IN

THE

NAME OF

ALLAH
THE MOST

MERCIFUL

THE MOST
 BENEFICIAL

ACKNOWLEDGEMENTS

 First of all we would like to thank ALLAH Almighty for giving us the
courage, empowering us with knowledge and confidence to fulfill
this task.
 We would like to express our deep gratitude to Sir Numair Ahmed

whose support played a vital role in fulfilling this project.

 We pay our humble thanks to all the people and sources, which

helped us making this project comprehensive and informative for

the reader.
 Finally we are also thankful to our parents for being a constant

source of inspiration, creative ideas and emotional support.

‘We dedicate this project to our beloved families”.

2
 HISTORY

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 imperative.

ORIENT AIRWAYS TAKES TO THE SKIES:

• On 23rd October 1946, a new airline was born. Initially registered as a pilot project in
Calcutta, Orient Airways Ltd. had at its helm Mr. M.A. Ispahani as Chairman and Air

3
 vice Marshal O.K. Carter as General Manager. The new carrier's base remained in
Calcutta and an operating license was obtained in May 1947.

• Four Douglas DC-3s were purchased from Tempo of Texas in February 1947 and
operations commenced on 4th June 1947. The designated route for Orient Airways was
Calcutta-Akyab-Rangoon, which also happened to be the first post-war international
sector to be flown by an airline registered in India. Within two months of Orient Airways'
operational beginnings, Pakistan was born. The birth of a new nation generated one of
the largest transfers of population in the history of mankind.

• Orient Airways, along with the help of BOAC aircraft which had been chartered by the
Government of Pakistan, started relief operations and transportation of people between
Delhi and Karachi, the two capitals. Subsequently, Orient Airways transferred its base to
Pakistan and established a vital link between Karachi and Dacca, the two capitals of the
two wings of Pakistan. With a skeleton fleet of just two DC-3s, three crew members, and
twelve mechanics, Orient Airways launched its scheduled operations in a fairy-tale
manner.

• The initial routes were Karachi-Lahore-Peshawar, Karachi-Quetta-Lahore and Karachi-

DDelhi Calcutta-Dacca. By the end of 1949, Orient Airways had acquired 10 DC-3s and
3 Convair 240s which were operated on these routes. In 1950, it had become increasingly
apparent that additional capacity would have to be inducted to cater to the growing needs
of the sub-continent.

A NEW NATIONAL FLAG CARRIER:

• Orient Airways was a privately owned company, with limited capital and resources. It
could not be expected to grow and expand independently. It was then that the
Government of Pakistan decided to form a state-owned airline and invited Orient
Airways to merge with it. The outcome of the merger was the birth of a new airline,
through PIAC Ordinance 1955 on January 10, 1955.

• In addition to transport activities, Orient Airways had established the nucleus of overhaul

4
 and maintenance facilities and acquired trained pilots, engineers and technicians,
measures which proved to be a great asset for PIA during its teething phase.

PIA’s FIRST INTERNATIONAL SERVICE:

( AP-BEC photographed by Andreas is seen approaching Oslo-Gardermoen Airport of Norway on

a beautiful evening )

• 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 sevices,
whiwhich it invested in the purchase of aircraft and spare parts, as fleet expansion

was a grave necessity for the airline.

5
NEW PLANES & 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".

• In 1959, the Government of Pakistan appointed Air Commodore Nur 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.
Inaviation 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
ove70,000 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.

6
HISTORIC FIRSTS & UNBROKABLE RECORDS:
• In 1962, finding the upper winds forecast favorable, PIA set out to break the record for
the fastest flight between London and Karachi. With representatives of FAI (Federation
Aeronautique International) on board to monitor the official timings, PIA completed the
flight in 6 hours, 43 minutes, 51 seconds, a record which remains unbroken to this day.

• In 1964, PIA achieved another historic first, regarded as major milestones in the
chequered history of the airline. On 29th April, 1964, with a Boeing 720B, PIA earned
the distinction of becoming the first airline from a non-communist country to fly into the
People’s Republic of China. PIA's first service to China was from Karachi to Shanghai
via Canton.

• In 1964-65, PIA expanded its fleet further with the addition of a fourth Boeing 720B and
two Fokker F-27s. Serious development had become a reality and the PIA team
continued to move ahead with ambitious plans and goals for the national flag carrier.

• A collective pride and a joyous buoyancy was pervasive within the PIA family. Riding
high on the crest of success, PIA became a household name in Pakistan in the mid sixties.
The war between India and Pakistan, during 1965, further tested the national airline. PIA
played a major role in providing logistical support to the Armed Forces by operating
special flights using Boeings, Super Constellations, and Viscounts. The Founder of the
Nation, Mr. Jinnah had predicted that the Pakistan Air force would need the support of a
civil airline in special circumstances, and this came into evidence during the war.

• In 1966, a system of feeder services linking eight new points in West Pakistan was
introduced. By this time, the airline's Viscounts were proving inadequate owing to traffic

growth, and had to be replaced by Tridents. The airline continued up the growth curve,
receiving two Fokker F-27s, two Boeing 707s and one Trident in the following year.

STYLE & CHARISMA:

7
• Around this time, the airline saw a change in the top slot. Air Vice Marshal, Asghar Khan
took over the reigns of PIA for a tenure of 3 years. A number of highpoints are attributed
to this period. The most colorful, if not the most significant, occurrence for PIA was the
introduction of a new air-hostesses' uniform designed by none other than the renowned
French designer, Pierre Cardin. Taking the aviation world by storm, this move, more than

any other single factor imprinted PIA's name on the international market. The uniforms
were an instant hit, both at home and abroad.

• PIA has high brand recall. It is recognized by travelers all over the country. PIA is a
national airline, operating passenger and cargo services covering eighty-two domestic
and foreign.
• PIA has earned the number one ranking in customer satisfaction. This strong market
position gives the company a scale advantage and helps it strengthen its brand image.

8
TECHNOLOGY & QUALITY CONTROL:

(Beautiful view of sunset from the flight deck of AP-BGO)

• Not content with a number of historic firsts under its belt, PIA made history yet again, by
installing Pakistan's first computer, an IBM1401, in 1967. PIA's first Engine Overhaul
Shop, located near the Head Office building, was also completed and commissioned
around this time.

• The Ground Training School (GTS) now known as the PIA Training Centre, was first
conceived and developed during 1961-62. Interestingly, training was initially imparted in
the T-shaped building which has now become the PIA Dispensary, close to the Head
Office building.

• Besides visible development and growth in traffic and revenues in the sixties, PIA added
adadditional destinations, new equipment, and cutting-edge technology to support its
ever expanding operations. A new Jet Hangar for Boeings with a supporting airframe
overhaul shop was completed and commissioned in 1968.

• In 1970, PIA set up its own Flight Kitchen in Karachi, which caters, even today, to the
national airline as well as other carriers. Over the years, with the airline's expansion and
increased capacity, the need for a second Flight Kitchen became imperative.
9
 GROWTH & DEVELOPMENT:
• PIA heralded the nineties by donning a bright new corporate identity. Old-timers may
remember the flutter that the earlier green and gold livery had created when it was first
introduced in 1974. However, in keeping with the changing times, PIA introduced a
smart, sporty 90's look.

• The familiar PIA green was reinforced with moss green and pale blue stripes were
inccorporated into the new corporate identity. The stripes, a universal symbol of sport,

highlighted PIA's active participation and sponsorship of a diverse range of national

games.

• PIA's players have always been at the forefront of Pakistani Cricket, Hockey, Squash,
Football, Chess, Bridge, Polo and Table-Tennis teams.

• The nineties also saw the expansion of PIA's massive Haj and Umrah operations to
Pakistan's smaller cities, in addition to the major cities of Islamabad, Peshawar, Lahore,
Quetta and Karachi.

• PIA's growth continues unabated and the airline now operates globally, covering the
entire domestic landscape and international destinations spread over 4 continents.

• Since its inception in 1955, PIA has indeed, come a long way.

IOSA:
• PIA is among the few developing country airlines which have qualified the IATA

Operational Safety Audit (IOSA) requirements and standards. The standards body for
IOSA is based in Montreal, Canada. A typical IOSA Certification Audit is based on a
check list comprising of 780 IATA Standards and Recommended Practices. Each IOSA
audit has two years validity and an airline must pass through a series of periodic
recertification audits to retain its IOSA registration status as per IATA Standards.

• PIA has successfully renewed its IOSA certification up to 25th June, 2009. IOSA
registration demonstrates PIA’s renewed commitment to meeting the highest
international operational safety standards in critical areas which include:
10
 • Flight Operations
• Cabin Operations
• Aircraft Engineering & Maintenance
• Flight Planning and Dispatch
• Ground Handling & Ramp Operations
• Cargo Operations
• Operational Security Services
• Corporate Organization & Management Systems

EASA:
• EASA (European Aviation Safety Agency) is the centerpiece of European Union’s
strategy for aviation safety, promoting highest standards of safety and environmental
protection within the aviation industry. Its primary task is to draft legislation and provide
technical advice to the European Commission and to the Member States. EASA part-145
regulation is adapted by many aviation maintenance organizations.

• PIA Engineering & Maintenance is among the very first group of Non-European
organizations which qualified as EASA Part-145 approved maintenance organization
back in April, 2004. This has enabled PIA to provide aircraft maintenance services to
European registered aircraft.

• The EASA Part-145 approval validity is subject to clearing surveillance audits being
conducted on periodic basis by European auditors. PIA Engineering & Maintenance, has
so far, successfully gone through six such audits. The approval’s renewal Audit is
conducted after every two-year period.

• PIA Engineering & Maintenance has not only cleared the renewal audit in March 2006,
but has also got extension of their scope of approval which now includes the heavy
maintenance on state-of –the-art Boeing 777 aircraft. The scope of approval also includes
light and heavy maintenance of Boeing 747, Boeing 737, Airbus A300 and Airbus A310
aircraft including maintenance on most of their Components at Shop level.
11
DEPARTMENTS:
PIA is a huge corporation with more than 17,000 employees. This organization is divided into
following departments:
• Human Resource and Administration,
• Marketing,
• Corporate Planning,
• Information Services,
• Finance, Flight Services,
• Flight Operation,
• Engineering,
• Procurement and Logistics,
• Customer Services,
• Training and Development,
• Quality Assurance.

CORPORATE STRUCTURE OF PIA:

12
BOARD OF DIRECTORS:

13
14
SWOT ANALYSIS:

15
 Internal Factors
Strengths
1. Leading Market Position
2. Brand Recognition
3. Superior Operating Structure
4. Network Presence
5. Hub airport at Karachi
Weaknesses
1. Formulation of Govt. Rules
2. High dependence on Passenger
…Revenues
2. Debt
3. Reliance on Oil Prices
A. STRENGTHS :
1. LEADING MARKET POSITION:
External Factors
Opportunities
Having the maximum route and fleet
Growing demand for low cost airlines
Customer loyalty
Shifting customer needs
Industry Recovery
Threats
1. High Interest Rates
2. Accidents
3. Strong Competition by Air-blue
4. Interest and foreign currency
exchange rates
5. Decline in airline industry ing
.
strategiesNGective i.e.
16
PIA is one of Pakistan’s leading air carriers, with more than 800 daily flights. Around 150,000
passengers a month fly on PIA, making it one of the major operators in the domestic market in
terms of passenger kilometers. PIA’s international market share was 43.5%, In the Domestic
market, its market share was 69.4%. On a system-wide basis, PIA’s market share was 51.2% at
the end of year 2007.
Its strong market position is driven by consistently low fares as well as reliable service,
frequent and convenient flights, use of new technologies like e-ticketing and self check-in
terminals, comfortable cabins and superior customer service.

1. BRAND RECOGNITION :

PIA has high brand recall. It is recognized by travelers all over the country. PIA is a national
airline, operating passenger and cargo services covering eighty-two domestic and foreign.
PIA has earned the number one ranking in customer satisfaction. This strong market position
gives the company a scale advantage and helps it strengthen its brand image.

2. SUPERIOR OPERATING STRUCTURE:

PIA has maintained its position as the low cost carrier. It has been first class Pakistani airline to

use the latest technology. Factors’ contributing consists of different series of Boeing and Airbus
and an efficient, high-utilization and point- to-point route structure. Flying one type of aircraft
significantly simplifies scheduling, maintenance, flight operations, and training activities. PIA

17
has continually achieved high asset utilization and employee efficiency. Superior operating
structure serves as the primary competitive advantage of PIA.

3. NETWORK PRESENCE:
PIA enjoys a strong network in key domestic and international destinations. The company’s
network includes three the major airports in Pakistan, as well as major international airport such

as Dubai International Airport. Having a strong network means that PIA can generate traffic feed
for both its domestic and international Flights.

4. HUB AIRPORT AT KARACHI :

PIA operates from its hub in Jinnah International Airport, Karachi. Jinnah International is one of
the world’s busiest airports in terms of number of passengers carried. It is also one of the largest
international gateways to Asia. It is also the leading international air passenger (and cargo)
gateway to Pakistan. The company’s strong presences in airports with heaviest traffic levels in

Pakistan give it a competitive advantage.

6. EFFECTIVE USE OF TECHNOLOGY :

PIA has successfully incorporated latest technology in all its systems, giving it an edge over
competitors. PIA takes credit for introducing most new technologies to the Pakistani market. It
was the second carrier in Pakistan to incorporate the c-ticketing system and the second in South
Asia to introduce self check in systems at the Jinnah International Airport, Karachi.

B. WEAKNESSES:

1. FORMULATION OF GOVT. RULES:

18
The Basic flaw of this organization is its consolidation that is centralized system. The key
policies, strategies and set of laws are designed by the upper management. The centralized
system is one of the biggest obstacles of long term success of PIA. PIA centralizes structure lead
to barrel between different level of management, decreased motivation, hard access to
information.

2. HIGH DEPENDENCE ON PASSENGER REVENUES :

Passenger revenues accounted for 87 percent of the PIA’s total revenue in 2007. Cargo services
allow airlines to generate additional revenues from existing passenger flights. In addition, cargo

revenues are usually counter cyclical to passenger revenues and have lower demand elasticity
than passenger business, which allows airlines to pass on fuel price hikes to customers.

3. DEBT :
PIA has a significant amount of 42 billion debts. Current and future debts could have important
consequences for stakeholders of the company. For example, debt could impair PIA ability to
make investments and obtain additional financing for working capital, capital expenditures,
acquisitions or general corporate or other purposes. Debts could also put PIA at a competitive
disadvantage to competitors that have lesser debt and could also increase the company’s
vulnerability to interest rate increases.

4. RELIANCE ON OIL PRICES :

PIA’s sustainability, growth and revenues directly depend on oil prices. A steep rise in oil prices
can seriously damage the long term viability of any airline. Recently many airlines around the
world went bankrupt due to rising oil prices. Airlines need to hedge against this risk by taking

proper measures.

C. OPPORTUNITIES:

19
1. HAVING THE MAXIMUM ROUTE AND FLEET :
PIA is having the maximum route and fleet domestic and international destinations network in
Pakistan as compared to its Competitors. Route and fleet expansion will positively impact the
company’s operations by increasing revenues.

2. GROWING DEMAND FOR LOW COST AIRLINES :

The growing demand for air travel is driven by lower fares and consumer confidence. A survey
by International Aviation Authority showed that ticket price is the number one criterion for
passengers when selecting a flight, well ahead of the availability of a non-stop service.

3. CUSTOMER LOYALTY :
PIA’s frequent flyer and loyalty programs can help it retain customers. PIA’s Awards+plus
(frequent flyer program) was established to develop passenger loyalty by offering awards and
services to frequent travelers. Such schemes encourage repeat travel on PIA, as passengers seek
to accrue the benefits given to regular travelers. This enables the airline to retain customers and
reduce costs, as it does not have to spend money targeting new customers to replace those lost to
other airlines.

4. SHIFTING CUSTOMER NEEDS:

The needs of air passengers are increasingly changing, as they are becoming more and more
price sensitive. If PIA succeeds in making its prices more competitive, then the company will be
able to gain significant market share.

5. INDUSTRY RECOVERY :
Market analysts believe that the global airline industry will experience an upturn in fortunes over
the next few years. This represents an opportunity for PIA, as it could generate increased
revenues and command market share if it capitalizes on increases in demand.

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 D. THREATS:

1. HIGH INTEREST RATES:

The past few years have seen State Bank of Pakistan impose high as well as low interest rates to
check inflation and the over heating of Pakistani economy. Inflation in Pakistan may see another
raise in the short-term.

2. ACCIDENTS:
There had been five accidents with PIA listed as below:
• Pakistan International Airlines Flight PK 705 was a Boeing 720 – 040 B that crashed
while descending to land on Runway 34 at Cairo International Airport on May 20, 1965
resulting in 119 fatalities.
• Pakistan International Airlines Flight PK740 was a Boeing 707-340C that crashed after
takeoff from Jeddah International Airport on November 26, 1979. All 156 aboard were
killed.
• Pakistan International Airlines Flight 268 was an Airbus A300B4-203, registration AP-
BCP, which crashed on approach to Kathmandu's Tribhuvan International Airport on
September 28, 1992. All 167 on board were killed.
• PIA Flight 554 is the flight number of a Pakistan International Airlines (PIA) Fokker F27
that was hijacked on May 25, 1998. The flight started its journey at Gwadar in
Balochistan after originating in Turbat, and was flying to Pakistan's southern port city of
Karachi. The aircraft was carrying 24 passengers and 5 crew members.
• Pakistan International Airlines Flight 688 (PK688, PIA688) was scheduled to operate
from Multan to Lahore and Islamabad at 12:05 pm on July 10, 2006. It crashed into a
field after bursting into flames a few minutes after takeoff from Multan International
Airport. All 41 passengers and four crewmembers on board were killed.
• PIA has to continuously ensure utmost safety and security of its passengers. Accidents
can adversely affect customer confidence in PIA and result in declined revenues
intensifying competition.

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 3. STRONG COMPETITION BY AIRBLUE:
• PIA is now competing against carriers such as Airblue and Shaheen Airline. PIA remains
Airblue’s strongest competitor because of the huge market it has gained over time, strong
brand image and customer loyalty.
• PIA has started new low-fares subsidiary “PIA Express” to stop the Airblue market share
growing to fast. Moreover, major legacy airlines have been focusing on restructuring
costs, which has improved their competitiveness. With costs restructured, the legacy
airlines are becoming more formidable competitors in terms of increasing capacity,
matching prices and leveraging their frequent flier programs. Increasing competition
could adversely affect the company’s margins.

4. INTEREST AND FOREIGN CURRENCY EXCHANGE RATES :

• Fluctuating foreign currency exchange rates can have a significant impact on PIA’s
earnings. For example, as PIA is providing its services to the UK. Negative or positive effects
arise from exchange rate movements as change in expenses. Strengthening of foreign currencies
against the British Pound will positively impact PIA and vice versa.

5. DECLINE IN AIRLINE INDUSTRY :

• A number of factors have caused the current decline in the airline industry. For example,
the threat of further terrorist attacks since September 11 and a fall in the number of business
travelers have both caused passenger numbers to fall.

• These and other factors may continue to affect demand for air travel in the future, which
will affect revenues of PIA. The threat of terrorism may discourage people from traveling by air
and could especially reduce the number of passengers traveling on international flights.

PEST ANALYSIS:
The macro-environment includes all factors influencing a company that are not within its
control. These include political, social, economic and technological factors. These are

22
 known as PEST factors. A technique of analysis of the macro environment is PEST
analysis. Environmental analysis should be continuous arid precede all aspects of
planning. Since the airline industry is very much influenced by changes taking place in
the environment and has undergone rapid and dramatic changes during the last decade,
this analysis is especially important for PIA.

Political
Increased Competition (Deregulation of
Social
Greater Customer Awareness
Economical
airline industry)
Increased Entertainment Spending
Political
Improved Stability
Purchasing Power
Increased Investment Opportunity Technology Averse Customers
Demand Value-for-Money
Soaring Oil Prices
Reduced Ticket Prices a3 avel in South Asia
rose.
11
Technological
In-flight Entertainment
E-ticketing (SABRE System)
Automated (Self) Check-in
SMS Services
a3 avel in South Asia rose.
11

1. POLITICAL FACTORS :
• Political factors always have a great influence on the way businesses operate
in the airline industry and the spending power of customers. In recent years it has been
observed that government played an active role in increasing competition in the airline
industry. A number of new airlines such as AirBlue and JS Air have been awarded licenses
to enter the domestic market. Pakistan has achieved some political stability in recent years. If
the management of PIA believes that the present government will perform well
(consistently), then there will be more investment in the form of purchase of new airplanes
and latest technology. The over all industry will grow resulting in more luxurious and

23
 comfortable flights. With the military takeover government policies have become more
liberal.

2. ECONOMIC FACTORS :
• Currently, Airlines industry has three major players: Pakistan International Airlines, an
Airblue, Aero Asia and Shaheen Airlines. Their target market includes domestic travelers as
well as Pakistanis living abroad particularly in the UK and USA. These countries have strong
economies coupled with high purchasing power. Customers’ purchase behavior depends very
much on prices of the competing airlines as well as services offered. As inflation rate is
unstable in Pakistan, spending power of consumers has effected in the long term. In fact
growth in Pakistani economy has resulted in an increase in spending power and has
positively impacted the airline industry.
• Economically, the new millennium has been highly volatile; the September 11 attacks
revolutionized the whole world. Consequently, there was a global depression in the North
America, South America, Australia and Europe. However, in Asia especially Pakistan the
effect in the short term was otherwise. The economy began to boom because of greater
remittances from abroad and whole sum immigration by expatriates. As a result, demand for
air travel in South Asia rose.
• Economic conditions of Pakistan are however improving. PIA has cost a advantage over
its competitors because of its newly acquired, improved, long distance aircrafts from Boeing’

which give longer range and better fuel economy than any other jet currently produced. This
cost advantage is a barrier to entry for new firms. However, this cost advantage will not be
significant on domestic routes.

3. SOCIAL FACTORS :
• The social arid cultural influences on business vary from country to country. The social
structure of Pakistan is closely tied. The trend is now changing as the general public is
educated and is pursuing professional goals. Customers are more aware of market conditions
and available options and want to get best value for their money. They spend considerable

24
 time and money on entertainment hence increasing the need of in-flight entertainment
systems. Also, word of mouth has a significant impact in the use of airline services. Hajj
attracts a huge number of customers.
• The social environment of Pakistan is turning liberal with the new regime. The initiative
to automate check-in and ticket booking process might not be very popular with the general
public (even educated population) is still technology averse. E-ticketing might also face
significant challenges as consumers are generally reluctant to provide their credit cards
information over the phone and the internet. The consumers, however, have a warm reaction
to the prospect of less costly but quality service flights.

4. TECHNOLOGICAL FACTORS:
• Technology is vital for competitive advantage and is a major driver of the airlines
industry. Major technological changes are taking place in the airlines industry with
innovations in the reservations and booking systems. In-flight entertainment systems and
auto check in counters are two examples of such innovations. Internet plays a key role in e-
ticketing as consumer can easily reserve tickets or check the status of the flight. A key issue
will be the extent, to which technological advancements (such as Internet) impact
distribution and cost synergies from industry consolidation, can offset upward pressures on
costs. PIA has always led the path of technological innovations by introducing new
technologies ahead of its competitors

such as its auto check-in counters which has helped it gain market share. It was the first
airline in Pakistan to install Sabre system followed by the market leader.

25
COMPETITOR ANALYSIS:

26
Competitor analysis in marketing and strategic management is an assessment of the strengths
and weaknesses of current and potential competitors. Created by Michael Porter competitor
analysis focuses on four key aspects: competitor's objectives, competitor's assumptions,
competitor's strategy, and competitor's resources and capabilities.

COMPETITIVE ADVANTAGE OF PIA:

• Reliability an d safety
• Has best engineering facilities.
• Has best trained pilots.
• National flag carrier.

• Pakistani expatriates when step in the PIA plane they get they homely feelings because of
the national airline which plays a role of ambassador.
• High linkage to the remote areas of Pakistan.

27
 • Using state of art technologies and highly equipped engineering.

COMPETITIVE ADVANTAGE OF PIA:

The competitive position of PIA is Differentiation because PIA has created highly differentiation
products e.g. for the economy class and for the business plus class. PIA has different and unique
product characteristics and features which cater the needs of the respective customers.

COMPETITIVE MOVES:

PIA is having 48.4% market share internationally and 65% domestically, and PIA has the
Market Leader Competitive Move in Pakistan.

DOMESTIC COMPETITOR:

AIRBLUE:

Established in 2003, Airblue is a private airline which offers passenger and cargo transportation
to both domestic and foreign destinations. There are nine destinations of Airblue. It is credited as
the first private carrier of Pakistan to operate the Airbus A320 and introduce e-ticketing, wireless
check-in and self check-in kiosk facilities. The major departments include: Human Resource,

Marketing, Sales, Finance, Operations and Systems Support and IT.

The size of the organization is not as huge as PIA and mostly comprises of young
employees. It is the first airline to have employees trained according to international standards. It

28
is technologically advanced though the size of the fleet is not comparable to that of PIA. The
fleet size of Airblue is eight.

The organogram of the organization is as follows: -

It shows that the employees report to their divisional heads that in turn are answerable to the
Chief Executive Officer.
Within the country PIA has Airblue as a competitor. Airblue is a private airline based in
Karachi, Pakistan. It is a scheduled domestic and international airline operating 30 daily services
linking seven domestic destinations and international services to Dubai and Manchester. Its main

29
base is Jinnah International Airport, Karachi. Airblue was the first airline in Pakistan to
introduce e-ticketing, wireless check-in and self check-in kiosk facilities.

ACHIEVEMENTS:

Its achievements are as follows: -

• Pakistan's fastest growing airline.

• First airline in Pakistan and only the third carrier in the region behind Emirates Airline
and Royal Jordanian to introduce the latest self service check-in facilities at Jinnah
International Airport, Karachi
• First private airline in Pakistan to fly long-haul international route (Islamabad-
Manchester) with a refueling stop at Ankara, this has since been moved to Trabzon.

INTERNATIONAL COMPETITORS OF PIA:

PIA is having market share of 48.4% in the international market and having tough competition
from its international competitors. Following international competitors of PIA.

• Thai Airline
• Ethad Airways
• Qatar Airways
• Singapore Airline
• Emirates Airline

COMPARISON WITH OTHER AIRLINES:

After conducting the research we have rated the different airlines in the following

manner.

30
 Attributes PIA Air Blue Shaheen Air

Destinations 6 5 4

Punctuality 5 6 4

Quality of Food 5 6 5

Hospitality/Customer Service 6 5 5

Economical 5 5 5

Technological Advancements 5 5 5

Services 5 5 4

Corporate Image 6 3 4

Total Points 43 40 36

PIA is holding the first position in market. It has 48% market share. Its major competitors are:
• Airblue
• Shaheen International Airline.
• Airblue has a market share of 35%
• Shaheen International Airline has 17% market share. People feel prestigious to travel
with PIA as compare to Airblue and others.

% Market Share

Shaheen
17%
PIA PIA
48%
Air Blue
Shaheen
Air Blue
35%

31
 OPERATIONS

SERVICES:
PIA offers two types of services.
• Business Class
• Economy Class

BUSINESS CLASS:
It’s the only Business Class service that feels like First Class. A comfortable seat makes all the
difference on a long flight. PIA's Business Class Seats elevate the concept of luxury to a new
level, fully endorsing your decision to choose PIA Business Class.
Sit back and relax in the exclusive Business Class Lounges at the Karachi, Lahore,

and Islamabad airports. Our hospitable staff will ensure that you're well looked after during your
stay with us at the airport

32
 Business Class passengers arriving at Airport will receive a warm welcome from
PIA. The representatives will walk you right through all the arrival formalities so that you don't
have to stand in line or worry about clearance.

ECONOMY CLASS:
PIA’s economy class is also comfortable for passenger as Business class. Economy
Class offer seats with a 32-inch pitch, adjustable footrests and "winglet" headrests for improved
neck comfort. The personal TV provides on-going entertainment including audio and video on-
demand choices.
Passengers enjoy the same caring service from our flight attendants, along with
skillfully prepared meals and a wide range of inflight entertainment options to choose from. Free
newspapers are also provided to all Economy class passengers. The PIA in-flight magazine,
Hamsafar, is provided to all passengers on all international flights. Humsafar was introduced on
PIA flights in 1980 and it is published bi-monthly.

PIA is providing its service in twenty-five cites of Pakistan domestically which are as follows:
• Gilgit • D.G.Khan • Gwadar
• Chitral • Quetta • Pasni
• Skardu • Bahawalpur Karachi

• Saidu Sarif • Rahim Yar

• Islamabad Khan

• Peshawar • Dalbandin

• Sialkot • Sukkar

• D.I,Khan • Panjgor

• Lahore • Sukkar

• Faisalabad • Jacoababad

• Multan • Turbat

• Zhob • Moemjodar
o

33
Products and Services offered by PIA:
FLEETS:
PIA's fleet of modern aircraft is spacious, comfortable, and designed to get you to your
destination safely. PIA operates a range of advanced aircraft, ranging from the world's
preferred Boeing 777 airplane to the super-quiet Airbus A-310. Currently PIA has 42
aircraft in its fleet.

BUSINESS CLASS SERVICES:

PIA’s Business Plus class offers a range of exclusive services, from the time you leave
your home till you land at your destination. It’s the only Business Class service that feels
like First Class

IN-FLIGHT DINING:
You're in For a Special Treat!
Whether you are traveling within Pakistan or around the world, PIA's in-flight dining
menu is sure to tantalize your taste-buds. Enjoy the best of what Pakistan has to offer, as
well as a delectable selection of international cuisine.

IN-FLIGHT TRAINING:
Let the fun begin!
Aboard a PIA flight, there is so much to do that you really won't feel like landing.
Movies, Music, Games, Duty-Free Shopping, Tourist Information, Maps, and Real-Time
Flight Information will keep you entertained for hours.

PIA’s NETWORK:
34
DOMESTIC NETWORK:

35
36
INTERNATIONAL NETWORK:

37
REVENUE COMPOSITION:
According to the latest report of PIA:
• 87% of revenue generates from passengers,
• 8% of revenue generates from cargo and remaining

38
 • 5% consists of others
FLEET:
Pakistan International Airlines fleet includes the following aircraft (as of May 2008)

Type Total Routes

Airbus A310-300 12 long, medium and short haul (East / South / West Asia, Europe,
domestic)

ATR 42-500 7 short haul (West Asia, domestic)

Boeing 737-300 7 short haul (South / West Asia, domestic)
Boeing 747-200 2 short and medium haul (Saudi Arabia, domestic)
Boeing 747-300 6 short and medium haul (Saudi Arabia, domestic)
Boeing 777-200ER 4 long and medium haul (Europe, Saudi Arabia, domestic)
Boeing 777-200LR 2 short and ultra-long haul (North America, Saudi Arabia, UK, domestic)
Boeing 777-300ER 3 long and medium haul (Saudi Arabia, UK, USA, domestic)
43

39
40
41
42
43
TRAINING METHODS
44
PIA TRAINING CENTRE:

PTC is leading Airline Training Institution. Join it to build your career in Airline
Industry. It offers Airline Training in all areas of the Airline Industry. It has one of the
most advanced Airline training infrastructures approved by local and international
regulatory authorities such as CAA, ICAO and IATA.

FUNCTIONS:

• To develop and conduct quality training as per the requirements of user

departments and regulatory authorities.

45
• To maintain centralized training database of all PIA personnel for organizing HR
activity.

• To maintain regular contact with vendors regarding new functionalities,

modifications and additions to update training programmes and train the
instructors.

• To formulate criteria which will enable the training of PIA personnel to achieve
excellence in their respective fields/functions
• To conduct courses, workshops, seminars, workouts, conventions, and to present
papers so as to make PTC prominent in aviation training, particularly in this
region.

46
HISTORY:

PIA Training Centre, Karachi is an institution of comprehensive instruction dedicated

towards imparting quality training in all the major areas associated with civil air
transport. The centre is housed in a three-storied spacious building, essentially
self-contained in facilities and centrally air-conditioned. It is situated about 300
yards from the Corporate Head Office building of PIA.

• The prestige and esteem that the Training Centre enjoys has been a result of
tireless efforts expended, since the very inception of PIA in 1956, in making the
programmes of study worthy of its name. Training has been offered for PIA
employees as well as for other airlines' staff intending to work, or already
working as members of the cockpit and flight service crew, as passenger service
and marketing staff, and as mechanics and engineers, etc. It was in 1960 that all
training was amalgamated under one roof at the Hotel Midway House, Karachi.
The Centre was moved to its present premises in October 1975.
• Specialist instructors are assigned at the Centre for imparting rigorous training to
those who fly, and to those who service and maintain various types of aircraft (B-
747-200, A-310, A-300, B-737, F-27, Twin Otter, B-777). The training aids and
equipment used are the latest. The methods of knowledge and skill transfer,
adopted at the PIA Training Centre, are varied all pragmatic and useful.
Classroom lectures are augmented by group discussion, observations,
experiments, simulations, case studies, etc. Study tours to a number of PIA
facilities are regularly conducted and seminars on topics of general interest are
frequently convened.
• Training facilities available within the airline also include flight simulators which
are used in the Transition and recurrent Training of pilots and other operational
crew. The equipment here includes: a cabin service procedures trainer, A310
Flight Simulator, 747-200 Flight Simulator and B743 FFS with RB211 Engines
also A-310 Video & Audio Computer Based Instructions ( VACBI ) Systems.
These are largely supplemented with apprentice workshops and laboratories for
new entrants.
47
 • During the past, for many years the PIA Training Centre has also been
instrumental in rendering training to a large number of pilots, engineers, flight
stewards/stewardesses, traffic and sales personnel from over 30 airlines and
associated agencies worldwide, mostly from Asian and African countries.

MAIN BUILDING:
Three-storey Centrally Air- conditioned
Building Area: 52,200 sq. ft.
Building includes:
Classrooms equipped with latest training aids:

o Aircraft Cabin Mockup

o Computer Based Training
o Audio Visual System
o Audio Visual System
o Cockpit Systems Simulator
o Grooming Room
o SABRE System (Reservation/Check–in)
o Laboratories
o Library
o Printing and Publications
o Photo Lab
o Auditorium
o Seminar & Conference Rooms

APPRENTICE BUILDING:
Building Area: 12,700 Sq. ft.
Two-storey building equipped with:

o Air-conditioned classrooms
o Latest training aids

48
 o Workshops

UTILISATION OF TRAINING FACILITIES BY FOLLOWING:

(DOMESTIC)
These are as follows: -

 Domestic Airlines

 Pakistan Armed Forces

 Civil Aviation Authority, Pakistan

 Government & Semi-Government Agencies

 Major National & Multinational Companies

UTILISATION OF TRAINING FACILITIES (INTERNATIONAL):

Major Airlines, including:

• Emirates
• Saudi Airlines
• Royal Jordanian Airlines
• Iran Air
• Kuwait Air
• Libyan Arab Airlines
• Air Malta
• Scandinavian Airlines
• Royal Nepal Airlines
• Al-Buraq Air Libya

ACCOMODATION:
No Accommodation Facility Available in PTC for Trainees. Students are expected to
make their own arrangements for boarding and lodging. The hotel rates vary from
USD50 to USD 70 per day.

49
CAFETERIA:
PIA Training Centre has a brand new cafeteria located on ground floor over looking the
lush green garden with its beautiful plants, has the capacity to accommodate around 200
trainees. Tea and refreshments are provided from 9 am to 3 pm. This cafeteria also caters
for business and official functions of Head Office as well.

LIBRARY:
The Library at PIA Training Centre plays a vital role in providing information on the
courses conducted at PIA Training Centre as per requirement of any Aviation Industry.
In fact, it is the back-bone of the Training centre where PTC chief instructors, Instructors,
PIA Officers, Engineers, Pilots, Trainers, as well as visitors and foreign trainees
frequently visit for knowledge seeking and general reading purpose.

This library provides its readers over 6000 books (technical and non-technical) literature
to instructors such as engineering change orders, service bulletins, technical notices,
service letter, evaluation notices, services information bulletins, amendments of overall
manuals, maintenance manuals, CAA literatures, ICAO & IATA literatures and
amendments of all aircrafts manuals. We have received the latest Boeing 777 A/C &
ATR A/C Literature as well.

We are in the process of automating the PTC Technical Library for latest updates. This
library not only caters for PTC faculty but to all those personnel’s working in different
departments of PIA as well.

PHYSICAL FITNESS:
Physiology Lab is run by PIA Physiologist who provides physiological guidance to all
PIA employees with the help of posture balancing equipments which is installed on the
2nd floor of PTC for the use of all employees of PIA.

The objective of this lab is to provide guidance to enhance the alacrity and how to
improve the ability to express one self and to coordinate body and mind functions. To
bring about the awareness is to achieve a high level of unity of mind and body in a

50
disciplined environment. The aim is to achieve a high level serene attitude towards life
leading to higher productivity, most notably in our profession.

FUNCTIONS:

• To develop and conduct quality training as per the requirements of user

departments and regulatory authorities
• To maintain centralized training database of all PIA personnel for
organizing HR activity
• To maintain regular contact with vendors regarding new functionalities,
modifications and additions to update training programmes and train the
instructors
• To formulate criteria which will enable the training of PIA personnel to
achieve excellence in their respective fields/functions
• To conduct courses, workshops, seminars, workouts, conventions, and to
present papers so as to make PTC prominent in aviation training, particularly
in this region.

LEVEL OF TRAINING
Customer Service:

• Flight Service

• Marketing

• Marketing Cargo

• Marketing Passenger Sales

• Passenger Service

Engineering & Maintenance:

51
 • Apprentice

• Aerospace

• Avionics

Flight Operations:

• Information Technology (CBT)

• Management

EMPLOYEE ATTITUDES
At PIA, every employee is expected to show complete responsibility through their
attitudes and avoid behaviour which clashes directly with the organization’s interest. In
case of deviant workplace behaviour, administrative action is taken against the employee
according to the standing rules of PIA.

All human resource issues are dealt in accordance with the POLICIES AND
PROCEDURES MANUAL VOL. I & II, which deals with every aspect of employee
behavior.
TRAINING TO ENHANCE ATTITUDES
A PIA Training Center (PTC), operating in Karachi, conducts training courses to
augment the skills of employees while the scope for enhancing their attitudes (beliefs and
emotions) through these courses is meager.

EMPLOYEE DISSATISFACTION
If PIA believes that dissatisfaction or absenteeism is affecting the productivity level of
employees, then the root cause of such factors is identified. If a genuine reason emerges,
the employee is assisted in rectifying the situation; if not, then the employee might get a
letter of warning.

Employees at PIA can express dissatisfaction through the ‘Suggestion Boxes’ located at
various sites of PIA. Furthermore, quarterly employee co-ordination meetings are held
where all employees can share their views with their bosses and subordinates.
52
RECRUITMENT AND HIRING :
An entire Recruitment and Selection Division is functioning in the HR & Administration
Department. Decisions are taken by the top management of PIA regarding the attributes
required for hiring. An assessment form, based on certain characteristics such as
personality, skills and qualifications, is used to evaluate a candidate. The verdict of the
management is forwarded to the recruitment division which then initiates the procedure
of recruitment and selection.

After difficult circumstances the Human Resource Department is now fully functional
and policies and procedures are now in place. New recruitments with clearly defined
levels of skill and competence in all areas are being made. New inductions both on the
management side and specifically the operational side of cockpit crew, cabin crew and
ground engineers will continue at regular intervals so that the shortages experienced in
these areas are fully taken care. The policy is to promote people from within the airline at
all levels. However, where PIA does not find the relevant competencies they hire people
from outside which is based on market salaries. Salaries of all the employees including
operational crew have been considerably enhanced in an effort to align PIA salaries with
regional airlines over a period of time.

EMPLOYEE PROMOTION:
During promotions experience, skill, education and past performance of the employee are
considered, however, experience takes precedence over all other deciding factors. PIA
believes that experienced employees have the knowledge and expertise, gained over
years, to handle diverse employees and unprecedented situations.

COMMUNICATION:
The organizational structure of PIA is centralized, therefore decision-making is a time-
consuming process and delays occur in downward communication. Though, it is believed

53
that the current Chairman is inclined towards a decentralized system, the effectiveness of
such an approach in PIA remains to be seen.

Effective communication is essential in all organizations and it becomes even more

essential in an organization like PIA due to its large size and expanded network. It is
necessary that people from various departments communicate between each other to have
an overall uniformity. Previously fax was widely used to transmit information, however,
with the technological advancement e-mails are used for this purpose. Another mode of
communication is through letters.

FEEDBACK:
Employee feedback is considered important in PIA to an extent as it enables the
management and the human resource department to have an insight on the needs and the
requirements of the employees. Accordingly top management is informed about
employees’ necessities which have led to decisions being made in the favor of the
employees in the past and has also improved overall system of the organization.

JOB ROTATION :
At PIA, employees are not rotated amongst various departments unless they request for a
rotation.

EMPLOYEE SECURITY:
According to the “Business Principles & Ethics Policy”, employees at PIA are required
to maintain an environment, devoid of harassment, in which all members are equally
respected and encouraged to contribute to the best of their abilities in an atmosphere of
freedom and mutual trust. Employees are encouraged to voice their troubles and
apprehensions so that dissatisfaction levels are curbed.

EXIT INTERVIEWS:

54
At PIA, exit interviews depend on the immediate supervisors and Departmental Heads.
Some of them are keen on the idea, others are not: there is no clear policy for exit
interviews.
During downsizing employees are offered different packages such as a ‘Golden Hand
Shake’ in which employees are paid a lump sum amount for their services. This is done
to maintain a healthy relationship between the management and the employees and also
to make employees feel that they are being taken care of in the organization.

MONETARY REWARDS:
Amid a highly competitive environment, PIA needs to motivate its employees. For this
purpose, ‘Promotion Boards’ are held twice a year. ‘Extra-mile Awards’ are handed over
to the competent employees. An ‘Employee Suggestion Scheme’ gives employees an
opportunity to be vociferous regarding their issues. The three best suggestions are given
monetary awards ranging from Rs.5000 to Rs. 20,000.
Apart from the basic salary, fringe benefits are in the form of Medical Entitlement,
Free/Rebated Air Tickets, Utility Allowance, Rent Allowance and Meals at discounted
rates.

EMPLOYEE SATISFACTION:
Employee satisfaction is essential for the retention of competent employees at PIA. The
management strives to achieve this by promoting employees in next pay groups (move-
over), giving monetary rewards (bonuses) and transferring employees to foreign posts.

TEAMWORK:
In an airline industry almost all tasks are performed through team work and PIA is not
any different. From ticket reservation to the landing of the plane team work is the
decisive factor. Employees work in various teams such as ground staff, cabin crew, flight
attendants, office staff etc. All these teams have different sets of tasks to perform but
cohesion among these teams is necessary to run the day to day operations. Considering

55
the diverse nature of employees PIA has, it is difficult to make team work efficient so it
is major challenge for them.

FORMAL GROUPS:
At present, all unions have been banned in all public/semi-government organizations
under the policy of the government. Disagreement among employees is resolved through
applications and appeals. Some cases may be dealt by the ELT (Employee Leadership
Team), headed by the Chairman.

INFLUENCE OF GROUPS ON DECISION-MAKING:

The sheer size of the organization leads to the formulation of various formal and informal
groups at PIA. The informal groups influence the overall decision making process to
some extent due to the nature of the workplace. These informal groups are formed
because many employees have been there in the organization for several years and they
share common interests.

POWER AND POLITICS:

In PIA employees are less empowered which means all the power rests with the top level
management and they can exercise it at their will. Also their power cannot be challenged
by the employees and compliance to the decisions being made by them is essential. We
can also say that in PIA that legitimate power is exercised. This also leads to high
employee dissatisfaction because in order to be influential one needs to have personal
contacts. This is the reason employees focus more on networking rather than
concentrating on their jobs. We were not able to get an insight on the various political
issues in the organization but it is a common observation that illegitimate political
behaviour is a common practice. It is present in the form of nepotism, intentionally
damaging the image of other employees.

56
 TRAINING METHODS FOR DIFFERENT LEVELS

FLIGHT OPERATION TRAINING UNIT:

Basic Courses Prerequisite Duration

Flight Operation Officers Basic Phase FSc. or Equivalent 06 Weeks

Flight Operation Officer Advance Phase FSc. or Equivalent 20 Weeks

B-747 Long Refresher For Department 01 Weeks

Employees or
(Other Airlines
Staff only) for
details contact
related Training
department

57
MARKETING:

Course Venue Remarks

Cargo Sales Basic KHI For PIA Staff / Officers working at domestic stations,
Cargo Agents , Private Trainees & Cargo Personnel
who have newly joined Cargo

Cargo Sales Basic KHI For employees working in Cargo and also completed
(Refresher) their Cargo Sales Basic course successfully.

Cargo Sales Advance KHI For Cargo Personnel who have successfully
completed Cargo Sales Basic Course

DGR (Initial/ Refresher) KHI Mandatory Course for PIA Cargo Sales/ Services/
Cargo Agencies/ Handling Agencies Staff/ Officers
dealing with dangerous goods consignments.

Live Animals KHI For Cargo Personnel working in cargo operations

Regulations

Perishable Cargo KHI For Cargo Personnel working for cargo operations

Safety of Cargo on KHI For staff/officers working in Cargo Operations

board

ULD/Pallet building & KHI For Cargo Personnel working in cargo operations
Loading Unloading
Awareness

58
MARKETING:

59
 Course Venue Remarks

Tariff & Ticketing Basic KHI For newly inducted PIA Staff / Officers working at
domestic / foreign stations, Travel Agents & Private
Trainees

Familiarization in Arabic KHI For PIA counter Staff/Officers working at domestic

Language Stations

Sales Representative KHI For PSM, SPOs Passenger & Cargo Working at
Domesitc Stations

Tariff & Ticketing Basic LYP For IATA Agencies / PIA PSA's / GSA Staff /
Officers working at domestic stations.
Tariff & Ticketing Basic MUX

Tariff & Ticketing KHI For PIA Staff and Officers working at domestic/
Intermediate Foreign Stations, IATA Agencies / PIA PSA's /GSA
Staff and Private Trainees
Tariff & Ticketing KHI
Intermediate

Marketing Orientation KHI For PAs/Stenos atteched with DM/ DSM/ TOM/
PSM/ CSM and GMs/ Manegers of Marketing dept.
in Head Office/Field Offices

Tariff & Ticketing KHI For PIA Staff and Officers working at domestic and
Advance forigen stations, private sector trainees are also

elilgible

Reservation/ E-Ticketing/ KHI For newly inducted PIA Staff / Officers working at
ASR (Initial) Sales counters and Private Trainees

Reservation/ E-Ticketing/ KHI For PIA Staff / Officers working at Sales counters and
ASR (Ref.) already attended Initial course

Eticketing (Sabre) KHI For PIA Staff and Officers working at domestic and
foreign stations

Customer Care/Grooming PEW 60

For front line staff / officers upto pay group V posted
at domestic stations Cargo / Passenger Sales including
S.No Courses Duration

1 Apprentice Mech. Course (Aerospace) 3 Years

2 Apprentice Mech. Course (Avionics) 3 Years

3 Aircraft Maintenance Familiarization # 3 12 Weeks

4 Aircraft Maintenance Familiarization # 4 12 Weeks

5 Aircraft Maintenance Familiarization # 5 12 Weeks

AVIONICS TRAINING UNIT:

TRAINING SCHEDULE

(January 2009 to December 2009)

Basic Courses

S- Course Title Start Finish STN

No.

61
1 Basic Electricity & Electronics 29-12-08 06-02-09 KHI

2 Basic Electricity & Electronics 09-02-09 20-03-09 KHI

3 Basic Electricity & Electronics 31-08-09 09-10-09 ISB

4 Basic Instrument / INS/IRS/GPWS 30-03-09 22-05-09 KHI

5 Basic Instrument / INS/IRS/GPWS 29-06-09 21-08-09 ISB

6 Basic Instrument / INS/IRS/GPWS 26-10-09 18-12-09 KHI

7* Basic Radar (Pulse) 05-10-09 06-11-09 ISB

8 Solid State Electronics 05-10-09 30-10-09 KHI

9 Basic Digital & Microprocessor 09-02-09 27-02-09 KHI

10 Basic Digital & Microprocessor 14-12-09 01-01-10 KHI

11 Basic Avionics Amalgamation for Cat 26-01-09 20-02-09 KHI

"R" Engineers (Differences)

12 Basic Avionics Amalgamation for Cat 10-08-09 04-09-09 KHI

"R" Engineers (Differences)

Aircraft Type Courses

S- Course Title Start Finish STN

No.

1 A310 Instrument /AFS 23-02-09 03-04-09 KHI

62
2 A310 Instrument /AFS 04-05-09 12-06-09 KHI

3 A310 Electrical System 20-04-09 22-05-09 KHI

4 A310 Instrument /AFS 28-09-09 06-11-09 ISB

8 B737 Electrical Course 25-05-09 26-06-09 KHI

9 B747 Instruments Course 24-03-09 27-04-09 KHI

10 B747 Electrical System 30-11-09 01-01-2010 KHI

11 B777-One Man Certification for A/S 13-04-09 17-04-09 KHI

Engrs

Skill Development Courses

1 Initial Management Course 2 Weeks

2 Middle Management Course 2 Weeks

3 Senior Management Course 2 Weeks

4 Supervisory Skills 1 Week

Orientation Courses

1 Trainee Officers 1 Week

63
2 Train The Trainer 1 Week

Seminars / Workshops / Short Courses

1 Leadership 2 Days

2 Team Work 2 Days

3 Motivation 2 Days

4 Stress Management

64
65
66
 RECOMMENDATIONS FOR PAKISTAN
INTERNATIONAL AIRLINES

DECENTRALIAZATION:

PIA should decentralize 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 reduced). Since employees
issues regarding their behavior would lessen, so it would ultimately lead to more satisfied
employees that would result in enhanced productivity of the organization.

STRATEGIS BASIC UNIT:

PIA should make its different departments into Strategic Business Unit. Every SBU
should have a defined business strategy and a manager with sales and profit
responsibility. As PIA is a large organization, so it must be convert into SBUs.

Different factors should be determined for the success of SBUs which as follows:
The degree of autonomy given to each SBU manager

The degree to which an SBU shares functional programs and facilities with other SBU's
The manner in which the corporation evaluates and rewards the performance of its SBU
managers

EMPLOYEE EMPOWERMENT:

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

67
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 ensue the correct usage of power delegated to
every employees within their circumscribed limits.

OVERHEAD COSTS:

PIA should also reduce its overhead costs that are it should mange its resources: labor
more effectively, so that with less input, more out put 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 analyzing the various
segments of the organization and making the right corrections, it can substantially
improve the standards of Organizational behavior.

TWO WAY COMMNICATION:

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.

BIBLIOGRAPHY

http://www.piac.com.pk/PIA_About/profiles/2008/PIAAnnualReport-
2008_20042009.pdf
http://www.piac.com.pk/PIA_About/pia-about.asp

68
http://www.piac.com.pk/pia_about/pia-about_career.asp
http://www.piac.com.pk/pia_about/pia-about_corpreport.asp
http://www.piac.com.pk/pia_about/pia-about_Management.asp
http://www.piac.com.pk/PIA_Business/pia-Business_Procurement.asp
http://www.piac.com.pk/PIA_Training/pia-training_about.asp
http://www.piac.com.pk/PIA_Training/pia-training_trainingunits.asp
http://www.piac.com.pk/PIA_Training/pia-training_trainingunits_ManagementTU.asp
http://www.piac.com.pk/PIA_Engineering/pia-engineering_businessdevelopment.asp
http://www.historyofpia.com/people25.htm
http://www.historyofpia.com/uniform3.htm
http://www.historyofpia.com/greatshots152.htm

69