Вы находитесь на странице: 1из 54

Provide introduction, History and achievements

of the company. Discussion about all the

departments, problems which are faces by the
company and provide Recommendation.

PIA (2018)


Internship Report Author: Faiez Amin Khan


Submitted by Faiez Amin Khan

Program MBA(3.5)
Semester 4th

Department of Management



Internship Report Author: Faiez Amin Khan

With the name of ALLAH


Internship Report Author: Faiez Amin Khan

Up and above anything else, all praises to Almighty ALLAH alone, the all-powerful,
the most merciful and most compassionate. And after Almighty ALLAH to HIS
Prophet, MUHAMMAD (PBUH), the most perfect and exalted, who is forever a
source of guidance and knowledge for humanity as a whole.

And especially to Mr.Shahzad Sadiq from UNIVERSITY OF EDUCATION

LAHORE (MULTAN CAMPUS) who provided me fruitful instruction at every
moment. And finally I pay regards to my parents, who have always supported and
encouraged me and prayed for my success.

I am very thankful to all the staff members of PIA i.e., Mr.Bashir and Mr.Irfan Shafi
from HR Department, Mr.Hafiz Irfan Shokat and Mr.Kumail from Ticketing and
Reservation Department, Mr.Usman Sheikh from Finance Department and Mr.Irfan
Sheikh from Sales and Marketing Department their support, patience and their precious
time. Without their Help and guidance it was not possible to complete. Their constant
helped, enabled me to treat this work objectively and comprehensively.

Internship Report Author: Faiez Amin Khan

Executive summary
I did internship in PIA for 6 Weeks. This experience was very informative for me the
following report is consisting of my 6 Week experience.

My report consists of and contained information about the PIA history, its Vision and
Mission statements and Organizational hierarchy. I discussed the marketing strategies
of PIA .In which I explained Marketing Mix, Target Market, Segmentation,
Branding Strategies. I also discussed Competitive Strategies. And then I explained
in detail the SWOT Analysis of company.

As my interest was in marketing so in this report my mostly concentration was on

marketing department. Its working, functions. I elaborated Marketing Department
whole like Passengers sales department, cargo Sales department its working and
functions at town office and Terminal both. After that I discussed functions and
operations of Ticketing and Reservation Department. Here, I explained its different
sections like Domestic, international counters, Awards Plus, and also explained my
duties which was assigned to me in some departments. After that I discussed Functions
and Hierarchy of HR department.

And in last I gave references through I got data and footnotes in which mentioned the
names of that persons who helped me out to make this report. I also mentioned the
jargons used in my report.

Internship Report Author: Faiez Amin Khan

History and Introduction of Pakistan

international Airline (PIA)

Birth of a Nation, Birth of an Airline

Air transport has probably never been more important to the development of a new
nation than in the case of Pakistan. In June 1946, when Pakistan was still in the offing,
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 a priority basis. With his
singular vision and foresight, Mr. Jinnah realized that with the formation of the two
wings of Pakistan, separated by 1100 miles, a swift and efficient mode of transport was
When Pakistan came into being on 14th August, 1947 there was only one airline in
operation called Orient Airline. After some time two more airlines Pakistan Air Limited
and Crescent Airways started commercial operation. None of these small air service
companies could succeed to cover the requirements of the Air Traffic of the country.
Ultimately two of these failed to continue their operation. In 1952 Orient Airways was
the only operational company operating on domestic routes.
The government and the people of Pakistan were sincerely struggling hard for
development of their country with the aim to reach to the similar level of advancement
as of other free nations of the world. Communication system is the basic requirement
of country. So in 1955 the Govt. took an initiative and passed an ordinance to form an
air fleet under the name of Pakistan international airlines (PIA) to meet the needs of
domestic and international air traffic.
PIA began operation on Karachi-Dhaka sector with three aircrafts in 1955. Later
PIA and Orient Airways, a private carrier, were merged to form PIAC (Pakistan
International Airline Company). Over the years PIA gradually expanded its network
and is now serving 83 destinations.

Internship Report Author: Faiez Amin Khan

PIA’s First International Service

The year 1955 also marked the
inauguration of the fledgling airline's first
scheduled international service - to the
glittering, glitzy capital city of London, via
Cairo and Rome. Initially, there was much
criticism, as the public could not comprehend
or justify the need to operate an international
route when, in their opinion, other projects vital for a developing country should have
been given a higher priority. However, PIA's focus was, and continues to be, to serve
the Pakistani community at large. The provision of transportation to expatriates has
remained one of the foremost priorities of the national airline. Moreover, PIA earned
substantial foreign exchange through international services, which it invested in the
purchase of aircraft and spare parts, as fleet expansion was a grave necessity for the
New Planes, New Directions, New Management
In 1956, orders were placed for two Super
Constellations and five Viscounts which were to be
delivered in 1959. At this juncture, PIA possessed
a small fleet which comprised of Convairs,
Viscounts, Super Constellations and DC-3s.

While Mr. M.A. Ispahani was the first

Chairman of the new dynamic airline; it was the first Managing Director of PIA, Mr.
Zafar-ul-Ahsan, who in his 4 year tenure, got the ball truly rolling and set the shape of
things to come. The PIA Head Office building at
Karachi Airport, which houses all the major
departments of the airline, was the brain-child of
Mr. Zafar-ul- Ahsan. In fact, on his departure from
the airline, the employees presented him with a
silver replica of the building with the caption, "The
House You Built".

Internship Report Author: Faiez Amin Khan

In 1959, the Government of Pakistan appointed Air Commodore Noor Khan as the
Managing Director of PIA. With his visionary leadership, PIA 'took off' and within a
short span of 6 years, gained the stature and status of one of the world's frontline
carriers. In aviation circles, this period has often been referred to as the "golden years
of PIA".
Development, expansion, and growth were keywords that the new management was
committed to. In March 1960, PIA launched its first Boeing 707 jet service on the
London-Karachi-Dacca, route which later proved to be very successful. This trail-
blazing accomplishment resulted in PIA becoming the first Asian Airline to operate a
jet aircraft, setting trends for the future. In 1961, the airline took on the mammoth task
of initiating a cross-Atlantic service from Karachi to New York. By this time, PIA had
placed orders for more new aircraft, which included Fokker F-27s, Boeing 720Bs and
Sikorsky helicopters. Helicopter services in East Pakistan had gained momentum by
1962 and expanded to include Sylhet, Chittagong, Dacca, Comilla and Ishurdi. PIA's
helicopter services carried over 70,000 passengers during the first year of operation. At
the time, it was regarded as a stellar operation, equal to any other in the world.
Unfortunately, due to two mishaps, the service was discontinued in 1966.


 First airline from an Asian country to fly the Super Constellation.
 First Asian airline to operate a jet aircraft.
 First Asian airline to be granted maintenance approval by the US Federal
Aviation Administration (FAA) and the Air Registration Board, predecessor of
the British Civil Aviation Authority (CAA).
 First non-communist airline to fly to the People's Republic of China, and
operate a service between Asia and Europe via Moscow.
 First airline in Asia to induct the new technology Boeing 737-300 aircraft.
 First airline in the world to operate scheduled helicopter services.
 First airline to show in-flight movies on international routes.
 The first airline in South Asia to introduce auto-ticketing facility.

Internship Report Author: Faiez Amin Khan

 The first airline in the world to fly to Tashkent, capital of the newly
independent state of Uzbekistan.
 First airline in the world to start Air Safari with jet aircraft.
 First Asian airline to start flights to Oslo, the capital city of Norway.
 First airline in the world to induct the Boeing 777-200LR, the world's longest
range commercial airliner.
 First airline in the world to take delivery of the Boeing 777-200LR Worldliner
(Longer Range Variant).
 Pakistan International Airlines Flight Services Department was awarded the
ISO 9001:2000 certification award during May 2006.
 First airline in Pakistan to operate a flight with an all female crew at command
and in the cabin.
 First airline in the world to operate the Boeing 777-200ER, 777-200LR and
777-300ER altogether - all the three variants available on the market.
 PIA Flight Kitchens in Karachi were awarded the HACCP Certificate. (Hazard
Analysis and Critical Conrol Points)

Internship Report Author: Faiez Amin Khan



Type Total (Business/Economy Routes Notes

long, medium and short haul
(12/40/132) 6 leased
Airbus (Europe, Far East, Gulf,
12 205 from Airbus
A310-300 Subcontinent and Domestic
(18/43/144) industry.

short haul
ATR 42- 48
7 Domestic, Afghanistan and
500 (0/8/40)

medium and short haul

118 Afghanistan, Gulf, Indian and
Boeing (0/24/94) Domestic Cities
737-300 119

medium and short haul

298 ————————
747-200 1
(38/30/196) Far East, and Domestic

Internship Report Author: Faiez Amin Khan

Boeing 433 medium and short haul 1 of which is

747-300 (45/60/328) Saudi Arabia and Domestic stored

Boeing long, medium and short haul 1 of which
777- 4 (Europe, Saudi Arabia USA is leased
200ER and Domestic from ILFC

long, medium, short and

310 ultra-long haul (North
777- 2
(35/60/215) America, Europe, Saudi
Arabia and Domestic)

Boeing long, medium and short haul

777- 3 (Europe , North America, and
300ER Domestic )

40 February

Internship Report Author: Faiez Amin Khan

Internship Report Author: Faiez Amin Khan

PIA's vision is to be a world class airline exceeding customer expectations through
dedicated employees, committed to excellence.

 Employee teams will contribute towards making PIA a global airline of choice:
 Offering quality customer services and innovative products
 Participating in global alliances
 Using state-of-the-art technologies
 Ensuring cost-effective measures in procurement and operations.

Core Values
 Customer Expectations
o Convenience, Caring, and Competitive Tariff
 Service
o Personalized and Courteous
 Innovation
o Cherishing New Ideas, Translated Into Action
 Cohesiveness
o Respect for Individuals, Teamwork, and Effective Communication
 Integrity
o Business Ethics, Accountability, and Transparency
 Reliability
o Loyalty and Consistency
 Safety
o Passengers, Employees, Environment, and Health

Internship Report Author: Faiez Amin Khan

Objectives of PIA
Like any other organization PIA’s real goal is to expand, grow and earn as much revenue as
they can through providing good services to the customers efficiently.

Marketing Strategies of PIA

i. Segmentation
a. Breaking down a market into sub-groups like demographically,
geographically, Psychographic and behavioral is called market
segmentation.A market segment is a subgroup of people or organizations
sharing one or more characteristics that cause them to have similar product
b. it is distinct from other segments (heterogeneity across segments)
c. it is homogeneous within the segment (exhibits common attributes)
d. it responds similarly to a market stimuli
e. it can be reached by a market intervention
ii. Target Audience

After segmentation which is done above PIA make strategies to provide the services
to audience.

From Geographic Segmentation PIA targeting the customers lived in whole around
the world as residence or for business purpose.

From Demographic Segmentation PIA targeting the income and occupation oriented

From Psychographic Segmentation the target audience of PIA is tourists, religious

traders, Pakistani expertise and social class.

From Behavioral Segmentation the target audience falls in categories of occasion

based like Hajj, Eid, and New Year occasion.

Internship Report Author: Faiez Amin Khan

Positioning of PIA
Currently PIA position itself within the following positing strategies.

 Positing By Features
 Positing By Price And Quality
 Positing By Product User.

 Positioning By Features
o By using this strategy the PIA position itself in minds of customers by explain
it different features. Like PIA position itself in mind of customers as the most
safe air transport service. Because if we look into the history of PIA then we
will come to know that it is the only airline company which has the lowest
accident rates. So by positing on that feature PIA attracts more customers. And
people also prefer it due to this feature.PIA also has different safety
certificates like
o IATA operational safety Audit (IOSA)
o Civil aviation authority Of Pakistan (in accordance with the international civil
Aviation organizations standard
 Positioning By Price And Services
o PIA has cost advantage. So they also offer lower priced and provide the best
services to their customers as compared to their competitors.
o Introduction Of Additional Low Cost Flights
o PIA introduced low cost flights in economy classes.
 Positing By Product User

As PIA play a role of ambassador of Pakistan so when Pakistanis expertise travel in it

they got the homely feelings. This help in increase the loyalty of customers.

Brand is the name, term, sign, symbol or design or the combination of these that identify
the maker or seller of product or service. In our product PIA is our brand which help customers
to identify the product that might benefit them. Branding give some benefits to sellers and also

Internship Report Author: Faiez Amin Khan

provides the legal protection. Reaction of people traveling with us. Demographics factors also
consider in it. Time efficiency .due to good quality of aircraft they move nonstop. So time

Push & Pull Strategy

PULL strategy is used for HAJJ AND UMERAH

PUSH Strategy

Is used for regular flights.

HOW Branding Is Done.

 Through Advertisement.
 Electronic Media. T.V FM Radio.
 Print Media. Bill Board, sign Boards.
 Online Media.
 Sponsorship .Set Packages. Like give shirts with PIA logo.
Reawaken of Brand

This is done by telling about the great and glorious history of PIA to attract the customers.

Marketing Mix of PIAC

Intangibility Inseparability
Care Information

Internal Satisfaction Experience


Variability Parish ability

In flight services Baggage services
and pick & drop
In Flight Services
services for
Business personnel

Internship Report Author: Faiez Amin Khan

To pursue the marketing objectives in the target market marketing mix is used. It is a set consist
of four P’s, Product, Price, Place, and promotion .That was given by the McCarthy.

Marketing mix for PIAC is given below.


The thing which is offered in the market by the company to satisfy the needs and wants of
customers called product. Products are of two types. They can be tangible or may not be part
of products which are not touched or have physical existence is called services. And this is the
product of PIAC.

PIAC dealing in providing services of 2 types

1: Aircraft Seats for passengers

2: Aircraft space for cargo.

Services are not owned by someone .This is the process in which one party offer it and another
purchase it. Services consist of activities, benefits, or satisfactions

That are offered to customers for sales .Intangibility, inseparability, satisfactions are the
featured of services. As these features have not any physical existence so they require more
adaptability, supplier credibility and quality Control.

The features of PIA are given below,


Services are produced and consumed simultaneously. Person who is offer the service and
person who buy that services both are part of services .Person who is offering the services
should be efficient and well trained because in that way only he can sell his services and can
convince to customers to buy them. So in this way both person effect on the outcome.


Services are those parts of products which are highly variable. Changes in services come
according to customer demands, requirements, and competitor’s strategies etc .Now a days
customers have more knowledge about market and they want more facilities at lower cost. So

Internship Report Author: Faiez Amin Khan

if they find any attraction towards the competitors they will prefer them more .In this way
company should able to accommodate the customers wants. To attract more customers PIA
should improve the quality by giving more training to its employees for dealings with
customers. PIA should also examine the customer satisfaction level, and survey should conduct
to know about the customers quires.


Services do not have any physical existence, they can not be tested, felt, seen, heard and smelled
before they purchase. So these are more difficult to promote and attract customer to buy them.
In this way before the use the results of the services can not be seeing. Before purchase the
services customer satisfied himself buy check its record, by ask from others like world of
mouth, and analysed evidence of the service quality, by price, by compare it with competitors


Services cannot be stand for long time .there is no any shelf life of services. When demand is
steady the Perishability of the services is not a problem .Because in this way the employees
can be trained in advance to face the situations .Fluctuations in demands create problems for
firms which are offering services .PIA wants to buy advance technology with the new and large
aircrafts but due to change in demands irregularly in peak and slack period management cant
not invest a lot.


Organizations for profit purposes always set its objective to meet its revenue targets .Price is
amount which customers pay to company for its services. Market share and profitability of the
organization is only determined by this element of marketing mix. Its only tool of marketing
mix which create revenue for the company.

Price setting is a difficult task for the company.

PIA has two types of services and its big task for it to manage the price for both services

1: Revenue Tickets

Internship Report Author: Faiez Amin Khan

2: Air Way Bills

For domestic and international routes PIA sets its price by follow the procedure.

Setting Price for Domestic Routes

For domestic routes the fairs are set by the head office Karachi. Cost plus method use in PIA
for setting price. By analysing the pricing objectives, use of aircrafts, RBDs level, competitor
fairs and discounts, and estimating cost. Then final price charged to the customers.

Setting Price for International Routes

For international routes the fairs are set by the international air travel associations. IATA does
not offer any off any discounts .But to promote the Sales the PIA allows its agents to give
discount offers to its customers.

Pakistan international Airline provide various types of discounts for the promotion or through

PIA gives ads on TV and FM radio. And also on different websites.

Through Print Media

Through its pamphlets, through broachers, on newspaper etc.


Domestically. Saheen Airline, Air Blue Air lines.

Internationally .Gulf, Emirates, Saudi airline, Qatar airline, Itihad.

Competitors Analysis
Competitors are those factors which cant not ignored by any company to go ahead. For gain
more market share competitor analysis is most important. Because through this company come
to know about the strong and weak points of current and potential competitors.

Internship Report Author: Faiez Amin Khan

Competitive Edge of PIA

 PIA services are more reliable and safe.

 PIA has advanced and best engineering faculties.
 PIA Pilots are very competent and trained.
 PIA is only airline which carry the National Flag.
 As PIA play a role of ambassador of Pakistan. So when Pakistanis expertise travels in it
they get the homely feelings.
 PIA is only airline in Pakistan which has its approaches to remote areas of Pakistan.
 PIA use highly equipped engineering technologies.
PIA Competitive Strategy

PIA competitive strategy is Differentiation strategy. Only airline which has its different classes
like Economy class, it has further RBDs like (K, T, M, and N) and for business class RBDs are
( B,S,C,J ).PIA also have business plus class PIA understand the needs and wants of customers
and offer different and unique product characteristics.

Flanking strategy

PIA has a flanking strategy. Flanking strategy is direct attack strategy on competitors. PIA
started to provide its services to remote areas of Pakistan than its competitors. Its main
competitors Air Blue do not have its access to those remote areas. Due to this strategy PIA
using the flanking strategy.

Current competitors of PIA

As PIA providing its services at national and international levels both. So its competitors at
national and international level both are present.

Domestic Competitor

At national level PIA major competitor is Air Blue .Air Blue start its journey from Jinnah
terminal as private airline. It’s also providing its services at national and international level
both. But still their destinations are less than PIA. Air blue at international level providing its
services to Dubai, and Manchester. Its main advantage is that it was 1st airline in Pakistan which
introduces the e-ticketing.

Internship Report Author: Faiez Amin Khan

International Competitors

At international level PIA has flowing competitors

Singapore airlines, Itihad Airways, Qatar airlines, Thai airlines etc.

Different Offers by PIA

Umrah services

PIA aircrafts have direct access to the destinations like it reach the customers direct to Jeddah
from LHE, KHR for Umrah.

At peak season of Umrah and Hajj additional flights also operate to take customers at Jeddah.

Boeing 777s provides the comfortable and luxurious journey for pilgrims.

Pick and Drop Services

PIA also provides the free pick and drop services to customers. But this offer is only present
for Business class.

International Services
South East Asia North America

 Malaysia  Canada
o Kuala Lumpur o Toronto
 Thailand  United States
o Bangkok o New York City (JFK)

Internship Report Author: Faiez Amin Khan

Southwest Asia
 Bahrain
o Manama  Denmark
 Kuwait o Copenhagen
o Kuwait City  France
 Oman o Paris
o Muscat  Ireland
 Qatar o Dublin [plan to start
o Doha Dammam Summer 2009/pending
o Jeddah approval]
o Riyadh  Italy
 United Arab Emirates o Milan
o Abu Dhabi  Netherlands
o Dubai o Amsterdam
o Sharjah  Norway
o Oslo
 Russia
o Moscow (Sheremetyevo
 Spain
o Barcelona
 Turkey
o Istanbul
 United Kingdom
o Birmingham
o Glasgow
o Leeds/Bradford
o London (Heathrow &
Stansted Airport)
o Manchester

Internship Report Author: Faiez Amin Khan

Internship Report Author: Faiez Amin Khan

Internship Report Author: Faiez Amin Khan

Domestic Services

Islamabad - Rawalpindi (Benazir  Northern Areas

Bhutto International Airport) Hub o Gilgit
o Skardu

North West Frontier Province  Sindh

(NWFP) o Hyderabad
o Karachi (Jinnah International
o Chitral Airport) Hub
o Dera Ismail Khan o Moenjodaro
o Peshawar (Peshawar o Sukkur
International Airport)
Focus City

 Punjab  Balochistan
o Bahawalpur o Dalbandin
o Dera Ghazi Khan o Gwadar
o Faisalabad o Panjgur
o Lahore Hub o Quetta
o Multan o Turbat
o Rahim Yar Khan
o Sialkot

Internship Report Author: Faiez Amin Khan

Internship Report Author: Faiez Amin Khan

Organizational Structure

Internship Report Author: Faiez Amin Khan

Departments of PIA
Pakistan International Airlines

Marketing & Sales Department

Network & Route Planning

Flight Operations

Air Port Services

Cargo and sales & Services

Flight services

Human Resource Department

Finance Department

Internship Report Author: Faiez Amin Khan

Learning in various Departments as


Finance Department of PIA

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

 Planning and Budget

 Funds Management

 Accounting

 Internal Audit

Internship Report Author: Faiez Amin Khan

The duties and functions of a typical finance department can be classified into two generic
categories. The first category is PLANNING and the second function is
CONTROLLING. These activities are inter-related and inseparable because if there is no
planning these will not be any control. Therefore, planning and control move together.
Planning refers to the activities, which bridge the gap from the starting point to the terminal
point. Planning in the finance department under review refers to the activities of Cash Flow
and Budget preparation. These are the major activities (planning) in any such department.
Functions of Finance Department

Planning is fundamental to the management process, a process of sensitizing an
organization to external opportunities and threats, of determining desirable and possible
objectives, and of deploying resources to match the objectives. Without planning there is
no basis for controlling for planning provides the foundation upon which the control
function operates. The planner should be able to visualize the proposed pattern of activities
individually and collectively, internally and externally.

The budget is not only the most important plan of an enterprise, but also the basic link of
accounting with management. The use of budgets, particularly in connection with the
control phase of management has been termed as “budgetary control”. A company’s
organization chart and its chart of accounts from the basic framework on which to build a
coordinated and efficient system of managerial planning and budgetary control. The
organization chart defines the functional responsibilities for the budgets rests with
executive management, all managers are, responsible for the preparation and execution of
their departmental budgets. If a budgetary control system is to be successful, these
managers must fully cooperate and must understand their role in making the budget system

This function of the finance department is carried out in the light of standards
set in the planning stage. The actual performance is compared with the preplanned
objectives and standards, which lead to the rectification of any deviation and
improvement suggestions, which will assist in the future planning. Management control

Internship Report Author: Faiez Amin Khan

is the systematic effort by the business management to compare performance to plans

the control function is of prime importance in the accomplishment of objectives. The
need for control increases with the size and complexity of the organization. Continuous
supervision of an activity, task, or job is required to keep it within previously defined
boundaries. These boundaries termed and “budgets” in the planning phase, are set up
for manufacturing, marketing, finance and all other activities. Actual results are
measure against plans; and if significant differences are noted, remedial actions are

Out of the nine divisions in the department “Revenue Division” is the most
important division. Some of the important divisions/sections are described below in

Revenue Division
Airline sells space and services and these are measured in terms of money. Revenue
division controls the revenue in terms of money. It is further subdivided into these

a) Passenger Revenue
b) Cargo Revenue
c) Interline Revenue
d) Pricing
For each type of the revenue stream there is an independent unit. So Revenue Division is
discussed in units:

A. Passenger Revenue:
i. Sales: Revenue function starts from printing of tickets. Thickets of airline
contains few coupons with a jacket (bearing instruction on it) tickets are sold
at station and at agents offices. Sales of tickets may be:
(a) Direct Sale or
(b) Indirect Sale
Direct sales mean sale at stations of PIAC, whereas indirect sales are by agents.

Internship Report Author: Faiez Amin Khan

a) Direct Sale

There are many locations for direct sales all over network of PIA. Three types
of ticketing are practiced i.e. manual ticketing and auto ticketing and E-Ticket.
Manual ticketing involves procedures of pencil paper work on printed tickets.
Whereas auto ticketing involves advance system of computerized ticketing and
on the spot computerized ticket printing. Regarding direct sales following four
documents are important:

i. Passenger Revenue/Extra Baggage Carrier Ticket:

The ticket has four/three coupons. First is audit coupon, second is issue office
coupon, third flight/lift coupon and fourth the revenue coupon. Flight coupons
are arranged for one/two or four sectors. Audit coupon and flight coupons are
most important coupons. Because flight coupon is the only coupon to be used
either for lift, or for refund/reissue/travel on non-PK carrier, etc. whereas as audit
coupon is meant for PIA’s revenue record. Audit coupons are sent to head office
with sales statements from each station. Accounting to entry is based on audit

ii. Miscellaneous charges order (MCO):

These documents contain, audit issue office and exchange coupons, these are
meant for exchange if for the time being you don’t want to travel but want to
block a seat. Or if you were charged higher fare than the class you travelled in.
iii. Prepaid Ticket Advice (PTA):

This is for sponsoring the tickets or the relative, friends, etc. for any other
country/destination the money paid by the person sponsoring the ticket in
advance and after the checking of the documents of the nominee of the sponsored,
sponsored is issued this ticket. The responsible station communicates through

Agency Sales:
There are three types of agents selling tickets of PIA. IATA approved agents,
General Sales Agents (GSAs) and Non-IATA Agents. Agents are paid commission on
domestic 5% and on international 9% and sometimes paid 3% above the normal rates.

Internship Report Author: Faiez Amin Khan

Agents as well as stations are required to submit the sales statements. These may be
daily/weekly/monthly as the case may be.

Refund Unit:
Persons who do not report 72 hours before the flight the seat are automatically
canceled. In case of international tickets the unused tickets are fully refunded. Jacket
covering the coupons of the ticket bears instructions and procedure of cancellation
charges with specified rates.

PIA policy that it facilitate its customer if the flight is cancelled due to any
reason than PIA will not charge any amount to the customer and the refund amount will
be fully paid. I have observed that at my work in PIAC Islamabad /Rawalpindi station
most of the refund cases were of domestic flight for Gilgit and Skardu.

Accounting Unit:
Disk/information received from all stations sometimes enables this unit to
monitor accounting and prepare floppies and transmit them to the main frame. In PIAC
accounting is fully automated and computerized. Few stations have on line systems too
however manual work is not totally eliminated due to non-availability of the on line
systems at some stations.

Cargo Revenue Section

Before going into details it will to look at the organizational set up to this section.


Assist Assist

ant ant

Ac Ac Ac Ac Ac
co co co co co
unt unt unt unt unt

Sales Unit:
Sales may be of two types; sales on PIA’s own counters and sales by agents.
When cargo sales are made airway bills are prepared by stations/agencies. Stations are

Internship Report Author: Faiez Amin Khan

responsible for reports to head office about airway bills, both of agents and stations.
Agent’s reports to stations and stations to H.O. Cargo sales may be domestic or
international. R-2 is statement regarding domestic cargo sales and international cargo
sales for PIA counters whereas R-11 is a statement for agent’s cargo sales. R-3 is
collection report. R’s are returns prepared by the stations and sent to lift unit. Lift unit
keeps the tracks of the cargo sales revenue and monitors the preparation and collection
made by stations.

International Revenue Section:

All airlines render services and these are measured in terms of money. Revenue
division is responsible to keep the tracks off all the revenue. Interline revenue has two

i. Receivable:
When passenger from any other purchases ticket airline but lifted by PIA.

ii. Payable:
Some other carrier but lifts passengers purchases when ticket from PIA.

These transactions are settled through IATA clearance house. IATA clearance house
has its member airlines are dealt according to the standing agreements with them. As
IATA regulates the airline industry in the world most of the settlements are through
IATA. Sometimes revenue is divided according to sectors carried. These types of the
settlement are made on the basis of mileage. This is called probation. For settlement
there are three currencies in which payments are receipts are made.

 European Currency
 US Dollar
 Pound Sterling
This section of the revenue division was established in 1975. It acts as regulating
authority of the airline. According to IATA rules approved fare written on the face of
the tickets should be charged as that fare is approved. But the airlines undercut their
fare especially in other than the base country. This section monitors these underground
unethical violations of the IATA rules.

Internship Report Author: Faiez Amin Khan

When other airlines undercut fares and PIA feels that it must also undercut, the
station managers prepares proposals about fare expected to be charged and sends these
proposals to marketing department. Marketing Department analysis the proposals and
approve them after comparing with last year’s figures. Final approval is made by
“director sales.

Marketing Department

Today world is going to change continuously. So PIA cannot keep itself away to follow the
trends in market. In airline industry there exists a tough competition. Economic changes,
advance technology, relaxation from government rules forced PIA to face a number of
challenges in market. With the more awareness among customers about market situation they
want best quality of services. Efficiency in marketing strategies makes the success possible of
any company. A wrong perception about company in tough competition causes to ruin its name
forever. Price assessment, different traveling packages, customer analysis, customer needs,
cost factors, concession to regular customer are those facts on which company makes its
strategies. So for make more customer more loyal, fulfil their needs, to gain more market share
effective and efficient strategies should be made. Figure


Passengers Sales

Cargo Sales

Ticketing and

Tours Promotion

Internship Report Author: Faiez Amin Khan

Role of Passengers Sales Department

Sale promotion is the main sub section of the sales section. One of the primary functions is to
promote the sales and generate the revenue. The Passenger Sales Manager (PSM) who is
assisted by Sales Promotion Officers (SPO) and one Assistant Passenger Sales Manager heads
the PAX (Passenger) Sales Section.

Passenger’s Sales

Assistant Passenger Sales


Sales Promotion Officer

Sales Promotion Officer

The targets are assigned to the SPO’s for this purpose and they are motivated to achieve those
targets. SPO’s go to the fields, before leaving they fill a form about their program and when
they come back they fill the called report. Every manager has his own way of working.

This section is headed by passenger sales manager and there are sales assistant managers all
the SPO's have defined their agency and their report about the agency to agency assistant sales
managers. They cover all the 72 IATA and 30 non IATA agencies under IATA group 7%
official incentives or concession is approved for the agency on international routes and 3% on
domestic routes. Basically the incentive is directed toward the wholesales. They give the
incentives to the agency according to their efficiency. It is only done at that time when agents
give bulk business. Management tries to give incentives on the bulk quantity because 83% of
revenue is generated by the traveling agencies.

Internship Report Author: Faiez Amin Khan

It has a genuine reason i.e. PIA offices are in the particular area and agents are very familiar
with the environment and their offices are spread over the city and it helps the passenger to go
indirectly to the traveling agencies.

In simple words the head office authorities specify for station Pax Sales Section that it has to
take a particular number of passengers to a particular sectors in that financial year. To meet
these targets, the Pax Sales Section, convert into revenue targets for each sector. These revenue
targets are again divided on monthly basis, i.e. specify parts of these revenue targets are set for
a particular sector, to be achieved in a particular month. For the achievement of these revenue
targets, the Pax Sales Section formulates “Marketing Plan” and determines the Marketing
Strategy considering the previous year’s performance. For its monthly performance, it makes
a monthly district activity sales report, which is sent to the head office for the information of
the concerned authorities. For the achievement of these revenue targets the Pax Sales Section
takes the help from various agencies (travel agents). There is also different District Sales
Managers (DSM) for different districts like Chitral, Swat, Abbottabad, Bannu and D.I.Khan;
who are assigned a part of these targets to be achieved.

Generally speaking PIA has three major types of commission travel agents, who also help the
Pax Sales Section in the achievement of these targets. These travel agents are GSA, PSA and

General Sales Agents (GSA)

The GSA is PIA approved travel agent. These are those agents which operate in those areas
where PIA is not providing services.

Passenger Sales Agent (PSA)

The PSA are PIA’s approved agents for the sales of domestic as well as international tickets.
International Air Travel Agents (IATA)

The IATA approved agents are those who deal with the sales of PIA as well as other airline
documents. These kinds of agents do not have any obligation to sell any particular airline;
rather they are free to sell any airline’s ticket, which they find suitable both for the passengers
and for themselves. International Air Travel Agents they work on international face and deals

Internship Report Author: Faiez Amin Khan

with different airlines like, Emirates, Qatar airline, Saudi airline, etc included PIA .these are
registered agencies and pay a guarantee of 7 Million to airline for registration

Non IATA Agencies

These agencies also deal with different airlines but not registered. They are less trustworthy
because they work as private agents and risk of fraud and mismanagement also taken into
consider in these agencies.

Agreements in Marketing Department


Special Prorate Agreement. According to this agreement the places and areas where PIA is not
providing services they make an agreement with different airlines to reach the passenger there
and special charges are make and contribute among air lines.


Division of a joint fare, rate or change between different carriers concerned on agreed basis.

Code Share Flight

If there is not many passengers than they carry the passengers of 2 airlines together in one

Passenger Sales Agents Responsibilities

 Bring sales for PIA.

 Daily routine calls to IATA agents, Non IATA agents, PSA.
 Monitor and sure that agencies are not violating the rules and regulations of ticketing &
 Monitor Sales and relate with Bank guarantees.
 Go In to market and find the trend of competitors and also examine their policies.
 Meeting conduct to exam in sales record, terms
 To maintain the customers profile.
 Assist to special persons, PM and VIP guests.
 If I assigned task to anyone than he should provide me.

Internship Report Author: Faiez Amin Khan

Functions of Marketing Department

There are many functions performed by the marketing department, some of them are the

 Earning revenue through PAX sales or cargo sales for the organization is the main and
important function of the marketing department.
 Pax sales and cargo sales every year receives target from head office for the
revnue.They have to achieve those targets at any cost.
 For achieve the revenue target Management divide the yearly target into months. And
then at the end of every month they analysed weather they achieve their monthly target
or not.

Internship Report Author: Faiez Amin Khan

Ticketing and Reservation Department

Reservation means the accommodation held by a passenger on a given flight and the passenger
is to be carried from boarding point. Reservation and ticketing section is headed by TOM
(Ticket Office Manager) who is directly responsible to Passenger Sales Manager (PSM).
Though there is acute competition seen among different airlines. So ticketing and reservation
plays a vital role in advertising their product and in the promotion of good will of the

Internship Report Author: Faiez Amin Khan

Reservation System at PIA

Ticketing is the LIFE BLOOD of PIAC, because most of the revenue is generated through
ticketing and reservations. Proper and sound reservation system and plans are required to
achieve the goals and objectives of any airline. Reservation system at PIA booking office is
kept to serve the customers at their best. For better services the office has been divided into
different categories in order to carry out different functions. These categories are:

 International reservations counter.

 Domestic reservations counter.
 Flight Checks.
 Reservation on Telephone
 Award plus.

Domestic Reservations Counter

Domestic department deal with passengers who want to travel at national level. And mostly
come for changing in ticket date, time etc. For re-issuance of ticket or want to buy new ticket
come to that counter. The whole reservation system of PIA is computerized. All computers at
Lahore are connected with main frame computer at Karachi.

Flight Checks

Flights check is very important and sensitive area in the PIA. Where the booking is originated
either it is from the travel agent or from the organization booking department. After
understanding the bio data is feeded in the computer and all information relevant to the
passenger and their requirements and staffs is kept. Flights are checked three times before
departure respectively 72 hours, 48 hours, 24 hours before the departure of the flight. Senior
members are checked different flights lists before 72 hours and if some problems are incurred
then they contact with the operator and also the agents to confirm the seat. . Before 48 hours
or 24 hours the list is checked and if there is some problem found then they contact to those
agents in case of seats lying vacant.

Internship Report Author: Faiez Amin Khan

Reservation on Telephone

PIA also providing the home delivery services of ticket to passengers. Passengers made their
order by calling on help line .this request goes automatically in mail box. Then they provide
ticket to customers at home and take payment from them in form of credit cards and cash both.

Discounts offers
Students got 10 % discounts individually but now since few days PIA not offering this type
of discount.

75% of basic fare pay by child if they travel with adult.

10% basic fare of pay by infant.

50 % discounts to Army.

Award Plus+

PIA brings its upgrade Frequent Flyer programmed with a variety exciting rewards awaiting
for passengers. As esteemed members they will not only enjoy elite benefits but also to redeem
A+ miles for free tickets, class upgrades and excess baggage vouchers.

It issued three types of membership cards according to these cards different benefits provided
to members

A+ Emerald benefits

A+ Sapphire Benefits

A+ Diamond benefits

Web ticketing

PIA Web Ticketing is now available for domestic flights and passengers traveling between
Pakistan and UK, USA, Canada.

Internship Report Author: Faiez Amin Khan

Classes in Award Plus

Domestic = Economy, Economy+ and Business

International = Economy, Business

Tickets in award plus is retained for 1 year. And booking on request is only available in award

Tours Promotion
To eliminate the gap between the different people, regions, and country tourism plays a vital
role. That’s the reason Tourism consider a very positive factor for reading social and political
precautions. By travels a climate of understanding good will and tolerance became create and
employees engage with tourism profession work hard to promote it.

In Pakistan the concept of tourism is growing very fast as compared to previous year. And it is
also very beneficial as economical prospective. In Pakistan this industry can be grow at very
fast rate. By knowing all these factors PIA makes its strategies to promote it at national and
international level both. Pakistan has a lot of Blessings of God. Its beautiful northern Ares
create a great attraction for tourists. So PIA tourist main objective is to exploit the name of
Pakistan. And also to gain maximum market share Tourist department make strategies that how
they can attract the customers within and Tourism is a very profitable business now days.
Market potential is increasing at very fast rate. Tourism can play a vital role in countries
economy as it is the 2nd largest company in world after oil. In many countries under the
government direct care and involvement tourism is a great source of increasing income. If
proper strategies are made and implemented then this business can improve the economic
condition of market.

Through effective promotion by PIA can attract a steady stream of tourism industry in Pakistan.
As Pakistan has an ideal location with rich and varies resources.

Tours promotion by PIA

PIA is the only national air flag carrier in Pakistan playing key role in promotion of tourism in
Pakistan. Pakistanis hospitality culture and progressiveness in activities are clearly shown in

Internship Report Author: Faiez Amin Khan

PIA .Tourists from whole world have a direct and very fast resort to get to know about Pakistan
and how to travel with it airlines.

For promotion of tourism in Pakistan PIA management put great focus to develop strategies
which will increase the market share of PIA in tourist fields. And will also attract more
customers to travel at national and international level both.

Tourism has got prime importance among many Asian countries and they give top priority in
their marketing plans. The trends of world tourism also indicate PIA's decision about gearing
itself especially for tourist traffic.

Functions of Tours Department

By analyse the importance of tourism a corporate Manager has been assigned by PIA
management at its main terminals. And its field’s offices have been working at various cities.

The basic functions are

 To set packages and different offers to attract large customers at both national and international
 Develop strategies to attract traffic on PIA routes.
 Help and guide the tourist groups during journey.
 Development of tour packages along with applicable costs at a given time besides production
and supply of publicity material.
 Promote Festivals in Pakistan and outside the Pakistan.

Human Resource Department

Every organization has to perform certain personnel functions in its own capacity. Every
organization must hire, train, pay, motivate, maintain and ultimately separate
employees. Every organization has its peculiar administrative structure, which suits the
function, objectives, strategies, rules and procedure of that organization. Administration
is the collective activity directed towards the attainment of a specific goal.
Administration and management are used interchangeably and have no distinction. In
the strict sense, Administration is execution of pre-determined policies; while
management is the determination, execution and evaluation of these policies. Thus
administration is defined as determination, execution and evaluation of policies.

Internship Report Author: Faiez Amin Khan

Administration/Human Resource Management is one of the most complex and

challenging fields of endeavour.

The Pakistan international airlines corporation (PIAC) has an Administration

department, which involves the organization and management of man and material in
order to accomplish its goals. Administration Manager is the head of the Administration
department; where as the head of the overall Administration is GM HR of the region.
The HR Manager is directly under the control of GM of the respective region.

Main Steps are
 Recruitment
 Placement, Selection and Place.
 Training & development
 Compensation
 Employees relation

Functions of Administration Department

 Administration department form organization rules, procedures, and functions and
manage the human resources. This department also involve in structuring of
 To achieve the goals of the organization the administration Department of PIA manages
the employees and also directed these employees towards the attainment of goals.
 It is also the duty of HR department to determine the interrelationship of various
functions .And also how these functions will be carry out through techniques and
 For carried out the operational activities it is the duty of administration department to
provide the all material and tools which are required like pens files, computers, papers,
air conditioner.
 As administration department formulate the rules and regulations of organization, so it
is also the duty of department to check out the investigations and inquiries against those
employees who violating the rules and regulations, indiscipline and misuse of authority.

Internship Report Author: Faiez Amin Khan

 Administration department of PIA also involved in the maintenance of security staff.

So in this way it is directly assure the security of building, office, fixture, furniture, and
HRM Functions

PIA is the biggest international organization of the country. So it has large number of graduates
from all over Pakistan. Posts for managerial and non-managerial positions are advertised with
requirements on newspapers and websites.

From candidates response a pool of applications are formed and after selection a test is
conducted and toppers are called for interviews. Those candidates who clear the interviews
have to go through a medical test. And finally with the approval of high authority appointment
letters are send to them. On very 1st day of their job they are given an orientation and then they
are send to the concerned departments.

To enhance the skills of new hired employees they are given different trainings within the
passage of time. So that they may able to perform their duties more well. Whole profiles of
employees are maintained. And P number is assigned to every employee.

Employees are given different packages, incentives, medical facilities, and free tickets. It’s the
duty of employees to maintain the discipline of organization. In case of any violation of rules
they have to call for investigations.

Job duration of every employee in PIAC is consisting of 25 years mean at the age of 60.

SWOT Analysis
Strengths are found in the internal environment of the organization. They are the backbone of
an organization. Strengths of an organization can overcome any kind of weaknesses that the
organization is facing. PIA has a number of strengths due to which it is still one of the leading
airline in Pakistan. These are as following

 Only National Airline

As PIA play a role of ambassador of Pakistan so when Pakistanis expertise travel in it they
got the homely feelings. This help in increase the loyalty of customers.

Internship Report Author: Faiez Amin Khan

 HAJJ And UMRAH Services Provision

Pakistani people for HAJJ and UMRAH just preferred the PIA for their direct destinations
PIA providing them best services and also arrange extra sessions for customers to reach
them at Jeddah for HAJJ and UMRAH.

 People Oriented Organization

As PIA providing services to public sector they make their strategies according to the
demand of the customers.

 Direct Access To The Destinations

PIA has strong advantage that provides the facility of direct destinations to their customers.
Customers preferred PIA that they have not be wait at the HUB of Different airlines.

 Monopoly In The Domestic Routes

PIA is the only airline in Pakistan which has its access to the remote areas of Pakistan where
its competitors are not providing services.

 Electronic Ticketing
PIA also providing the facility of E-ticketing. Customers now can make their booking
online and can take print and will make payment during boarding.

 Boeing-777
PIA acquired Boeing-777 aircrafts in 2002 from Boeing Company, which have the
capability of taking long flights all around the world. PIA is having core competency
over its competitors and Boeing-777 is generating reasonable revenues for PIA.
 Coming Back To Home
P.I.A officials admit that the airline is maintaining the traditional Pakistani environment
in its flights which attracts the local passengers within the country as well as outside to
choose PIA as its fleet. PIA recognizes it as the advantage over its competitors like
Emirates, Air-Blue etc.
 Poultry-Business
PIA is engaged in the poultry business as well to provide fresh meat to its In-flight
kitchens to avoid the low quality meat. Not only this but other airlines also consult PIA
for this purpose.

Internship Report Author: Faiez Amin Khan

 Hotel Business

PIA owns number of hotels within the country as well as outside the country which .
. are considered as the strength of P.I.A to generate revenues.


Weaknesses are also found in the internal environment of the organization. Weaknesses if
more in quantity can break down an organization easily. They can overcome the strengths as
well. PIA also faces a number of weaknesses which are as following

 Government Intervention
Government intervention create main problem for PIA management to carry out their
operations. Govt. opposed high taxes as results fairs will increase and also referencing create
problem and also restrict the rights of employees to be fulfilled.

 Less Effort In Marketing Field

Employees of marketing department specially pay less attention to their responsibilities. They
are not committed to their duties. This creates loss for company.
 High Fares
PIA fairs are high as compared to its competitors. Customers with same quality level mostly
preferred then competitor’s airlines. PIA should decrease its cost in this way they can decrease
their fairs rate.

 Higher Operating Cost.

Old aging fleets carry more cost due to their maintenance, fuel consumption. So these fleets
should sale out or used after repairing as freighters.

 No Availability of Freighters.
PIA does not have freighters to carry cargo at national and international level both .due to this
they cannot cover the market to completely to carry luggage from 1 place to another place.

 Attitude Problem
PIA is facing obstacles due to rough attitude of its in-flight staff. Most of the
passenger’s opinion about PIA staff is that they do not behave according to the
standards set. Than “Why Come Fly With P.I.A?”

Internship Report Author: Faiez Amin Khan

 Over Utilization Of Fleets

PIA is losing its customers and business because it uses aircrafts more than the life of
these aircrafts which becomes dangerous. Recently E.U banned P.I.A due to this reason
due to which PIA suffered a loss of 25.6millions.
 Inefficiency In Bilateral
PIA can increase its revenues by successful bilateral negotiations with other countries
because these countries have the advantage over PIA because they take more number
of flights than PIA does, due to in-efficiency of bilateral with these countries.
 Over-employment
According to the international standards the number of crew on the aircraft during
flights should be 150 to 200 but on the P.I.A flights the number of crew is 400 to 450
which causes severe loss to the airline in terms of finance because maintaining such
number of people on the flight is nothing but loss to the airline.


Opportunities exist in the external environment. They need to be recognized and used
according to the business being run. An opportunity recognized and utilized at the right time
will be the strength of tomorrow. Such kind of opportunities also exists for PIA in its external
environment. Some of them are as following:

 Fleet Expansion
As the social trends of customers are changing they should expand their fleets to meet the
current and future demand of the customers.

 Proper Training Program

PIA should arrange proper training programmes for its employees to provide them best services
to their customers. In this way they can make their customers more loyal.

 Large Domestic Network.

PIA has largest domestic network and by proper route planning PIA can generate huge amount
of Revenue with higher profit.

Internship Report Author: Faiez Amin Khan

 Purchase of Fleets on Discount

In the current global economic conditions most of the airlines have delayed their orders
with BOEING and AIR-BUS due to financial losses. It is the right time for P.I.A to
purchase these delayed orders from manufacturers because manufacturers can be inspired
to deliver the fleets on discount rates as these manufacturers do not want to retain their
orders that are delayed by other airlines.

 New Markets

There are several countries in which P.I.A is not making its flights. In fact in these markets
P.I.A can earn much more revenue. For instance P.I.A can deploy its BOEING-777 on long
routes which may include Barcelona, Seoul, and Madina etc.

 Sale out of Old Crafts

Currently there is a golden opportunity for P.I.A to sale out its old aircrafts because
currently the dollar has fluctuated to its peak rates, so the earnings should be utilized in
betterment of financial position of P.I.A.


External threats can damage the business performance of every organization. These threats can
be reason of bankruptcy. PIAC is well established organization yet there are some threats which
PIA has to face.

Some of them are as under:

 Open Sky Policy

According to this policy we allow other airlines to come and use our sky .And take our
customers to away. This is a big threat for PIA because in this way we lose our many customers.

 Insufficient Fleet
PIA as the national carrier of Pakistan customers more preferred to it. But PIA does not have
enough numbers of fleets to meet the demand of customers. For this reason they preferred other

Internship Report Author: Faiez Amin Khan

 Domestic Destinations
PIA has a big threat that its competitors providing services to customers at domestic levels. So
PIA should also focus to provide more services at point where its competitors are trying to

 Leakage of Money
According to rules If there is any mistake related to documents of any customers then PIA
have to pay charges as a crime/and in this way a big amount of PIA is lost due to these charges.

 Maintenance Incapability
PIA does not pay more attention towards the maintenance of PIA fleets .and as a result they
became phase out. And no longer used for travel.

 Negative Rising Perception

As perception regarding terrorism is increasing customers specially foreigners hesitate to travel
with PIA .This is also a big threat for PIA.

 Frequently Rising Airlines Fare

As the PIA raising its fairs continuously .This giving opportunity to competitors to enter in
market and attract more customers at low fares.

 Fast Growing Competitors

This is a big threat for PIA that at national and international level its competitors are
increasing .Which also trying to providing services at the level of PIA. So PIA should improve
its services at their best level.

 Rapidly Changing Environment

Just like other organizations PIA is under continual threat of environmental changes. As
PIA is engaged in the global business it has to take into account the international
environmental factors along with the local factors. Keeping in view such variables the
management has to abandon certain projects or delay them which cause severe losses to the

Internship Report Author: Faiez Amin Khan

 Competitive Environment

PIA was enjoying its monopoly recently but after the CAA has authorized private
companies to enter in the airline industry they are giving tough time to PIA through their
better services and innovative strategies.

 Purchasing Power Of Customers

Due to increasing inflation rates in Pakistan the purchasing power of the customers have
been affected due to which the business of PIA is also affected which results in declining
revenue graph of PIA.

 Global Economic Melt-Down

Due to the current global economic melt-down the liquidity of the airline has been affected
and P.I.A which is already suffering for survival is facing the problems of liquidity i.e.
lacking of enough reserves to pay its instalment debts on the aircrafts purchased previously.

 Terrorism

Tourists are avoiding to visit Pakistan due to the terrorist activities in the country. Most of the
foreign countries have warned their citizen to avoid going to Pakistan. This factor is a threat
for the revenues of P.I.A as it has lost the customers outside the country.

Suggestion and Recommendations

PIA should decentralize is its structure that would lead to the easy management, increased
motivation, easy access to information and resolution of the conflicts (as they would be
resolved by the immediate manger time span would then reduce). Since employees issues
regarding their behaviour would lessen, so it would ultimately lead to more satisfied employees
that would result in enhanced productivity of the organization.

Internship Report Author: Faiez Amin Khan

PIA should make efforts towards empowering the employees that is going to lead to more
employee participation in the decision making process and also result in more employee
satisfaction and enhanced motivation. Apart from this, employees would feel more independent
to discuss the issues explicitly without hesitation. This would also enhance team work process
at PIA as quality team and cross-functional teams. The employees will work with more
commitment and dedication and every employee would work to his/her fullest due to increased
motivation. However, with empowerment comes accountability, so it is suggested that while
they empower their employees, there should also be a “controlled check’’ on them to ensure
the correct usage of power delegated to every employees within their circumscribed limits.

PIA should also reduce its overhead costs that are it should manage its resources: labour more
effectively, so that with less input, more output can be achieved and the saved resources can
be utilized in other areas such as introducing more training courses for the employees so that
the quality of the workforce could be increased. Hiring the services of expertise can improve
the efficiency of their services, so by saving the overhead costs, they can utilize that money for
the expertise services. So by analysing the various segments of the organization and making
the right corrections.

The suggestions of the employees can prove to be very effective in improving the operations
as they are the ones who manage them. Therefore, a top-down approach should be replaced
with two-way communications. In this way, the employees would feel motivated and valued
as they would be included in decision-making.
PIA should provide services according to customer’s need not according to Pakistani/local
culture in order compete with their competitors. Properly train air hostess make them familiar
with different foreign languages.
PIA should remove all the employees appointed on political grounds, because most of them
are more like a burden on PIA expenditures as they are getting salaries for nothing. On the

Internship Report Author: Faiez Amin Khan

other hand skilful and talented engineers should be paid reasonable salary package to motivate
What we have analysed that P.I.A is using four engine plans even for the short roots like
Islamabad and Lahore. We recommend that the P.I.A should use two engine fleets for short
roots in order cut some maintenance cost.

By conducting the SWOT analysis of company I came to know that by utilize its strengths
more effectively. PIA can gain a large market share. PIA should invest to overcome its
weakness. Like old fleets should be repaired in that way their cost can be reduced. And PIA
should also purchase the freighters to increase the sales at cargo department. PIA should avail
its opportunities to gain the competitive advantage. PIA should also make those strategies to
attract the business and economy plus classes by giving those best and luxurious facilities.
Threats should be overcome because it gives chance to potential competitors to enter into
market and compete.