<n the whole 4"& is a good and healthy organi!ation. "ts structure is good and tariff and marketing department has to work hard with more proficiency.

SU22/STIO#S>$/%OMM/#DATIO#S
4"& is a very large organi!ation and working successfully but still there are some areas that should be given special attention. 1. :o proper system to receive the customers when they enter in the $ultan office at least there should a customer co*ordinator at the entrance to provide the information to the customers. They feel much problem to know where they have to go in large building. 2. This is basically a service organi!ation and in service organi!ation your customer is your first priority, no doubt that during the flight customers are well treated and special care is taken but as far as " have observed customers are not well treated in the 4"& counters 7i.e. customers have to wait for there turn ranging from 1; minutes to 'hours9. This is because shortage and irresponsibility or carelessness of employees. When customer is not happy how customer retention is possible. '. Try to minimi!e the waiting time. (. "f possible some entertainment like play music etc at the waiting area of booking counters. ). "n the sale promotion the %4<% should not have fi+ed salary but there should be some e+tra benefits or commotions so that they should be motivated. There will be significant impact on sale. ,. -or the domestic counter there should be another cash counter and, so that customer should not go to the international counter for ticket issuing and payment. 6. There are some conflicts between employees that should be resolved. C. & proper work should be done and should make it a part of training as well. .. There should be a proper check of monitoring the efficiency and performance of employees.

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A##/B/S
&nne+ure O&P &nne+ure O2P &nne+ure O0P &nne+ure O@P &nne+ure O5P &nne+ure O-P 4"& &ward 4lus Aevenue $anagement %ystem Eealth %afety M 5nvironment 0ustomer 0are 4erformance &ppraisal -orm %afety $anagement %ystem

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