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

10

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.

13

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

15

Hierarchy of finance department

16

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

26

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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.

31

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.