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One machine can do the work of fifty ordinary men. No machine can do
the work of one extraordinary man.
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Pakistan International Airlines is Pakistans national and international AIRLINE
. Eventually, on March 11 of 19, Orient Airways !er"ed #ith the
$overn!ent%s &ro&osed airline, 'eco!in" Pakistan International Airways. In
March of 19(), PIA 'eca!e the first Asian airline to enter the *et a"e #hen
+oein" ,), service #as introduced. In 19,-, the airline 'ou"ht their first ,.,
aircraft, #hich have since 'eco!e a sta&le of the airline%s fleet. In 199(, the
airline leased /u&olev /u01. &lanes, and re0o&ened services to +eirut
International Air&ort in +eirut, Le'anon.

Pakistan International Airlines 1also kno#n as PIA2, is Pakistans
national and international AIRLINE . Its IA/A call code is P3. In Pakistan its
initials are so!eti!es *ocularly said to stand for 4&rayers in air4.
History:
PIA
can trace its 'e"innin"s to the days #hen Pakistan still #asn%t a nation. In
19.(, Muha!!ed Ali 5innah, also kno#n as founder of Pakistan, reali6ed the
need of an airline net#ork for the for!in" country. 7e called u&on the hel& of
an e8&erienced industrialist, Mr. M.A. Is&ahani.
9n 9cto'er :; of 19.(, Orient Airways #as set u&, re"istered in <alcutta. In
=e'ruary of 19.,, three ><0; air&lanes #ere 'ou"ht fro! a co!&any in /e8as,
and in May of that year, the airline #as "ranted a license to fly. ?ervices #ere
started in 5une, fro! <alcutta to Akya' and Ran"oon. /his #as the first &ost
#ar airline fli"ht 'y an Indian re"istered airline co!&any.
/#o !onths after this service 'e"an, Pakistan as a nation #as for!ed. Orient
Airways 'e"an relief fli"hts to the ne# nation, and soon after, it !oved
o&erations to 3arachi, #here it 'e"an the i!&ortant route fro! 3arachi to
>acca. In addition, their initial do!estic route in Pakistan #as esta'lished, fro!
3arachi to Lahore to Pesha#ar, and fro! 3arachi to @uetta to Lahore.
>ue to increasin" &assen"er de!and, the airline increased its fleet 'efore the
end of the 19.)s, and this caused financial trou'le to the airline. /he
"overn!ent of Pakistan, reali6in" the o&eration #as failin" econo!ically, asked
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the airline to !er"e into a ne#, national airline that the "overn!ent #as
&lannin" on creatin". Eventually, on March 11 of 19, Orient Airways !er"ed
#ith the $overn!ent%s &ro&osed airline, 'eco!in" Pakistan International
Airways.
History Overview:
/he first airline fro! an Asian land country and the first airline fro! a
Musli! country to fly the ?u&er <onstellation
/he first Asian airline to o&erate a *et aircraft.
/he first Asian airline to 'e "ranted !aintenance a&&roval 'y the A?
=ederal Aviation Ad!inistration 1=AA2 and the Air Re"istration +oard,
&redecessor of the +ritish <ivil Aviation Authority 1<AA2.
/he first non0co!!unist airline to fly to the Peo&le%s Re&u'lic of <hina,
and to o&erate a service 'et#een Asia and Euro&e via Mosco#
/he first airline in Asia to induct the ne# technolo"y +oein" ,;,0;))
aircraft.
An I+M 1.)1, the first co!&uter in Pakistan, #as installed in PIA.
/he first airline to introduce a second route to Peo&le%s Re&u'lic of <hina
over the !i"hty 3arakora! !ountains.
/he first airline in the #orld to o&erate scheduled helico&ter services
/he first airline to sho# in0fli"ht !ovies on international routes.
PIA set u& Pakistan%s first &lanetariu! at 3arachi.
/he first airline in ?outh Asia to introduce auto0ticketin" facility.
=irst Asian airline to start fli"hts to 9slo, the 'eautiful ca&ital city of
Nor#ay.
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+oein" ,.,0;)) (
+oein" ,.,0:)) .
+oein" ,,,0:.ER ;
Air'us A0;))0+. (
Air'us A0;1) 1:
+oein" ,;,0;)) ,
=okker =0:,0:))B.)) -
/#in 9tter :
/otal Aircrafts P3 Air#ays <ontains C .-
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MISSION
Considering its mission statement to be a world class airline with a
distinctive Pakistani character, that is customer driven and caring
employer, Pakistan International Airlines is committed to providing top
quality service and endeavors to achieve total customer satisaction!
"hereore we, at Customer #elations $ivision,look orward to receiving
rom our customers their comments and suggestions regarding any
aspect o Pakistan International Airline %ervices!
It is our belie that comments and suggestions made by our valued
customers are o a vital inormation source, which enable us to
evaluate the services and to take appropriate measures or
improvement! &ltimately, this will lead us to achieve our mission!
'e hope that Pakistan International Airlines will always acquire your
conidence every now and then!
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. . . Man is still the most extraordinary computer of all.
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Various ratios are used by managers and
investors to analyze and forecast the
profitability and efficiency of a company.
Listed in this section are the ratios used for
the financial analysis of Pakistan
International Airlines.

Ratio Analysis
Financial Statement Analysis uses a primary tool a ratio hich relates to figures applicable to
different categories.
Without ratios! financial statements ould be largely uninformative to all but the very skilled. "ith
ratios! financial statements can be interpreted and usefully applied to satisfy the needs of the reader.
In order to assess the performance of a business! it is necessary to analyse and interptret the business
final accounts. Analysis involves a detailed revie of the information provided in the final accounts.
#he results of this analysis are interpreted to assess the performance of the business. #his may
include a comparison ith previous years! a comparison ith targets or budgets! or even a
comparison ith other similar businesses.
For comparison to be meaningful! it is used to e$press results in terms of accounting ratios. #he
ording accounting ratios is used to describe all the calculations involved in interpreting accounts!
even though some of the calculations are e$pressed in terms of percentages % time periods
Users of Ratios: #here are vast numbers of parties ho are interesting in analyzing financial
statements! including share holders! lenders! customers! suppliers! employees! government agencies
and competitors.
Ratio Analysis is a first step in assessing an entity. It removes some of the mysti&ue surrounding
the financial statements and makes it easier to pinpoint items hich it ould be interesting to
investigate further.
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Short Term Liquidity Ratios for Pakistan International Airlines.
Objective
/o !easure the solvency, or the a'ility, of Pakistan International Airlines to
!eet its short0ter! financial o'li"ations and to assess the liDuidity, or the
a'ility, of PIA to convert current assets to cash to reduce current lia'ilities.
The Ratios
/he !ost #idely used financial ratios for esta'lishin" the short0ter! liDuidity of
a co!&any are hi"hli"hted in the 'elo# chart.
/he short0ter! liDuidity ratios are used in the evaluation of short0ter! liDuidity
to convert current assets into cash in order to reduce the financial o'li"ations of
the co!&any as they 'eco!e due. /hese ratios are &articularly si"nificant to
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the creditors and &otential lenders of a co!&any 'ecause they deter!ine the
a'ility of that co!&any to !eet current &ay!ents of a de't.
Quick omparison
Financial Ratio 2! 2"
<urrent Ratio :.(, :.);-
@uick Ratio 1..1 1.,-1
Financial Ratio 2! 2"
<urrent Ratio 1.9;: 1.-1,
@uick Ratio ).-9; ).-(
!nalysis
As sho#n in the a'ove co!&arative ta'le, Pakistan International Airlines short0
ter! liDuidity has various over the &ast decades and has consistently re!ained
'elo# a :E1 ratio, #hich could 'e &erceived as less than o&ti!al. /he Duick
ratio also has re!ained under 1E1, #hich is considered to 'e the 'ench!ark
value for this ratio. 7o#ever, relative to the =inn air airlines, =inn air airlines
has !aintained a hi"her current ratio and PIAs Duick ratio has re!ained Lo#er
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than its co!&etitors. /hese trends indicate PIA has 'een in a &oor &osition than
its co!&etition to !eet its short0ter! financial o'li"ations.
Financial Leverage Ratios for Pakistan International Airlines.
Objective
/o a&&ly ratio analysis to assess the de't levels of Pakistan International
Airlines.
The Ratios
/he !ost co!!only used ratios 'y financial analysts for deter!inin" the lon"0
ter! solvency of an entity are sho#n in the follo#in" ta'leE
(inancial #atio )umerator $enominator
>e't0to0EDuity /otal >e'ts EDuity
>e't0to0/otal Assets /otal >e't /otal Assets
/hese ratios are used for solvency evaluation. /he !ain focus of these ratios is
the entitys a'ility to re&ay lon"0ter! creditors. +oth creditors and shareholders
are eDually interested in these ratios. /y&ically, these ratios should 'e as lo# as
&ossi'le. /hese ratios indicate the entitys a'ility to #ithstand relatively sour
'usiness conditions #ithout sufferin" net losses or insolvency. Althou"h, these
ratios should not 'e taken at face value since they are de&endent on !any
factors, these ratios are !ost useful for !akin" a&&le0to0a&&le co!&arisons in
the industry.
Quick omparison
2! 2"
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Financial Ratio
>e't to EDuity 1.99: 1.,9:
>e't to total Assets )..; ).;)-
Financial Ratio 2! 2"
>e't to EDuity 1.:) 1.(
>e't to total Assets ).1 ).()-
!nalysis
As evident fro! the a'ove ta'le there is a decreasin" trend in all of the a'ove
ratios fro! >ece!'er :)). to ?e&te!'er :)). /his sho#s the >ecreasin"
/rend of PIA and this sho#s the &oor a'ility of the entity to !eet its lon"0ter!
o'li"ations unsuccessfully #ith 'ein" in dan"er of encounterin" net losses or
insolvency. In short this a'ove ta'le sho#s that the PIA is totally de&endent on
the de'ts.

Profitability Ratios for Pakistan International Airlines.
Objective
/o deter!ine the &rofita'ility of ?outh#est Airlines usin" various financial
ratios.
The Ratios
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Profita'ility ratios are used in an effort to evaluate !ana"e!ents a'ility to
!onitor and control e8&enses and to earn a &rofit on resources co!!itted to
the 'usiness. /he ratios assess ?outh#est Airlines stren"ths and #eaknesses,
o&eratin" results and "ro#th &otential. /hese ratios are used to !easure ho#
efficiently the assets are 'ein" used to "enerate net inco!e and sales. /he
hi"her the ratio, the !ore effectively a co!&any is usin" their assets. /he
ratios also allo# co!&arison of the &rofita'ility of ?outh#est Airlines to that of
si!ilar airlines #ithin the industry.
Listed in the ta'le 'elo# are the &ri!ary ratios used to deter!ine &rofita'ility
Ratio.
Financial Ratio )umerator $enominator
$ross Profit $ross Profit Net sales
Net Profit Ratio Net &rofit Net sales
9&eratin" Profit Ratio E+I/ Net sales
Quick omparison
Financial Ratio %ep!*++, $ec!*++-
$ross Profit (..9: F (:.; F
Net Profit Ratio .;.(, .1..F
9&eratin" Profit Ratio .9.-( F .,. F
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Financial Ratio %ep!*++, $ec!*++-
$ross Profit 99.: F (.F
Net Profit Ratio :.- F ).:9) F
9&eratin" Profit Ratio ;.-, F ).( F
!nalysis
$ross &rofit and "ross &rofit &ercenta"e are used to assess #hether the &rofits
#ill cover o&eratin" e8&enses. /he "ross &rofit rate has re!ained unsta'le in
the &eriods. Pakistan International Airlines has a relatively Lo# "ross &rofit rate
this year, &ri!arily 'ecause of 7i"h o&eratin" costs. 7i"h o&eratin" costs is one
of the !ain threats for this fir!, G+y kee&in" costs 7i"h, #e cant kee& our
fares lo#. /his, in turn, "ives custo!ers to fly #ith other Airlines.H
Activity Ratios for Pakistan International Airlines.
Objective
Activity ratio are used to deter!ine ho# Duickly various accounts are converted
into sales or cash.
The Ratios
Financial Ratio )umerator $enominator
Receiva'le turnover <redit sales Receiva'les
Paya'le turnover <redit Purchases Paya'les
Inventory /urnover <ost of $oods ?old Avera"e Inventory
9ver all the LiDuidity ratios "enerally do not "ive an adeDuate &icture of a
co!&anys real liDuidity, due to differences in the kinds of current assets and
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lia'ilities the co!&any holds. /hus, it is necessary to evaluate the activity or
liDuidity of s&ecific current accounts.
Quick omparison
Financial Ratio *++, *++-
Receiva'le turnover 1).:, ti!es 9.-- ti!es
Paya'le turnover ;.; :.)-
Inventory /urnover -.9; (..
Financial Ratio *++, *++-
Receiva'le turnover (.:9 ti!es ,.(. ti!es
Paya'le /urnover ).:: ).:,-
Inventory /urnover .;.:- .(.9
!nalysis
Pakistan International Airlines contains a no!inal >e'tors turnover chan"e
fro! &revious year. PIA can turn its accounts into sales 9.-- ti!es 'ut if #e
co!&are it #ith =inn Air then #e #ill find that =inn Air can turn its de'tors into
sales faster than PIA.
/he total asset turnover of PIA increases and it is a &ositive res&onse as assets
are utili6in" !ore si"nificantly 'y the or"ani6ation. If #e co!&are #ith the =inn
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Air then they are also utili6in" their assets. +oth co!&anys use to assets are
co!&aratively "ood.
Interest overage Ratios for Pakistan International Airlines
Objective
/he interest covera"e ratio reflects the nu!'er of ti!es interest e8&ense is
covered 'y earnin"s or cash flo#s.
The Ratios
Listed in the ta'le 'elo# are the &ri!ary ratio used to deter!ine Interest
<overa"e Ratio.
Financial Ratio )umerator $enominator
Interest covera"e Ratio E+I/ Interest char"es
/he ratio reveals the !a"nitude of the decline in Inco!e that a fir! can
tolerate and still 'e a'le to !eet its interest &ay!ents.
Quick omparison
Financial Ratio %ep!*++, $ec!*++-
Interest covera"e Ratio ).(1, 1.)1
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Financial Ratio %ep!*++, $ec!*++-
Interest covera"e Ratio :..- ..
!nalysis
/he decline in interest covera"e fro! :)). to :)) is a ne"ative indicator for
Pakistan International Airlines. /his dro& in the ratio in the second year #ould
'e of concern to creditors, 'ut if #e co!&are it #ith =inn Air then #e #ill find
that =inn Air has increase in Interest <overa"e Ratio fro! :)). to :)) is a
&ositive indicate.
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Summary of Financial Ratio
#atio (ormula
'ec. ())* Sep.())+ ,valuation #rend 'ec. ())* Sep.())+ ,valuation #rend
NI< <urrent assets J <urrent Lia'ilities ).))9: 1).)9;2 >eteriorated ).))( ).)1: I!&roved
<urrent <urrent Assets B <urrent Lia'ilities 1.);- ).(, >eteriorated 1.)1, 1.);: I!&roved
@uick <ash K <ash EDuivalent
KReceiva'les B <urrent Lia'ilities
)..1 ).,-1 I!&roved )..( )..9; I!&roved
>e't eDuity /otal Lia'ilities B ?hareholder EDuity ;.9.( ;.,9: I!&roved 1.( 1.()
>e't /.A. /otal >e't B /otal Assets ;.;)- ..-1, >eteriorated ).()- ).(1
/otal
<a&itali6ation
/otal >e't B /otal <a&itali6ation 1.);9 1.). >eteriorated )..;, )...
>e't Ratio /otal Lia'ilities B /otal Assets ).,-9 ).,,; I!&roved ).()9 ).(1(
$ross Profit $ross Profit B Net ?ales 1F )-F >eteriorated
1)).)9( F
99.: F
Net Profit Net Profit B Net ?ales ): F 1(., F2 >eteriorated ).:9) F :.- F
9. E8&ense 9&eratin" E8&ense B Net ?ales 1):.( F 9,.9 F 1):.( F 9,.9 F
9. Profit E+I/ B Net ?ales ). F ); F ).( F ;.-, F
>e'tors /.9. <redit ?ales B Receiva'les 1).:,/i!e 9.-- /i!e :.)1 /i!e 1.-) /i!e
/. Asset /.9 Net ?ales B /otal Assets :.)- ;.; ).:,- ).:-
NI< /.9. ?ales B Net Iorkin" <a&ital (.. (.-) -.-) 19.;)
Interest
<overa"e
9&eratin" Inco!e B Interest <har"es 1.)1 ).(1, ..) :..-
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-orizontal analysis is used to
evaluate the trend in the
accounts over the years

The real dan"er is not that computers #ill be"in to think like men$ but
that men #ill be"in to think like computers.
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Stages of Group Development
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Stages of !rou" #evelo"ment
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/here are five sta"es for "rou& develo&!ent
=or!in" sta"e
?tor!in" sta"e
Nor!in" sta"e
Perfor!in" sta"e
Ad*ournin" sta"e
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The scientific theory % like best is that the rin"s
of &aturn are composed entirely of lost airline
lu""a"e.
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E8ternal conditions are i!&osed on a #ork "rou&.
/here are e8ternal conditions #hich influence the
&erfor!ance of the "rou&s in Pakistan International
Airlines.
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To$ard %&"laining 'ork(!rou" )ehavior.
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In PIA group.s perormance are predicted by
assessing the knowledge, skills, and abilities o its
individual members!
!rou" *ember Resources
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All groups have norms acceptable standards of
behavior that are shared by the groups members.
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Norms tell members what they ought and ought not to
do under certain circumstances
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!rou" Structure

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!rou" Processes
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