Download - PIA (Pakistan Jnternational Airlines)
Topic:
Group Members:
Mubashar Maqbool 32
Shazma Rauf 14
Umair Aamir 36
Qadir Abbas 39
M.Zafar Hayat 12-20
Table of Contents
Introduction of organization
Mission & Vision
Products and services
Organizational Structure
Departments of PIA
Crisis of PIA
Reasons for collapses
Recommendations
In 1946 M. Ali Jinnah realize the need of airline with the help of industrialist Mirza Ahmad.
1947 granted a license to PIA.
First flight from Karachi to Dhaka on 7 June 1954.
In 1955 Orient airways merged
with Govt proposed airline
and become PIA
Corporation.
In 1960 PIA become first Asian airline to use Jet aircrafts.
In 1961 services begun to New York airport.
In 1964 first flight to Republic of China.
In 1970 find new destination due to war of 1971.
In 1974 provide Air freight services.
In 1975 introduce Uniform for airhostess designed by Sir Hardy Amies.
In 1980 open cargo center in Karachi.
In 1981 offer duty free sale services.
Vision and MissionVISION
PIA’s vision is to be world class airline exceeding customer expectations through dedicated employees, committed to excellence, innovation products and absolute safety.
MISSION• PIAC’s mission statement as follows:• Employee teams will contribute towards making PIA a global airline of choice
through• Offering quality customer service and innovation products.• Using state of the art technologies.• Ensuring cost effective measures in procurement and operations.• Development safety culture.
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Nasser N S JafferMember, PIA Board of Directors
Chariman , PIA
Ghiasuddin AhmedMember, PIA Board of Directors
Member of PIA Board′s Audit Committee, Board′s Human Resource & Remuneration Committee and Board′s Customer Services Committee
National flag tail introduced by PIA
Pakistan International Airlines Corporation (PIAC) is majority owned by the Government of Pakistan (87%) and (13%) by private shareholders.
Main bases Jinnah International Airport, Karachi.
Allama Iqbal International Airport, Lahore.
Islamabad International Airport.
Secondary bases Peshawar International Airport
Faisalabad International Airport
Quetta International Airport
Multan International Airport
PIA Fleet:
6 x ATR 42-500
9 x Airbus A310-300
3 x Airbus A320-200
1 x Boeing 747-300
4 x Boeing 777-200ER
2 x Boeing 777-200LR
3 x Boeing 777-300ER
Domestic Route Network
BahawalpurFaisalabadHyderabadIslamabadKarachiLahoreMultanNawabshahPeshawarQuetta Rahim Yar KhanSialkot
International Route Network
London
Paris
New York
Chicago
Dubai
Jeddah
Kuwait
Medina
PIA-ACT
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ORGANIZATION HIERARCHY
H u m an R esou rc es C orp ora te P lan n in g
F lig h t O p era tion s M ark e tin g
A irp ort S ervices F in an ce
F lig h t S e rvices F in an c ia l m on ito rin g an d A p p ra is a l
W ork S to re P u rch as es
In fo rm a tion Tech n o log y E n g in eerin g
Q u a lity A ss u ran c e C oord in a tion
P res ic ion E n g in ee rin g G en era l S e rvic es
C h a irm an /C E O
B oard o f D irec to rs
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Departments in PIAC
Marketing and sale promotion
Finance
Human resource
Cargo
Information technology
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Marketing department
Marketing departments at PIAC are generally directly under control of
SVP and administratively under the control of district manger.
The SVP marketing at head office advices the managing director (MD) on
the development of corporate plans and long term strategic gains from this
department.
Marketing department of PIAC divided into two sections name
as
Passenger section
Cargo section
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Marketing department
Passenger sale section further divided into two section name as :
Passenger sale section
Passenger service section
The Passenger Sales Manager (PSM) who is assisted by four
Sales Promotion Officers (SPO) and one Assistant Passenger
Sales Manager heads the PAX (Passenger) Sales Section.
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Finance Department in PIAC
It is headed by director of finance (CFO).
It is also responsible for internal audit of PIAC.
The duties and functions of a typical finance department can be classified into
two generic categories:
Planning
Controlling.
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Revenue accounting
General accounting
Budget and financial management
Fund management
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Hierarchy of finance department
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Sections of Finance Department Revenue section
Disbursement section
Agency section
Pay roll section
Reconciliation section
Miscellaneous transaction section
Refund section
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Human resource department
Human resource management
legal
Works and project
Medical
Organization development
Industrial relation
These six divisions are headed by human resource director.
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Cargo Department Pakistan international airline corporation provides domestic and
internationals cargo services to customers.
Share of domestic business is only 5% and international cargo
share is 95% of total cargo share.
Cargo has main stake in whole revenue of PIAC is 15% of total.
There are two sections in cargo department Cargo sale
Cargo handling
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Information Technology Department The role of this department is confined to the problems related to the computers and communication in the airport and offices of PIA as well
Two software’s are used for this purpose: SABRE”, software, is used for Ticketing and Reservation “AVIVA”, software, is used for cargo purpose
Wireless net is connected in the following routes: From Airport to I.T Room From Airport to Cargo From Airport to Engineering From Airport to Store
Failures in PIAC During the last year Pakistan International Airlines (PIA) has stained a loss
of PKR13.4 billion ($207.5 million).
Operationally, it was also blacklisted by the European Union during the year,
which hit its bottom line along with its prestige
During the last four years the company has beard the accumulated loss
in excess of 30 billion rupees, while its total debt is almost reaching 1 billion $.
PIA has lost its market share in domestic airline market, which has dropped to
69 % .
Market share in the international market dropped from 48 to 43 %.
PIA is currently facing a loss of approximately 40 million/day.
Reasons for Failures
Leadership and decision making in PIAC
Delegation Of tasks
Power and Politics
Employee Attitude
Over recruitment
De-motivated employees
Nepotism and Political involvement during recruitment and selection
Lapses in the management
Reasons for Failures Low scale advertisements and awareness
Government’s and Civil Aviation authority’ policies
Rising fuel prices in the World
Aged fleet
Maintenance problems
Corruption at its peak
Less technology advanced as compared to its competitors
Poor image
Lack of training facilities
Culture
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Recommendations PIA should decentralize its structure
PIA should convert its different departments into Strategic Business Unit.
PIA should adopt transparent policy that employees should be promoted on
merit basis.
Chairman of PIA should be appointed from within the organization.
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.
PIA should purchase new fleets.
PIA should reduce its overhead cost by immediate downsizing.
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Recommendations PIA should make a proper check and balance system on its employee’s performance.
To motivate the front line employees because they have direct relation with the customers.
Latest technology should be adopted for its operating system and different software must
be used in different departments.
Total quality management should be catered to within the work groups and implementation
of various skill enhancement programs for quality and productivity improvements.
Autocratic Style must be changed to Participative Leadership.
Minimal Delegation of authority should be maximized.
Top-down approach should be replaced with two-way communications.