(II)

A report on
Airline Industry of Pakistan

Submitted To
Mrs. Nighat Zia Rizvi
Assistant Professor
Business Communication
College of Business Management
PAF Base Korangi Creek
Karachi

Prepared By:
Noman Anwar B-8022
Gulrukh Sheikh B-9009
Faiza Abbas B-9025
Mehreen Shaukat B-9002
Zulfiqar Ahmed Barry B-9001
Neelum Naz B-9030
Samawia Kamran B-9034
Hina Mughal B-9047
BBA-X
April 29, 1998

©1998 College of Business Management

(III)

LETTER OF AUTHORIZATION

April 29, 1998

Mrs. Nighat Zia Rizvi

Assistant Professor
College of Business Management
PAF Base Korangi Creek
Karachi

Dear Reader:

This report has been prepared by us, students of BBA 10. This
report was authorized by our Business Communication teacher
Mrs. Nighat Zia Rizvi. The topic we have chosen is ‘Airline
Industry of Pakistan’. The prepared report contains authentic
information and provides up-to-date data on the Aviation
Industry. This report is a prerequisite of the course ‘Business
Writing’.

Sincerely,

Students of BBA

©1998 College of Business Management

IV)

LETTER OF ACKNOWLEDGEMENT

April 29, 1998

Mrs. Nighat Zia Rizvi

Assistant Professor
College of Business Management
PAF Base Korangi Creek
Karachi

Dear Reader:

We are highly thankful to our teacher Mrs. Nighat Zia Rizvi, who
gave us the opportunity to work on this project as we have learnt
a lot from her. I also thank her for her guidance and support in
preparation of this report.

We also thank the office and staff of PIA, Aero Asia, Bhoja and
Shaheen Airlines who provided us with all the necessary
information required on the topic.

Gratefully,

Students of BBA

©1998 College of Business Management

(V)

LETTER OF TRANSMITTAL

April 29, 1998

Mrs. Nighat Zia Rizvi

Assistant Professor
College of Business Management
PAF Base Korangi Creek
Karachi

Dear Mrs. Rizvi:

Here is the report you requested on the ‘Airline Industry of

Pakistan’. For your convenience, a brief description of the report
is given in the executive summary.

This report has been prepared by conducting effort secondary

research. We have tried our utmost effort to gather all the
possible material on this topic. This is to give you an
understanding of the current position of the local Airliners in
Pakistan.

For any queries related to this report, you can contact us on the
above mentioned address. If there is any matter pertaining to it
on which we can be of assistance we would be glad to help.

Yours Sincerely,

Students of BBA

©1998 College of Business Management

©1998 College of Business Management
(VI)

TABLE OF CONTENTS

TITLE FLY…………………………………………………………………………..I
TITLE PAGE………………………………………………………………………..II
LETTER OF AUTHORIZATION…………………………………………………...III
LETTER OF ACKNOWLEDGEMENTS…………………………………………….IV
LETTER OF TRANSMITTAL…………………….…………………………………V
EXCUTIVE SUMMARY………………………………..…………………………VIII

PAKISTAN INTERNATIONAL
AIRLINES…………………………………………….9
AIRLINES
HISTORY………………………….………………………………………..9
INTRODUCTION…………………………………………………………...9
PIA’S SPECIAL SERVICE
PACKAGES……………………………………....10
PIA’S NETWORK SERVING..………………………………………………10
FUTURE PROSPECTS………………………………………………………10
AERO ASIA INTERNATIONAL……………………………………………………..12
INTERNATIONAL
HISTORY……………………………………………………………………12
INTRODUCTION…………………………………………………………..12
ROUTES COVERED………………………………………………………..13
SPECIAL PACKAGES/PRICING
PLAN……………………………………..13
MARKETING STRATEGIES OF AERO
ASIA………………………………..13
FUTURE PROSPECTS………………………………………………………13
BHOJA AIR…………………………………………………………………………15
AIR
HISTORY…………………………………………………………………..15
INTRODUCTION…………………………………………………………..15
FLIGHT SERVICE…………………………………………………………..15
ADMINISTRATION DEPARTMENT………………………………………..16
PASSENGER VIEWS………………………………………………………..16
FUTURE PROSPECTS………………………………………………………16
SHAHEEN INTERNATIONAL
……………………………………………………..18
HISTORY……………………………………………………………………18
INTRODUCTION…………………………………………………………..18
DESTINATIONS OFFERED………………..……………………………….18
FARES……………………………………………………………….……..18
FUTURE PROSPECTS……………………………………….……………..18
CONCLUSION……………………………………………………………………..20
BIBLIOGRAPHY…………………………………………………………………….21

©1998 College of Business Management

GLOSSARY…………………………………………………………………………22
GROUP MEMBERS……………………………………………………………..….24

(VII)

TABLE OF ILLUSTRATIONS
BAR GRAPHS:

BAR GRAPH#1:
Rating of air fares of all the four
airlines………………………………………………14

BAR GRAPH#2:
Rating of services offered by the four
airlines……………………………………...….17

BAR GRAPH#3:
Rating of boarding offered by the four airlines…………………………….…..
………17

CHARTS:

CHART #1:
Commissions given to travel agents by Airliners……………………….
…………..…19

MAP:
PIA Domestic Route map……………………………………….……...……………
11

©1998 College of Business Management

EXECUTIVE SUMMARY

The report highlights the important facts/surveys of Airline

Industry of Pakistan. The major airlines of Pakistan include
P.I.A, Aero Asia, Shaheen & Bhoja. A critical analysis of each
of the airline history, facts and figures, comparisons,
progress and future prospects are discussed in this report.

Airline Industry in Pakistan started with Orient Airways in 1955.

The Orient Airways, being not much success resulted in launching
of Pakistan International Airline (P.I.A) in 1957. Pakistan started
with few objectives of the a single airline but entering towards
21st century has few more airlines coming up in promoting
success to Pakistan in this field.

This report discusses the details about this progress, plans

adoption of major strategies for the enhancement in the
betterment for serving people and order to compete with other
foreign outstanding airlines of the world.

©1998 College of Business Management

PIA INTERNATIONAL AIRLINES

HISTORY:
PIA Corporation was formed with the merger of PIA and
Orient Airways .It entered the world of international aviation
in 1955 with the service from Karachi to London. PIA started
making a profit in 1957 until about the middle of 1956; it had
been running at a loss of about RS 10 million annually. In
1959-60 International flight, introduced on the London route
became the first Asian airline to operate the jet (by leasing
one from Pan American World Airways) the airlines fiscal
year ends on June 30th. In 1961-62 operating revenues
increased by 39% over previous year. At that time 87.7% of
all flights operated on time or with in 15 minutes of
schedule. In 1963-64 PIA became the first non-communist
airline to fly to the ‘Peoples Republic of China’ and to
operate a service between Asia and Europe via Moscow. In
1966-67 the first computer in Pakistan, was installed in PIA.
More aircrafts two Boeing were added to the fleet in the
same year. In 1967-68 first batch of PIA trainee pilots
completed their training from PIA flying school and received
Commercial Pilot’s license. In 1970-71 flight kitchen at
Karachi was inaugurated. A full time Chairman of the Board
of Directors was appointed in 1978-79 PIA earned a record
operating surplus of RS 267.77 Million PIA was rated as the
leading and the most efficient airline for the year 1981 Hajj
operation. In 1983–84 automation of budget, finance,
revenue and other operation areas were introduced in 1984
–85. PIA setup first ever planetarium of Pakistan at Karachi.
PIA’s progress continued for the next decade and in 1995-96
Helicopters services were introduced from Islamabad,
Abbottabad, Lahore and Sialkot to promote tourism and now
even in 1998 they are on the road of progress and they are
ready to enter the next millenium.

INTRODUCTION:
Pakistan International Airline is an airline of an Asian country
which prides itself in having continued to retain it’s “Asian

©1998 College of Business Management

values”. PIA is here to fulfill every comfort and make our
journey as pleasant as possible with friendly, personal
service in the time-honored tradition of the East. Every PIA
flight carries a whole range of things designed to meet most
request. Stocking an airline with personnel items calls for a
fine appreciation of ‘who is likely to want what’.

PIA’s SPECIAL SERVICE PACKAGES:

PIA offers many service packages in which the following are
included:

Family discount1 50%

Student discount 30%

PIA’s NETWORK SERVING:

PIA has successfully expanded its flight services to every
nook and corner of the world.

PIA serves
4 Continents
46 Countries
90 Cities Served
43 Off-line Stations (See the route map on the
next page)

FUTURE PROSPECTS:
PIA is expanding its domestic as well as international
airlines. Apart from that main head office in Karachi PIA has
thousands of regional offices in all the points of Pakistan.

1
A deduction from the normal fare offered to a special class of
passengers. See the web site at http://www.piac.com

©1998 College of Business Management

©1998 College of Business Management
DOMESTIC ROUTE MAP* OF P.I.A

AIR ROUTE

RIVER
IN
OFF-LINE
STATIONS

*SOURCE: PIA Web Site, December 1997, Link to routes.

©1998 College of Business Management

AERO ASIA INTERNATIONAL

HISTORY:
Aero Asia now one of the topmost airlines of Pakistan started
its operation in 1993 starting from a mere scratch British
Aircraft having no previous experience in this particular field.
Aero Asia Showed on excellent performance and now ranks
second in airline industry starting from only domestic flights
they now also operate on international basis.

INTRODUCTION:
Aero Asia International founded in 1993 with the help of Mr.
Tauf Tabani now the managing director of Aero Asia
international. During the first half of the current financial
year Aero Asia innovated numerous improvements in the
passenger’s services both on ground and on air. Aero Asia
with the help of British aircrafts, brought further
improvements in the wide spectrum of customer services
and facilities to meet the most demanding international
standards IATA2 is the world organization of more than 200
airlines which carry most o the schedules international and
domestic air traffics has joined hands with Aero Asia on 3
November 1996 for qualifying itself to enter in to multilateral
agreements with other members promoting interline
business.

Thus the airline is flying successfully and serving the people.

ROUTES COVERED:
Aero Asia has promoted it’s success through the coverage of
cities of Pakistan through air. Aero Asia has expanded its
routes in major cities as well as to remote areas.

Now they have taken a step further in international routes to

compete with other foreign airlines. Based on strong
foundations Aero Asia is looking forward to implement a
route from Karachi to Dubai-Lahore to Sharjah and to keep
2
International Air Transport Association, Aero Asia Web site, Link to
IATA Code.

©1998 College of Business Management

pace along with the technological advancement in the ever
vibrant air transport industry.

SPECIAL PACKAGES/PRICING PLAN:

During the first half of the current financial year Aero Asia
innovated numerous improvements in the passengers
service rationalize of Aero Asia Tariff structured twice in
November and December’96 has improved the passenger
and cargo/mail yield appreciably.

Navigation charges and Aviation charges have provide

convention to the people. Landing charges through a lot but
has covered it through the packages introduced during the
first half of Ramadan which ensure the rush in the last ten
days of coming Eid.

MARKETING STRATEGIES OF AERO ASIA:

Few marketing strategies of Aero Asia are:-

 Low fares during Election period.

 Stand-by3 booking to fill the empty seats in the plane.
 Eid strategy that is increase in the number of seats
booked at the time of Eid.
 Sponsorships of all major events like cricket matches
concert etc.

FUTURE PROSPECTS:
Aero Asia in the fifth year of service added a number of new
achievements to its already impressive record. It is an
affirmation of Aero Asia being firmly on course to attain the
planned goals and objectives.

3
Passenger seat is on chance, it is not confirmed.

©1998 College of Business Management

BAR GRAPH #1
OF

AIR FARES

3 Bhoja
Aero Asia
2
Shaheen
1
PIA
0
AIRLINES

©1998 College of Business Management

Bar Graph # 1 shows the rating of all the four Airlines of
Pakistan from 1-4. 4 the highest and 1 the lowest.

*SOURCE: Questionnaire conducted by us on the airport.

©1998 College of Business Management

BHOJA AIR

HISTORY:
Bhoja airlines started domestic passenger services in Nov
1993 and as second operation in JUNE 1995 Bhoja invited its
real journey by proceeding new operation for Karachi Lahore
and Islamabad sectors with dynamic alert and dedicated
personnel from top to bottom.

INTRODUCTION:
Bhoja Air become the blowing bunch of flower in spring
which accelerated beautification of entire atmosphere thing
believed all that happening are quit academic and
professional too but Bhoja entered the market. Though Bhoja
old competitor Aero Asia is already in the field. But ruling
alone is not the part of fair game. You must have your
opponent whether in sports or business that is the real taste
why we have this sorts of opinion not for the purpose that
mainly Bhoja Air should be pleased by our opinion but neatly
is betterment of private airline industry in all country.

FLIGHT SERVICE:
In passenger’s point of view the staff of airline is the true
representative of it. All work done by the ticketing
reservation and traffic staff would bear fruit only if the
passenger is well attended aboard the aircraft. The job of a
flight attendant is not just to serve the passengers with
eatables as is commonly perceived. Their duties include:-

♦ Checking the aircraft interiors.

♦ Ensuring availability.
♦ Helping the passenger on board.
♦ Serving food and drinks during flight.
♦ Carrying out captain’s instructions.

The director of Flight Services at BHOJA AIR has decades of

airline experience and is also a CAA4 certified instructor. He

4
Civil Aviation Authority.

©1998 College of Business Management

also trains the employees giving emphasis on the
appropriate attitude towards the passengers. No wonder as
the best of all the Pakistan Airlines as said by the Aviation
officers.

ADMINISTRATION DEPARTMENT:
The administration dept. is performing its functions with
great efficiency. This dept. of BHOJA AIR is corresponding
with all stations, informing them about new policies and
procedures, and other respective information regarding the
challenges the airline is facing.

Bhoja Air with its hospitable attitude will continue to attract

the travelers. The service will primarily provide links and
improve the interconnection of different sectors.

Bhoja Air while competing with other airlines has an

excellent product to offer on domestic routes. Bhoja Air is
up-to-date aircrafts and has a high standard of service.

PASSENGER VIEWS:
Passengers of flight were also interviewed. Most of them
expressed their satisfaction and delight over Bhoja Air
service on board. One of them complained that when he
asked one of flight crew that which area they are flying over?
No one could reply him properly. He suggested that
passengers should be informed. Over all majorities of
passengers did not have any complaints?

FUTURE PROSPECTS:
Bhoja Air started in 1993 with Boeing 7375. Set a marvelous
record by acquiring its own hanger. They are proceeding
with a customer oriented marketing and sales activities.
Presently they cover Dubai outside Pakistan in matter of
months they will be extending their route to Korea, Saudi
Arabia and other various cities.
5
A medium sized airplane capable of holding 250 passengers.

©1998 College of Business Management

©1998 College of Business Management
COMPARISONS OF AIRLINES ON
THE BASIS OF QUESTIONAIRE
CONDUCTED
BAR GRAPH #2
Service
Airlines

4
3
2
1 Airlines
0
Shaheen Bhoja PIA Aero
Asia

BAR GRAPH #3
Boarding to the airplane

4
3

2
Airlines
1
0
Bhoja PIA Shaheen Aero
Asia

Bar Graph # 2 and 3 show the rating of all the four

Airlines of Pakistan from 1-4 according to passenger
comments. 4 the highest and 1 the lowest.

*SOURCE: Questionnaire conducted by us on the airport.

©1998 College of Business Management

SHAHEEN INETRNATIONAL

HISTORY:
Shaheen Airlines came in to origin in 1995. Shaheen Air
International is associated with Shaheen Foundation Akbar
group. When the flight service started its 1st operation it
went down. Financially as well as morally they were
discouraged. They set the budget for $ 270,000 but retained
only 27.3% of it. Even after few months the percentage
came to its least. This discouraged the staff and everybody
even the staff lost their trust over it.

INTRODUCTION:
Shaheen the name supports itself the motive of its origin.
Basically Shaheen means to fly and touch the sky. Shaheen
brought an ironic development in Pakistan Airline Industry
known as the 3rd best Airline.

DESTINATIONS OFFERED:
They are operating both domestic and international
scheduled passenger flights. They cover Karachi, Islamabad,
Lahore, Quetta and Dubai.

FARES:
Their fares are highly competitive flight work fares have
been offered on convenient timing in morning and night
special discount are also offered if travelling in a group of 70
% or more.

FUTURE PROSPECTS:
They will come to great success in the near future. Where
there is a will their is a way as concluded by Mr. Tanveer
with great hope.

©1998 College of Business Management

CHART #1 OF COMMISSION OFFERED TO
TRAVEL AGENTS

COMMISSIONS IN %

6.50% Bhoja
10%
Aero As ia
Shaheen
7.00%
7.50% PIA

*SOURCE: Questionnaire conducted by us on the airport.

©1998 College of Business Management

CONCLUSION
Airlines have affected our lives, conveniently and
remarkably. Airlines have provided us with the convenience
of flying up in the sky and travelling quickly and comfortably
from one place to another; they have provided us with a
hope of meeting people in every part of the world.

Airlines industry of Pakistan started with the minimum

resources but it progressed slowly and gradually and now it
has become a hallmark for Pakistan’s pride and honor.

Airlines of Pakistan are now in the stage of success and

utilizing every technology for betterment. They have served
people and have made possible for them to travel from one
place to another for pleasure and business. Though facing a
lot of competition, it’s moving its feet towards success and
improvement, as the main purpose of airlines is, to “SERVE
PEOPLE”.

©1998 College of Business Management

BIBLIOGRAPHY

INTERNET:
Pakistan International Airlines Web-site
http://www.piac.com
Aero
Asia International Web-site
http://www.geocities.com/Eureka/3410/

AIRLINE PUBLICATION:
Bhoja Airlines (Pvt.) Ltd. Profile,
Weekly Business Horizon Karachi, Vol. No.1
5th-12th Oct, 1997

PERIODICALS:
Flight Schedules for P.I.A, Aero Asia,
Bhoja & Shaheen Airlines

BOOK:
The American Heritage Dictionary of the English Language, Third
Edition is licensed from Houghton Mifflin Company. Copyright ©
1992 by Houghton Mifflin Company. All rights reserved.

©1998 College of Business Management

GLOSSARY
AFFIRMATION. Something declared to be true; a positive
statement or judgment. (2)

APPRECIATION. Recognition of the quality, value,

significance, or magnitude of people and things. (3)

AUTOMATION. The techniques and equipment used to

achieve automatic operation or control. (2)

AVIATION. The operation of aircraft. (2)

COMPETITOR. One that competes with another, as in sports

or business; a rival. (8)

HOSPITABLE. Disposed to treat guests with warmth and

generosity. (9)

INAUGRATED. To induct into office by a formal ceremony.

(2)

INNOVATED. To begin or introduce (something new) for or

as if for the first time. (5)

MERGER. The union of two or more commercial interests or

corporations. (2)

NAVIGATION. The theory and practice of navigating,

especially the charting of a course for a ship or an aircraft.
(6)

PLANITARIUM. An apparatus or a model representing the

solar system. A building or room containing a planetarium,
with seats for an audience. (2)

©1998 College of Business Management

RATIONALIZE. To devise self-satisfying but incorrect
reasons for (one's behavior). (6)

REMOTE. Far removed in connection or relevance (5)

RETAIN. To keep or hold in a particular place, condition, or

position. (11)

SPECTRUM. A broad sequence or range of related qualities,

ideas, or activities. (5)

STANDBY. Waiting for unreserved travel space that is made

available by an airline only shortly before departure. (6)

. Matriarch (
Universal; concerning or including all; as, having catholic tastes in literature. Greek katholikos.

©1998 College of Business Management