Adeel Report On PIA
Adeel Report On PIA
Adeel Report On PIA
Submitted by:
Muhammad Adeel Khan (MBLE-13-39)
Class:
MBA Evening 6th Semester
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Dedication
First, I thank God for His blessings and to reconcile and repaid during these years
that have passed me to get to this stage science, knowledge and culture
I thanks to my Parents on a continuous efforts and giving permanent support to
reach Achievements.
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ACKNOWLEDGMENT
To my parents and friends who were always there by my side to
guide me and give me the courage that I can do the best in my life and
taught me the difference between the good and the evil, for this be my
guide in my life. And to my teachers who are my soul guardians, for
they taught me the very best of their knowledge and experiences.
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PREFACE
It consisted of 6 weeks, spending each week in 6 different departments of
PIA. My internship report contains all the information about my work experience
with PIA, which was established in 2002 and started its operations in Pakistan.
I have covered all my activities performed in the span of 6 weeks in PIA
with my learning detail in the organization. The applications of my class room
learning as I observed in PIA are discussed with respect to each department. In the
end my internship report is accompanied with the SWOT and PEST analysis of
PIA. In the end I conclude with some of my dear suggestions to PIA for its
betterment and my actions which I could have taken IF I were a manager in PIA.
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Table of Contents
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Dedication
02
Acknowledgement
03
Preface
04
PIA Introduction
06
Organization Structure
07
Introduction to Department
08
12
My Activities in PIA
18
21
10
23
11
SWOT Analysis
24
12
PEST Analysis
26
Suggestion
29
Being a Manager
31
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CHAIRMAN PIAC
Secretary PIAC
SA to Chairman
Managing Director
Director
Administration
Director
Flight Operations
Director Marketing
Director Engineering
INTRODUCTION TO DEPARTMENTS
PIA has been divided into the following departments:PIA
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1. Finance
2. Information technology
3. Marketing
4. Cargo Sales & Services
5. Human Resource/personnel
1. FINANCE DEPARTMENT
Finance department is one of the biggest departments in the airline, which is responsible for
provision of efficient and effective accounting/budget. The feasibility of extending financial,
administrative, technical facilities is control by this department. It is also responsible for internal
auditor of PIAC. It has further divisions, which are as under:
Planning and Budget
Funds Management
Accounting
Internal Audit
Revenue Management
All the above divisions are operative in PIA head office Islamabad.
In each station as well in Multan, the finance department is divided into a number of sections
Disbursement section (It deals with the internal finance of PIA region)
Agency Sales unit (It deals with the sales finance of all travel agencies of the region)
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Basically at Multan Airport, There is 2 DXX( cross Connect Circuit) Circuits placed at Airport
1. From Lahore Booking office to Multan Airport
2. From Multan Booking office to Multan Airport
Multan is connected to Lahore and Lahore is connected to Karachi
Wireless net:
1. From Airport to I.T Room
2. From Airport to Cargo
3. From Airport to Engineering
4. From Airport to Store
3.
MARKETING DEPARTMENT
It looks after development of Marketing Plans & Policies. This department performs all
marketing functions.
Marketing department in Multan station has three divisions
Sales promotion (with the help of travel agents)
Post Flight Analysis (PFA)
Reservation & Ticketing
o Counter T&R
o Airport T&R
o Web-ticketing
o Through Travel agents
o Home Delivery tickets
o Kiosk Machines
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The cargo sales and service department has the same functionality as of passenger sales and
service. It allows shipment all over the world in PIA network. Cargo rates vary from country to
country. It has the booking of cargo, loading and unloading, refund etc. However PIA has none
of its planes specialized for cargo only. Six categories of goods in cargo are
Livestock
Gifts
5. PERSONNEL/HR DEPARTMENT
The entire office procedure revolves around the filing system. In the office terminology, it
connotes a device for holding papers for reference. All papers are kept in two categories wise,
notes and correspondence comprises all communications received and office copies of outgoing
communications. They are arranged chronologically those reaching first, kept at the bottom.
All communications are assigned reference No. The material collected for the sake of
understanding is given in the appendix of correspondence. The whole set is then placed in a large
folder with a folio-sized cardboard. This makes a file all files are registered I the file register.
Promotion/transfer:
Retirement/pensions:
Leave
o Casual leave
o Privileged leave
o Sick leave
o Disability leave
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Passages/free tickets
Training
Salary
o Pay group I-IV
o Pay group X-above: (it includes g.m; and other higher executives)
o A special pay group is for the managing director, director and pilots.
Performance appraisal
Employees record
Dummy record is maintained for all employees as well as the out-station by the
admin. Dept that are the duplicate of the actual records maintained at the head office.
Microfilms of these records are maintained to avoid loss in case of damage or
misplacement of the written records.
Discipline / penalties
o Decrease in pay
o Demotion
o Discharge
o Suspension
o Dismissal
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Career development
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Profit Graph
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MY TASKS/ACTIVITIES IN PIA
I joined the prestigious organization PAKISTAN INTERNATIONAL AIRLINES
CORPORATION for my internship on June 22, 2015.I was accompanied by 2 other
internees. The internship was scheduled for six weeks. The schedule was provided to me on
my very first day and i was asked to conduct my activities as per schedule. PIA do not
require from internee to work like staff. For internship trainees briefing and observation
method is used to train them. The detail of my activities during this program is as follows
Government Credit (APW and TAC) for army, navy and PAF.
2)
Commercial Credit
3)
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Presents
b.
Weeks offs
c.
Days offs.
d.
e.
Shifts
f.
Leaves
g.
Absentees
I checked mails and replied to them as directed by my supervisor
2)
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Cargo rates
Cargo handling procedures
Cargo prioritizing
Cargo packing (I watched them packaging goods)
Cargo carriage
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I observed aggressive market capturing techniques practiced by the travel agents there,
who are at the same time competing among themselves for gaining even a single
customer.
Similarly I saw the marketing officers there dealing with the ethical and unethical both
kinds of tactics adopted my travel agents in their business with PIA.
There are number of possible distribution channels used by PIA viz direct (e-ticketing,
counter sales, home delivery) & indirect (travel agents).
And for retaining the loyalty of their frequent buyers, PIA has established awards plus
system for granting reward points on their flights
FINANCE DEPARTMENT:
In finance all the procedures were same as I have read and exercised in accounting &
fianc.
PIAs annual report is updated on quarterly basis by head office
Proper budget is allocated to each PIA station by head office
There is daily bank reconciliation of PIA on its accounts which are of two types i.e.
disbursement & collection account.
PIA deals with three types of credits
I. Govt. credit for giving concession to govt. employees
II. Commercial credit on credit cards
III. Forced credit for defaulted travel agents topping
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Each and every transaction in PIA is recorded both manually and electronically through
their specially developed software systems
INFORMATION TECHNOLOGY DEPARTMENT:
This is not a complete department as such in PIA stations. But 2-3 IT officers work in
each station
IT officers are specified to deal with any type of IT related problem. They have a very
well established network of computer
PIA has bought its own anti-virus system and developed specialized software for each
department i.e. SABRE,COSSAP & TMS
CARGO DEPARTMENT:
In cargo I have seen highly specialized goods assortment.
Careful packaging and carriage of shipment goods
There was an air of laziness in cargo department as they were dealing with non-living
objects might be.
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intervention in its ownership and operations. It seems that whatever PIA is earning it is just
sufficient for fulfilling the demands of PIAs owners. I would like to highlight this, that my
experience with PIA was very memorable and full of learnings, where I found a lot of positive
changes in my attitude, learning and behavior
SWOT ANALYSIS
STRENGTHS
Only national airline and the only flag carrier airline of Pakistan
Measurable well defined goals and objectives
Provided services for Hajj and Umrah
People oriented organization
Govt. sponsored/protected organization
Direct access to the destinations
Monopoly in the domestic routes with highest market share in domestic routes
Booking Offices in all major cities both at domestic and Int.
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OPPORTUNITIES
PIA has potential market in Middle East if PIA upgrades its fleet.
PIA has largest domestic network and by proper route planning PIA can generate huge
amount of Revenue with higher profit.
PTDC provides favorable market for domestic as well as international sectors for the airline
PIA can generate more revenue by attracting customers through Web and Mobile
Reservations system.
THREATS
Negative rising perception about the country, regarding terrorism.
Political instability and law and order situation.
Rising fuel prices in the world.
Over staffing at all levels
Frequently rising Airlines fare
Fast growing domestic and international competitors
Effective promotion strategies adopted by other competitors like Emirates and Shaheen anr
Airblue.
PEST ANALYSIS
The macro-environment includes all factors influencing a company that are not within its
control. These include political, social, economic and technological factors. These are known as
PEST factors.
A technique of analysis of the macro environment is PEST analysis. Environmental analysis
should be continuous arid precede all aspects of planning. Since the airline industry is very much
influenced by changes taking place in the environment and has undergone rapid and dramatic
changes during the last decade, this analysis is especially important for PIA.
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POLITICAL FACTORS:
Political factors always have a great influence on the way businesses operate in the airline
industry and the spending power of customers. In recent years it has been observed that
government played an active role in increasing competition in the airline industry. A number of
new airlines such as AirBlue and JS Air have been awarded licenses to enter the domestic
market.
Pakistan has achieved some political stability in recent years. If the management of PIA believes
that the present government will perform well (consistently), then there will be more investment
in the form of purchase of new airplanes and latest technology. The over all industry will grow
resulting in more luxurious and comfortable flights. With the military takeover government
policies have become more liberal.
ECONOMIC FACTORS:
Currently, Airlines industry has three major players: Pakistan International Airlines, an
Airblue, Aero Asia and Shaheen Airlines. Their target market includes domestic travelers as well
as Pakistanis living abroad particularly in the UK and USA. These countries have strong
economies coupled with high purchasing power. Customers purchase behavior depends very
much on prices of the competing airlines as well as services offered. As inflation rate is unstable
in Pakistan, spending power of consumers has effected in the long term. In fact growth in
Pakistani economy has resulted in an increase in spending power and has positively impacted the
airline industry.
Economically, the new millennium has been highly volatile; the September 11 attacks
revolutionized the whole world. Consequently, there was a global depression in the North
America, South America, Australia and Europe. However, in Asia especially Pakistan the effect
in the short term was otherwise. The economy began to boom because of greater remittances
from abroad and whole sum immigration by expatriates. As a result, demand for air travel in
South Asia rose.
Economic conditions of Pakistan are however improving. PIA has cost a advantage over
its competitors because of its newly acquired, improved, long distance aircrafts from Boeing
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which give longer range and better fuel economy than any other jet currently produced. This cost
advantage is a barrier to entry for new firms. However, this cost advantage will not be significant
on domestic routes.
SOCIAL FACTORS:
The social arid cultural influences on business vary from country to country. The social
structure of Pakistan is closely tied. The trend is now changing as the general public is educated
and is pursuing professional goals. Customers are more aware of market conditions and available
options and want to get best value for their money.
They spend considerable time and money on entertainment hence increasing the need of in-flight
entertainment systems. Also, word of mouth has a significant impact in the use of airline
services.
Hajj attracts a huge number of customers. The social environment of Pakistan is turning
liberal with the new regime. The initiative to automate check-in and ticket booking process might
not be very popular with the general public (even educated population) is still technology averse.
E-ticketing might also face significant challenges as consumers are generally reluctant to
provide their credit cards information over the phone and the internet. The consumers, however,
have a warm reaction to the prospect of less costly but quality service flights.
TECHNOLOGICAL FACTORS:
Technology is vital for competitive advantage and is a major driver of the airlines
industry. Major technological changes are taking place in the airlines industry with innovations
in the reservations and booking systems. In-flight entertainment systems and auto check in
counters are two examples of such innovations. Internet plays a key role in e-ticketing as
consumer can easily reserve tickets or check the status of the flight.
A key issue will be the extent, to which technological advancements (such as Internet)
impact distribution and cost synergies from industry consolidation, can offset upward pressures
on costs. PIA has always led the path of technological innovations by introducing new
technologies ahead of its competitors such as its auto check-in counters which has helped it gain
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market share. It was the first airline in Pakistan to install Sabre system followed by the market
leader.
SUGGESTIONS
I would like to give certain suggestions for PIAs betterment and profitability.
1.
PIA should adopt transparent policy that employees should be promoted on merit basis.
And Chairman of PIA should be appointed from within the organization. Union should support
it, it will motivate the employees and PIA to work harder.
2.
PIA should adopt good marketing policies so that it will bring higher profit and maximum
utilization of its available resources, Business sector should be attracted to operate at full
potential.
3.
PIA should upgrade its fleet as its causing the airline higher operating cost and PIA is
incurring loss .PIA should purchase new Airplane with twin engines these will reduce the
operating cost of PIA.
4.
Airline should focus on the customers satisfaction, refund process should be quick so that
PIA should not induct new employees till the time they are needed because PIA is suffering
PIA should give bonus/promotions to the competent employees as there is clear cut lack of
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7.
There should be control on the increase of fares, as mediocre are in majority in Pakistan,
and it is highly difficult for to even think about the air traveling. Management should think over
it and at least they can start a new packaged flight twice a week having 50% fares.
8.
Management should hire the services of specialized IT personnel for their system
There should be clear and even distribution of work and only qualified person should be
appointed on jobs.
11.
There should be improved service standards and that should focus on quality.
12.
PIA should offer its services of reservation and seat confirmation with by SMS and flight
PIA should give more incentives to its frequent flyer as it will generate more brand loyalty
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4. I would arrange most efficient training program for PIA representative staff.
5. I would try and uproot the hard-woven practices of a common government organizations
legacy such that absenteeism, free riding, laziness, corruption, family line promotions etc.
References
www.piac.com.pk
www.wikipedia.org
www.airliners.net
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