adeel report on pia

8/18/2019 Adeel Report On PIA

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Internship Report On

PIA (Pakistan International Airline)

Submitted by:

Muhammad Adeel Khan (MBLE-13-39)

Class:

MBA Evening th !emester

DEPARTMENT OF !SINESS " ADMNISTRATION #!

$AD!R S! CAMP!S %A&&A$

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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

o 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 e!periences.

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PREFACE

It consisted of " weeks, spending each week in " different departments of

PIA. #y internship report contains all the information about my work e!periencewith PIA, which was established in $%%$ and started its operations in Pakistan.

I have covered all my activities performed in the span of " weeks in PIA

with my learning detail in the organi&ation. he 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 '() and P*' 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

1 $edi%ation '(

" A%kno&ledgement ')

3 Pre'a%e '*

# PIA Introdu%tion '+

rgani*ation !tru%ture ',

Introdu%tion to $e+artment '-

, inan%ial . /atios Anal0sis .(

M0 A%tivities in PIA .-

9 A++li%ation o' %lass room learned in rg (.

12 hat has internee Learn ()

11 !4 Anal0sis (*

1" PE!4 Anal0sis (+

!uggestion (/

Being a Manager ).

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PAKISTAN INTERNATIONAL AIRLINES (PIA

Pakistan International Airlines +PIA was formed in -//. It is the flag carrier airline of

Pakistan, based in 0arachi. It is the -"th largest airline in Asia, operating scheduled services to

12 destinations throughout Asia, the #iddle *ast, *urope and 3orth America, as well as an

e!tensive domestic network linking $4 destinations.

Its main bases are 5innah International Airport, 0arachi, the Allama I6bal International

Airport, 7ahore and the Islamabad International Airport, Islamabad89awalpindi. he airline also

has secondary bases, including Peshawar International Airport, Faisalabad International Airport,

:uetta International Airport and #ultan International Airport, from which it connects the

metropolitan cities with the main bases, the #iddle *ast and the Far *ast. he airline is owned

by the Government of Pakistan +;1


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C$AIRMAN PIAC

SA to Chairman Se1retary PIAC

Mana2in2 Dire1tor

Dire1tor Pre1ision En2ineerin2 Dire1tor Coordination3 SA to MDChie4 Operatin2 O51er

Dire1tor Fli2ht Ser6i1es

Dire1tor Net7or8 " Route Plannin2

Dire1tor

Fli2ht Operation9s

Dire1tor Airport Ser6i1es Dire1tor

Administration

Dire1tor Car2o Sale " Ser6i1eDire1tor Mar8etin2

Dire1tor Finan1e

Dire1tor En2ineerin2

INTROD!CTION TO DEPARTMENTS

PIA has been divided into the following departments=>

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-. Finance

$. Information technology

2. #arketing

4. ?argo 'ales @ 'ervices

/. Human 9esource8personnel

"# FINANCE DEPARTMENT

Finance department is one of the biggest departments in the airline, which is responsible for

provision of efficient and effective accounting8budget. he feasibility of e!tending financial,

administrative, technical facilities is control by this department. It is also responsible for internal

auditor of PIA?. It has further divisions, which are as under=

Planning and udget

Funds #anagement

Accounting

Internal Audit

9evenue #anagement

All the above divisions are operative in PIA head office Islamabad.

In each station as well in #ultan, the finance department is divided into a number of sections

Bisbursement section +It deals with the internal finance of PIA region

9efund section +It deals with the refund payments

Agency 'ales unit +It deals with the sales finance of all travel agencies of the region

$# INFORMATION TEC%NOLOG& DEPARTMENT

he functionality of It department in regional stations of PIa is restricted to only dealing with

the computer and communication related problems in PIA office and at airport. In #ultan, I

officers deal with the I problems of B.G.0han and 9ahim Car 0han remotely as well. Files are

transferred through using FP among other computers and the main server.

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asically at #ultan Airport, here is $ BDD+ cross ?onnect ?ircuit ?ircuits placed at Airport

-. From 7ahore ooking office to #ultan Airport

$. From #ultan ooking office to #ultan Airport

#ultan is connected to 7ahore and 7ahore is connected to 0arachi

• E'A9*, a software, is used for icketing and 9eservation

• EAIA, a software, is used for cargo purpose

Wi'eless net

"# From Airport to I. 9oom

$. From Airport to ?argo

2. From Airport to *ngineering

4. From Airport to 'tore

2. MARKETING DEPARTMENT

It looks after development of #arketing Plans @ Policies. his department performs all

marketing functions.

#arketing department in #ultan station has three divisions

• 'ales promotion +with the help of travel agents

• Post Flight Analysis +PFA

• 9eservation @ icketing

o ?ounter @9

o Airport @9

o (eb>ticketing

o hrough ravel agents

o Home Belivery tickets

o 0iosk #achines

)# CARGO SALES*SER+ICE DEPARTMENT

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he 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. ?argo rates vary from country to

country. It has the booking of cargo, loading and unloading, refund etc. However PIA has none

of its planes speciali&ed for cargo only. 'i! categories of goods in cargo are

• usiness related goods +te!tiles, accessories, machines etc

• Perishable goods +meat, fruits and vegetables

• 7ivestock

• Gifts

• aluable goods +gold, platinum etc

• Bangerous goods +tools, drugs, chemicals etc

,# PERSONNEL*%R DEPARTMENT

he 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. hey are arranged chronologically those reaching first, kept at the bottom.

All communications are assigned reference 3o. he material collected for the sake of

understanding is given in the appendi! of correspondence. he whole set is then placed in a large

folder with a folio>si&ed cardboard. his makes a file all files are registered I the file register.

%!MAN RESO!RCE MANAGEMENT F!NCTIONS

• Promotion8transfer=

• 9etirement8pensions=

• 7eave

o ?asual leave

o Privileged leave

o 'ick leave

o Bisability leave

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• Passages8free tickets

• raining

• enefits and allowances

• 'alary

o Pay group I>I +it includes the unioni&ed staff

o Pay group >ID= +includes the officers and middle level management

o Pay group D>above= +it includes g.m and other higher e!ecutives

o A special pay group is for the managing director, director and pilots.

• Performance appraisal

• *mployees record

Bummy record is maintained for all employees as well as the out>station by the

admin. Bept that are the duplicate of the actual records maintained at the head office.

#icrofilms of these records are maintained to avoid loss in case of damage or

misplacement of the written records.

• Biscipline 8 penalties

o Becrease in pay

o Bemotion

o Bischarge

o 'uspension

o Bismissal

• Golden hand shake

• ?areer development

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EPS and DPS /'a-.

he price of the share is taken on C A!is and on D A!is timeline is taken. his graph shows the

*P' and BP' of PIA? in past / years

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M& TASKS*ACTI+ITIES IN PIA

I Joined the prestigious organi&ation PA0I'A3 I3*93AI)3A7 AI97I3*'

?)9P)9AI)3 for my internship on 5une $$, $%-/.I was accompanied by $ other

internees. he internship was scheduled for si! weeks. he schedule was provided to me on

my very first day and i was asked to conduct my activities as per schedule. PIA do not

re6uire from internee to work like staff. For internship trainees briefing and observation

method is used to train them. he detail of my activities during this program is as follows

"st Wee0 Acti1ities in FINANCE DEPARTMENT

I made entries in ?)''AP +?orporate 'tandard 'tation Accounting Package 'ystem for

refunded tickets -">2-8%/8%.

hey showed me the annual report of $%%".

hey taught me the format of their ank 9econciliation and showed us 9 for 5une ->-".

hey showed me their monthly rial alance +5ournal oucher of PIA #ultan

hey briefed me about PIA ank Accounts +wo ypes.

- Impressed8Bisbursement Account+-$$

$ ?ollection Account +-$-.

hey briefed me about types of ?redit+2 ypes

- Government ?redit +AP( and A? for army, navy and PAF.

$ ?ommercial ?redit

2 Forced ?redit for Agencies.

$nd Wee0 Acti1ities in %R DEPARTMENT

Introduction to the PIAKs H9 department

I worked on H9 software #' + ime management system

Function= )nline employee record keeping

I recorded the approved leave applications in

- 7eave management +casual8sick8privilege 7eaves

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$ Payroll management +absentees8meal allowance8shift allowance8over time8lunch

guard days

And meal shifts

I worked on the manual attendance registration marking

a. Presents

b. (eeks offs

c. Bays offs.

d. )?' +out station service

e. 'hifts

f. 7eavesg. Absentees

I checked mails and replied to them as directed by my supervisor

• I mailed a complaint against fre6uent server errors of #'

• I checked @ printed mail by BG# H9 + Beputy General #anager regarding

an internal audit E*!cessive #anpower In #ultan

#ade entries in the Bummy employee record files for

- *mployee ticket concession +Bomestic8International$ 7eave entries for employees in BG0 @ 9C0

2'd Wee0 Acti1ities in Info'3ation Tec.nolo/4 De-a't3ent

#r. Imran Af&al briefed me about the I. operations of the PIA, that how it is connected and

how operations are held.

I made computeri&ed document for

o 'ource /2 + 7oans @ Bisbursement

o 'ource // +amount adJustment8change advice

I worked on a ?omputer 3amed D5 $666MT

HP '8n 'GH/%1%-41

P8n PG;4A

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• Installed 'oftware +#s>)ffice

)t. Wee0 Acti1ities in MARKETING DEPARTMENT

Direct Sales Promotion-I )bserved contacting regular individual clients through direct

meeting @ phone calls and observed contacting business houses where PIA finds the best

input

ank 'ettlement Plan>I calculated the 2/ days average total sales of travel agencies. his

amount totals their bank guarantees for IAA.

I made the fortnightly sales report +%->%">% to -/>%">% of all travel agencies.

I made the monthly sales report +%->%/>% to 2->%/>% of all travel agencies

Post Flight Analysis>I calculated the percentage, average and variance of per flight and

weekly usage of domestic flights from #ultan

,t. 7 8t. Wee0 Acti1ities In CARGO DEPARTMENT

I was briefed about the cargo procedures

?argo rates

?argo handling procedures

?argo prioriti&ing

?argo packing +I watched them packaging goods

?argo carriage

APPLICATION OF CLASSROOM LEARNING IN ORGANI9ATION

I have seen many of my classrooms learning to be applied in PIA. )f course PIA is a

typical commercial organi&ation having its hands in all the business administration disciplines

i.e. marketing, finance, human resource management, information system, administration,

management etc. As I got rotated in all maJor departments of PIA, I came to see my concepts to

be applied practically there.

MARKETING DEPARTMENT

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I observed aggressive market capturing techni6ues practiced by the travel agents there,

who are at the same time competing among themselves for gaining even a single

customer.

'imilarly 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.

here are number of possible distribution channels used by PIA vi& direct +e>ticketing,

counter sales, home delivery @ indirect +travel agents.

And for retaining the loyalty of their fre6uent buyers, PIA has established Eawards plus

system for granting reward points on their flights

FINANCE DEPARTMENT

In finance all the procedures were same as I have read and e!ercised in accounting @

fiancL.

PIAKs annual report is updated on 6uarterly basis by head office

Proper budget is allocated to each PIA station by head office

here 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. ?ommercial credit on credit cards

III. Forced credit for defaulted travel agentsK topping

%!MAN RESO!RCE DEPARTMENT

H9 department of PIA completely coincides with the literature of H9#.

PIA is carrying out class>room, on the Job, Job rotation and simulative training

However there is sometimes recruiting carried out on non>merit basis

H9 evaluation system is very good, few times back they were using annual confidential

report method by an appointed senior but now they are using bell curve methodology.

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*ach and every transaction in PIA is recorded both manually and electronically through

their specially developed software systems

INFORMATION TEC%NOLOG& DEPARTMENT

his is not a complete department as such in PIA stations. ut $>2 I officers work in

each station

I officers are specified to deal with any type of I related problem. hey have a very

well established network of computer

PIA has bought its own anti>virus system and developed speciali&ed software for each

department i.e. 'A9*,?)''AP @ #'

CARGO DEPARTMENT

In cargo I have seen highly speciali&ed goods assortment.

?areful packaging and carriage of shipment goods

here was an air of la&iness in cargo department as they were dealing with non>living

obJects might be.

W%ATS %AS AN INTERNEE LEARNT:

As an internee PIA? was a great e!perience for me who not only provided me an

opportunity to observe difference between theory and practice. his e!perience also broadened

my vision and confidence.

As an internee I spent good time in learning and was rewarded for my best efforts, learnt to deal

with different situations, had e!perience of organi&ationKs working environment which affects an

employee performance and attitude towards work, had good time in learning. ?onfidence, on

time decision making, consistency, hard work, team work, seeking success out of dark,

innovation, creativity, organi&ational survival and customer handling techni6ues are the keylearningKs out of my Job And I would like to say that it will be one of my best skill that would

remain with me and help me in the coming life which offer many challenges. he behavior of a

government organi&ation is totally different when it comes to profitability and e!istence. I learnt

the deep>rooted causes of PIAKs financial losses. Its main reason is the government obligations on

its flight schedules which are un>profitable for the company and the un>necessary government

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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 PIAKs owners. I would like to highlight this, that my

e!perience with PIA was very memorable and full of learningKs, where I found a lot of positive

changes in my attitude, learning and behavior

SWOT ANAL&SIS

STRENGT%S

)nly national airline and the only flag carrier airline of Pakistan

#easurable well defined goals and obJectives

Provided services for HaJJ and Mmrah

People oriented organi&ation

Govt. sponsored8protected organi&ation

Birect access to the destinations

#onopoly in the domestic routes with highest market share in domestic routes

ooking )ffices in all maJor cities both at domestic and Int.

*lectronic ticketing by web and through '#'

WEAKNESSES

7ack of professionalism

7ow level of commitment for the organi&ation

High fares as compared to other airlines

he upper management not belongs to the airline

'ometimes much Govt intervention

Promotion on seniority basis

(eak rewards and appraisal

7ess effort in the field of marketing

Poor 6uality of food8service on board specially in domestic flights

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)ld aging fleet of PIA causing higher operating cost.

)ver recruitment

OPPORT!NITIES

PIA has potential market in #iddle *ast if PIA upgrades its fleet.

PIA has largest domestic network and by proper route planning PIA can generate huge

amount of 9evenue with higher profit.

PB? provides favorable market for domestic as well as international sectors for the airline

PIA can generate more revenue by attracting customers through (eb and #obile

9eservations system.T%REATS

3egative rising perception about the country, regarding terrorism.

Political instability and law and order situation.

9ising fuel prices in the world.

)ver staffing at all levels

Fre6uently rising Airlines fare

Fast growing domestic and international competitors

*ffective promotion strategies adopted by other competitors like *mirates and 'haheen anr

Airblue.

PEST ANAL&SIS

he macro>environment includes all factors influencing a company that are not within its

control. hese include political, social, economic and technological factors. hese are known as

P*' factors.

A techni6ue of analysis of the macro environment is P*' analysis. *nvironmental analysis

should be continuous arid precede all aspects of planning. 'ince 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 Airlue and 5' 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. he over all industry will grow

resulting in more lu!urious and comfortable flights. (ith the military takeover government policies have become more liberal.

ECONOMIC FACTORS

?urrently, Airlines industry has three maJor players= Pakistan International Airlines, an

Airblue, Aero Asia and 'haheen Airlines. heir target market includes domestic travelers as well

as Pakistanis living abroad particularly in the M0 and M'A. hese countries have strong

economies coupled with high purchasing power. ?ustomersK purchase behavior depends very

much on prices of the competing airlines as well as services offered. As inflation rate is unstablein 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.

*conomically, the new millennium has been highly volatile the 'eptember -- attacks

revolutioni&ed the whole world. ?onse6uently, there was a global depression in the 3orth

America, 'outh America, Australia and *urope. However, in Asia especially Pakistan the effect

in the short term was otherwise. he economy began to boom because of greater remittances

from abroad and whole sum immigration by e!patriates. As a result, demand for air travel in

'outh Asia rose.

*conomic conditions of Pakistan are however improving. PIA has cost a advantage over

its competitors because of its newly ac6uired, improved, long distance aircrafts from oeingK

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which give longer range and better fuel economy than any other Jet currently produced. his cost

advantage is a barrier to entry for new firms. However, this cost advantage will not be significant

on domestic routes.

SOCIAL FACTORS=

he social arid cultural influences on business vary from country to country. he social

structure of Pakistan is closely tied. he trend is now changing as the general public is educated

and is pursuing professional goals. ?ustomers are more aware of market conditions and available

options and want to get best value for their money.

hey 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 airlineservices.

HaJJ attracts a huge number of customers. he social environment of Pakistan is turning

liberal with the new regime. he 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.

*>ticketing might also face significant challenges as consumers are generally reluctant to

provide their credit cards information over the phone and the internet. he consumers, however,

have a warm reaction to the prospect of less costly but 6uality service flights.

TEC%NOLOGICAL FACTORS=

echnology is vital for competitive advantage and is a maJor driver of the airlines

industry. #aJor 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 e!amples 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 e!tent, 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 'abre system followed by the market

leader.

S!GGESTIONS

I would like to give certain suggestions for PIAKs betterment and profitability.

". PIA should adopt transparent policy that employees should be promoted on merit basis.

And ?hairman of PIA should be appointed from within the organi&ation. Mnion should support

it, it will motivate the employees and PIA to work harder.

$. PIA should adopt good marketing policies so that it will bring higher profit and ma!imum

utili&ation of its available resources, usiness sector should be attracted to operate at full

potential.

2. PIA should upgrade its fleet as itKs 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.

). Airline should focus on the customerKs satisfaction, refund process should be 6uick so that

customer remains loyal to brand.

,# PIA should not induct new employees till the time they are needed because PIA is suffering

from over manpower.

8. PIA should give bonus8promotions to the competent employees as there is clear cut lack of

motivation among its employess.

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1. here 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. #anagement should think over

it and at least they can start a new packaged flight twice a week having /%< fares.

;. Mnnecessary facilities provided to the Government Bepartment should not be discouraged

but withdrawn as it causes financial losses.

#anagement should focus on computeri&ed system up gradation and implementation.

. #anagement should hire the services of speciali&ed I personnel for their system

development and up gradation on time.

-%. here should be clear and even distribution of work and only 6ualified person should be

appointed on Jobs.

--. here should be improved service standards and that should focus on 6uality.

-$. PIA should offer its services of reservation and seat confirmation with by '#' and flight

confirmation message should also be sent via '#' to the passenger.

-2. PIA should give more incentives to its fre6uent flyer as it will generate more brand loyalty

by giving better incentives to the customers.

IF &O! WERE MANAGER T%ERE

If I were a manager in PIA.I would have tried and make many promising changes in the

organi&ation, some of them are as follows=>

-. I would first of all bring new and energetic blood to the workforce of PIA.

$. I would have asked financial assistance from institutions and contract with foreign

airlines to upgrade e!isting fleet of PIA, as well as buy new fleet of international

standards, this beginning investment would definitely turn into a long>term gain for PIA.

2. I would make the pay scale for the most important staff of PIA i.e. pilots, air hostesses,

marketing heads, so much competitive that they wonKt drain their skills from PIA by

switching to other organi&ations.

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4. I would arrange most efficient training program for PIA representative staff.

/. I would try and uproot the hard>woven practices of a common government organi&ationKs

legacy such that absenteeism, free riding, la&iness, corruption, family line promotions etc.

Refe'ences

777pia11omp8

7777i8ipediaor2

777airlinersnet
http://www.piac.com.pk/http://www.wikipedia.org/http://www.airliners.net/http://www.wikipedia.org/http://www.airliners.net/http://www.piac.com.pk/

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