Acknowledgment

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.Zia Hassan from CIIT Sahiwal 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 express my deepest sense of gratitude to Dr.Muqadum (Assistant Passenger Sales Department) in

marketing department.

Mr.Bilal Dar and Mr. Anwar Sayadein, for their support, patience and their
precious time. Without their Help and guidance section of Cargo sales
department was not possible to complete. Their constant helped, enabled me to
treat this work objectively and comprehensively.
I also pay bundle of thanks to Mr.Salim-UL-Haq for providing me information
about HR functions and responsibilities.

1
Executive Summary

I did internship in PIA for 2 months. This experience was very informative for me
the following report is consisting of my 2 month experience.
My report consists of 3 main chapters.1st chapter contained information about
the PIA history, its Vision and Mission statements.
2nd chapter consist of 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.
3rd chapter contained all work and information which I lerant during my internship
As my major was marketing so in this report my concentration was on marketing
department.Its working, functions, problems which I found and recommendations.
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.

2
ACKNOWLEDGMENT...........................................................................................1
...............................................................................................................................1
EXECUTIVE SUMMARY.......................................................................................2
CHAPTER NO 1.....................................................................................................5
1.1 INTRODUCTION..............................................................................................5
1.2 BRIEF HISTORY .............................................................................................6
1.3 CURRENT FLEET OF PAKISTAN INTERNATIONAL AIRLINE [2]..............8
1.4 COMPANY VISION..........................................................................................9
1.5 COMPANY MISSION.......................................................................................9
CHAPTOR NO 2...................................................................................................10
2.1 BUSINESS OPERATION..............................................................................10
A ORGANIZATIONAL STRUCTURE OF PIAC[1]..............................................10
FIGURE 1.............................................................................................................10
2.2 DEPARTMENTS IN PIA.................................................................................11
FIGURE 2.............................................................................................................11
2.3 SWOT ANALYSIS..........................................................................................12
2.3 MARKETING STRATEGIES.........................................................................17
SEGMENTATION.................................................................................................17
SEGMENTATION VARIABLES.............................................................................................................................17
SEGMENTATION CRITERIA [3]..........................................................................................................................18
2.5 POSITIONING OF PIA [3]..............................................................................20
2.6 BRANDING [3]...............................................................................................21
..................................................................................................................22
2.7 MARKETING MIX OF PIAC [4].....................................................................22
PROMOTION........................................................................................................25
2.8 COMPETITORS [3]........................................................................................26
COMPETITORS ANALYSIS................................................................................26
DIFFERENT OFFERS BY PIA.............................................................................27
INTERNATIONAL SERVICES [2]........................................................................28
FIGURE 4.............................................................................................................28
DOMESTIC SERVICES [2]...................................................................30
FIGURE 5.............................................................................................................30
CHAPTER NO 3...................................................................................................32

3
3.1 MARKETING DEPARTMENT........................................................................33
3.2 ROLE OF PASSENGERS SALES DEPARTMENT......................................34
AGREEMENTS IN MARKETING DEPARTMENT...............................................36
FUNCTIONS OF MARKETING DEPARTMENT..................................................37
3.2.3 PROBLEMS IN MARKETING DEPARTMENT...........................................39
RECOMMENDATIONS........................................................................................39
3.3 CARGO SALES DEPARTMENT...................................................................41
3.3.1 CARGO DEALINGS AT TERMINAL..........................................................44
EXPORT DEPARTMENT.....................................................................................44
DOMESTIC CARGO............................................................................................45
SPACE CONTROL DEPARTMENT....................................................................45
IMPORT DEPARTMENT......................................................................................46
3.3.2 PROBLEMS.................................................................................................46
3.3.4 SOLUTIONS................................................................................................46
FIGURE 7[5].........................................................................................................48
FIGURE 8[5].........................................................................................................49
3.4 TICKETING AND RESERVATION DEPARTMENT .....................................50
DOMESTIC RESERVATIONS COUNTER .........................................................50
RESERVATION ON TELEPHONE......................................................................51
DISCOUNTS OFFERS.........................................................................................51
INTERNATIONAL RESERVATIONS COUNTER................................................52
CLASSES IN AWARD PLUS...............................................................................54
3.5.1 PROBLEMS.................................................................................................54
3.5.2 RECOMMENDATIONS...............................................................................54
3.6 TOURS PROMOTION ...................................................................................54
3.7 HUMAN RESOURCE DEPARTMENT...........................................................56
3.7.2 ORGANOGRAM –HR & ADMISISTRATION LAHORE.............................57
FIGURE 9.............................................................................................................58
FUNCTIONS .......................................................................................................58
GLOSSARY..........................................................................................................66
3.8 EXPERIENCE.................................................................................................62
ELECTRONIC LINKS...........................................................................................63

4
FOOTNOTES........................................................................................................64

CHAPTER NO 1

1.1 Introduction

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. [1]

5
1.2 Brief History

From Karachi to London via Cairo and Rome PIA entered in international aviation
services.707 was added to the PIAC fleet in middle of 1956, when PIA was
running in losses. In Asia PIA was 1st airline who introduce the jets. In 1957 PIA
started its services from Karachi to New York. In 1962 boing flights was
introduced between two wings of Pakistan. In 1963-64 PIA started its services
between Asia and Europe via Moscow and became the first non-communist
airline to fly in republic of china. With 54.71 % PIA made surplus record of 49.22
Million. In 1966-67 shop of engine overhaul was completed.
From PIA flying school in 1967-68 first batches of pilots passed out and got the
license of commercial pilots.
In 1969-70 engineering services was provided to airlines like Royal Nepal
Airlines Corporation by PIA. Different agreements like domestic operation,
international operation, engineering services were made with airlines like
Yugoslavia airlines.
In 1972-73 PIA made an agreement with the Malta Airline and under this
agreement a Management team was send to Malta and within these terminal
facilities was expanded to Islamabad and Karachi. Body Douglas Dc-10 was
introduced during the year .In 1973-74 full time chairman of board of directors
was appointed .Two 720 B fleets were given to Malta airline on leased in 1974.
In 1976-77 Boeing services was introduced on weekly bases and PIA new profit
was 158.08 million ,within this 4 new aircrafts were also introduced .And in same
duration schemes for employees were also introduced. In 1977 technical
services to Air Malta, Yemen airways and Somali airlines were started.
In 1977 Boeing 747 was introduced. To promote the hotels two subsidiaries was
established and registered by UAE.
In 1980-81 new flight control system at Jinnah terminal and computerized
reservation system was the achievement of this era.

6
In PIA head office 1st time telephone facility of direct inward calling and mini
micro Computers was introduced. From Lahore, Islamabad and Peshawar
automation in budgeting finance revenue was started.
In 1983-84 nights coach Services were introduced. In 1983-84 flight kitchen was
extended and modernized. In 1984-85 five 737-A300 aircrafts were introduced. In
1985 sohni executive class on all PIA B-747 aircrafts for international flights were
introduced.
In 1986-88 Flight Kitchens, Auto Ticketing on Islamabad routes on Civil Air
Transport was introduced. New routes including twin other was introduced.
Automated reservation and ticketing facility in Mzaffarabd and Rawalkot was
started. In 1989-90 in PIA history 1st time two women pilots were inducted to
operate the passenger flights. In 1990-91 international flights from mohenjo daro
was introduced.[1]

7
1.3 Current Fleet of Pakistan International Airline [2]

Airbus A310-300 12

7
Boeing 737-300

Boeing 747-200 2

Boeing 747-300 7

Boeing 777-200ER 3

Boeing 777-200LR
2

Boeing 777-200LR 2

Twin Otter 02

07
ATR 42-500

Total 41

8
1.4 Company Vision

“To be a World Class Airline exceeding Customer Expectations through

Dedicated Employees Committed to Excellence”.[1]

1.5 Company Mission

“As a Symbol of National Pride, We Aspire to be a Choice Airline, Operating

Profitably on Modern Commercial concepts and Capable of Competing with the
Best in the International as well as Domestic markets.”[1]

9
 CHAPTOR NO 2
2.1 Business Operation

A Organizational Structure of PIAC[1]

Figure 1

10
 2.2 Departments in PIA

Figure 2

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

11
2.3 SWOT Analysis

Strengths

Strengths are found in the internal environment of the organization. They are the
backbone of an organization. Strengths of an organization can over come 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.
 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 and Reidh 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.

12
  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.
 Halal meat available at all flights.
Weakness
Weaknesses are also found in the internal environment of the organization.
Weaknesses if more in quantity can break down an organization easily. They can
over come 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
responsabitiles. 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 can not cover the market to completely to carry luggage
from 1 place to another place.
 Inadequate Space On The Aircraft

13
 Opportunities
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
Threats
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 airlines.

14
  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 reach.
 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 fairs.
 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.

15
Conclusion

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

over come 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 them best and luxurious facilities.

Threats should be overcome because it gives chance to potential competitors to

enter into market and compete.

16
2.3 Marketing Strategies
Segmentation

Breaking down a market into sub-groups 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 needs.

 it is distinct from other segments (heterogeneity across segments)

 it is homogeneous within the segment (exhibits common attributes)
 it responds similarly to a market stimuli
 it can be reached by a market intervention

Segmentation Variables

Measurable

Segment should be measurable in terms of Size, purchasing power.

Accessible

Segments must be effectively reached and served.

Substantial

Segments must be large or profitable enough to serve.

Differential

Segments must respond differently to different marketing mix elements & actions.

Actionable

Must be able to attract and serve the segments.

17
Segmentation Criteria [3]

 Geographic Variables

Region  Whole World

Country  US, UK, Saudi Arabia, Dubai, Gulf Countries.

Cities  Metropolitan Cities, within and out side country

 Demographic Variables

Gender  Male, Female

Income  Audience falls under the category of upper middle and upper class.

Occupation  Students, Business Man, Working Class,

Religion  All people belong o different religious.

 Psychographic Variables

Personality  Status Conscious People, Business Class.

Social Class

Tourists  All the tourists within the and outside the country .because
Pakistan airline have a vast linking with remote areas.

Religious traders  going for or coming in for religious offering.

Pakistan expertise  people residing outside the Pakistan.

 Behavioral Variables

18
Benefit Sought Quality people who want to enjoy good service at lower cost.

Brand Loyalty  Due to best services and comfortable journey till destination
customers become loyal.

Occasions Based.

Hajj based  people going to perform hajj will prefer it due to direct way.

Eid Occasions  people within or outside the Pakistan make their journey to
spend their holidays with their families.

New Year Occasion  as New Year is welcomed with great warm out side the
Pakistan so people go outside to celebrate this occasion.

2.4 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 customers.

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.[3]

19
2.5 Positioning Of PIA [3]

Currently PIA position itself within the following positing strategies.

 Positing By Features
 Positing By Price And Quality
 Positing By Product User.
 Positioning By Features

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

 IATA operational safety Audit (IOSA)

 Civil aviation authority Of Pakistan (in accordance with the international
civil Aviation organizations standard

 Positioning By Price And Services

PIA has cost advantage. So they also offer lower priced RBDs and provide the
best services to their customers as compared to their competitors.

 Introduction Of Additional Low Cost Flights

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.

20
2.6 Branding [3]
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 provides the legal protection.
Branding
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
minimize.
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.
 Sponership .Set Packages. Like give shirts with PIA logo.

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

21
 2.7 Marketing Mix of PIAC [4]

Figure 3

Intangibility Inseparability
Care Information
Internal Satisfaction Experience
Safety

Service
s
of PIA

Variability Parish ability

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

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.
Product
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
Aircraft Seats for passengers
Aircraft space for cargo.

22
Services are not owned by some one .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,
Inseparability
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.
Variability
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 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.
Intangibility
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
analyzed evidence of the service quality, by price, by compare it with competitors
services.

23
Perishability
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.
Price
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 effectively.
Revenue Tickets
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 analyzing 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 dose not offer any off any discounts .But to promote the Sales
the PIA allows its agents to give discount offers to its customers.

24
Promotion
PIA done promotion by giving different packages, offers to customers. Like
Students got 10 % discounts individually.
If group is more 10 persons then discounts is 25 %.
Handicapped [people got 50 % discounts
Infant got 75 % discounts
Children mostly 67 % and in some country 50 % depend upon rules and
destination.
50 % discounts to Army, Blinds, and Journalist.
It promote by using different Medias like
Through Advertisement
PIA gives ads on TV and Fm radio. And also on different websites.
Through Print Media
Through its puflets, through broachers, on news paper etc.

25
2.8 Competitors [3]

Domestically. Saheen, Air Blue Air lines.

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

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.

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 air line 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.
Market Share of PIA
PIA has 65 % market share at domestic level and 48.4% at international level
PIA has competitive move in Pakistan as it is market leader in Pakistan.

26
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 then
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 then 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.
International Competitors
At international level PIA has flowing competitors
Singapore airlines, Thad Airways, Qatar airlines, Thai airlines.

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, SB months of May, June, July 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.
Discounts Offers to Students at International Sectors
Students got 10 % discounts individually.
If group is more 10 persons then discounts is 25 %.
Pick and Drop Services
PIA also provides the free pick and drop services to customers. But this offer is
only present for Business class.

27
International Services [2]
Figure 4

28
29
 Domestic Services [2]
Figure 5

30
31
Chapter No 3

32
 3.1 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.
Economical 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,
fulfill their needs, to gain more market share effective and efficient strategies
should be made.

Figure 6

MarketingDepartment
Marketing Department

PassengersSales
Passengers SalesDepartment
Department

CargoSales
Cargo SalesDepartment
Department

Ticketingand
Ticketing andReservations
Reservations

ToursPromotion
Tours Promotion

33
 i
3.2 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
Manager

Assistant Passenger
Sales manager

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

34
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.
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 IATA

35
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 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
Theses 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

SPA
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.
Poration
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 airline.

36
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 & tariffs.
 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.

Functions Of Marketing Department

There are many functions performed by the marketing department, some of them
are the following:
 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 analyzed weather they
achieve their monthly target or not.
 By analyze the marketing plan; marketing strategies of last year company
formulate the strategies for the next year. They make amendments in
strategies if strategies do not work properly.
 District activity report about previous months performances are prepared
by the both marketing and cargo department.

37
  Finally reports send to Karachi to tell them about the progress.

3.2.1 Learning as Internee

 SPO Mr.Asad give me task to collect the sales report of different agencies
like travel wings, fist international travels, state travels for month of April,
May.2010 and collect their sales in different sectors like USA.Uk, Gulf,
Saudi Arabia.
 Mr. Asad also gives me assignment to find out the problem in marketing
department and give recommendations.
 Task given to me of stock evaluation. by seen the total documents also
called tickets divided them by their value plus their bank guarantee we can
find that how much amount they can pay and how much we can issue the
stock to them.
Like
Required documents = 178
Value = 5.568
Bang guarantee = 4 lace = 8 lace

3.2.2 Accomplishments
I calculate the sales record and provide the information to Mr.Asad. This will help
the SPO to know about the current position of agents. That in which sector they
are leading and in which more focused is necessary. so by analyze this they can
promote the sales.
I complete this task. And point out the problems and give recommendations.
Which are given below .and after that discussed with Mr.Asad.

38
3.2.3 Problems in Marketing Department

Problems Faced By the Agents

 1st and basic problems I observed after observe and discussion is that
agents have problems of capping. Regarding to this problem they want to
get documents on a single email instead to send a draft.
 According to Agents they are not deal well with senior sales officers.
 They also complained that they did not get stock according to their
requirements.
 The major problem they observed is that is seat reservation. Some time
passengers not get proper information about charges charged when they
return or cancel the ticket.
Problems Faced By Passenger Sales Officers
 Sales promotion officer mostly have to issue documents on credit bases to
agents due too increase their sales.
 They should have a data base system on which Analysis of direct sales
should be done through software’s .there is lack of that system for reason
they have to perform this task manually.

Recommendations

 Agents should be motivated and meetings should be conducted with them

on daily basis.
 They should be convinced properly about the issuance of capping on
draft. Because it will be legally, verbally, and nonverbally is save way .trust
worthiness of company on agents and itself for company will be increase
and safe.

39
  They should be restriction that agents will get leverage on a certain point
further they have to pay their all credits and then will get stock. Company
should strictly follow to rule in this way agents will know that they have to
submit all dues then they will get stocks. Risks for all SPO’s will also be
decrease in this way.
 Their should be a proper manual and emailing system. So that agents will
able to get up to date information about changes in service charges and
refund percentage on canceling refund and changing of tickets. This will
be lead to less exotic from agents and customers.
 Problem of seat reservation should be solved. So that the problem of
agents and passengers should be solved properly.

Problems Encountered

As related to whole marketing staff whole were very cooperative. There was such
as no any problem which I faced within marketing department. But by visit the
different agencies they were reluctant to provide information. Due to above
mentioned problems of agents they was not ready to cooperate well.
As by work in passenger sales department I come to know about dealings with
customers and different agencies.

40
 ii
3.3 Cargo Sales Department

Air cargo business is developing at a speed which is threatening to all other

modes of cargo movement e.g. rail, road and sea. This is not to suggest that in
near or even in the distance future any of these cargo modes would be totally
eliminated but the air mode is definitely destined to unimaginable heights of
growth in future. The primary reason being speeded a vital element of business
environment today and surely to be progressively a more important factor in the
international trade tomorrow.
Where as air cargo has now been an old time business in developing countries
any significant development in Pakistan was not felt until the late 50s a limited
scale commodity movement between the two wings of Pakistan east and West
Pakistan, was perhaps only cargo business activity. There was only one cargo
agent until late 60s. a total of 5000 tons of cargo was booked at all airports in
Pakistan in 1962 50% of this volume of this cargo was carried on domestic
routes. How ever as far as PIA is concerned, major portion of cargo activity was
still confined to domestic movement
The marketing in this section is done in a similar way as it is done in marketing of
a products or selling of tickets .customers made contact with agents for their
luggage then agents approaches to sales promotion officer in cargo
department for space and then Officers provide them space according to
availability of space . In this case the product is (space). So we can say that
this division sells the space in the aircraft. The reservation of space is done in the
same way as done in the case of booking of passenger accommodation on a

41
particular flight .those items are not booked which are declare as banned items
by IATA.
The products are packed in pallets the capacity of one pallet is 2.5 tons and the
capacity of that container in which they are packed is 800 kg to 1 ton. These
containers are shifted to available cargo space on the air craft with the help of
most modern equipments. These are fixed by IATA and these rates vary from
commodity to commodity and product to product there is little exception for
charging of freight which are valuable like gold, diamonds and other precious
items are charge 150% above the normal rates plus some other charges dead
bodies are charge on normal charges.
By cargo PIA is earning 12 to 15% of revenue. It is also course of increasing
exports PIA has been arranging meeting with foreign importers and Pakistani
importers in an attempt to promote export from the country.
The PIA management at its heights level sets a certain targets for cargo
revenue. The targets are fully discussed with cargo division's team and other
professionals then the target is accepted and practical steps are taken for their
accomplishment. PIA has achieve, maximum benefits from cargo division. The
major items airlifted by PIA are carpets, handicrafts, surgical instruments,
sports goods, sheep-casing / skin, leather goods and textiles, particularly
readymade garments. During 1983 first time PIA freighters uplifted 25000
sheep and goats, sacrificed at Mina during Hajj and donated to the Afghan
refugees in Peshawar and Quetta by Saudi Arabia.
The airline has been carrying out market survey for Pakistani product abroad and
reporting its findings to Pakistan exporters. The exports are mainly to Europe, the
Far East, Gulf, Saudi Arabia and Africa.
Now PIA cargo division has computerized system and This system will tell at
which particular station PIA can pick up cargo and at which place will bring PIA
more revenue.
It is an integral part of the air line operation and a major contribution to its
revenue. Up until the 1960`s there was only one cargo agent in the whole country
and he mainly handle the domestic cargo. But now there are large number of

42
cargo agents in the whole country and these agents handle the domestic cargo.
In Cargo sales the deals is done by the IATA agent’s only .not any PSA’s is
involved in it. In Lahore IATA cargo agents are 53.
The commission which is paid to agents is 5% by PIA .while as compared to
passenger sales department agents charge directly to customers PIA does not
pay to them. [5]
 Types Of Cargo Sales
1. Perishable goods
These are those goods which are not used for long time. Their shelf life time is
low. Like meat, fruits, vegetables.
2 Courier Goods
Link with different courier companies like DHL to take their couriers.
3 Dry Goods
Leather, fabrics etc included.
4 Except these different animals is also send by cargo.
5 Dead bodies are sending by cargo department free of cost.
6 Dangerous products like Gases (Co2, No2, etc) weapons placed at
different places then the other goods and will charge different charges.
Air Way Bill
Cargo department use airway bill as passenger’s sales department used
documents to issue their agents and passengers. This bill contains all information
about the consigner, consignee, shipper name, commodities, charges, taxes,
date of arrival and issuance. AIR WAY Bill which work domestically it consist of
4 copies
1. Accounts Copy
2. For issuance Office
3. Delivery Copy
4. Shipper Copy
CRC
Commercially Related Charges. These are charged according to Per KG, or Per
Kilo. Charges mostly included Fuel rate, Scanning Rates customs rates etc.

43
These charges are prepaid mean have to pay 1st than transaction will be done
.and mentioned on Airway Bill. This bill is issued by PIA to agents and then
agents will charge this from customers.
Indemnity Bound
This is an agreement that PIA will not liable for the goods if destroy and lost .will
only pay according to terms.
System Used By Cargo Department
PIA Cargo sales department and their agents used the same saber system for
operating their dealings .but agents system is of different version than
department and they are provided by less facility due to security charges.
Manifest Sheet
That’s sheet contain the hole information about flight number, their luggage,
palates, containers, from which city it will contain and also its placement. Etc.
Luggage should be on airport atleats before 6 hrs from loading.

iii
3.3.1 Cargo Dealings at Terminal

 Export Department
 Domestic Cargo.
 Space Control Department
 Import Department.

Export Department

Here observe and examined all system I come to know about all procedure
involve from entrance of cargo at export department until to load in aircraft. Like
entrance of cargo their scanning process, custom checking, narcotics checking,
custom clearance. And also how export senior officer deal with agents and check
all working.

44
Seasonality factors
 Lower season price
From Jan to April its slack season and that time price will low.
 Higher Season price
From May to Mid September its higher season and at that time they charge
higher prices. And in higher season dry cargo became low.

Domestic Cargo
This department is working exactly as Export department with a little
difference .Custom clearance system is not exist here in spite of it here security
clearance system is present.
Booking Department
This department in which airway bills are issued for domestically move.
Charges Domestically Charged
 Freight Charges
 Central excise duty charges
 Air Way Bill fees
 Tool price per kilo Scanning charges
 3 Rupees per kilo Fuel Charges.
Air way bill fees domestically charged is 100 and at international export it is
1200 Rs.

Space Control Department

Major function of that department was to balance cargo in Aircraft.

They manage the space among total cargo .on which bases they give priorities to
cargo. According to him they prefer more perishable goods like fruits, meat, etc.
they also told us they have direct contact with trim member who told how much
luggage will go in that air craft. And mostly they contact through telephone.
We also come to know that they do personnel contact with persons if they did not
come to carry luggage.

45
Import Department

Major commodities which they deal are

 Pharmaceuticals
 Seeds
 Machinery,
 Generator,
 Medicine
 Weapons
Their peak season is till at the end of new existing budget. And officer also told
us that things which are labeled by MADE IN INDIA are totally banned.
In this department the duty of PIA is to take cargo from aircraft to enter in
warehouse to custom they examined all cargo is reached according to need.
Then they hand over it to Custom .Then if custom will clear then it will hand over
to agents.

3.3.2 Problems

The major problem of PIA cargo is that they do not have any freighters till 2008
Turkish MNG freighter was used. But after that it was stopped to use. The main
reason was that it was costly to manage.

3.3.4 Solutions
The one way to avail the facility of freighters is the aircraft those have been out of
phase should have repair and used for this purpose .An alternative which can be
used is that they can get on leverage .But main problems in this case is that than
we have to bound in t that country regarding to routes and their country polices .If
the problem of freighters became solved then the problems which they faced by
ignoring the other cargo in peak season of mango will solved and all commodities
will carry equally in all season.

46
3.3.5 Learning as Internee

In cargo department I was not assigned any special task. I was just to observe
the all dealings of cargo SPo’s with agent’s .I come to know about different
documents used for go ahead for carry a order at town office and terminal both.
3.3.6 Accomplishments
All documentation which examined at town office see their implementation at
Airport. And all information gain from different Cargo SPo’s at town office
operational implementation at cargo section at airport.
Problems
There was also not any special problem faced .Just one is that during my
reporting at airport there was very low operational working. As there was not any
export and import goods especially on day time. That’s why was not able to gain
much knowledge about proper working.

47
Figure 7[5]

48
Figure 8[5]

49
 iv
3.4 Ticketing and Reservation Department
3.4.1 Introduction

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 corporation.

3.4.2 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.

v
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.

50
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.

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.
If group is more 10 persons then discounts is 25 %.
Handicapped [people got 50 % discounts
Infant got 75 % discounts
Children mostly 67 % and in some country 50 % depend upon rules and
destination.
50 % discounts to Army, Blinds, and Journalist.

51
International Reservations Counter

International counters deal their tickets and reservations for foreign countries
like ,London ,Saudi, Manchester ,UK.so, USA etc.
For their procedures they required essentials, like visa passport photocopies.
Basic function is to fulfill the requirements of customers or passengers and to
satisfy their needs and queries. To satisfy them if they have any problem and
provide them space as they want.
And for international travel students are mostly reserved in Tome class the
reason is that the students are already getting discounts and lower classes them
TOMI have also cheapest rates.
Domestically and international counters both have the record of their documents
included virtual coupon record, audit copy of payment.
Virtual coupon record contain all the information about passengers name, routes,
charges which take from passengers for cancellation or changes in traveling date
or routes. It also contain information that why ticket reissued.
Both counters used the Saber system for operation. And they used different
commands for their work like
+PQS for Fair Feed
+MCR miscellaneous charges orders for Excess Baggage
+ Dc+ SARJ used for Change Currency
+EAU mean passport of mother and infant babies will be together until 12
years of infant.
+COB for change of booking
+ No ADC means no additional changes
+ROF rate of change on which ticket is changed
+VCR # ITTN # RCPT used for command to printer
SS means for only sale
It means that the ticket is only sold and do not have any confirmation.
HK means holding confirms
It means that the ticket is only holding confirm.

52
RR means reconfirm
It means that the ticket has become reconfirm.

3.4.3 Duties
At Ticketing and reservation department I was assigned task to gain knowledge
about making procedure of tickets on systems for domestic and international
both.
My duty was to learn about documents necessary for making tickets.
3.4.4 Accomplishments
During my two week work in that department I learn about different commands
used on system for making, reissuance or for changing in tickets. Which I
mentioned above.
I come to know about different documents like passport, visa, ID card, VCR. Etc
3.4.5 Problems Encountered
Staff at ticketing and reservation was reluctant to provide information about the
commands and other information. Because staff was not complete for their duty
and those who were present was busy in their dealings that they don’t have
much time to provide information.

3.5 Award Plusvi

PIA brings its upgrade Frequent Flyer programmed with a variety exciting
rewards awaiting for passengers. As esteemed members they will not only enjoy

53
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. [6]

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 plus.

3.5.1 Problems
Basic problems which customers faced are the service time .They has to wait for
along time in the lounges for booking and reservation and issuance of tickets.
And some time they also not properly told about packages and discounts.

3.5.2 Recommendations
Their should be enough staff members on counters to deals with customers on
spot and easily. And passengers should also provide with proper information
about offers and discounts.

vii
3.6 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

54
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 outside the Pakistan.
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
economical 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 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.

55
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 analyze 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 level.
 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 out side the Pakistan.
3.6.1 Problems
As this is also done by some agents who promote the groups for tours within
Pakistan and out side the Pakistan. some time due to in availability of space they
face problems.
Responsibility of Manager of Tours and Promotion
They make possible availability of space to groups. Give special discounts and
special treatment to their loyal customer’s .And in case customers do not operate
with them they remind them time to time for their reservations.

viii
3.7 Human Resource Department
3.7.1 Introduction

56
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. Administration/Human
Resource Management is one of the most complex and challenging fields of
endeavor.

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.

3.7.2 Organogram –HR & Admisistration lahore

57
 Figure 9
Dy.
General
Manager
PG-IX

Office
Staff Attenda
Officer nt

Sr.HR. Sr. Sr.Welfare

HR HR- Canteen
Manage Officer Manager Officer Officer
PG-VI PG-VII PG-VI PG-VI
r

Sr.HR HR. Sr.HR Sr.HR

HR.
Officer Office
Officer Officers Officer Officer
Pax Services
PG-VI Finanace Marketing.
PG-V PG-VI PG-V
Handling
PG-VI
PG-V

Sr.HR HR HR.Officer Sr.HR

Sr.FLT Officer .Officer. Pax .Officer Sr.HR
Ops Cargo & Diary & handling TGS Officer
PG-VI security
PG-VI
Dispatch
PG-V
Services
PG-V
Catering
PG-V
PG-VI

Sr.HR.
Officer
Engineering
PG-V

ix
Functions
Main Steps are

 Recruitment

58
  Placement, Selection and Place.
 Training & development
 Compensation
 Employees relation
 CBA

Functions of Administration Department

 Administration department form organization rules, procedures, and

functions and manage the human resources. This department also involve
in structuring of individuals.
 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 determined the interrelationship of
various functions .And also how these functions will be carry out through
techniques and process.
 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.
 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 supplies.
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

59
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 1 st day
of their job they are given a 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.

Recommendations

60
Decentralization
PIA should change its organization structure. It should be decentralized. This
decentralization will help to increased motivation, resolution of conflicts among
management and employees, easy access to information, and easy
management. Issues related to employee’s behavior will be lesson; as a result
the satisfaction level of employees will increase and ultimately out put of
organization will increase.

Employee Empowerment
To increase the employees satisfaction and motivation level they should be
involved in decision making process.PIA should empower the employees to take
decision on spot. As a result the employees independently discuss the issues
without hesitation.
Employee’s empowerment will enhance the work commitment and dedication of
employees towards their task.
There should be proper check and balance on employees to ensure that they are
doing the correct use of their power. In this way transparency in activities will
increase.

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3.8 Experience
Overall experience in PIA was very good .As I come to know about the functions
and operational working of international organization .That how international
organizations promote their sales, satisfy customers, give them values and also
come to know about their strategies to deal in market and also against their
competitors my experience will help me to utilize my knowledge, information and
experience in organization specially in international company.

62
Electronic Links
1 http://www.historyofpia.com/tr.htm
Back Ground.
1 www.Piac.com.pk
Vision and Mission Statement
1 http://en.wikipedia.org/wiki/Pakistan_International_Airlines
Back ground and introduction
3 http://www.scribd.com/doc/33497572/Strategic-Analysis-of-PIA
Marketing strategies, Segmentation Criteria,
3 http://amcy5.com/Reports/internship/amcy34.htm
Positioning, Branding.
5 http://www.piac.com.pk/pk/PIA-cargo/pia_Cargo_about.asp
Background of cargo
5 http://www.piac.com.pk/pk/PIA_Cargo/PIa-ProdnSvc.asp
6 www.piaawards.com
2 M,mubashar alim .competitive strategies.
4 Gafoor, Ali .marketing.

63
Footnotes

64
 i
Passenger Sales Department
Mr.Asad Gori, Passenger Sales Manager (PSM)
Dr.Muqadam, Assistant Passenger Sales Manager. (APSM)
Amjad Mehmood, Senior sales promotion officer.(SPO)
Ms Sajida, Sales promotion officer.(SPO)
Mr. Asad Salhudin, sales promotion officer (SPO).
Mr.Zaman Khan, who is connected with corporate sales.
Mr.Baber Baig, senior sales promotion officer.(SPO)

ii. Cargo Sales Department

Mr.Nauman Cargo Sales Manager

ii
Mr. Bilal Dar Sales Promotion Officer
Mr.Abdual Rauf Minhas Sales Promotion Officer.
Mr.Sahzad Sales Promotion Officer
Ms.Hina Sales promotion Officer

iii
Cargo Dealings At Terminal

Mr.Mehmood Hussain, Cargo Terminal Manager(CTM). ..

Yakoob Malik, Senior cargo Officer
Khalid Yaseen, Senior Terminal officer
Muhammad Riaz, Senior Control Space Officer
Anwar Sayadein, Assisstant Of domestic Cargo Manager

iv

iv. Domestic Reservation

v
Ms.Shazia, Supvisor at domestic reservation
Mr.Bilal, Senior Supervisor at domestic reservation counter

v.
Mr.Mujhaid Chaudhray, Senior supervisor in domestic reservation
 vi
Award plus
Ms.Saima, Senior Officer in Award Plus
Mr.Khalid, Senior officer In Award Plus

vii

vii. Tours And Promotion

Mr.Umer Groya, .Assistant Manager Tours And Promotions.

viii

ix
HRM
Mr.Salim-UL-Haq, Deputy General Manager Of HR

ix.
Mr.Abdul Rauf, HR.Manager

Glossary
PSA . Passenger Sales Agent
IATA Agencies
International Air Travel Agents they work on international faces.
APSO. Assistant Passengers Sales Manager .
SPO
Sales Promotion Officers .
SPA
Special Prorate Agreement.
PNR
Passenger Name Record. A record of each passenger travel requirement, which contain
all information necessary to enable reservation to be processed and controlled by booking
airline and airline participating in carriage.
Electronic ticketing
A method of document the sale of transportation and related services with out requiring the
issuance of paper value document.
GSA
General Sales Agent.
OSA.
Open Sky Allowances. Is this strategy the small countries allow other airlines to come and
use their sky to take customers.

CRC
Commercially Related Charges.