Usman Internship Reort

An Internship Report
on
Prepared for:
Mr. Ahsan Ullah & Mr. Irfan Shaffi
(In-charge Internship & Co-Ordinator)
Prepared by:
Muhammad Shoaib Ul
Hassan
BBA (Hons.) 4th Semester
Department Of Management Sciences

AIR UNIVERSITY
1
Table of Content
CONTENTS
Preface
Acknowledgement
-----------------------------------------------------------------------------
Page #
---
SECTION I Introduction
Aviation Industry Introduction ----------------------------History of PIA
------------------------------------------Mission, Values and Vision
-----------------------------
06
08
13
SECTION II Management
Organizational Chart
----------------------------------Marketing Department ----------------------------------Sales promotion -----------------------------------------Reservation
-----------------------------------------Ticketing
-----------------------------------------E-ticketing
-----------------------------------------Cargo
-----------------------------------------HR Department -----------------------------------------Finance Department -------------------------------------
15
18
18
23
24
24
25
30
32
SECTION III Analysis

Financial Analysis ---------------------------------------SWOT Analysis
---------------------------------------Suggestions & Recommendations -----------------------Conclusion -----------------------------------------------Annexure ---------------------------------------------------
36
51
55
55
56
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 in one
global competition; scarce resources, rapid technological changes, constantly
changing markets, increasing demands for social responsibility, and
shrinking organizations. In 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 joining Pakistan International Airline company as internee. This
internship project provides us an updated vision of the field of management
sciences. Management science encompasses both series of quantitative
techniques and a logical methodology for applying these techniques to
decision making. The topic is oriented toward the utilization of the theory
and methodology of management sciences within modern organization. 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.
Introduction Section
Management Section
Analysis Section
Acknowledgement
I owe my felt thanks to Allah Almighty who enables me to discharge such
responsibility with due care and caution. My report will remain incomplete
if I dont mention the sincere efforts of those gentlemen who helped and
guided me in completion of my internship and this report. I want to
thanks
Mr. Irfan Shaffi & Mr. Irfan Shiekh & Mr. A.D. Meitla
(internship Incharge & SPOs of PIA, Multan) who helped me in all matter.
At the end, I want to say thanks to whole staff and management of PIACL
Multan station for their cooperation and for providing a very friendly
environment to gain practical knowledge.
MUhammad Shoaib Ul
Hassan
BBA (Hons.)
Department of Management Sciences,
AIR University Multan.
Sources of Data Collection

Primary Data:
Personal observation
Interviews of staf
Lectures by Finance Manager
Practical work
Secondary Data:
Annual Report of 2013-2014.
Newspapers.
Finance Manuals.
Internet: www.piac.com.pk www.wikipedia.org. www.google.com
INTRODUCTION
International air transport is one of the most dynamic and fastest-changing
industries in the world. It needs a responsive, forward-looking and universal
trade association, operating at the highest professional standards. IATA is
that International Air Transport Association.
IATA brings together 264 airlines, including the worlds largest. Flights by
these airlines comprise 94 percent of all international scheduled air traffic.
Since these airlines face a rapidly changing world, they must cooperate in
order to ofer a seamless service of the highest possible standard to
passengers and cargo shippers. Much of that cooperation is expressed
through IATA, whose mission is to "Represent, Lead and Serve the airline
industry."
Continual eforts by IATA 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. In addition, IATA helps to ensure that Members'
aircraft can operate safely, securely, efficiently and economically under

clearly defined and understood rules.
For consumers, IATA simplifies the travel and shipping process. By helping
to control airline costs, IATA contributes to cheaper tickets and shipping
costs. Thanks to airline cooperation through IATA, 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 or even return it
for cash refund.
IATA allows airlines to operate more efficiently. It ofers joint means
beyond the resources of any single company of exploiting opportunities,
reducing costs and solving problems. Airlines knit their individual networks
into a world-wide system through IATA, despite diferences in language,
currencies, laws and national customs.
IATA is a useful means for governments to work with airlines and draw on
their experience and expertise. Working standards within the aviation
industry are developed within IATA. In fostering safe and efficient air
transport,
IATA
serves
the
stated
policies
of
most
of
the world's
governments.
Overview of the Organization

History of PIA
Probably never has air transport been more important to the development of
a new nation than in the case of Pakistan. In the days when Pakistan was
still in the offing (June 1946) Mr. Mohammad Ali Jinnah, the Founder of the
upcoming Nation, instructed Mr. M.A. Ispahani, a leading industrialist, to
set up a national airline, on priority basis. With his singular vision and
foresight, Mr. Jinnah had foreseen that with the formation of the two wings
of Pakistan, separated by 1100 miles, a swift and efficient mode of transport
was imperative.
The new airline was initially a pilot project, registered in Calcutta as Orient
Airways Ltd., on 23rd October 1946. With Mr. A.M. Ispahani as the
Chairman and Air vice Marshal O.K. Carter as the General Manager of the
new air carrier, an operating license was obtained in May 1947 with
Calcutta as the base. Four Douglas DC-3s had been purchased from Tempo
of Texas in February 1947 and operations first started on 4 June 1947. The
designated route was Calcutta-Akyab-Rangoon, which also happened to be
the first post-war international operation to be flown by an airline registered
in India. Within two months of Orient Airways' operational beginnings,
Pakistan was born. The birth of a new nation generated one of the largest
transfers of population in the history of Mankind.
Orient Airways, along with the help of some BOAC aircraft which had been
chartered by the Government of Pakistan, started relief operations and
transportation of the population between Delhi and Karachi, the two
capitals. Later, Orient Airways transferred its base to Pakistan and

established the vital, link between Karachi and Dacca, the two capitals of
the two wings of Pakistan. With a skeleton fleet of just two DC-3s, three crew
and twelve mechanics, Orient Airways launched its scheduled operations in
a fairy-tale fashion.
The initial routes were Karachi-Lahore-Peshawar, Karachi-Quetta-Lahore
and Karachi-Delhi Calcutta-Dacca. By the end of 1949, Orient Airways had
acquired 10 DC-3s and 3 Convair 240s which it operated on these routes. In
1950, it had become increasingly apparent that additional capacity would
have to be inducted in order to cater to the growing needs of the subcontinent.
Orient Airways was a privately owned company, with limited capital and
resources. It could not be expected to grow and expand on its own. It was
then that the Government of Pakistan decided to form a state-owned airline
and invited Orient Airways to merge with it. The outcome of the merger was
the birth of a new airline, named Pakistan International Airlines (PIA) on 11
March, 1955.
Apart from transport activities, Orient Airways had established the nucleus
of overhaul and maintenance facilities and acquired trained pilots, engineers
and technicians which proved a great asset for PIA during its teething phase.
Moreover, with the provision of this service, PIA could and did earn
substantial foreign exchange, which in turn it invested in the purchase of
aircraft and spare parts. Fleet expansion was one of the airlines major
requirements.
In 1956, orders were placed for two Super constellations and five Viscounts
which were to be delivered by 1959.
PIA, at this junction, possessed a small fleet which comprised of Convairs,
Viscounts, Super Constellations and DC-3s.
In 1962, PIA attempted to set a new record and succeeded. On the LondonKarachi sector, finding the upper winds forecast favorable, PIA set out to
break the record for the fastest flight between London and Karachi. With
representatives of FAI. (Federation Aeronautic International) on board to
monitor the official timings, PIA completed the flight in 6 hours 43 min 51
sec, the fastest record which to this day remains unbroken.
PIA's run for recording historic firsts was not yet over. Pakistan's first
computer, an IBM1401, was installed by PIA in 1967.
PIA's first Engine Overhaul Shop, located near the Head Office building, was
also completed and commissioned around this time. The Ground Training
School (GTS) now known as PIA Training Centre (PTC) was first conceived
and developed sometime in 1961-62.
Training was initially imparted, interestingly-enough, in the T-shaped
building which has now become the PIA Dispensary in the vicinity of the
Head Office.
Besides the visible development and growth in traffic and revenues in the
sixties, PIA saw the advent of new destinations, new equipment, new
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technology. A new Jet Hangar for Boeings with a supporting airframe

overhaul shop was completed and commissioned in 1968.
In 1970, PIA set up its own Flight Kitchen at Karachi, which caters even
today to other carriers as well as to all PIA flights. Over the years, with the
airline's expansion and increased capacity, the need for a second Flight
Kitchen became imperative.
PIA heralded the 90's decade by donning a bright new corporate identity.
Old-timers may remember the flutter, the earlier green and gold livery had
created when it was first introduced in 1974. But, in keeping with the
changing times, PIA came up with its smart sporty 90's look. The familiar
PIA green was reinforced with moss green and pale blue stripes in the new
corporate identity. Nineties have also seen the expansion of PIA's massive
Hajj and Umrah operations to Pakistan's smaller cities besides the
operations from the major cities of Islamabad, Peshawar, Lahore, Quetta and
Karachi.
At present, PIA operates to 67 destinations (43 international and 24
domestic) in 25+ countries spread over 4 continents of the globe.
PIA Historic 1st

The first Asian airline to operate a pure jet aircraft.
11
The first non-communist airline to fly to the Peoples Republic of

China, and to operate a service between Asia and Europe via
Moscow.
The first airline in Asia to induct the new technology Boeing 737300 aircraft.
An IBM 1401, the first computer in Pakistan, was installed in PIA.
The first airline, to introduce a second route to Peoples Republic of

China over the Karakoram ranges.
The first airline in the world to operate scheduled helicopter
services.
The first airline in Asia to show in-flight movies on international
routes.
PIA set up Pakistans first planetarium at Karachi and later at
Lahore.
The first airline in South Asia to introduce auto-ticketing facility.
The first airline in the world to fly to Tashkent, capital of the newly
independent state of Uzbekistan.
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Vision, Mission and Objectives.

A corporation should have a clear Vision, a Mission, Values and a set of
Code of Ethics, to function as an efficient and a vibrant organization geared
to meet the needs of its valued customers.
Vision
PIA's vision is to be a world class airline exceeding customer expectations
through dedicated employees, committed to excellence.
Mission
Employee teams will contribute towards making PIA a global airline of
choice:
o Ofering quality customer services and innovative products
o Participating in global alliances
o Using state-of-the-art technologies
o Ensuring cost-efective measures in procurement and
operations
Values
Customer Expectations
Convenience, Caring and Competitive tarif.
Service
Personalized and Courteous.
Innovation
Cherishing new ideas, translating into actions
13
Reliability
Loyalty and Consistency.
Safety
Passengers, Employees, Environment and Health
Cohesiveness
Respect for individuals, team work and efective Communication.
Integrity
Business Ethics, Accountability and Transparency
OBJECTIVES OF PIAC
According to PIAC Act 1956, following are the main objectives of PIA
Corporation.
I. To provide and further develop safe, efficient, adequate, economical

and properly coordinated domestic as well as international air
transport system.
II. 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.
III. To acquire, own, run, manage or participate in the running of
management of, any hotel or business connected therewith.
14
IV. 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 Corporation or by any other person.
V. With the previous approval of the Federal Government, to promote any
organization outside Pakistan for the purpose of engaging in any
activity of a kind which the Corporation has power to carry out.
VI. To acquire, hold or dispose of nay property, whether movable or
immovable, or any air transport undertaking.
VII. 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 Corporation or by any other person.
15
ORGANIZATIONAL STRUCTURE
16
BOARD OF DIRECTORS
Mr Muhammad Azam Saigol
Chairman, Pakistan International Airlines Corporation Limited
Mr Ghiasuddin Ahmed
Director, Pakistan International Airlines Corporation Limited
Malik Nazir Ahmed
Syed Yawar Ali
Mr Atif Aslam Bajwa
Mr Muhammad Irfan Elahi
Federal Secretary Aviation Division & Director, Pakistan International Airlines
Corporation Limited
Mr Muhammad Arif Habib
Mr Aslam Khaliq
Dr. Waqar Masood Khan
Federal Secretary Finance & Director, Pakistan International Airlines
Corporation Limited
Mr Yousaf Waqar
Mr Younus M. Khan
Company Secretary-Pakistan International Airlines Corporation Limited
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About PIA - Management

Chairman, PIA
Mr Muhammad Azam Saigol
Chief Operating Officer
Bernd Hildenbrand
Advisor to Chairman - PIAC
AVM Rana Muhammad Imran
Director - Engineering & Maintenance
Maqsood Ahmed
Chief Legal Officer
Wasim Bari Salimi
Chief Information Officer
Chaudhary Muhammd Azhar Nawaz
Acting Chief Financial Officer
Waqar Ahmed Siddiqui
Director - Customer Services & Marketing
Khurram Mushtaq
Director - Human Resource, Administration & Coordination
Rashid Ahmed
Director - Special Projects
Omar Razzaq
Director - Airport Services
Aamir Bashir
Director - MRO, Training & EASA-145 and Corporate Planning
Amir Ali
Director - Works & Projects
Amanullah Qureshi
Director - Flight Operations
Capt. Qasmi Hayat
Director - Safety & Quality Assurance
Capt. Naveed A. Aziz
Director - Precision Engineering Complex
AVM Rizwan Pasha
Director - Vigilence & Monitoring
Waseem Ahmed Khan
Director - Procurement & Logistics
Air Cdr. Imran Akhtar Khan
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MARKETING DEPARTMENT
The organization has a number of objectives and goals set for it by the Board of Directors or
Owners and these develop into an overall company strategy. The Marketing team apply
this to the marketing activities and develop marketing strategies. The success of any
organization depends on its marketing system and selling process. To sell the product i.e. air in
space and to facilitate its customers, PIA city office Multan has well established sales
department which is performing following functions.
Facilitates the Reservation process.
Provides the services to the customers.
Post flight analysis to avoid under flight or fictitious booking.
Helps in foreign currency earning.
The marketing department is the main department which undertakes the
Sales promotion
Reservation
Cargo
Award Plus
PTA
SALES PROMOTION
Sales promotion is the department which promotes the sales of PIA. It is the section of
the marketing department. First there was monopoly in the domestic market but now as the
competition exists so there is a need of promoting its sales. The sales promotion helps in
increasing the sales of PIA. It is the only section which works for this purpose. It is related to the
other departments. The earning cannot be done without the help of the other departments. The
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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 Karachi.
PIA AWARDS + PLUS

PIA Award + Plus is an exclusive programmed for customers, who frequently travel with PIA. It
allows members to earn points for traveling with PIA based on distance traveled class of service
purchased and membership tier status. These points can then be exchanged for free tickets,
excess baggage vouchers, cabin upgrades and many other exciting rewards.
Membership Privileges
PIA Award + Plus Program offers the following three membership tiers based on point
accumulation/ segments traveled:
EMERALD TIER
SAPPHIRE TIER
DAIMOND TIER
EMERALD TIER
Emerald tier is a basic level for all new members offering the following benefits:
500 bonus points upon enrollment.
10% bonus points for traveling in Economy Plus Class.
25% bonus points for traveling in Club Class.
SAPPHIRE TIER
Members acquire our sapphire tier upon accumulation of at least 30,000 points or 25 segments in
a calendar year. In addition to Emerald Tier privileges, Sapphire status offers the following
benefits:
20
25% bonus points for traveling on any PIA segment.
Check-in at Business Class Counters.
50% extra free baggage allowance.
DIAMOND TIER
Members acquire Diamond Tier status upon accumulation of at least 70,000 points or 50
segments in a calendar year. In addition to Emerald Tier privileges, Diamond status offers the
following benefits:
50% bonus points for traveling on any PIA segment.
100% extra free baggage allowance.
Check-in at Business Class Counters.
Access to all Business Class airport lounges, regardless of class of service traveled.
Kerb-side check in facility at airports, where available.
(Not applicable for journeys to USA & Canada).
KEY FEATURES
The Awards Plus program has the following key features.
Enrollment via mail, fax, e-mail or Website.
500 bonus points for new members.
Accounts updated within 72 hours.
Points
expire
on
31st
December
every
three
years
from
flight date.
Members must be 12 years or older.
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Statements
with
travel
activity
&
points
accrual
accessible
real time on Web Site.
Points purchase facility to top-up awards shortfall.
AGENTS
PIA gets 90% of its business through its travel agents. So we can say that most of the
work is done by the travel agents. Maximum traffic is achieved through them. The sales improve
through the travel agents.
It is essential for the agents to get license and recognition from the ministry of tourism. It makes
sure that the agents have
-
Technical staff
Good offices
Registered body
Bank guarantee
Location
There are different types of agents that are
IATA agents
These agents are approved by IATA. For this purpose, they have to fulfill certain
details from
IATA regarding location, staff qualification, financial position, sales
productivity etc. These approved agents can sell the tickets of all IATA member airlines. For
PIA its commission is 10 %.
Its bank guarantee is according to the share of the particular airline.
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GSA
General sales agent, it works for every airline. Sohail travels. The GSA gets 12% commission.
These are the main contributors. There bank guarantee should be 6 million. It is nominated by
the airline it self.
PSA
These are the agents that sell only for PIA they get 9% commission. Its bank guarantee should be
2million.
Non IATA agents

These only have got license, these are not directly related with PIA but with its tourism
department.
The tickets are issued to each of the agent on the basis of its bank guarantee.
The main functions of the sales promotion department is
To coordinate with the agents.

The sales promotion officers duty is to coordinate with the agents. Help them and solve
their problems.
Problems faced by the agents
The problems which the agents face are related to the
System
Fares
Seats availability
System communication
Special fare
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SPOs (sales promotion officers) pick problems from the agents and convey it to the
management. The problems are discussed in the meetings. The district manager takes it up to
the head office in Karachi and wait for the response. Every thing depends on the
managements policy.
RESERVATION
Reservation means to reserve the seat on any particular route. PIA has world wide computer
system for Reservation i.e. CRC
at head office, Karachi, which is connected with other
station through TNT lines . Data channels are in the form of microwaves, so Modems are
used for the purpose of data transmission. Being an International Airline, PIA sells tickets
for Domestic as well as International travel. Procedure for the reservation is same but only
difference is, PIA links it with other airlines and pays them obligations as required.
FUNCTION
The reservations function is to provide information related to all flights of PIA. It gives the
following information
Schedule of the flights of the particular routes
Seats availability
Fares
The main function of the reservation department is to reserve the tickets for the people on there
request. First of all the schedule of a particular route is checked on the computer and then the
availability of the seats is checked for all the classes that are:
Business class
Economy plus class
Economy class
Economy class is further classified as
Y Class for International Passengers

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Class for domestic passengers
Then if the seats are available for that particular route the request is given for required
number of seats and reservation is made. Then a computer number is given to the person that
computer number is known as the PNR which stands for Person Name Request or record. This
number is entered for the purpose of ticket issuance and record keeping.
This PNR number is usually in alphabets. Its a 6 digit number. The REPAK system used to give
the computer number both in numeric and alphabets so there used to be confusion among the letter
I and O with 1 and 0 so thats why now only alphabets are used.
Similarly if there is no seat available then a computer number for chance is given. Certain
other jobs are also performed by this department for example if a passenger wishes to change his
route when he is coming back from somewhere then this gives rise to certain problems. To solve
it rebooking is done.
TICKETING
After reservation, there comes the stage of ticket issuance. Till 2002 manual ticket was
being issue but then it discontinued after the introduction of e-Ticketing.
E-Ticketing saves time and avoids the disadvantages of manual ticketing like
physical ticket lost by customer etc. and it is to check sale for the purpose of
verification of reserved seats to avoid seat blockage. When there is manual ticketing, the
PNR is entered afterwards for record keeping and to check sale.
E-TICKETING
PIA has taken up E-ticketing as a project designed to achieve web based ticketing so as to propel
its ticketing capability to keep pace with competition. Beyond own ticket offices, this is aimed to
enable PIA agents on Global Distribution System to avail this facility. Booking can be done
through registered agents, by visiting PIAs reservation office, visiting website of PIA, and
through virtual agents, etc.
Record is given. PNR is then put in queue. Payment is at the time of delivery in cash or
through credit card. Ticket is an electronic passenger ticket thats why passenger no longer retain
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flight coupons for their trips. All the information thats printed on a paper ticket is stored as an
electronic record on computer database, so E-ticket is secure, hassle-free, and easy to use.
CARGO
Cargo means, transfer of baggage without passenger, under airway bill (AWB), air express bill
(AEB). This department is doing a lot for the organization. This is also a part of marketing
department, which also constitute ticketing and cargo department. It deals with domestic as well
as international cargo. PIA transfers cargo only to the city where operating airport is situated.
PIA does not deal in motor transport transfer of baggage. Cargo rules are also like other IATA
airlines. PIA is uplifting around 30,000 tons cargo per year including dry and perishables exPakistan.
Commodity
Percentage of Total Uplift
Dry cargo . . . . . .
Garments/Textile
Carpets
Finished Leather/Leather products
Surgical
Sports goods
General cargo
Perishable cargo. . . . . . . .
48%
29%
12%
25%
10%
3%
21%
52%
PIA has specialized in uplift of special cargo like Relief goods, live animals (sheep, cows,
camels, horses) shipments for cargo aircraft only etc.
INTERNATIONAL CARGO
Globally, for passenger-based carriers, cargo is a subsidiary or branch of the mainstream airline
activity at PIA, which can boast of a rapidly expanding passenger sector, the pace and growth of
cargo as a revenue-generating sector is noteworthy. Besides earning valuable revenue for the
airline, PIAs efficient cargo services provide a massive boost to the countrys wide spectrum of
exports.
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International Cargo has wide range of their products and services in their product line. They offer
their products from international parcel to international documents, perishable commodities such
as (fresh fruits, vegetable, fresh flowers, sea foods) dry fruits, carpets, leather Products,
garments, surgical instruments, heavy shipments and charter cargo.
PIA Cargo Network

Besides country wide domestic network, cargo is directly serving 40 international destinations
round the globe, while rest of the world is being served through interline carriage beyond PK
points. PIA's average cargo revenue is around US dollar 82 million per year, with system uplift
of approx. 75,000 tons, on an average system wide yield of US dollar 1.10 per kilogram. PIAs
network is spread over internationally defined freedoms as mentioned in the chart below.
Freedom
wise
performance
average
tons
uplift
per
year
PIA has divided its network in 09 different regions according to the geographical location of the
stations. Out of total revenue, 41% is earned in Pak rupees, while 59% of the system revenue are
being earned in foreign exchange. Region wise revenue/tonnage contribution to the system is as
given below.
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PIA Cargos Role in Pakistans exports

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

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

Airway bill can also be referred as Airline Airway Bill.
Preprinted issuing carrier identification
This is a non-negotiable document consisting of 9 to 14 parts. The conditions of contract are
shown in the AWB.
It must be used for each domestic and international cargo and interlink with two or more airlines.
It must be issued at the time when shipper brings the consignment. When AWB is completed the
original is kept as a record in the issuing office and a copy of it is issued.
Payment
All the charges of airfreight shipment are payable by shipper or by the consignee. The charges
can be prepaid or the payment can be made when the cargo is delivered.
Documentation
Documentation is necessary for each and every type of cargo. Without it the process of
delivering it cannot be carried out.
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SPECIAL CARGO
Special cargo describe those commodities which due to their nature or value require special
attention. These may be perishable items, flammable items etc.
For the acceptance of these one should confirm that whether facilities for such cargo are
available or not. List of special cargo is listed below:
Live animals
Perishables
Oversized cargo
Valuables
Company cargo
Dead-Body HANDLING
Information regarding carriage of dead body should be disclosed to passenger traveling on the
same flight.
PIA charges 3 tickets for a dead-body and a passenger with it, because for them space of 10 seats
will be required.
Documents of death certificate, packing certificate and other documents required by government.
Loading and storage is the important function. Storage must be made on required temperature.
Unloading shall be made after all passengers leave the RAMP. And it should be immediately
transferred to warehouse. Arrangements for the delivery should be made quickly.
OVERSIZED CARGO
If the cargo is oversized then it will not be acceptable. The measurement of size is made on the
height and width of aircraft door. If such aircraft is operating on specific sector whose size of the
door is small than the cargo is not acceptable.
The weight of goods are calculated by the following formula
(Length x width x height)/366 = weight
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DANGEROUS GOODS
This category includes that type of goods which may be harmful for the human beings, such as:
Explosives
Gases: Compressed, liquefied, deeply refrigerated
Flammable liquids
Flammable solids
Radioactive material
Miscellaneous Goods
Important thing for the acceptance is its proper packing, documentation. The license for these
dangerous goods is necessary.
According to IATA rules, care must be taken while packing these items. Dangerous Goods
Regulation (DGR) applies on these items.
HUMAN RESOURCE DEPARTMENT

HR department is one of the pivotal departments, which is responsible for the
administration of human resources and formulation of the corporate personnel
policies;
it
has
coordinating
and
regulatory
body,
whichr e g u l a t e s r e l a t i o n s h i p b e t w e e n m a n a g e m e n t a n d e m p l o y e
e s . F u r t h e r subdivision is as under and they work according to their responsibilities
(which you can understand by their names):
HRM Division
Security Division
Organizational Development Division
Works & Projects Division
Industrial Relations Division
Medical Division
Legal Services Division
Recruitment & Placement Division
31
HUMAN RESOURCE MANAGEMENT FUNCTIONS:

P R O M O T I O N / T R A N S F E R :
A p r o m o t i o n i s a n u p w a r d a d v a n c e m e n t i n t h e o r g a n i z a t i o n t o a pos
i t i o n , w h i c h c o m m a n d s h i g h e r o p p o r t u n i t i e s , g r e a t e r a u t h o r i t y, b e t t e r servic
e conditions and a higher rank. All the promotions in PIAC are made on the basis of merit of
each case, and not by the virtue of seniority alone. Transfer to different jobs either to fill definite
vacancies or to perform assignments to develop individual are made. The Head office
in accordance with the promotion makes promotion and transfer to all categories and grades
and transfer polices of PIAC. The Admin department helps in co-ordination these
activities of transfer and promotions.
R E T I R E M E N T / P E N S I O N S :
The age of retirement is completion of 25 year of service or attaining the age of sixty
unless they are otherwise not fit for wok and the employee can o p t f o r p e n s i o n . R e c o r d s
o f t h e s e e m p l o y e e a r e m a i n t a i n e d b y t h e Ad m i n . Department, which after the
retirement of the employees is sealed and stored.
C O N T R O L :
Admin department exercises control by two ways upon the activities of various departments
and employees. These are through internal and external auditing and controlled
budgeting.
L
E
A
V
E
:
L e a v e i s t e m p o r a r y a b s e n c e f r o m d u t y. Al l a p p l i c a t i o n f o r l e a v e i s addressed
to the admin manager through proper channel. An employee cannot claim leave ad a matter
of right and the competent authority at its discretion may refuse of revoke any kind of
leave. Leaves are applied for and sanctioned in the terms of days. The following types of leaves
provision occur in PIAC:
I .
C a s u a l
L e a v e
All employees are entitled to 10 days of causal leave in a calendar year. The maximum number
of casual leaves at a time is 3 days.
I I . P r i v i l e g e d
L e a v e
Privilege leave may be on the following terms:
Fully Pay: The maximum period of leave on full pay, granted at one time is 30 days annually
for service less than 10 years, 35 days annually for service over 10 year . The fifteen
days of this leave are to be availed otherwise collapsed.
I I I . S i c k
l e a v e
Sick leaves may be granted up to a maximum of 12 days to an employee.
I V . D i s a b i l i t y
l e a v e
D i s a b i l i t y l e a v e m a y b e g r a n t e d u p t o a m a x i m u m o f 1 8 0 d a ys t o a p e r s o n ,
d i s a b l e d b y i n j u r y, a i l m e n t o r d i s e a s e o c c u r r e d i n t h e c o u r s e o r
i n consequence of duty or on official position.
32
v . E x .
P a k i s t a n
l e a v e
L e a v e s w i t h o u t p a y m a y b e g r a n t e d t o e m p l o y e e s , w h o p r o c e e d t o abroad
during the leave for a period of one week to 3 years. Etc.
FINANCE DEPARTMENT
All organizations, either big or small, need financial resources to operate efficiently. Finance
department is responsible to provide these resources and to get the maximum benefit from them
through efficient utilization. PIA being a huge organization has an efficient finance department.
Financial statements are prepared and presented for the external and internal users
by many enterprises around the world. Although such financial statements appear similar from
country to country, difference occur due to variety of social, economic and legal
circumstances, which have led to the use of a variety of definitions of the elements of
financial statements, i.e. assets, liability, equity, income and expenses.
The major function of the finance department is the reporting of all the financial
events of all departments. All the departments in the organization give their reports to the
finance department and it makes and presents the final report for the decision making purpose.
The financial statements are also used to make the decisions. In order to make the reports the
recording of each and every transaction is required. The recording is done on the basis of the
fortnightly documents which are given by the agents and all the other departments. The
finance department gets all the documents and then compiles them in the form of a report.
There are three sections in the finance department at MUX that deals in different reports. The
manuals are developed for every section in which they record all sales and payments. The
sections are as follows:
Disbursement Unit
Agency Unit
Reporting and Reconciliation Unit
There are two major portions of the Finance Department
33
Finance
Department
Collection
Disbursement
COLLECTIONS
Collections are of different types.
Collections from PIAs counters
Collections from Agents
Collections from Cargo counter
Collections from cargo agents
Collections from excess baggage
DISBURSEMENT
Refunds of tickets
Salaries
Utilities bills
Works
Others.
AUTOMATION
The Finance section is totally computerized and linked with Head Office. And every employee
and agent using the finance department software has a limited access to it, according to his/her
designation.
REPORTING SYSTEM
34
There 11 types of reports maintained by the Finance Department and in evening the whole
closing must be done in order to avoid errors.
R1-
Passenger sales report on counter & Agents (SAR & ASR)
R2-
Cargo sales report
R3-
Cargo receipt on the behalf of the other station
R4-
Miscellaneous collection except credit
R5-
Credit receipt reports
R6-
Refund to passengers
R7-
Except cargo other collections on the behalf of other stations
R8-
Invoicing
R9-
All sorts of collections/passenger/cargo/others
R10- Sales reports from agents/receivable generation

R11-
Cargo sales receivables from agents
CREDIT ALLOWANCE
The credit sales either for the tickets or for the cargo is also recorded into computer system
and relevant reports are generated and the whole record of these sales are also maintained.
AUTOMATION
Till 1979 PIA was doing manual ticketing then with the passage of time and with the need some
system was developed in Karachi with the collaboration of America.
In 1982 REPAK system was introduced which was semi automatic. It stands for reservation
Pakistan system. It was bought for 30 cores. REPAK was PIAs system it did not operate other
flights. As the system was semiautomatic, there was a need of checking the flights manually
from a flight guide. The REPAK was a good system but it was under-utilized. Now a new system
SABRE is being used by PIA. It is head quartered in Tulsa in America which hosts 60 airlines. It
was purchased in 2001, no one knows for how much. 37 cents are paid to the system for every
35
flown segment. It is an online system so the updating is online with no breakage. The hub of this
PIAs system is in Karachi.
36
FINANCIAL HIGHLIGHTS
BALANCE SHEET OF PIA 2013-2014
2014
NON CURRENT ASSETS
Fixed Assets
Property-plant and equipment
Intangibles
2013
(Rupees in thousand)
84,035,983
66,165
84,102,148
35,270,782
-7,510,203
126,883,133
90,363,868
88,204
90,452,072
37,056,802
-7,951,649
135,460,523
3,410,626
10,367,251
1,189,840
975,662
3,582,728
8,712,578
1,388,716
704,573
Other receivables
Short term investment
7,085,804
19,220
6,039,732
19,220
Cash and bank balance

Total Current Assets
Total Assets
1,685,124
24,733,527
151,616,660
2,290,134
22,737,681
158,198,204
Advance against equity from Govt. of Pakistan

TOTAL Shareholders equity
28,779,674
27,056,581
(226,838,884)
(171,002,629)
19,591,065
(151,411,564)
28,779,674
28,364,693
(192,075,962)
(134,931,595)
14,921,244
(120,010,351)
Surplus on revaluation of property, plant and
7,530,285
9,274,408
Long term investment

Long term advances and other receivables
Long term deposits and prepayments
Total Fixed Assets
CURRENT ASSETS
Stores and spares
Trade debts
Advances
Trade deposits and prepayments
Equity and Liabilities

SHARE CAPITAL AND RESERVES
Issued, subscribed and paid-up share capital
Reserves
Accumulated Losses
37
equipment - net
NON CURRENT LIABILITIES
Long term financing
Term finance and sukuk certificates
Liabilities against assets subjects to finance lease
Advance from a subsidiary
Long term deposits
Deferred liabilities
Total NON-CURRENT LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Accrued interest/mark-up
Short term borrowing
Current Maturities of :
Long term financing
Liabilities against assets subject to finance lease
TOTAL Current Liabilities
TOTAL Liabilities
TOTAL EQUITY AND LIABILITIES
15,954,282
-19,656,064
3,752,325
6,582
19,543,479
79,046,003
13,308,189
-31,357,890
1,479,709
6,444
15,790,860
79,442,899
98,032,779
12,619,246
59,772,367
76,543,532
12,799,646
56,747,538
15,954,282
19,589,760
10,290,277
216,451,936
295,497,939
151,616,660
13,308,189
19,589,760
10,282,019
189,491,248
268,934,147
158,198,204
INCOME STATEMENT OF PIA 2013-2014
Profit and Loss Account

For the year ended December 31,2014
2014
2013
(Rupees in thousand)
Revenue - Net
99,519,057
95,771,125
Aircraft Fuel
(48,033,885)
(55,116,104)
Others
(53,399,903)
(50,983,722)
(101,433,788)
(106,099,826)
Gross Loss
(1,914,731)
(10,328,701)
Distribution Cost
(4,486,978)
(4,239,440)
Cost of service
38
Administrative Expenses
(9,302,358)
(10,246,387)
Other Provisions and adjustments
(2,825,541)
(2,565,504)
Exchange gain/(loss) -- net
3,105,045
(6,406,746)
Other Income
485,746
1,663,978
(13,024,086)
(21,794,099)
(Loss)/profit from operations
(14,938,817)
(32,122,800)
Finance cost
(14,372,621)
(12,588,077)
(Loss)/profit before tax
(29,311,438)
(44,710,877)
Taxation
(2,911,034)
388,836
(Loss)/profit for the Year
(32,222,472)
(44,322,041)
RATIO ANALYSIS
CURRENT RATIO
Current Ratio is obtained by dividing current assets by current liabilities. It shows a firms ability
to cover its current liabilities with its current assets.
=
Current Assets
Current Liabilities
Year
Calculations
Current Ratio
2014
=24,733,527,000
0.11
216,451,936,000
39
2013
=22,737,681,000
0.12
189,491,248,000
ANALYSIS
Result of this ratio is that during the year the ratio is almost constant. PIAs ability to recover its
current liabilities with its current assets is remain almost same as compared to previous year.
ACID-TEST RATIO
Current assets less inventory divided by current liabilities. It shows a firms ability to meet its
current liabilities with its most liquid (quick) assets.
= Current Assets Inventory
Current Liabilities
Year
Calculations
Acid-Test Ratio
2014
=24,733,527,000 - 3,410,626,000
0.0985
216,451,936,000
2013
=22,737,681,000 - 2416290000
0.1072
189,491,248,000
40
ANALYSIS
Here, the same case with acid test ratio. Ratio is negligibly decreasing. Result shows that PIAs
ability to meet its current liabilities with its most liquid assets has been negligibly decreased so
we can say that PIAs ability to meet its current liabilities with its most liquid assets remained
constant as compared to previous year.
INVENTORY TURNOVER RATIO

= Cost of goods/services sold
Inventory
Year
Calculations
Inventory Turnover Ratio
2014
= -101,433,788,000
(29.74)
3,410,626,000
2013
= -106,099,826,000
(29.61)
3,582,728,000
ANALYSIS
PIA was in a good position in 2013 but now its inventory turnover is getting decreased
41
GROSS PROFIT MARGIN

= Net Sales Cost of Goods Sold
Net Sales
OR
= Gross Profit/loss
100
Net Sales
Year
Calculations
2014
= -1,914,731,000
Gross Profit Margin

X 100
(1.92)%
X 100
(10.78)%
99,519,057,000
2013
= -10,328,701,000
95,771,125,000
ANALYSIS
PIAs Gross Profit margin is very low yet it is increasing sharply.
NET PROFIT MARGIN

A more specific measure of the sales profitability is the net profit margin:
=Net Profit (loss) after Taxes
100
Net Sales
42
Year
Calculations
2014
=-1,914,731,000
Net Profit Margin

X 100
(1.92)%
99,519,057,000
2013
=-10,328,701,000 X 100
(10.78)%
95,771,125,000
ANALYSIS
PIA profit margin is increasing, comparatively. So, we can say that now PIA is going in
Profit/much better condition compared to previous years.
DEBT TO EQUITY RATIO

Debt/Equity Ratio is a debt ratio used to measure a company's financial leverage, calculated
by dividing a companys total liabilities by its stockholders' equity. The D/E ratio indicates
how much debt a company is using to finance its assets relative to the amount of
value represented in shareholders equity.
The formula for calculating D/E ratios can be represented in the following way:
Debt - Equity Ratio = Total Liabilities / Shareholders' Equity
Year
Calculations
D/E Ratio
2014
= 295,497,939,000
1.95
151,411,564,000
= 268,934,147,000
2013
2.24
120,010,351,000
Analysis:
Debt to equity ratio is indicating that company has taken on relatively little
debt and thus has relatively low risk.
DEBT TO TOTAL ASSETS RATIO:
43
The debt to total assets ratio is an indicator of financial leverage. It tells you the percentage of total
assets that were financed by creditors, liabilities, debt.
The debt to total assets ratio is calculated by dividing a corporation's total liabilities by its total assets.
Year
Calculations
D/A Ratio
2014
= 295,497,939,000
1.95
151,616,660,000
= 268,934,147,000
2013
1.70
158,198,204,000
Analysis:
The debt to total assets ratio is indicating that corporation is at very high risk in a way that
it cannot able to clear its debt through its assets. And its debt is increasing relatively.
RETURN ON EQUITY (ROE)

ROE compares net profit after taxes (minus preferred stock dividends, if any) to the equity that
shareholders have invested in the firm:
=Net Profit (Loss) after Taxes

Shareholders Equity
Year
Calculations
2014
=-32,222,472,000
Return On Equity
X 100
18.84%
X 100
32.84%
-171,002,629,000
2013
= -44,322,041,000
-134,931,595,000
44
ANALYSIS
PIA return on equity is decreasing sharply with means PIA needs much improvements.
COMMON SIZE ANALYSIS (VERTICAL ANALYSIS)

It 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.
NON CURRENT ASSETS

Fixed Assets
Intangibles
2014
2013
(Values are in Percentages)
55.43%
0.04%
55.47%
23.26%
-4.95%
83.68%
57.12%
0.06%
57.18%
23.42%
-5.03%
85.63%
2.25%
6.84%
0.78%
0.64%
2.26%
5.51%
0.87%
0.45%
Other receivables
4.68%
0.01%
3.82%
0.01%

Total Assets
1.11%
16.31%
100%
1.45%
14.37%
100%

Total Fixed Assets
CURRENT ASSETS
Stores and spares
Trade debts
Advances
45

Reserves
Accumulated Losses
18.98%
17.85%
(149.61)%
(112.79)%
12.92%
(99.86)%
18.19%
17.93%
(121.42)%
(85.29%)
9.43%
(75.86)%
4.97%
5.86%
equipment - net
Long term financing
Long term deposits
10.52%
-12.96%
2.48%
0.004%
12.89%
52.14%
8.41%
-19.82%
0.94%
0.004%
9.98%
50.28%
64.66%
8.32%
39.42%
48.39%
8.09%
35.87%
10.52%
12.92%
6.79%
142.76%
194.90%
100%
8.41%
12.38%
6.49%
119.78%
170%
100%
CURRENT LIABILITIES
Long term financing
TOTAL Liabilities

2014
2013
(Rupees in thousand and other values

Revenue - Net
are in percentages)
99,519,057
95,771,125
Cost of service
46
Aircraft Fuel
(48.27)%
(57.55)%
Others
(53.66)%
(53.24)%
(101.92)%
(110.79)%
Gross Loss
(1.92)%
(10.79)%
Distribution Cost
(4.51)%
(4.43)%
(9.35)%
(10.70)%
(2.84)%
(2.68)%
3.12%
(6.69)%
Other Income
0.49%
1.74%
(13.09)%
(22.76)%
(15.01)%
(33.54)%
Finance cost
(14.44)%
(13.14)%
(29.45)%
(46.69)%
Taxation
(2.93)%
0.41%
(32.38)%
(46.28)%
INDEX ANALYSIS (HORIZONTAL ANALYSIS)
47
Index Analysis is also called as Horizontal Analysis. This analysis is used to measure the
performance of any business of any business over years. It 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.
Index analysis is an analysis of percentage financial statements where all balance sheet or
income statement figures for a base year equal 100.0(percent) and subsequent financial
statements items are expressed as percentage of their values in the base year.
NON CURRENT ASSETS

Fixed Assets
Intangibles
2014
2013
(Values are in percentages)
Base Year
93
75.01
92.98
95.18
-94.45
93.67
100
100
100
100
-100
100
95.20
118.99
85.68
138.48
100
100
100
100
Other receivables
117.31
100
100
100

Total Assets
73.58
108.78
95.84
100
100
100
100
95.39
(118.10)
(126.73)
131.30
(126.17)
100
100
(100)
(100)
100
(100)

Total Fixed Assets
CURRENT ASSETS
Stores and spares
Trade debts
Advances

Reserves
Accumulated Losses
48

equipment - net
Long term financing
Long term deposits
CURRENT LIABILITIES
Long term financing
TOTAL Liabilities
81.19
100
119.88
-62.68
253.59
102.14
123.77
99.50
100
-100
100
100
100
100`
128.08
98.59
105.33
100
100
100
119.88
100
100.08
114.23
109.88
95.84
100
100
100
100
100
100

2014
2013
(Values are in percentages)

Base Year
Revenue Net
103.91
100
Aircraft Fuel
(87.15)
(100)
Others
(104.74)
(100)
(95.60)
(100)
Gross Loss
(18.54)
(100)
Distribution Cost
(103.64)
(100)
(90.79)
(100)
(110.14)
(100)
48.47
(100)
Other Income
29.19
100
(59.76)
(100)
Cost of service
49
(46.51)
(100)
Finance cost
(114.18)
(100)
(65.56)
(100)
Taxation
(7.49)
100
(72.70)
(100)
50
SWOT
STRENGTHS
Following are the strengths of PIA.
PIA is as old as the nation itself. So its reputation is its most valuable
asset. Being the national flag carrier it has maintained goodwill.
PIA has the most comprehensive training centre to train its employees
and also the non-PIA employees to generate some revenues.
PIA is semi-governmental organization. So its interests rest with that
of the government. Due to this reason PIA has got protection form any
unfavorable geo-political change.
PIA covers domestic and international destinations more than any
other domestic airline in Pakistan.
PIA has its own courier service named SPEED-EX.
PIA 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.
51
PIA sponsors famous players of cricket, hockey and squash, which add
to its national fame.
PIA modernizes its aircrafts when it is required e.g. currently PIA has
signed an agreement with Boeing Company to purchase 8 Boeing 777
aircraft and started its latest ATR service.
PIA has the most advanced communication system in the local
industry. Recently it has replaced its old REPAK system with new and
more advanced system named SABRE. From accounts point of view,
all the accounts are managed through a self-developed accounting
software COSSIP III.
PIA has replaced its counter reservation with telephonic reservation
keeping in view the customer convenience. Now any passenger can get
his/her seat reserved by calling to 111-786-786.
PIA has e-ticketing service.
Besides its revenue considerations, PIA flights also go to northern
areas like Gilgit and Swat while others dont. Other domestic airlines
like Aero Asia focuses only on profitable routes like major cities of
Pakistan like Karachi, Islamabad and Lahore.
PIA has its on-line and of-line offices in all major cities of the world at
the heart of those cities, which provides PIA the appropriate
promotion opportunity.
52
PIAs security department is doing extremely well and it is indeed its

strength.
PIA 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.
PIA publishes its own magazines including in-flight magazine
Hamsafar, which not only promotes PIA globally but also provides
the employees an opportunity to express their views.
Auto ticketing facility is very convenient for the passenger.
WEAKNESSES
Being a semi-government corporation PIA is a politicized organization.
Every government wants to impose its own decisions on PIA. If PIA
had been given complete autonomy in its decisions, it would have
made much more progress.
Most of the PIAs aircrafts are outdated and old fashioned. Although
PIA has planned to buy 8 Boeing yet more and more should be
replaced to cater to the increasing needs of the passengers.
There is lack of corporate loyalty in PIA due to highly centralized
structure, which is extremely hazardous.
53
Due to political influence PIA 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.
PIA flights are often late.
Some of the aircraft handling equipment is out of date.
Targets are most of the time unachievable for SPOs.
Passenger sales development is not doing very well.
There is no separate cargo aircraft in the fleets.
MBO (management by objective) is not present and top down approach
of management is adopted.
Manpower planning is not proper.
Selection and recruitment process is not transparent.
OPPORTUNITIES
Since PIA has a very well established training centre it can easily
expand its business and can also add latest aircrafts.
PIA has got the lions share in domestic market.
Privatization is being planned which can help improve its
performance.
54
Pakistan has got great potential for tourism industry which is also a
great opportunity for PIA.
On most of the international routes PIA is the only domestic airline
operating.
THREATS
According to an official huge number of employees are estimated to be
retired in upcoming year, which may create a huge gap of human
inventory so a massive recruitment is needed to be launched.
Undue political influences are the greatest threats to the autonomy of
PIA.
Fuel prices are fluctuating and have become quite uncertain especially
after the 11-sep events which are threat.
Other airlines are entering in this industry like AIRBLUE which can
be a challenge for PIA.
Terrorism is also a threat for PIA.
Conclusions
On the whole PIA is a good and healthy organization. Its structure is good and tariff and
marketing department has to work hard with more proficiency.
SUGGESTIONS/RECOMMENDATIONS
55
PIA is a very large organization and working successfully but still there are some areas that
should be given special attention.
1. No proper system to receive the customers when they enter in the Multan 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 organization and in service organization your customer is your
first priority, no doubt that during the flight customers are well treated and special care is
taken but as far as I have observed customers are not well treated in the PIA counters (i.e.
customers have to wait for there turn ranging from 10 minutes to 3hours). This is because
shortage and irresponsibility or carelessness of employees. When customer is not happy
how customer retention is possible.
3. Try to minimize the waiting time.
4. If possible some entertainment like play music etc. should present at the waiting area of
booking counters so that customer dont feel boredom during waiting time.
5.
In the sale promotion the SPOs should not have fixed salary but there should be some
extra benefits or commotions so that they should be motivated. Then there will be
significant impact on sale.
6. There are some conflicts between employees that should be resolved.

7. There should be a proper check of monitoring the efficiency and performance of
employees.
ANNEXES
Annexure A
PIA Award Plus
Annexure B
Revenue Management System
Annexure C
Health Safety & Environment
56
Annexure D
Customer Care
Annexure E
Performance Appraisal Form
Annexure F
Safety Management System
57

Usman Internship Reort

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An Internship Report

Department Of Management Sciences

SECTION III Analysis

Department of management Sciences provided me this golden opportunity

Sources of Data Collection

aircraft can operate safely, securely, efficiently and economically under

Overview of the Organization

capitals. Later, Orient Airways transferred its base to Pakistan and

technology. A new Jet Hangar for Boeings with a supporting airframe

PIA Historic 1st

The first non-communist airline to fly to the Peoples Republic of

The first airline, to introduce a second route to Peoples Republic of

Vision, Mission and Objectives.

I. To provide and further develop safe, efficient, adequate, economical

About PIA - Management

Facilitates the Reservation process.

Provides the services to the customers.

Post flight analysis to avoid under flight or fictitious booking.

Helps in foreign currency earning.

The marketing department is the main department which undertakes the

PIA AWARDS + PLUS

500 bonus points upon enrollment.

10% bonus points for traveling in Economy Plus Class.

25% bonus points for traveling in Club Class.

25% bonus points for traveling on any PIA segment.

Check-in at Business Class Counters.

50% extra free baggage allowance.

50% bonus points for traveling on any PIA segment.

100% extra free baggage allowance.

Check-in at Business Class Counters.

Kerb-side check in facility at airports, where available.

(Not applicable for journeys to USA & Canada).

Enrollment via mail, fax, e-mail or Website.

500 bonus points for new members.

Accounts updated within 72 hours.

Members must be 12 years or older.

real time on Web Site.

Points purchase facility to top-up awards shortfall.

There are different types of agents that are

IATA regarding location, staff qualification, financial position, sales

Non IATA agents

To coordinate with the agents.

at head office, Karachi, which is connected with other

Schedule of the flights of the particular routes

Economy plus class

Economy class is further classified as

Y Class for International Passengers

Class for domestic passengers

Percentage of Total Uplift

PIA Cargo Network

PIA Cargos Role in Pakistans exports

DOMESTIC COURIER (SPEEDEX)

AIRWAY BILL (AWB)

Gases: Compressed, liquefied, deeply refrigerated

HUMAN RESOURCE DEPARTMENT

HUMAN RESOURCE MANAGEMENT FUNCTIONS:

Collections from PIAs counters