PIA Final

INSTITUTE OF BANKING & FINANCE
BZU
Internship Report
On
By
HIJAB RIAZ
MBH-14 -42
MBA (HRM) 5th semester
BZUG & FIN
2
PIA Internship report 2016
EXECUTIVE SUMMARY
Pakistan International Airline is a very large organization having its
operations not only within the country but also abroad. PIA is a service
providing organization, its main business is of transportation of Passengers
and Cargo in its network all over the world.
My internship Report starts with PIAs introduction and also its brief history.
Various departments of PIA are also discussed in detail in the report e.g.
Marketing,
Human
Resource/personnel,
Information technology, Speedex.
finance,
Engineering,
In my six weeks of internship program I learnt many things regarding

practical work and the official environment of PIAC. I also worked in the HR
department and learnt there working procedures.
PIA is a very big organization and the work is very much segregated and
complex in the departments. The use of Sabre, Popis, TMS, and Cossap make
the work much easier for the organization.
I also observed many problems in the organization and in the end gave some
recommendation to improve the performance of the organization.
ACKNOWLEDGEMENT
All the praises are for the Almighty, Allah who bestowed me with the ability
and potential to complete this Internship. I also pay my gratitude to the
Almighty for enabling me to complete this Internship Report within due
course of time.
3
I take this opportunity to record my deep sense of gratitude and appreciation
to my Internship Advisor Dr. Imran Hanif, Institute of Banking & Finance,
BZU for his constant encouragement and inspiring guidance with his
Wisdom.
I also appreciate the cordial co-operation from all my concern Managers in
the different departments of PIA for providing me required information and
knowledge for compilation of my complete Internship.
INTRODUCTION
Key People:
Muhammad Azam Saigol (Chairman),

Bernd Hildenbrand (CEO).
Mirza Ahmad Ispahani (first chairman of PIA).
Headquarters:
Slogan:
Jinnah International Airport Karachi, Pakistan.

Great People to Fly With
4
Pakistan International Airlines (PIA) was formed in 1955. It is the national flag
carrier and a state-owned enterprise of the Government of Pakistan, based in
Karachi. It is the 16th largest airline in Asia. PIA flights were operating to 49
destinations including 27 international and 22 domestic, in 28 countries,
throughout Asia, the Middle East, Europe and North America. It operates
nearly 100 flights daily.
PIACL is majority owned by the Government of Pakistan (87%) while the
remainder (13%) by private shareholders. PIA fleet consisted of 38 aircrafts.
Currently PIA permanent staff strength is 14,317.
Its primary bases are:
Jinnah International Airport, Karachi.
Allama Iqbal International Airport, Lahore.
Benazir Bhutto International Airport, Islamabad.

Its secondary bases are:
Multan International Airport.
Faisalabad International Airport.
Quetta International Airport.
Peshawar International Airport.
5
Background/ History:
On 23rd October 1946, a national airline was born as Orient Airways Ltd in
Calcutta, and obtained the operating license in May 1947. Within two months
of Orient Airways operational beginnings, Pakistan was born.
As Orient Airways was a privately owned company, with limited capital and
resources, 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 named, Pakistan International Airlines (PIA) on
January 10, 1955.
PIA, during its six decades of existence, has achieved many historic firsts.
6
PIA
PIA is the first airline from a Muslim country to fly the super
was
the
constellation.
first
Asian
Airline
to
introduce
jet
aircraft.
7
In 1962, PIA broke the record for the fastest flight between London and
Karachi.
8
PIA was the first airline in the world to operate a scheduled helicopter
service
as
well
to
start
an
Air
Safari
with
jet
aircraft.
In 1964, PIA earned the distinction of becoming the first airline from a
non-communist country to fly into the Peoples Republic of China.
9
The first airline in Asia to operate the Boeing 707-321 aircraft.
10
The first Airline in Asia to operate the Boeing 737-300 aircrafts.
An IBM 1401, the first computer in Pakistan, was installed in PIA.
First airline to show in-flight movies on international routes.
The first airline in South Asia to introduce auto-ticketing facility.
First airline in the South East region to offer seat reservations through
mobile communications.
First airline in Pakistan to operate a flight with an all female crew at

command and serving in the cabin.
11
In the 70s, PIA set up its own Flight Kitchen in Karachi, which today provides
catering services to the national airline as well as other carriers.
In the 80s, along with the automation of budget, finance, revenue and other
important areas, PIA set up the first ever Planetarium of Pakistan at
Karachi.
During the 90s PIAs era of growth and development continued unabated as
the
airline
operated
globally
covering
the
domestic
landscape
and
international destinations spread over 4 continents.

Despite wars and economic trouble, the carrier survived to grow and prosper.
Today it maintains a sizeable international route network, in addition to its
services closer to home, with a modern and expanding fleet.
Vision:
12
PIAs vision is to be a world class airline exceeding customer expectations
through dedicated employees, committed to excellence.
Mission:
Employee teams will contribute towards making PIA a global airline of choice;
By Offering quality customer services and innovative products.
Participating in global alliances.
Using state-of-the-art technologies.
Ensuring cost effective measures in procurement and operations.
Developing safety culture.
PIAs Network:
PIAs vast network spans the globe, covering all the major cities of Pakistan
and a host of international destinations.
International network
Domestic network.
Core Values:
Customer expectations
13
Service
Innovation
Cohesiveness
Integrity
Reliability
Safety
Products and Services of PIA:

The product that PIA offers is the transportation routes for passengers (seats)
and for cargo (space).
Fleets:
PIAs 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 worlds preferred Boeing 777 airline to the supper-quite
Airbus A-310.
As of August 2016 the Pakistan International Airlines fleet consists of the
following 38 aircrafts.
Airbus A310-300
14
Total: 4
Its a medium to long range wide-body airplane.
Airbus A320 family

Total: 11
The narrow-body short/medium haul jet airplane.
ATR 42
Total: 6
15
ATR 72
Total: 5
They
are
twin-turboprop,
short-haul
regional
airliners
Boeing 777-200ER
Of United Airlines, the launch customer of the
Boeing 777
Total: 6
Boeing 777-200LR
16
Total: 2
Boeing 777-300ER
Total: 3
Boeing 787 Dream liner
Wide body twin-engine jet Airliner

Delivery from June, 2017
Services:
Cabin:
For Domestic routes PIA operates the three-class configuration:
17
Business class
Economy plus+
Economy
For International routes PIA operates the two-class configuration:
Business class
Economy class
PIA business passengers are offered lie-flat bed seats on all Boeing 777 as
well as selected Airbus A310 aircraft.
In economy class, all passengers on the Boeing 777 are offered seats with
31-inch legroom and personal entertainment screens.
In-flight magazine:
The PIA in-flight magazine, Hamsafer, is provided to all passengers on all
flights, hamsafer was introduced was introduced in 1980.
Frequent flyer program:

PIA Awards plus+ is the frequent flyer programme. The program allows
passengers to get free tickets, excess baggage vouchers, cabin upgrades,
and a variety of rewards, special deals, and discounts with participants.
Awards plus miles can be earned by flying PIA, and by using its products and
services.
18
Catering:
PIA runs two modern well-equipped Flight Kitchens in Karachi and Islamabad
that serves to more than 15,000 passengers every day. PIA catering is the
main suppliers of meals for the Airline.
PIA Premier:
PIA Premier was launched as a luxury air service on 14 August, 2016.
On board while the flat beds invite you to stretch
out and snooze, our innumerable entertainment
channels tempt you to stay awake.
Be spoilt for choices as you fly non-stop to London and soon to other
destinations.
Hajj and Umrah services:

PIA operates a two-month (pre and post) Hajj operation each year to and
from Jeddah and Madinah. PIA transports thousands of pilgrims each year,
from several Pakistani cities to the kingdom of Saudia Arabia, at special
rates.
Other services include:
Passenger handling and Technical handling services to other
19
Hotels
Aviation Training Services
Mail services
Cargo services
Group Tours and Charters
Travel airline services
Organizational culture:
In PIA delegation of authority is limited due to centralized decision making.
The authorities reserve the right to make decisions in board meeting or we
can say that only top level management can make decisions in Board
meetings.
PIA believes in team work only in the implementation of decisions made by
the upper management. There is a long chain of command. They highly focus
on the expectations and satisfaction of their customers.
Organogram/ Hierarchy:
20
The organogram of the organization follows, with the Chairman (AZAM
SEGAL) at the top and directors of departments reporting to him. The
structure is centralized with the top-level management making the decisions.
After the highest authority of chairman there is a Managing Director who
manages the organizational operations. Under his supervision there is a
Deputy Managing Director.
The Airline is managed by managing director as well as the Board of
Directors. The Board consists of nine independent non-executive members
and has four sub committees;
An audit committee,
Brand and advisor committee,
Finance committee,
Human resource committee.
The Managing Director leads the executive management of staff into run the
airline.
DEPARTMENTS
Departmental operations are running by directors .
DIVISIONS
The departments are dispersed into different Divisions which are

authorized by General Managers.
21
SECTIONS
Divisions are consists of Sections running by Deputy General

Managers
UNITS
Sections contains Units running by Managers
CELLS
These units further divided into Cells running by Assistant

Managers
Departments of PIA:
PIA has been divided into the following departments:1. Marketing
2. Human Resource/personnel
3. Finance
4. Engineering
5. Information technology
6. Speedex/Cargo sales and services
7. PIA Training center
22
8. Flight Operations
9. Airport Services
Marketing Department:
The marketing department is the main department which undertakes the:
Sales promotion
Reservation
Cargo
Award plus
Direct marketing tools using by PIA:
Personalization
Umrah made easier
PIA flexible fares-Plan Ahead & Pay less
23
Fly Business class with free tickets
24
Discount to students
25
26
Finance Department:
PIA basically deals with two things which are as follows:
Transportation of commodities which is done through cargo

Providing flight services to the passengers
The revenue generated by all these operations as well as other financial

matters are handled by finance department.
The finance department consists of the following sections:
Revenue section
Refund section
Pay roll
Credit control
Disbursement section
Reconciliation department
Revenue section:
In the revenue section basically the summary of the sales agents reports is
made and the cost is put in the respective heads such as taxes and fares etc.
Refund section:
Tickets which are not used due to any reason are refunded in the refund
section. Thus, is refunding is for the people who dont want to travel and
want their money back.
Pay roll:
27
Final salaries are adjusted according to the attendance of the employees in
the pay roll section and all the matters related to the salaries are dealt in this
section.
Credit control:
Some tickets are related to govt. employees like those working in the Army
and for journalists. In such cases 50% of the fare is rebated to them and the
rest of 50% is credited to their organizations
Disbursement section:
All the miscellaneous payment like medical bills, hospital bills, bills of flight
kitchen, stationary and all other related payments are dealt in this section.
Reconciliation section:
All the deposits with the bank, whether those are received, or not, a
reconciled in this section.
Reporting system:
11 types of report are maintained by finance department:
R1: passengers sale report on counter & Agents
R2: cargo sales report
R3: cargo receipt on the behalf of the other station
R4: miscellaneous collection except credit
R5: credit receipt reports
R6: refund to passengers
R7: except cargo other collections on the behalf of other stations
R8: invoicing
R9: all sort of collections/ passengers/cargo/others
28
R10: report from agents/receivable generations
R11: cargo sales receivables from agents
Information technology:
IT department is one of those departments that is considered to be the back
bone of the whole organization. Following are the subsections that work
under IT department:
Data communications
Telephone exchange
Network
PIA is the first organization of Pakistan in history to installed IBM main frame
which shows how important IT for PIA is.
Following online Software are being used in PIA:

1.
2.
3.
4.
5.
SABRE (Semi-Automated Business Reservation Environment)

COSSAP (Corporate standard station accounting package)
POPIS (PIA online personnel information system)
ACSI (Airport Check-in system international)
TMS (Time management system)
SABRE:
Marketing department of PIA is using SABRE for reservation and ticketing. It
is international software used by all airlines
COSSAP:
This software is used by Finance department to perform all accounting
procedures and entries.
29
POPIS:
This software is being used by the Human Resource Department to make
attendance, leave feeding, passage record, salary adjustment of employees
working in PIA.
ACSI:
Airport Services Department is used ACSI to issue boarding passes to
passenger to travel.
TMS:
This system is also used by the HR Department to update leave & passage
record of all employees along with salary fixation of employees. TMS
machines are being installed all over the PIA network stations, and
employees are given their accounts on TMS to monitor their daily
attendance.
In coming year PIA will implement (ERP) Enterprise Resource Planning
Software to make PIA procedures transparent and avoid misuse or
fraudulent.
Human Resource Department:

Just like any other organization, Pakistan International Airlines Corporation
(PIAC) has its Human Resource Administration and Coordination Department.
As shown from the name of the department, it plays its important role to
coordinate other departments by facilitating and managing human resources
of PIAC.
The main functions of this department are follows:
To keep and maintain the record of serving and retired employees
To recruit the potential candidates and place them at right place
To train the employees for their development
30
To make policies and procedures to run the corporation efficiently
To make changes timely in the procedures and policies of the

corporation
To implement the policies properly in the working environment
To conduct enquiries under disciplinary proceedings towards any

misconduct by PIA employees
To promote PIA employees based on their performance
To motivate the PIA employees towards their work
To deal the legal issues of PIA employees.
The following functions of HR are carried out by the headquarter of PIA

located in Karachi:
1. Recruitment and Placement
2. Training
3. Compensation
4. Performance Appraisal
5. Transfers/Promotions
6. Personnel Policy Making
31
-: Chapter 2:My Grooming
Departments where I have worked:

H.R department:
In Pakistan International Airlines the H.R department plays the role of
backbone for the organization. Because it records and maintains all the
records from hiring to firing of an employee.
The hiring of employees is consists of different standards.
There are
Permanent employees,
daily wages employees,
contractual employees etc.
When the person is hired as a permanent employee, he is allotted by a

number i.e. a personnel/employee number. This number shows the
recognition through 1st day till last day. P. no. is the identity of an employee.
My ACTIVITY:
Entrance of the daily attendance in the register
Entrance of the leaves of employees in the register
As they are operating manual systems so they gave us the bundle of file
folders containing P. numbers. Each folder contains two files: One file named
LP FILE and the other file named DUMI FILE.
32
LP FILE stands for Leaves and Passage file. In this file we have to
enter the leaves that were submitted by the employees. While all other
documents other then leaves and passages like promotion, demotion,
appreciation, cash prize etc, recorded in DUMI FILE.
WORKING CRITERIA:
For the purpose of leaves recording they use two systems:
POPIS (PIA online personnel information system)
TMS (Time management system)
Initially leaves are entered into the leave register, then into POPIS. This
clarifies the totality of attendance and leaves.
TMS based on the hand punching of employees at the time of IN and OUT. It
shows the work hours of an employee through which the payroll generates.
Entitlement: during services employee can avail:
10 casual leaves
12 sick leaves
30 privilege leaves
Sick leaves and privilege are earned leaves, they accumulated every year.
There was a following page of leave application, from which I have recorded
the leaves in the register.
33
ATTENDENCE REGULATION ADVICE:

When any employee remains regular but in records he has some absentees
so he claims his attendance through this form. It also recorded in the dumi
file. This absent can be marked either by the mistake of system or manual
record.
34
TRAVEL AUTHORIZATION:
I recorded this form in dumi file. When the staff goes to the corporate duty to
other stations, he issued this form from the headquarter. Its a settlement of.
Either he goes for the training, either promotion, or any corporate duty, he
fills this form.
35
Comparison of practical experience of working and

teaching methods:
In PIA the practical work experience is different from the theoretical books.
The HR department is in its limited extent. The overall HR mainly focuses on
the administration.
At the local station they have no concern with recruitments, selections, firing,
promotions, trainings, career developments etc. they just gives the
administration support to the employees that are present in the station. They
maintains there records, leaves and passages.
They have zero decision power. Change only occurs by the headquarter they
just implement it, because centralized culture with long chain of command.
-:Chapter 3:-
36
Analysis
Swot Analysis:
Strengths:
Having highly experienced and professional staff
Well established brand recognition
Having Governments protection
Leading Market share
Booking offices in all major cities of Pakistan as well as international
Status of being Flag carrier of Pakistan
Having Superior operating structure
Vast network presence
Effective use of Technology
Weaknesses:
Reliance on oil prices with rising fuel price globally
Maintenance problems
Lost their image due to some circumstances
Old staff which show less interest in work activities
Burden of oid age staff/employees
Formulation of Government rules
Long chain of command
Centralization
37
Less delecation of power
Mismanagement
Complex structure
Less performance appraisal
Opportunities:
PIA has largest domestic network and by proper route planning PIA can
generate huge amount of revenue with higher profit
Efficient increase in fleets with advance developments
Growing demand for low cost airline
PIA training and development center provides favorable market for domestic
as well as international sectors for the airline
Fresh staff for training according to the requirements of the organization
PIA has huge potential market in Middle East by upgrading its fleet
Threats:
Effective promotion strategies adopted by other competitors like Emirates,
Shaheen and Air blue
Increasing interest rates
Increasing fuel prices
Strong competition
Dissatisfaction of employees
Law and order situations and political instability
Over staffing without merit and experience
38
Accidents
Foreign currency exchange rates
Pest Analysis
Political factors:
Deregulation of Airline industry
Stable political factors are needed to boost
Increased investment opportunities
Regulation of Government rules
Economical factors:
Improved purchasing power
Demand value for-money
Reduced ticket prices
Soaring oil prices
Social factors:
Greater customer awareness
Increased entertainment spending
Technology adverse customers
Technological factors:
In-flight entertainment
E-ticketing
39
Automated check-in
SMS services
Conclusion:
From the above SWOT and PEST analysis I came with certain conclusion. No
doubt PIA has high brand recognition but still there is a need to improve
there marketing strategies. As they are still using manual system which
seems to be very difficult to handle all the records and causing the
dissatisfaction of their employees.
There is a need for fresh and talented staff. The old staff seems to be lazy
and love to relax instead of working, which causing employee burden on PIA.
Merit based promotions should be encouraged. PIA should adopt competitive
strategies both at domestic network and on certain international routes.
Recommendations for solving PIAs problems and

weaknesses:
During my 6 week internship in Pakistan International Airline I found many
problems regarding their mismanagement or other factors. So I came with
some suggestions for the better functioning of Airline.
As I noticed some employees were not satisfied for not having the merit
promotions. But some are satisfied because their children are to be assigned
there just because of their reference without merit, which is the main cause
of poor performances. So, the Chairman should end this procedure and
appoint all the staff on merit basis.
40
PIA should adopt good marketing policies so that it will bring higher profit
and maximum utilization of its available resources. It should be attracted for
employees as well as customers or passengers.
As some passengers are unhappy because of slow or no refund process.
There is no active staff to suddenly entertain the customer. So Airline should
focus on the customer satisfaction, refund process should be quick so that
customer will remain loyal with the brand.
Unnecessary facilities provided to the Government department should not be
discouraged but with drawn as it causes financial losses. Management should
focuss on computerized system up gradation and implementation.
It should introduced more aircrafts that consume less fuel and work more
efficient. This can be innovation for them.
List of contacts:
Ahsan ullah (senior HR manager/ head of tranees n internees)
03336336381
41
Irfan shafi ( HR manager)

03366735310
Reference:
www.piac.com.pk.

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INSTITUTE OF BANKING & FINANCE

BZUG & FIN

Information technology, Speedex.

In my six weeks of internship program I learnt many things regarding

Muhammad Azam Saigol (Chairman),

Jinnah International Airport Karachi, Pakistan.

Jinnah International Airport, Karachi.

Allama Iqbal International Airport, Lahore.

Benazir Bhutto International Airport, Islamabad.

Multan International Airport.

Faisalabad International Airport.

Quetta International Airport.

Peshawar International Airport.

The first airline in Asia to operate the Boeing 707-321 aircraft.

The first Airline in Asia to operate the Boeing 737-300 aircrafts.

An IBM 1401, the first computer in Pakistan, was installed in PIA.

First airline to show in-flight movies on international routes.

The first airline in South Asia to introduce auto-ticketing facility.

First airline in Pakistan to operate a flight with an all female crew at

international destinations spread over 4 continents.

By Offering quality customer services and innovative products.

Participating in global alliances.

Using state-of-the-art technologies.

Ensuring cost effective measures in procurement and operations.

Developing safety culture.

Products and Services of PIA:

Its a medium to long range wide-body airplane.

Airbus A320 family

The narrow-body short/medium haul jet airplane.

Wide body twin-engine jet Airliner

Frequent flyer program:

Hajj and Umrah services:

Passenger handling and Technical handling services to other

Aviation Training Services

Group Tours and Charters

Travel airline services

Departmental operations are running by directors .

The departments are dispersed into different Divisions which are

Divisions are consists of Sections running by Deputy General

Sections contains Units running by Managers

These units further divided into Cells running by Assistant

Umrah made easier

PIA flexible fares-Plan Ahead & Pay less

Fly Business class with free tickets

Transportation of commodities which is done through cargo

The revenue generated by all these operations as well as other financial

Following online Software are being used in PIA:

SABRE (Semi-Automated Business Reservation Environment)

Human Resource Department:

To keep and maintain the record of serving and retired employees

To recruit the potential candidates and place them at right place

To train the employees for their development

To make policies and procedures to run the corporation efficiently

To make changes timely in the procedures and policies of the

To implement the policies properly in the working environment

To conduct enquiries under disciplinary proceedings towards any

To promote PIA employees based on their performance

To motivate the PIA employees towards their work

To deal the legal issues of PIA employees.

The following functions of HR are carried out by the headquarter of PIA

Departments where I have worked:

daily wages employees,

contractual employees etc.