Pakistan International Air Line By Wasif Rizvi

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION.................................................................................................. ............5 1.1 THE AIRLINES INDUSTRY.........................................................................................................5 1.2 AIRLINE INDUSTRY IN PAKISTAN ..........................................................................................5 1.3 OVERVIEW OF PIA......................................................................................................................6 1.3.1 PIA Cargo...............................................................................................................................6 1.3.2 PIA Courier ...........................................................................................................................7 1.3.3 PIA Ground Service Handling ...............................................................................................7 1.3.4 PIA Training Center................................................................................................................7 Functions..................................................................................................................................................... .....7

1.3.5 Precision Engineering Complex.............................................................................................8 1.4 DESIGN AND DEVELOPMENT OF JOBS..................................................................................8 1.5 CORPORATE ORGANIZATIONAL STRUCTURE.....................................................................9 1.6 VISION, MISSION & VALUE.....................................................................................................10 Vision .............................................................................................................................................10 Mission statement ..........................................................................................................................10 Values ............................................................................................................................................10 1.7 HONOURS OF PIA......................................................................................................................10 1.8 SALES PERFORMANCE............................................................................................................11 CHAPTER 2: SALES DEPARTMENT OF PIA...................................................................... ............12 2.1 MANAGEMENT STRUCTURE DEVELOPMENT .................................................................12 2.2 DEPARTMENTAL PROFILE .....................................................................................................12 2.2.1 Passenger Sales (International Network) ............................................................................12 2.2.2 Passenger Sales (Domestic Network)...................................................................................13 2.2.3 Cargo.....................................................................................................................................13 2.2.4 International Affairs..............................................................................................................13 2.2.5 Group Tours & Charters.......................................................................................................14 2.3 SALES DEPARTMENT ORGANOGRAM.................................................................................15 2.4 JOB DESCRIPTION & RESPONSIBILITIES:.........................................................................16 2.4.1 SVP Sales ...........................................................................................................................16 2.5 DELEGATION OF AUTHORITIES AND RESPONSIBILITIES...............................................16 2.6 NATURE OF ORGANIZATION STRUCTURE..........................................................................16 2.7 FEATURE OF STRUCTURE CONFIGURATION ....................................................................16 2.8 LEVEL OF MANAGEMENT ....................................................................................................17 CHAPTER 3: PASSENGER SALES DIVISIONS ...................................................... ........................18 3.1 PRODUCT MANAGEMENT .....................................................................................................18 3.2 PASSENGER SALES CORPORATE...........................................................................................19 3.2.1 Job description & Responsibilities.......................................................................................19 A. General Manager Passenger Sales (Domestic & Corporate)..................................................................19 B. Product Manager Corporate Sales........................................................................................................ ....19 C. Assistant Product Manager-Corporate Sales............................................................................................19 D. Product Officer-Corporate Sales................................................................................................... ...........20 E. Deputy General Manager Passenger Sales (Domestic & Corporate).....................................................20

CHAPTER 4: TICKET OFFICE SYSTEM ........................................................................ .................21 4.1 ORGANIZATION CHART.......................................................................................................................21 4.2 JOB DESCRIPTION & RESPONSIBILITIES OF TOM....................................................................................21 4.3 OPERATIONS OF TOS.........................................................................................................................22 4.3.1 Complaints handling .........................................................................................................22 4.3.1.1 Handling Complaints link with Customer........................................................................................22 4.3.1.2 Handling Complaints linked with Stations.......................................................................................22 A. Flow chart of Handling Complaints...................................................................................................23

4.3.2 Monitoring Complaints .....................................................................................................23 4.3.2.1 Chart of Monitoring the Complaints................................................................................................24

4.3.3 Dealing with Intended...........................................................................................................24 4.3.3.1 How to Create Inended Customers...................................................................................................24

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a. Flow Chart of Intended Customer .....................................................................................................25 4.3.3.2 How to Recover Penalty.............................................................................................. .....................25 A. Flow Chart of Recovering Plenty:............................................................................................. .........26

4.3.4 Dealing with Ticket Offices...................................................................................................26 4.3.4.1 Monitoring the Shift Performance....................................................................................................26 4.3.4.2 Handling Incoming Customer....................................................................................................... ....26 4.3.4.3 Handling Prepaid Ticket Advice. (PTA)...........................................................................................27 4.3.4.4 Handling Re-routing / Change of Class Request.............................................................................27 4.3.4.5 Monitoring the Queue Timings of the Passengers at the District Office.........................................27 4.3.4.6 Monitoring the Staff Appearance................................................................................................... ...27

CHAPTER 5: TARIFF, IATA AFFAIRS AND AUDIT COMPLIANCE .........................................28 5.1 ORGANIZATION CHART.......................................................................................................................28 5.2 JOB DESCRIPTION & RESPONSIBILITIES...................................................................................................28 5.3 OPERATIONS .....................................................................................................................................29 5.3.1 How to set Tariff....................................................................................................................29 5.3.1.1 Flow Chart.............................................................................................................................. ...........29

5.3.2 IATA Affairs .........................................................................................................................29 5.3.2.1 Flow Chart.............................................................................................................................. ...........30

5.3.3 Meeting with IATA.................................................................................................................30 5.3.3.1 Flow Chart of ATAT Affairs ..................................................................................................... ........31

CHAPTER 6: PASSENGER DIVISION COMPARISON..................................................................32 6.1 ABOUT THE COMPARISON ....................................................................................................32 6.2 COMPARISON .........................................................................................................................32 6.2.1 Product..................................................................................................................................32 6.2.2 2006 Award Winners.............................................................................................................32 6.2.3 Aircrafts ................................................................................................................................33 6.2.4 Services.................................................................................................................................34 6.2.4.1 Emirates’ Services................................................................................................................. ............34 6.2.4.2 PIA’s Services............................................................................................................................. ......35

6.2.5 Promotion.............................................................................................................................35 6.2.5.1 PIA ..................................................................................................................................... ..............36 6.2.5.2 Emirates .................................................................................................................................. ..........36

6.2.6 Sales Promotion....................................................................................................................36 6.2.6.1 PIA Award +Plus.............................................................................................................. .................36 A. Benefits & features ............................................................................................................................. 36 6.2.6.2 Emirates Affinity Programs..............................................................................................................37 A. Skywards............................................................................................................................. ................37 B. Emirates Lounges....................................................................................................................... .........39

6.2.7 Price .....................................................................................................................................39 6.2.8 Financial Performance ........................................................................................................39 6.2.8.1 Emirates.................................................................................................................................. ...........39 6.2.8.2 PIA........................................................................................................................................... ..........40

6.2.9 Market Shares ...................................................................................................................40 6.2.9.1 Market Shares Of Paksitan( 2005-06) .............................................................................................40 6.2.9.2Market Share of “Dubai-Mumbai” Airline Market...........................................................................41

CHAPTER 7: CARGO........................................................................................................................ .......42 7.1 PIA CARGO DIVISION...............................................................................................................42 7.2 OFFICIAL ORGANOGRAM OF PIA CARGO DIVISION ...........................................................43 7.3 EXISTING ORGANOGRAM ...................................................................................................43 7.4 ABOUT THE ORGANIZATION STRUCTURE.........................................................................44 7.4.1 Job Description & Responsibility Of GM Cargo ................................................................44 7.4.2 Function of GM Cargo..........................................................................................................44 CHAPTER 8: CARGO MARKETING & PLANNING SECTION ...................................................45 8.1 ORGANIZATION CHART.......................................................................................................................45 8.2 JOB DESCRIPTION & RESPONSIBILITIES ................................................................................................45 8.2.1 DGM Marketing & Planning ...............................................................................................45 8.2.2 Manager Marketing Planning ..............................................................................................46 8.2.3 Assistant Manager Cargo Marketing Planning....................................................................46

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8.3 OPERATIONS......................................................................................................................................46 8.3.1 Scheduling of freighters........................................................................................................46 8.3.1.1 Flow Chart for Scheduling ......................................................................................................... ......47

8.3.2 Efficient Utilization of Space................................................................................................47 8.3.2.1 Flow Chart for Efficient Utilization of Space..................................................................................48

8.3.3 Handling One Shot Deals.....................................................................................................48 CHAPTER 9: CARGO SALES & STATION SUPPORT ...............................................................49 9.1 ORGANIZATION CHART.......................................................................................................................49 9.2 JOB DESCRIPTION & RESPONSIBILITY ..................................................................................................49 9.2.1 Manager Cargo Sales & Station Support ............................................................................49 9.2.2 Assistant Manager Cargo Sales............................................................................................49 9.2.3 Senior Cargo Sales Officer...................................................................................................49 9.3 OPERATIONS .....................................................................................................................................50 9.3.1 Setting cargo tariff................................................................................................................50 9.3.1.1 How is Cargo Tariff Calculated?......................................................................................................50 A. Flow Chart of Calculating the Cargo Fare.........................................................................................51

9.3.2 Post Mail ..............................................................................................................................51 9.3.3 Developing A Marketing Plan ..............................................................................................51 CHAPTER 10: CARGO OPERATION SECTION .................................................................... ..........52 10.1 ORGANIZATION CHART.....................................................................................................................52 10.2 JOB DESCRIPTION & RESPONSIBILITY ................................................................................................52 10.2.1 Manager Cargo Operation...............................................................................................52 10.2.1 Assistant Manager Cargo Operation..................................................................................52 10.3 FUNCTIONS.....................................................................................................................................53 10.3.1 SHIPMENT ........................................................................................................................53 10.3.1.1 Loading / Unloading: .................................................................................................... ................53 10.3.1.2 Protect from damage or loss...........................................................................................................53 10.3.1.3 Arrange Extra Service....................................................................................................... ..............54

10.3.2 Claim Handling...................................................................................................................54 10.3.2.1 Flow chart of Claim Handling: ......................................................................................................55 10.3.2.2 Processing Claim Case of Cargo Settlements ...............................................................................55 10.3.2.3 Responding to Customer Complaints.............................................................................................56 10.3.2.4 PIA Offers Compensation for Damage or Loss ...........................................................................56

CHAPTER 11: CARGO AUTOMATION SECTION, CARGO COMPLEX SECTION & COMPARSION OF PIA CARGO...................................................................................... .57 11.1 CARGO AUTOMATION SECTION..........................................................................................57 11.1.2 Organization Chart.............................................................................................................57 11.1.3 Job Description & Responsibilities ....................................................................................57 11.1.3.1 Manager Cargo Automation..................................................................................................... .......57

11.1.5 OPERATIONS.....................................................................................................................57 11.2 CARGO COMPLEX SECTION ................................................................................................57 11.2.1 Job Description & Responsibilities.....................................................................................58 11.2.1.1 DGM Cargo Complex....................................................................................................... ..............58 11.2.1.2 Manager Air Cargo Center................................................................................................... ...........58 11.2.1.3 Cargo Terminal Manager Export ...................................................................................................58 11.2.1.4 Cargo Terminal Manger (Import)...................................................................................................58

11.3 .2 Cargo Complex Devises: ...................................................................................................58 11.3 COMPARSION ANALYSIS ......................................................................................................59 11.3.1 PRODUCT..........................................................................................................................59 11.3.2 Awards:................................................................................................................................60 11.2.3 FEATURE OF EMIRATES SKYCARGO ............................................................................60 11.2.4 MARKET SHARES..............................................................................................................60 CHAPTER 12: INTERNATIONAL AFFAIRS DIVISION & THEIR COMPARSION......................................................................................................................................... ...61 12.1 TERMINOLOGY........................................................................................................................61 12.2 ORGANIZATION CHART....................................................................................................................62 12.3 JOB DESCRIPTION & RESPONSIBILITIES:.........................................................................62

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12.3.1. GM International Affairs...................................................................................................62 12.3.2 DGM ..................................................................................................................................63 12.3.3 MANAGER..........................................................................................................................63 12.4 OPERATIONS............................................................................................................................63 12.4.1 Dealing for Air Service Agreements ...................................................................................63 12.4.1.1 Flow Chart for Dealing with Governments:...................................................................................64

12.4.2 Dealing for The Commercial Agreements .........................................................................64 12.4.2.1 Flow chart of Commercial Agreements..........................................................................................65

12.5 COMPARATIVE ANALYSIS.....................................................................................................65 12.5.1 Code sharing Agreements ...............................................................................................65 12.5.1.1 PIA.......................................................................................................................................... .........65 12.5.1.2 Emirates................................................................................................................................. ..........66 12.5.2.3 Qatar ........................................................................................................................... ....................66

CHAPTER 13: GROUP TOURS & CHARTER DIVISION .............................................................67 13.1 PIA HOLIDAY............................................................................................................................68 13.2 ORGANIZATION CHART.....................................................................................................................68 13.3 JOB DESCRIPTION & RESPONSIBILITIES:.........................................................................68 13.3.1 Product Manager ...............................................................................................................68 13.4 OPERATIONS ...........................................................................................................................69 13.4.1 Formulation of Tours..........................................................................................................69 13.4.1.1 Flow Chart for Formulate Tours:....................................................................................................70 13.4.2 Selling of Tours................................................................................................................ ..................70 13.4.2.1 Flow Chart For Selling Tours:........................................................................................................71

13.4.3 Charter The Plane...............................................................................................................71 13.4.3.1 Flow chart of chatter the Plane:......................................................................................................72

13.4.4 Increasing the Outbound/In-bound Group Movement.......................................................72 13.4.5 Facilitating the Stations for the Holiday Packages............................................................73 CHAPTER 14: SWOT ANALYSIS....................................................................................... ...................74 14.1 STRENGTHS .............................................................................................................................74 14.1.1 Passenger Sales ..................................................................................................................74 14.1.2 Group Tours & Charters ....................................................................................................75 14.1.3 International Affairs ...........................................................................................................75 14.2 WEAKNESSES .........................................................................................................................75 14.2.1 Passenger Sales ..................................................................................................................76 14.2.2 PIA Cargo..........................................................................................................................77 14.2.3 International Affairs ........................................................................................................77 14.3 OPPORTUNITIES .....................................................................................................................77 14.3.1 Passenger Sales ..................................................................................................................77 14.3.2 Group Tours & Charters ....................................................................................................78 14.4 THREATS ................................................................................................................................78 14.4.1 Passenger Sales ..................................................................................................................78 14.4.2 Group Tours & Charters ....................................................................................................79 14.4.3 International Affairs ..........................................................................................................79 CHAPTER 15: CONCLUSION, SUGGESTIONS & COPYRIGHT................................................79 15.1 SUGGESTIONS.......................................................................................................................79 15.1.1 Passenger Sales ..................................................................................................................80 15.1.2 Group Tours & Charters ....................................................................................................81 15.1.3 PIA Cargo...........................................................................................................................81 14.1.4 International Affairs ..........................................................................................................81 14.2 CONCLUSION...........................................................................................................................82 14.3 BIBLOGRAPHY........................................................................................................................83 14.4 COPYRIGHT .............................................................................................................................84

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Chapter 1: INTRODUCTION 1.1 THE AIRLINES INDUSTRY Air travel remains a large and growing industry. It facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries. In the past decade, air travel has grown by 7% per year. Travel for both business and leisure purposes grew strongly worldwide. Scheduled airlines carried 1.5 billion passengers last year. Worldwide, IATA, International Air Transport Association, forecasts international air travel to grow by an average 6.6% a year to the end of the decade and over 5% a year from 2000 to 2010. These rates are similar to those of the past ten years. In Europe and North America, where the air travel market is already highly developed, slower growth of 4%-6% is expected. The most dynamic growth is centered on the Asia/Pacific region, where fast-growing trade and investment are coupled with rising domestic prosperity. Air travel for the region has been rising by up to 9% a year and is forecast to continue to grow rapidly, although the Asian financial crisis in 1997 and 1998 will put the brakes on growth for a year or two. In terms of total passenger trips, however, the main air travel markets of the future will continue to be in and between Europe, North America and Asia. Despite this, the airline industry has proceeded along the path towards globalization and consolidation, characteristics associated with the normal development of many other industries. It has done this through the establishment of alliances and partnerships between airlines, linking their networks to expand access to their customers. Hundreds of airlines have entered into alliances, ranging from marketing agreements and code-shares to franchises and equity transfers. The outlook for the air travel industry is one of strong growth. Forecasts suggest that the number of passengers will double by 2010. For airlines, the future will hold many challenges. Successful airlines will be those that continue to tackle their costs and improve their products, thereby securing a strong presence in the key world aviation markets. 1.2 AIRLINE INDUSTRY IN PAKISTAN There are 36 operational airports. Karachi is Pakistan's main airport but significant levels of both domestic and international cargo are also handled at Islamabad and Lahore. Pakistan International Airlines (PIA), the public sector airline, though facing the competition from a few private airlines, carries approximately 70 percent of domestic passengers and almost equal domestic freight traffic. The transportation sector accounts for about 10.5 percent of the country’s GDP and 27.4 percent of Gross Fixed Capital Formation (GFCF) in FY06. It provides over 6 percent of employment in the country and receives 12 to 16 percent of the annual Federal Public Sector Development Program (PSDP). Government agencies dominate the sector. 5

Airports

42

International

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Bhoja, Hajvery, Safe and Raji, have wrapped up their operations years ago leaving the market open to the remaining operators, the national flag carrier Pakistan International Airlines (PIA) and private Shaheen Air International, Air Blue & Aero Asia. All of these private airlines, besides PIA, are operating on international routes. The Gulf sector is an important and lucrative sector for airlines due to the large ethnic expatriates living in those countries. The European especially U.K and North American destination are another profit making routes where apart from PIA, Air Blue is also conducting its operations. The second new airline AirBlue has conducted the operation on Karachi-LahoreIslamabad sector and is stage of capturing the domestic market by offering compatible fare. AirBlue have offered discount on early booking and introduce the E-ticketing for the first time in the history of Pakistan. The major focus of AirBlue is on customer comfort, it have trained its employee in foreign countries in line with providing the maximum customer satisfaction. The airline’s management has claimed that they would provide in flight entertainment not offered by other airlines. Another land mark of AirBlue airline is innovative e-ticketing technology, through web base technology customer can make reservation on-line 24 hours a days and 7 Days a week. The convenience of air travel reservation by new system will enhance the customer satisfaction, and new innovative technologies would encourage other operators to introduce similar technologies for its survival in the market. Another private airline SafeAir is going to start its operation soon in Pakistan, the company incorporated in Pakistan in 1999, but cancelled its operation soon, due to unpaid taxes of CAA, later on some foreign group have invested in order to re launched their operation 1.3 OVERVIEW OF PIA Pakistan International Airlines Corporation, through its subsidiaries, provides passenger, cargo and Group Tours air transport services. It also offers couriers, engineering, baggage, charter, mail and telephone, and handling and related services. In addition, the company operates as a promoter and investor in projects related to construction, development, and operation of hotels, motels, and restaurants; and manages an airport hotel at Karachi. It operates in the United States, Canada, Europe, the Middle East, Africa, and Asia. The company was founded in 1946 and is headquartered in Karachi. 1.3.1 PIA Cargo PIA Cargo commenced operations in 1974, with flights to the USA, Europe, and Hong Kong on the B-707 aircraft. PIA Cargo has the unique distinction of introducing Pakistan's fruits to international markets and pioneered the exports of fresh fruits and vegetables to global destinations. Operating as the air freight division of Pakistan's national carrier, PIA Cargo has achieved rapid growth and reaches out to destinations spanning the globe through its passenger scheduled flights and freighter services. PIA Cargo earns valuable revenue for Pakistan International Airlines and provides a massive boost to Pakistan's wide spectrum of exports. The aggressive growth of PIA

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Cargo coupled with PIA's rapidly expanding passenger operations, empowers customers with a range of cutting-edge cargo products and services. In addition to offering cargo services, PIA Cargo also arranges charter flights to lift meat, livestock and relief goods within and outside Pakistan. 1.3.2 PIA Courier In the 1970s, Pakistan International Airlines pioneered the express delivery of shipments across Pakistan. The Air Express service delivered documents and parcels from one airport to another, ushering in the dawn of the courier industry in Pakistan. In 2003, PIA expanded the scope of Air Express and launched a full-fledged courier service, and PIA Speedex was born. Initially serving Karachi, Lahore, and Islamabad, PIA Speedex grew rapidly and another 12 major cities were added to the network. Today, PIA Speedex offers premium courier services in 70 cities across Pakistan, and shipments are collected from and delivered to the doorsteps of our customers. Capitalizing on PIA's cutting-edge information technology infrastructure, PIA Speedex pioneered the online tracking and tracing of shipments in Pakistan, enabling customers to track the status of their parcels at each transit point, until delivery. A range of delivery options also catapulted PIA Speedex to the position of a credible and reliable industry leader, giving customers flexibility and choice at highly affordable rates. PIA Speedex will soon branch out into the international marketplace, offering customers a unique mix of speed, reliability, and affordability. 1.3.3 PIA Ground Service Handling Ground handling at an airport is amongst the most complex and time-critical processes in the aviation industry. Even moments of delay in a single activity can cause major problems, leading to a substantial waste of resources and delays to the entire system. Backed by decades of operational experience, PIA offers premium ground handling services to customers. PIA's ground handling services include: 1.3.4 PIA Training Center We are leading Airline Training Institution. Join us to build your career in Airline Industry. We offer Airline Training in all areas of the Airline Industry. We have one of the most advanced Airline training infrastructures approved by local and international regulatory authorities such as CAA, ICAO and IATA.

Functions • •

To develop and conduct quality training as per the requirements of user departments and regulatory authorities To maintain centralized training database of all PIA personnel for organizing HR activity

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•

• •

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

1.3.5 Precision Engineering Complex The Precision Engineering Complex (PEC) at PIA manufactures high precision parts for the aerospace industry and a number of other industries. The PEC is an integrated facility that houses major engineering disciplines under one roof, including investment casting, conventional and CNC machining, Optics, PCB, Electrical, Electronics and Composites. Multi-disciplinary teamwork enables intelligent decision making and high quality output in all phases of product development and manufacturing. Across the globe, PEC products take to the skies every day. The PEC is a supplier to USA and Europe and serves companies such as General Electric, Airbus Industries and Boeing. Services run the gamut from simple machining jobs to complex shaping using high precision CNC controlled equipment. The team is experienced in cutting large varieties of basic and exotic materials including hard steels, aluminum alloys, and the machining of a wide range of castings, forging and extrusions. 1.4 DESIGN AND DEVELOPMENT OF JOBS The designing of jobs for an individual is highly complex task. Personnel are appointed and posted according to the requirements of the concerned department. Pakistan International Airline is well structured and matured public enterprise, therefore, here jobs are assigned to the employee rather than to design the jobs for an individual. Initially jobs are specified with full description to an employee to undertake the responsibility of particular work after his or her induction into the company, all of this work is done by the concerned General Manager. Because of innovations in technology or methods adopted by the company or departmental requirements, jobs of an employee are developed accordingly. Restructure organizational

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1.5 CORPORATE ORGANIZATIONAL STRUCTURE

Chairman SA to Chairman (E)

SA to Chairman (1) DMD

G.M. PA (C)

G.M. PA

Secretary PIAC

Deputy Managing Director

SVP Corporate Planning

SVP P.E.C

G.M. Fleet Planning

G.M. SITE

G.M. P.E.C

SVP Commercial

SVP Procurement, Logistics & Coordination

SVP HR & Admin

SVP Flight Operations

SVP Engineering

SVP Information Technology

SVP Finance

SVP FM & A

SVP Quality Assurance

SVP Flight Safety & HSE

G.M. Pax Sales InterNational

G.M. Pax Sales Domestic

G.M. Flight Services

Chief Pilot Technical

Chief Pilot North (ISB)

Chief Engr. Line Maintenance

Chief Engr Base Maintenance

G.M. Computer Services

G.M. Accounting

G.M. FM & A

G.M. Quality Assur &HSE

G.M. Flight Safety

Recruitment & Placement

Chief Medical Officer

G.M. Group Tours&chart:

G.M. Cargo Sales

G.M. Food Services

Chief Pilot Standards, Inspection

Chief Flight Engineer

Chief Engr. Avi- onics O/H

Chief Engr.Power Plant

G.M. Comm.

G.M. Revenue

G.M. Marketing Planning

Chief Engr. Qua- lity Assur

G.M. Health Safety & Env.

Principal PTC

G.M. Welfare

G.M. Planet aria

G.M. International Affair

G.M. Pax Handling Services

Chief Pilot Planning & Scheduling

G.M. Central Control

Chief Engr. Maintenance Ops. Centre

Chief ngr. Developme nt Enginee:

G.M. Netork & Sytem Suport

G.M. Funds Management

Executive Director

G.M. Projects

G.M. Fuel

G.M. Facilitation

Chief Pilot Training

Chief Pilot Coordination

Chief Engr Engineering Bus. Dev./MRO

Chief Engr Cabin Maint.

Chief Engr. Training

Chief Engr. Projects

G.M. Org. Dev.

G.M. HRM

G.M Schedules & Net/Planning

G.M. Security

G.M. FFP & Alliances

D.G.M. Customer Services

SVP Flight Services

G.M. Procurement & Logistics

Chief e-solution officer

G.M. Speedex

SVP Sales

Deputy Managing Director

Airport Hotel

G.M. Brand Mngmt

G.M.

Chief Engr Ramp Services

G.M. Budget

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1.6 VISION, MISSION & VALUE Vision PIA to be a world class profitable airline exceeding customer expectations through dedicated employee committed to excellence. Mission statement Employee teams would contribute towards making PIA a global airline-of-choice:          

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 Achieving adequate returns for all stake holders Being an equal opportunity employer Providing competitive compensation and a congenial work environment Adhering to business ethics and zero tolerance for corruption Linking remote regions of Pakistan Fulfilling our corporate Social Responsibility (CSR) in all fields.

Values Customer Expectations, Convenience, Caring, and Competitive Tariff Service, Personalized and Courteous Innovation, Cherishing New Ideas, Translated Into Action Cohesiveness, Respect for Individuals, Teamwork, and Effective Communication  Integrity, Business Ethics, Accountability, and Transparency  Reliability, Loyalty and Consistency  Safety, Passengers, Employees, Environment, and Health    

1.7 HONOURS OF PIA  The first Asian airline to operate a pure jet aircraft.  The first non-communist airline to fly to the People’s Republic of China, and to operate a service between Asia and Europe via Moscow.  The first airline in Asia to induct the new technology Boeing 737-300 aircraft.  An IBM 1401, the first computer in Pakistan, was installed in PIA.  The first airline, to introduce a second route to People’s Republic of China over the Karakoram ranges.  The first airline in the world to operate scheduled helicopter services.  The first airline in Asia to show in-flight movies on international routes.  PIA set up Pakistan’s first planetarium at Karachi and later at Lahore.  The first airline in South Asia to introduce auto-ticketing facility.  The first airline in the world to fly to Tashkent, capital of the newly independent state of Uzbekistan.

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1.8 SALES PERFORMANCE Pakistan International Airlines has posted RS 5.6 billion losses during the first six months, despite stable fuel prices. The airline had sustained a loss of Rs13.1 billion during 2006, while the loss during last year’s first quarter was Rs3.08 billion. PIA management for the first time has acknowledge that the losses continue to mount despite the fact that fuel prices during this period remained below the 2006 level. Previously, the management had been holding the high fuel prices as main reason behind the losses and had even claimed that the airline could have posted a huge profit without the increases in fuel cost The factors being attributed to the Rs3.95 billion losses are hike in salaries of employees, increased cost of leased aircraft and higher maintenance cost of the fleet resulting in 19 per cent increase in operating expenses. At the same time, 5pc growth in revenue because of 7.6 per cent increase in passenger revenue was partially offset by 10 per cent reduction in cargo revenue. A statement issued by PIA said that the airline’s board which met on Friday expressed concern over the deteriorating financial situation.

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Chapter 2: SALES DEPARTMENT OF PIA 2.1 MANAGEMENT STRUCTURE DEVELOPMENT Pakistan's Ministry of Defense created Pakistan International Airlines (PIA) as a government department in 1951. The government combined Orient with PIA on October 1, 1953. PIA became a state corporation on March 11, 1955. Mr. Tariq Kirmani, chairman and CEO. (2006), he recognized the need of change the organization structure of market department therefore he divided the market department in tow department one is sales and other is commercial department in 2006, management is perceive that to adequate the function of marketing and to improve function of marketing. 2.2 DEPARTMENTAL PROFILE Sales Department is headed by Senior Vice President (Sales) who is responsible for all sales activities pertaining to passenger & cargo segments / products of the airline. Following divisions report to SVP (Sales):  Passenger Sales International Division  Passenger Sales Domestic Division  Group Tours & Charter  Cargo Division  International Affairs Division Sales Department implements marketing plans and sales strategies geared to achieve the corporation’s business objectives. To achieve these objectives, Sales Department carries out sales activities pertaining to passengers, cargo, Group Tours & Charters and new markets/products on a regular basis. The aim of the Department is to optimize the available capacity through increased Passenger / Group Tours & Charter and Cargo loads and effective yield management. Sales objectives are established and strategies formulated to meet those objectives in an effective and efficient manner. The department also provides effective support to all domestic/International stations to meet revenue targets by providing the necessary resources and support including convenient scheduling, flight frequency, competitive fares, required capacity and advertising. A brief overview of the different divisions within the department is as follows: 2.2.1 Passenger Sales (International Network) Passenger Sales International Division carries out sales activities pertaining to passengers by implementing marketing/sales strategies. It develops and implements pricing strategies and sales incentive programs to capitalize on marketing opportunities. Passenger revenue is the major contributor to the total revenue (around 85%) of the airline with the result that the function is divided into six key territories i.e. Americas, UK, Europe, Gulf and Saudi Arabia, Pakistan, South Asia and Far East

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& Australia. Product Manager Business Class looks after the Business Class product. Each After by a Product Manager who is responsible for pricing strategy, productivity incentive schemes (Travel Agents), trend analysis, sales performance, flight monitoring, and product awareness. Product Managers also coordinate with the scheduling section to effectively maximize aircraft utilization and to attain capacity loads as per the required seat factor for the territory through scheduling section. They are also responsible to provide convenient connections to their target market keeping in view competitor’s services. The division is also responsible to finalize Special Prorate Agreements (SPA) in coordination with International Affairs division. 2.2.2 Passenger Sales (Domestic Network) Passenger Sales Domestic Division carries out sales activities pertaining to passengers by implementing marketing/sales strategies. It develops and implements pricing strategies and sales incentive programs to capitalize on marketing opportunities that function is divided into six key territories i.e. Corporative Sales, Managing Ticket offices system , Product Management Pakistan, Managing Districts Station and managing staff ticketing. Supervise the preparation and analysis of the relevant information / market intelligence for developing effective action plan for guidance in achieving the domestic sales targets. 2.2.3 Cargo Cargo Division is the only division in PIA that performs Sales and Services functions under one head. It carries out activities pertaining to cargo business by implementing marketing/sales strategies and developing and implementing pricing strategies and sales incentive programs to capitalize the marketing opportunities. The division’s main aim is to provide optimal freight services by establishing a market oriented freight policy and arranging proper timetable coordination, terminal services and capitalizing on market opportunities. The division strives for on time cargo delivery, proper cargo storage, on-line/off-line tracking and efficient cargo handling to the expectations of the customers. The division is equipped with professional staff providing high quality services to customers. Cargo Divisions generates revenue from a number of sources including freight (core business), post office mail, courier and ground handling services that it renders to other airlines. 2.2.4 International Affairs International Affairs Division is responsible for creating business opportunities for mainstream marketing (sales & commercial) through commercial agreements including code-share agreements and alliances with other airlines and coordinating with regulatory authorities of Pakistan for concluding new air services agreements and/or amendments to the existing air services agreements with the objective of obtaining additional traffic rights where so required by PIA. This division is responsible for concluding annual Hajj agreement with Saudi Arabian Airlines. The Division liaises with regulatory authorities to protect the business interests of PIA while negotiating Air Services Agreements with other states. The division guides other divisions of sales department regarding availability of traffic rights on various new sectors under consideration and ensures that PK flights are not scheduled in violation of air services agreements. This division is responsible 13

for preparing proposals on National Aviation Policy. It monitors the implementation of Air Services Agreements and Aviation policy by monitoring operation of foreign carriers and other Pakistani carriers. The International Affairs Division is responsible for coordinating and preparing response to all letters/queries relating to Bi-lateral and Aviation Policy received from Ministry of Defense, Ministry of Foreign Affairs, other Ministries and members of senate/National and provincial assemblies and to provide all inputs that may be sought by Civil Aviation Authority Pakistan and various ministries of Government of Pakistan regarding air services agreements, traffic rights, and opening of new routes etc. International Affairs Division coordinates with various domestic and International bodies and represents PIA in different forums to ensure smooth working relationship. 2.2.5 Group Tours & Charters Group Tours & Charter (GTC) has been created as a new strategic business unit (SBU) in August 2005 with distinctive goals and smart targets. Headed by a General Manager, it is entrusted with the challenging job to improve PIA’s market share, enhance national image building and strengthen its revenue base. The GTC work portfolio includes design and marketing of travel packages for inbound, outbound and domestic tourism. Almost all the leading exhibition events in the country are being sponsored by PIA and are effectively being organized by GTC. In product designing GTC has to coordinate with a diverse mix of stakeholders like hotels, tour operators, ground transporters, civic bodies, Ministry of Tourism, event management companies, etc. To work as a driving GTC product line is best contributing in enhancing national image and destination selling. The width of product line encompasses vital market segments like adventure, religious, sports, corporate sector, event management companies, VFR, government organizations, commercial and business houses, cultural groups, academia, wedding group etc.

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SVP SALES 2.3 SALES DEPARTMENT ORGANOGRAM Manager SVP Secretariat

Quality Assurance

Human Resource

Manager Training & Development

Manager Sales

Manager

General Manager Marketing Services & Planning

General Manager Pax Sales (International)

General Manager Pax Sales (Domestic)

General Manager Cargo Sales

Deputy General Manager IATA & Tariff Affairs

Deputy General Manager Pax sales Development

Deputy General Manager Domestic

Deputy General Manager Agency Affairs

Deputy General Manager Marketing Intelligence

Product Manager Pakistan

Manager Market Planning

Product Manager United Kingdom

Product Manager Corp. Sales

Deputy General Manager Cargo Complex

Product Manager Europe

Manager Ticket Offices (System)

Product Manager USA & Europe Cargo Market Planning

District Manager Domestic stations

Product Manager ME, FE & Regional

Product Manager SAFEA

General Manager Int’l Affairs

General Manager Group Tours & Charters

Deputy General Manager Cargo Automation

Deputy General Manager

Deputy General Manager GTC

Deputy General Manager Cargo Operation

Deputy General Manager

Air Services Agreements

Commercial Agreements

Deputy General Manager Govt. Affairs

Product Manager GTC

Manager Audit Compliance

Cargo Sales Support

Product Manager Gulf & KSA

Product Manager The Americas Product Manager Business Class Product Manage Competitive Analysis

Country Manager Int’l Stations

GM PAX SALES INTL

SVP SALES

GM HR & ADMIN

SVP HR & ADMIN

DMD

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2.4 JOB DESCRIPTION & RESPONSIBILITIES: 2.4.1 SVP Sales  Advises the Chairman, CEO and DMD on the development of the corporate plans and long-term strategy in coordination with corporate planning particularly from a marketing/sales point of view.  To ensure strict compliance (by own self and by the subordinate staff) with all HSEQ standards and other legal or regulatory bodies requirements; applicable to operational areas under their jurisdiction at all times during conduct of normal operations.  Direct the compilation of the annual revenue budget and marketing plan, for both passenger and cargo, ensuring that specific plans for advertising, promotion, sales service and fares take into account the constraints faced by his own and other departments.  Ensure that training needs are adequately met in the department. 2.5 DELEGATION OF AUTHORITIES AND RESPONSIBILITIES The chairman PIA Corporation is entirely responsible for all the corporate activities of company. Therefore to undertake this responsibility Chairman, being a Chief Executive Officer of the company possesses authorities to make decisions, supervise and control all corporate activities and to allocate resources. Consequently to accomplish corporate goal and objectives the authorities have been delegated downward to the SVP, Deputy Managing Director and Chief Financial Officer who is responsible for whole division, General Manager who is responsible for their section’s performance or assigned tasks. 2.6 NATURE OF ORGANIZATION STRUCTURE Pakistan International Airline is public limited aviation marketing organization. Its sales organizational structure is the Functional Organizational Structure, as the Organization’s activities have been segmented into its functional areas of Product Management, Ticket Office Management, International Affair, Group Tours and Charters, Marketing Intelligence, International Stations, Corporative Sales, Domestic Product, Cargo Sales and Staff Ticketing. 2.7 FEATURE OF STRUCTURE CONFIGURATION 1. It is decentralized organization setup because of authorities and power of decision remains with the Top Management. 2. PIA is the public enterprise and highly formalized organization. 3. The Company’s structure has been designed according to functions, which is simple and changeable. 4. Company is working in a large hierarchy of management from group-I to group XI which comprises of three management level as depicted in figure

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2.8 LEVEL OF MANAGEMENT BOARD OF MANAGEMENT

T O P

CHAIRMAN

DEPUTY MANAGING DIRECTOR

L E V E L

M I D D L E L E V E L

L O W E R L E V E L

SVP

GROUP

X

GENERAL MANAGER

GROUP

IX

DEPUTY GENERAL MANAGER

GROUP

VIII

MANAGER

GROUP

VII

ASISTANT MANAGER

GROUP

VI

SENIOR OFFICER

GROUP

V

OFFICERS

GROUP

IV

SUPERVISOR

GROUP

III

OFFICE ATTENDED

17

Chapter 3: PASSENGER SALES DIVISIONS Passenger Sales Division carries out sales activities pertaining to passengers by implementing marketing/sales strategies. It develops and implements pricing strategies, monitoring / evaluation of sales promotion activities, maintenance of service standard, co-ordination with stations to resolve their problems, extend full support / guidance to the stations in achieving assigned passenger sales targets and sales incentive programs to capitalize on marketing opportunities. Passenger revenue is the major contributor to the total revenue (around 85%) of the airline with the result that the function is divided into six key territories i.e. Americas, UK, Europe, Gulf and Saudi Arabia, Pakistan, South Asia and Far East & Australia. Product Manager Business Class looks after the Business Class product. Each territory is being looked after by a Product Manager who is responsible for pricing strategy, productivity incentive schemes (Travel Agents), trend analysis, sales performance, flight monitoring, and product awareness. Product Managers also coordinate with the scheduling section to effectively maximize aircraft utilization and to attain capacity loads as per the required seat factor for the territory through scheduling section. They are also responsible to provide convenient connections to their target market keeping in view competitor’s services. The division is also responsible to finalize Special Prorate Agreements (SPA) in coordination with International Affairs division. Passenger Sales Division is headed by a General Managers and following sections report to him:     

Product Management Passenger Sales Corporate Ticket Office System Tariffs, IATA Affairs & Audit Compliances District Sales Offices (Domestic)

3.1 PRODUCT MANAGEMENT Product Management function is divided into six key territories and club class. I.e. Americas, UK, Europe, Gulf and Saudi Arabia, Pakistan, South Asia and Far East & Australia. Each territory is being looked after by a Product Manager who is responsible for pricing strategy, productivity incentive schemes (Travel Agents), trend analysis, sales performance, and flight monitoring and product awareness. Product Managers also coordinate with the scheduling section to effectively maximize aircraft utilization and to attain capacity loads as per the required seat factor for the territory through scheduling section. They are also responsible to provide convenient connections to their target market keeping in view competitors services. Product Manager Competitive Analysis arranges SPAs in coordination with the International Affairs division. Product Managers are also responsible for providing support to their area District Managers in achieving their sales targets. They also liaise with Brand Management for the supply of the required promotional material at their area district offices.

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3.2 PASSENGER SALES CORPORATE Corporate Sales has been given the task to bring into the folds the maximum Commercial Houses making them loyal customers and as result generate additional revenues for the airline. It will formulate and execute strategies & tactical plans to tap all micro markets for incremental revenues streams while sustaining the existing revenue flow. Passenger Sales Domestic & Corporate Division capitalizes Travel Agents & Corporate Houses potential using Relationship exercise and innovative selling techniques/tools. New Channels like Electronic selling, Web selling, Loyalty Programs, Alliances and Relationship Marketing shall be used to produce new lasting revenue streams through selling all present and upcoming products. This division shall provide utmost convenience, competitive packages and total travel solutions to Corporate Houses, Domestic travelers & Ex Pakistan Travelers destined for out stations in line with the 3Cs corporate concept. 3.2.1 Job description & Responsibilities

A. General Manager Passenger Sales (Domestic & Corporate)  Open up and suggest ‘New Revenue Streams” for PIA by sustaining the present flows and while producing incremental revenues by opening up new and innovative channels.  Suggest Management the new and innovative selling channels; adding value to all products while controlling distribution cost.  Analyze the market trends; evaluate activities of network wise over all Passenger sales/ Corporate Sales teams in order to plan for continuous increase PIA market share. Provide on the spot guidance in achieving assigned targets to Passenger Sales Domestic & Corporate Division.  Ensure working of Division based on Corporate Rules & Standards.

B. Product Manager Corporate Sales  Acquire maximum share of corporate travel markets through activating and assisting sales force.  Secure new revenue streams through network wide innovative channel selling.  Provide Market Feedback to Management on Corporate products and suggest new products tuned to corporate travel needs.  Execute and guide network wide Corporate Sales teams in order to achieve PIA Corporate Sales Goals creating harmony among all team members.  Create and capitalize on new revenue producing opportunities. C. Assistant Product Manager-Corporate Sales  Perform and Supervise subordinate teams’ Corporate Sales activities and timely achievement of Corporate Sales Targets.  Projecting PIA as Customer caring Airline

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D. Product Officer-Corporate Sales  Perform Corporate Sales management activities for timely achievement of Corporate Sales Targets for effective selling of PIA products for Corporate Clients.  Projecting PIA as Customer caring Airline. E. Deputy General Manager Passenger Sales (Domestic & Corporate)  Advice G.M and guide all sections of division for opening ‘New Revenue Streams” for PIA and ways to sustaining the present revenue flows.  Suggest opening up new and innovative channels selling channels for controlling distribution cost.  Oversee the market trends; activities of domestic networks’ over all Passenger/ Corporate Sales teams in order to plan for continuous increase PIA market share.

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Chapter 4: TICKET OFFICE SYSTEM Ticket offices system functions under the domain of Sales Department. The section which is headed by a Manager and reports to the both GM international and domestic, Ticket Office System encompasses/ monitors as well as takes corrective actions for timely processing of the complaints from all over PIA network. The section has the following hierarchy in terms of delivering the services. The complaints are forwarded to customer services section by the passengers through Email, Comment cards, PIA Web or Contact Center. These serially numbered comment cards and complaints are collected as well as recorded in the Complaint Management system (CMS) by Manager Customer Relations. These complaints are then automatically forwarded to their concerned station(s) for their necessary actions. The ticket office system office is responsible for the timely processing as well as closing of the complaints from all over the PIA network. Manager TOS is responsible to take corrective actions for all the functions linked with PIA ticketing offices for ticket reservation services, SOPs, mishandled passengers, staff training, inadmissible passengers, lost/stolen tickets, staff grooming (RTOs, RTAs, & RTSs) etc. 4.1 Organization Chart

Manager Ticket Office System SRTO

SRTO

RTO

AT

P/M Manager

RTS

RTA

SRTO: Senior Reservation Ticket Officer RTO: Reservation Ticket Officer P/M: Product/Marketing Manager RTS: Reservation Ticket Supervisor RTA: Reservation Ticket Assistant AT: Assistant Typeset 4.2 Job description & Responsibilities of TOM  To ensure prompt and courteous service to customers on the counters/ in all areas of respective Booking Offices.  To make spot checks and monitor ticket preparation and services extended to customers.

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 To effectively control and supervise functions of all officers/staff working under him.  To ensure proper handling of Revenue Documents and that sale proceeds collected are properly deposited with the cashier. Ensure that each individual receiving Revenue Documents prepares a Sales Report.  To ensure that premises under him/her is kept neat and tidy and maintain proper discipline in the office and that all officials maintain proper uniforms/attire. 4.3 Operations of TOS The Ticket Office System Section performs four major functions: 4.3.1 Complaints handling

4.3.1.1 Handling Complaints link with Customer Step 1st: The process is start when Complains request comer from customer there are Four sources form which customer complains comes. 1. CMS (Complains Management System): It is computer base system which is PIAC website. Through that customer can claim 24 hours and complains are automatically forwarded to the concerned station for their necessary processing. 2. Comment Cards, which are placed in the aircrafts. Manager Customer services, is responsible to collect the Comment cards as well as register the same in the CMS. 3. Direct to the Chairman: VVIP Customer can direct claim to the Chairman by Phone. 4. Clams also come through by Phone. Step 2nd: Assessment of Complains: collect the data from different source regarding com plain because make sure that clam is legal or bias. Step 3rd: Take Action: If complain is legal then deal with customer and to take a action on concern person responsible for complain. Try to satisfy customers regarding complain and provide guaranty for next time

4.3.1.2 Handling Complaints linked with Stations  All the complaints are forwarded to the customer services through Comment Cards, which are placed in the aircrafts.  Manager Customer services, is responsible to collect the Comment cards as well as register the same in the CMS. (Complain Management System).  Complains are then automatically forwarded to the concerned station for their necessary processing.

22

 After investigation appropriate corrective/preventive measures are taken and then same are entered into the CMS.  The Manager Ticket Office (Systems) monitors all the stations’ complains in order to ensure the timely resolution and ensuring that appropriate actions are taken by all Stations.  All complaints, which come through Chairman Office / concerned SVPs / Quality Assurance Office, are process accordingly. A. Flow chart of Handling Complaints

Request for Complain

If Compla in related

NO

Leave it

Yes Collect Information

Assess The Complain

No

If Compla in is Legal

Close it

Yes

Take Action

4.3.2 Monitoring Complaints This section also regulate the complain, how many complaints are remaining why it is don’t solve, the following procedure for monitoring complaints. Step 1st: Search the pending complaints, look carefully how many complaints is remain regarding Sales. Step 2nd: Analyze responsible office which office is not solve the customer clams or monitoring for don’t same clam again. Step 3rd: If they repeat unwanted practice or don’t satisfy customer then take an

23

action and report to the Top Management. 4.3.2.1 Chart of Monitoring the Complaints Search Pending Complain

If any complai n in pending

NO

Close the process

Yes Analyze responsibl e Office

Caution to Concern Office

If they take action

Yes

Yes

Close the Case

No

Take Action

4.3.3 Dealing with Intended

4.3.3.1 How to Create Inended Customers Procedure: Basically that is problem occur due to mistake of Agent or sales office they don’t get all documents of passenger therefore on the spot Airline pay plenty. The following procedure for inended customers Step 1st: Passenger travel from origin to destination. Step 2nd: On Airport police can check the documents. If customer has uncompleted documents then PIA office pay the plenty. Step 3rd: Customer back to the origin.

24

a. Flow Chart of Intended Customer

Passenger Travel From Orion Arrival at Destination

Assess the Document

Yes

If Comple te

Enter the Country

No PIA Ticket Office Pay a plenty Customer back to the Origin

4.3.3.2 How to Recover Penalty Procedure: Following Steps Step 1st: At the starting of process aggressive complaints come from customer and take complaints concern SRTO or RTO. Step 2nd: After that SRTO or RTO collect information regarding claim Step 3rd: Assess the who is responsible for claim if PIA Ticket Office is responsible then Take charge from responsible officer if not go to next step. Step 4th: Negotiate with Agent for recovering plenty and collect.

25

A. Flow Chart of Recovering Plenty:

Receive Complain

Collect Information

Assess how is responsibl

No

If Agent s

PIA Pay

Yes Report to Agent/Persuade Agent

Get Rupees

4.3.4 Dealing with Ticket Offices 4.3.4.1 Monitoring the Shift Performance Procedure  Duty Officer is to monitor the staff performance through the frequent visits as well as number of complains been raised against each and every employee.  Duty Officer monitors the performance through the Quematic system by analyzing the average time been spared with one customer.  TOM is to monitor staffs’ performance by checking their training records. 4.3.4.2 Handling Incoming Customer Procedure.  Customer gets a Quematic ticket and wait for his turn.  Upon his turn he interacts with the counter staff.  Counter staff facilitates him up to the seat confirmation / ticketing for international.

26

 Domestic counter staff handles the passenger completely up-to the ticket handling.  Domestic cash handling (E-ticketing) is handled by the counter staff. (He / she should be furnished with enough petty cash to exercise the cash functions properly.)  The cashier looks after international cash and ticket handling.

4.3.4.3 Handling Prepaid Ticket Advice. (PTA) Procedure  Passenger asks for the rates / procedures for PTA.  A PTA is to be sent to the respective office after the required payment.  The station where the PTA is sent contacts the person to get a ticket against the authority / PTA.  Stations send a confirmation to the issuing office after a ticket has been collected.

4.3.4.4 Handling Re-routing / Change of Class Request Procedure  Passenger requests for a re-routing/ change of class facility on his/her turn at the booking/reservation counter.  Dealing RTO will suggest re-routing or change of class of class to passenger in case of non availability of seats or any other operational reason.  The RTO (counter staff) will request a copy of the issued ticket and passport from the passenger for processing the re-routing request / change of class.  At acceptance, RTO processes re-routing / change of class.  Passenger preferring refund will acquire the due refunds from concerned Travel Agents / PIA booking offices. 4.3.4.5 Monitoring the Queue Timings of the Passengers at the District Office Procedure  Duty Officer is to monitor the waiting area of the customers.  Duty Officer is to monitor the average customer handling time by reservation staff.  Duty Officer is to monitor the information counter that all the relevant information is given to the passengers.  TOM is to visit all the counters time-by-time in order to get acquaintance of the workings of the counters. 4.3.4.6 Monitoring the Staff Appearance Procedure  TOM is to monitor the staff appearance / uniform where it is applicable to the counter staff.

27

 In case if the staff is not provided with the new uniform, the TOM has to contact with the Manager Uniform cell in coordination with the Manager Ticket Offices (System).  TOM has to make sure that all the staff follows the dress code.

Chapter 5: TARIFF, IATA AFFAIRS AND AUDIT COMPLIANCE Tariff IATA affairs and audit compliance functions under the domain of Sales Department. The section which is headed by a Manager and reports to the General Manager Passengers Sales International division encompasses/ monitors as well as takes corrective actions for timely processing of tariff matters / issues concerning domestic and international transportation, represent PIA at various IATA meeting as accredited delegate and handle audit compliance from all over PIA network. 5.1 Organization Chart Manager Tariff, ITTA Affairs and Audit Compliance

Office Attended

Manual officer

STO

AO

AO

STO: Senior Tariffs Officer AO: Audit Officers 5.2 Job description & responsibilities (1) Manager Tariff, ITTA Affairs and Audit Compliance  Keep a constant watch on the activities and market fares structure of international carriers operating ex-Pakistan to match their fares and recommend revision in IATA fares to the management.  Prepare various proposals regarding revisions in IATA fares and changes in applicable rules and forward them to IATA for discussion/approval in various IATA passenger Tariffs coordination conferences which take place regularly in IATA offices at Geneva, Bangkok and Singapore.  Circulate/ disseminate IATA fares increase/revisions and changes in applicable rules to entire network of PIA through IATA tariff bulletins.  Circulate domestic fare increases, changes in taxes/surcharge/levies and Central Excise Duty (CED) to all domestic and international stations through tariff bulletins.  To determine Excess Baggage Charges (EBC) ex-Pakistan and their circulation to entire network through bulletins.

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5.3 Operations Tariff, ITTA Affairs and Audit Compliance Section perform four major functions  How to fixed Tariff  IATA Affairs  Audit Compliance 5.3.1 How to set Tariff Basically there are tow type of fare one is IATA fare 2nd is Market fare so this section deal with IATA fare. Following Procedure for set IATA fare Step 1st: Assessing the Environment: Fuel cost, Taxes and etc. Step 2nd: If environment is change then collect information after that prepare the \ report for management. Step 3rd: Take a approve from Top Management and recommended to IATA. Step 4th: If CAA and IATA approve then they publish their books. Step 5th: Circulation to all Domestic, International Station and all section of PIA sales departments. 5.3.1.1 Flow Chart Assess The Environment

If Environ ment

No

Change The fair If IATA Approve

No Approve From Top Manageme nt

Yes

Publish their Books

Yes

Recommended to IATA

Circulation to all Networks

5.3.2 IATA Affairs The Following steps involve into book dealing with IATA procedure: Step 1st: Request from Top Management, top management suggest for increase or decrease the books of IATA. Step 2nd: Assessing the book need of PIA, according to need of stations and offices. 29

Step 3rd: If book increase or decrease the then prepare the report. Step 4th: If Top management is approve then send to request IATA and if they don’t approve then again go to 2nd step. 5.3.2.1 Flow Chart Request form Top Management

Analysis the Book Need

Increase or Decrease

Prepare the report

Top Managem ent

No

Approv

Yes Request To IATA

5.3.3 Meeting with IATA Following step is involve in meeting with IATA Step 1st: Request come from the IATA for meeting. Step 2nd: Assess the important of conference for PIAC. Step 3rd: If it is important for then prepare the report and send to Top Management for approving. Step 4th: If Top Management is approved then acknowledge to the IATA if not then refused to IATA.

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5.3.3.1 Flow Chart of ATAT Affairs Request From IATA

Analysis the request

If it is benefici al for PIA

Acknowledge to IATA

No Close the Process

Prepare the Report

Delegating go to Meeting

Yes

Top Managem ent

No Refused to IATA

Approv

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Chapter 6: PASSENGER DIVISION COMPARISON 6.1 ABOUT THE COMPARISON This comparison is a comprehensive comparison of passenger sales division of PIA sales department which include airplanes, offices destinations, ranking of airline, star Ranking, when airline founded, 2006 awards, services, market shares, marketing activities, sales promotion, cheaper airline in Pakistan and financial performance comparison among PIA, Emirates, Qatar, Gulf Airline and Etihad. 6.2 COMPARISON This part I compare four P’s with PIA Passenger. 6.2.1 Product PIA is service oriented product so I compare service of PIA with Emirates, Etihad, Qatar and Gulf Air and what kind of thing which makes service explants.

Airline PIA Emirates Etihad Qatar Gulf Airline

Founded 1946 1985 2003 1993 1950

Star Ranking

Airplanes

Offices

have 47 99 25 58 29

144 44

order 3 116 21 150

Destinations 66 99 43 77 50

 A 5 Star ranking recognizes highest standard of Product across the different quality assessment categories, and consistently high standards of Staff Service delivery in Onboard and Airport environments.  A 4 Star ranking signifies airlines providing a good standard of Product across all travel categories - and a good standard of Staff Service delivery in Onboard and Airport environment.  The 3 Star ranking signifies a "satisfactory" standard of core Product across most travel categories - but reflects poor or less consistent standards of Staff Service / Product quality in selected Onboard or Airport features 6.2.2 2006 Award Winners

AWARD WINNER THAI AIRWAYS

Major Airlines : Category

ANA

Airport Service Excellence

Cabin Staff Service Excellence

32

AIR BERLIN

Low-cost Airline Service Excellence

AEROFLOT

Onboard Service Improvement Excellence

GULF AIR

Onboard Catering Excellence

QATAR AIRWAYS

Inflight Service Consistency Excellence

CATHAY PACIFIC

Airport Lounge Service Excellence

EMIRATES

Inflight Entertainment Excellence

MALAYSIA AIRLINES

Economy Class Onboard Service Excellence Business Class Onboard Service Excellence

CHINA AIRLINES ASIANA AIRLINES

First Class Service Onboard Excellence

AWARD WINNER BANGKOK AIRWAYS

Smaller Airlines : Category All-round Service Excellence for a Regional airline Onboard Service Excellence for a Small airline

AIR TAHITI NUI KINGFISHER AIRLINES

Service Excellence for a New airline

6.2.3 Aircrafts Aircraft Airbus A330-200 Airbus A340-300 Airbus A340-500 Airbus A340-600 Airbus A380-800 Airbus A300-600R Airbus A319CJ Airbus A319-100 Airbus A320-200 Airbus A321-100 Airbus 350800XWB

PIA

Emirates

Etihad

29

13(10 orders)

8

1

10

4

0(18 orders)

1(7 orders)

0(55 orders)

0(4 orders)

Qatar

Gulf Air

9(4 order)

6 9

4

8 2(2 order) 2 13(1 lease)

10

7( 5 lease) 0(2 order)

33

Airbus350900xwb Airbus 3501000XWB Airbus 350 A380-800 Airbus A310-300 ATR 42-500 Boeing 777200 Boeing 777200ER Boeing 777200LR Boeing 777300 Boeing 777300ER Boeing 767300ER Boeing 737300 Boeing 747200 Boeing 747300

0( 40 order) 0(2 order) 0(5 order) 14 7 3 4

6

2

0( 6 order)

(10 orders) 12

2(1order)

31 (33 orders)

5

0( 14 order)

1

300

7 2 6 0(30 order)

Boeing 787

Total

44(4order)

99 (116 orders)

25(21orders)

57(113order)

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6.2.4 Services 6.2.4.1 Emirates’ Services  In November 2006 it was announced that Emirates had signed a deal with mobile communications firm AeroMobile. This will allow passengers on board Emirates flights to use their mobile phones to call or text people on the ground.  Emirates won the award for best in-flight entertainment in 2006 from Skytrax, because of their ICE (information communication entertainment) system, with the biggest selling point being over 500 channels of movies, television and music.  Emirates has begun construction on its own luxury five star hotel and towers. It is located next to Dnata headquarters on the Sheikh Zayed Road

34

 In mid-2007, Emirates will feature docking capability for Apple Inc.'s iPod portable music and video player. This will allow the device's battery to be charged, but will also allow integration with Emirates' in-flight entertainment (IFE) system. This will also enable the IFE system to play music, television shows, or movies stored on the iPod, as well as function as a control system.  Emirates to Launch Services to Ahmedabad, DUBAI, U.A.E., 11th July 2007 – Setting the stage yet again for increased co-operation between the U.A.E. and India, Emirates Airline has announced its plans to start non-stop services.  Italian Authorities Back Venice Launch As Emirates’ Chairman Leads Official Inaugural Flight, Dubai, UAE, 10th July 2007 – The Italian authorities have voiced their strong support for Emirates' new route into Venice, saying it presents a strategic opportunity to further develop tourism  Emirates is a 4 Star ranking airline, signifies airlines providing a good standard of Product across all travel categories - and a good standard of Staff Service delivery in Onboard and Airport environment. 6.2.4.2 PIA’s Services  PIA is the national flag carrier airline of Pakistan, based in Karachi. It operates scheduled services to 46 destinations throughout Asia, the Middle East, Europe and North America, as well as an extensive domestic network linking 24 destinations  PIA operates an extensive two-month (pre and post) Hajj operation each year to and from Jeddah in Saudi Arabia. PIA transports 90,000 pilgrims each year from Karachi, Lahore, Islamabad, Peshawar, Quetta, Faisalabad, Multan, Sukkur to the Kingdom of Saudi Arabia. In 2000, PIA operated a total of 306 flights, in its pre-Hajj and postHajj operations, which extended over a period of 26 days. A total of 88243 Hajjis (pilgrims) were transported from 12th Feb 2000 to 14th April, 2000.  PIA also operates flights from Pakistan to Jeddah and other destination in Saudi Arabia during the Umrah season. In order to deal with the demand the airline leases many different aircraft including Boeing 747-200s, Airbus A300B2s and Boeing 737-400s.  PIA is the 3 Star ranking airline, signifies a "satisfactory" standard of core Product across most travel categories - but reflects poor or less consistent standards of Staff Service / Product quality in selected Onboard or Airport features. 6.2.5 Promotion

35

6.2.5.1 PIA •

Pakistan International Airlines (PIA) supports a first-class cricket team that plays in the ABN AMRO Patron's Trophy in Pakistan.

•

PIA is also sponsoring the Pakistani team for the A1 Grand Prix.

•

PIA also promotes the Shandur Polo Gala, that takes place every year in the Chitral and Gilgit regions of northern Pakistan during the summer period.[16]

•

PIA is one of the official sponsers of the "Destination Pakistan 2007" festivals.[17]

•

PIA also supports non-profit organizations within Pakistan such as; Al-Shifa Trust, Zindagi Trust, The Citizens Foundation and Sind Institute of Urology and Transplantation (SIUT). [18]

6.2.5.2 Emirates Emirates is a big global sponsor of sports clubs and events, both at its home base and in the main overseas markets it serves. It also sponsors the annual "Dubai Shopping Festival" and the "Dubai Summer Surprises Festival". As the airline lacks a "readymade" clientele in its almost non-existent home market, this type of corporate sponsorship is its most effective marketing tool. Perhaps not surprisingly, for Emirates marketing expenses account for a far greater share of its total costs than for most of its competitors. In the English-speaking world the sponsorship always carries the words "Fly Emirates". At present the company provides the following sponsorships: 6.2.6 Sales Promotion 6.2.6.1 PIA Award +Plus PIA Award +Plus is the frequent flyer programme of Pakistan International Airlines. The program allows passengers to get free tickets, excess baggage vouchers, cabin upgrades, and a variety of exciting rewards and special deals. Awards +Plus offers three tiers of membership to frequent flyers that include Emerald, Sapphire and Diamond. The deal is the more often you fly PIA, the more A+ Miles you will accumulate, bringing you a step closer to the next tier of membership. You can also earn and redeem A+ miles not just by flying PIA, but also by using the products and services of PIA's partners. A. Benefits & features  All Emerald, Sapphire, and Diamond Members can earn 25% bonus A+ Miles if traveling Business Class and 10% bonus A+ Miles if traveling Economy Plus Class. Passengers traveling in the upper classes can benefit from faster accruals through bonus A+ Miles.  As an A+ Member, you can now also earn A+ Miles on chartered flights. 36

 A+ Emerald Benefits: As an Emerald Member, you are entitled to the following benefits:    

500 bonus A+ Miles upon becoming an Awards +Plus Member 10% bonus A+ Miles for traveling in Economy Plus Class 25% bonus A+ Miles for traveling in Business Class Check-In at Awards +Plus counter where available

 A+ Sapphire Benefits, As a Sapphire Member, you will enjoy the following value added benefits: 25% bonus A+ Miles on all PIA trips 10% bonus A+ Miles for travel in Economy Plus Class 25% bonus A+ Miles for travel in Business Class 10kg Extra baggage allowance in addition to entitlement as per ticket (not applicable on journeys to/from US & Canada) • Check-In at Awards +Plus counter (Business Class counter in the absence of Awards +Plus counter)  A+ Diamond Benefits, As a Diamond Member, you will enjoy privileged status. You are entitled to the following special benefits: • • • •

       

50% bonus A+ Miles on all PIA trips 10% bonus A+ miles for travel in Economy Plus Class 25% bonus A+ miles for travel in Business Class 20kg Extra baggage allowance in addition to entitlement as per ticket (not applicable on journeys to/from US & Canada) Check-In at Awards +Plus counter (Business Class counter in the absence of Awards +Plus counter) Access to Business Class airport lounge except at Karachi Airport where members shall have access to CAA's CIP lounge Kerb-side check-in facility for members without baggage in Pakistan where available Access to fast track immigration counter at airports in Pakistan where available.

6.2.6.2 Emirates Affinity Programs A. Skywards Skywards is an exclusive club for frequent flyers with Emirates and SriLankan Airlines, designed to offer you benefits over and above what you would normally expect, because we truly appreciate your loyalty. Each time you fly, whether for business or pleasure, you accumulate Skywards Miles towards a variety of inspiring rewards such as free travel, upgrades and other benefits with Emirates, Srilankan or our partners. There are three tiers of membership - Skywards Blue, Skywards Silver and Skywards Gold - each offering a greater degree of privilege, reward and

37

recognition.

1. Benefits & features  Pre-Assigned Seating To ensure as much comfort and enjoyment as possible during the journey, passengers can specifically request any particular seat at the time of booking, in any class of travel, subject to availability. And as a Skywards member, you are able to record your preference for an aisle or window seat, and this will be accommodated whenever possible. • Specific seat request will be guaranteed up to 45 minutes before departure for First Class passengers, up to 60 minutes for Business Class passengers and up to 90 minutes for Economy Class passengers. • For safety reasons, seats alongside the emergency exit can only be assigned at the airport, and preference for bulkhead seats will be given to passengers with infants.  Dubai Visa Services If you're flying with Emirates to Dubai and need a visa, simply call the Emirates reservations office at least ten days before your flight and, for a small fee, Emirates will happily arrange an electronic visa for you.  Special meals You can select from a list of over 20 meals designed to meat your dietary, religious or medical requirements, when you book your flight or at least 24 hours prior to departure*. You can record your meal preference as part of your profile.  Chauffeur Drive Service Fly First or Business Class with Emirates and take advantage of a complimentary chauffeur service to and from any of the airports listed below: Abu Dhabi Athens Brisbane* Frankfurt Johannesburg London Heathrow Munich Paris Singapore Zurich

Auckland Christchurch Doha Düsseldorf Glasgow Manchester Malta Melbourne* New York Perth* Sydney*

Alexandria Birmingham Dubai Hong Kong London Gatwick Milan Nice Rome Vienna

*Not applicable for group travel  Fast Track 38

Exclusively for Business and First Class passengers traveling with Emirates, Fast Track streamlines the immigration process for arrivals in Dubai. On Srilankan flights, Business Class passengers will receive invitations in-flight for Fast Track in Colombo airport. Simply look for the Fast Track signs as you approach Passport Control.  Stop-Over Services If you're flying with Emirates via Dubai and your ticket permits a stop-over, you can take advantage of preferential rates on hotels, car hire, golf packages and tours.  The benefits of Skywards Gold: • • • • •

Guaranteed seat reservations, even on fully-booked flights Personal travel assistance from our dedicated Gold Desk Complimentary E-gate access at Dubai International Airport Complimentary lounge access throughout the Emirates and SriLankan network Premium Skywards Opening Doors benefits from our worldwide partners

B. Emirates Lounges First and Business class passengers, as well as Skywards Gold and Silver members, have access to Emirates Lounges, located at several airports throughout the airline's network. In addition to the Emirates Lounge, Emirates passengers are able to use the Department of Civil Aviation's (DCA) First Class lounge in Dubai. 6.2.7 Price List of Low Cost Airlines in Pakistan  Aero Asia International  Air Blue  Shaheen Air

6.2.8 Financial Performance 6.2.8.1 Emirates The airline has recorded a profit every year since its inception, except the second. Growth has never fallen below 20% a year. In its first 11 years, it doubled in size every 3.5 years, and has every four years since. The Emirates Group announced a net

39

profits of Dhs 2.8 billion (US$ 762 million) for the financial year ended 31 March 2006. For 2004–05, Emirates paid an increased dividend of Dhs368 million to the Government of Dubai, compared to Dh329 million the year before. In total, the ownership received Dh1.1 billion from Emirates since dividends started being paid in 1999. Having provided an initial start-up capital of US$10m plus and an additional investment of circa US$80m at the time of the airline's inception, [16] the Dubai government is the sole owner of the company. However, it does not put any new money into it, nor does it interfere with running the airline. 6.2.8.2 PIA During the first quarter of 2007, the airline achieved a 5% growth in overall revenue mainly supported by 7.6% increase in passenger revenue which was partially lowered by a 10% reduction in cargo revenue. The revenue growth was reduced due to the EU ban from early March which meant only the Boeing 777 were able to operate into Europe. This caused many of the European services to be put on hold until the aircraft that were considered to be inefficient to be brought up to EU standards so they can continue flying. Even with the fuel cost remaining at the 2006 level due to stable oil prices in the first quarter 2007, the operating and financing cost increased in proportion. The impact of 2006 salary hike, increased cost of leased aircraft and higher maintenance cost of PIA fleet increased the overall operating expenses by 19%. Consequently, the airline suffered an operating loss of Rs 2.5 billion in the first quarter. 6.2.9 Market Shares 6.2.9.1 Market Shares Of Paksitan( 2005-06)

Domestic

PIA 71.3 Airblue 17.6 Aero Asia 10.2 Others .77

40

International

PIA 50.277 Emirates 11.70 Saudi 10.254 Others 27.76

6.2.9.2Market Share of “Dubai-Mumbai” Airline Market Airline

Market Share

Air India

22%

Emirates

44%

Ethiopian Airlines

9%

Cathay Pacific Airways

11%

Indian

0.2%

Gulf Air

3%

Qatar Airways

6.11%

Oman Airlines

0.4%

Biman Bangladesh

2.5%

Pakistan Airlines

0.2%

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Chapter 7: CARGO Air Cargo means anything which is carried or needs to be carried in an aircraft, booked from one destination to another, under an Airway Bill. 7.1 PIA CARGO DIVISION PIA Cargo Division functions under the domain of Sales Division. The division which is headed by a General Manager Cargo Sales and reports to the SVP Sales encompasses/ processing of the all cargo activities and responsible for monitoring performance of the network. Our network includes both domestic and foreign stations. Salient features of Cargo Division’s monitoring activities are as follows:

1. Coordinate with Corporate Planning and Finance Departments to finalize Corporate budgets and AFTKs and RFTKs. 2. Develop Cargo market plans and endeavor to meet the Corporate Objectives. 3. Ensure availability of Cargo capacity / deploy leased capacity to meet the market demand as per corporate requirements. 4. Provide policy guidelines to all stations. 5. Coordinate and regulate sales on scheduled passenger flights and on freighter flights. 6 Maximize Cargo Revenue based on segmentation, Yield Management and Effective capacity utilization as per marketing plan. 7. Provide all assistance to valued clients in case of discrepancies / complaints on account of mishandling of Cargo. 8. Develop standards of operations based on IATA requirements ensuring safety and security of the aircraft, Passengers and Cargo. 9. To Plan and impart Cargo Training as per the Cargo Training Manual. 10. To improve upon service standards.

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7.2 OFFICIAL ORGANOGRAM OF PIA CARGO Division

SVP Sales GM Cargo

DGM Cargo Complex

Product Manger SAFEA & Middle East Saudi Arabia

Cargo Terminal Manager Karachi

Manager Space Control

DGM Product USA/Europe/UK/ Pakistan

Manager Business Development

Manger Cargo Sales Network

DGM Cargo Operations

Manager Automation

MC Domestic/ International

MCS Domestic Station

MCS International Station

Sales Promotion Officers / Staff

Sales Promotion Officers / Staff

Cargo Officers/ Staff

Manger Cargo Sales Network

Cargo Terminal Manager

Cargo Officers/ Staff

7.3 EXISTING ORGANOGRAM

SVP Sales GM Cargo DGM Cargo Complex

DGM Product

DGM Cargo Operation

Manager Cargo Marketing & Planning

Manager Cargo Sales & Station Support

Manager Cargo Operation

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7.4 ABOUT THE ORGANIZATION STRUCTURE GM report to the SVP Sales. GM International Affairs encompasses/ monitors as well as to coordinate with corporate planning and finance department for finalization of targets and cargo space availabilities on different routes, to prepare marketing plans and implementing them on the network and to monitor revenue generation and administrative and service standards on the network. GM Cargo Sales is responsible to take corrective actions for all the functions linked with Cargo Sales division. Manager Cargo Marketing Planning, Manager Cargo Sales & Station Support, Manager Cargo Operation, Manager Product and Manager Complex report to the GM Cargo sales. 7.4.1 Job Description & Responsibility Of GM Cargo  Ensure that all appropriate data and assumptions are taken into consideration in formulation of the annual cargo marketing plan.  Ensure consistency in the cargo service standards.  Evaluate centrally all cargo service facilities through out the network to ensure that standards of service are consistent and that investments are made in those areas where improvement are most needed.  Identify charter opportunities in the field and work closely with cargo managers to take advantage of them.  Identify opportunities for increasing sales coverage and increased revenue and provide support to the cargo managers in counteracting competitor’s action and provide guidance to field.  Be customer focused, both internal and external customers. 7.4.2 Function of GM Cargo Yearly Target Setting For Cargo Procedure  Target setting activity initiates in November and ends by January each year.  Targets are allocated on the basis of previous years Revenue & Load performance achieved by the stations keeping in view expected available capacity and market potential.  Previous year’s cargo sales would form the basis for the current year’s performance targets both in terms of revenue and tonnage.  Feedback is taken from station cargo manager and incase of provision of agreeable reasons targets can be changed/altered.  Telex is then sent to stations for their action plan for the current year in terms of) Performance ii) Adjustments iii) Seasonal allocations iv) Frequency v) Strategy vi) Suggestions

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Chapter 8: CARGO MARKETING & PLANNING SECTION There are five section in PIA Cargo Division Cargo Marketing & Planning, Cargo Sales & Station Support, Cargo Operation, Cargo Automation and Cargo Complex so each and every section is define in four coming section.     

Cargo Marketing & Planning Cargo Sales & Station Support Cargo Operation Section Cargo Automation Cargo Complex

Cargo Marketing & Planning section functions under the domain of Sales Department. The section which is headed by a Deputy General Manager and reports to the General Manager Cargo division encompasses/ monitors as well as to prepare cargo market plans in collaboration with all station and in line with the overall strategies and objectives of the corporation.

8.1 Organization Chart

DGM Marketing & Planning Manager Marketing & Planning

Assistant Manager

Senior Cargo Officer

Cargo Officer

8.2 Job Description & Responsibilities 8.2.1 DGM Marketing & Planning  Assigning targets to the stations, approval of annual cargo rebate clearances and spot rates, monitoring of station performance. Develop cargo sales services and procedures.  Supervision of freighter operation to check and prepare analysis of leased capacity utilization.  Negotiation of cargo special prorates agreements with other airlines.  Allocation of space to the stations to maximize sector wise yields and to optimize capacity utilization on PK flights.

45

8.2.2 Manager Marketing Planning  Evolves and monitors implementation of cargo marketing plans.  Preparation of Cargo traffic, revenue and yields projections based on corporate annual budgetary requirements.  Preparation of route wise industry and PIA‘s market share statistics. 8.2.3 Assistant Manager Cargo Marketing Planning  Evolves and monitors implementation of cargo marketing plans.  Coordinates with other sections of cargo division in order to ensure better utilization of available cargo space and secure maximum commercial benefits.  Assist in developing marketing strategies. 8.3 Operations There are four kinds of Operations perform by Cargo Marketing & Planning section:

 Scheduling  Efficient Utilization of Space  Handling One Shot Deals 8.3.1 Scheduling of freighters PIA have four freighters which are charter from Turkish company so it is one of the challenging job to schedule the freighter because environment is very dynamic there are so many problem occur for ex: may be country independent day therefore then can’t not permission for lending, some time security problems. PIA cargo weekly four go for Germany and one for UK. They Schedule two time two year one in summer and another is winter but 20 to 26 changes occurs because due to weather or Holiday, etc. The Procedure for Scheduling: Following step involve in scheduling Step 1st: It the binging step collect the information from primary, current year sales performance and secondary sources, CAA or others sources. Step 2nd: Analyze demands of routes and what are the our current customers requirements and formulate the target market. Step 3rd: Communicate with International affairs for getting know how about the and approve from them. If they approve. th Step 4 : Formulate the schedule for routes according to demand of market. Step 5th: Send report to the International Affair and they communicate foreign countries for to full fill the requirement of cargo marketing & planning division. If they agree then go to next steps. th Step 6 : PIA Cargo freighter goes to routes.

46

8.3.1.1 Flow Chart for Scheduling Collect Information Make the Schedule for Freighters

Analyze Demand of Routes

Communicate the International Affairs

No

They negotiate with other Govt.

If they got success

If they approv e Yes

They report to the Cargo Division

8.3.2 Efficient Utilization of Space It is again one of challenging task for Cargo Marketing & Planning section to utilize space affective and efficient manner and it’s too much important because cargo sales give a cargo from different customer so customers give a cargo in different quantity therefore to manage the space for different customers. Some time customer give order but due to some problem he don’t send ship therefore that is also responsibility of this section to deal with such kind of situation for full the whole cargo plane. The Process for Efficient Utilization of Space: The Following Steps are involving Efficient Utilization of Space: Step 1st: Different Shipper gave an order for ship send a ship information. Step 2nd: Analyze the all shipper requirements and closely watch the plane space. Step 3rd: if space is available then call to customer sends cargo to PIA Terminal. Step 4th: if customer not sent to cargo due to some problems then get cargo from back look. Step 5th: Load cargo to freighter and freighter is fly.

47

8.3.2.1 Flow Chart for Efficient Utilization of Space Get Orders

Analyze quantity & Space

Yes

If Shipper not send Cargo Yes

No

If space is availab

Get form Back Look Yes

Load to Plane

Acknowledge to shippers

8.3.3 Handling One Shot Deals Procedure Upon Station’s Cargo Sales Manager’s recommendation, Product Managers assess the sale with respect to volume, space available etc and based on space available approves/ rejects the station’s one shot deal request. The following criteria are kept in mind while analyzing a one shot deal  commodity density- high or low  volume of business  competitors rates/ market conditions  agents  available capacity  destination

48

Chapter 9: CARGO SALES & STATION SUPPORT Cargo Sales & Station Support functions under the domain of Sales Department. The section which is headed by a Deputy General Manager and reports to the General Manager Cargo division encompasses/ monitors as well as to implement market plan on network, control segmentation, market shares and yields and to monitor sales functions and promote business.

9.1 Organization Chart Manager Cargo Sales & Station Support

Assistant Manager

Assistant Manager

Senior Officer

Senior Officer

9.2 Job Description & Responsibility 9.2.1 Manager Cargo Sales & Station Support  To supervise cargo sales manager on the network and giving them policy decisions from time to time for achieving service standards.  Coordinates with other sections of cargo division in order to ensure better utilization of available cargo space and secure maximum commercial benefits.  Attends customer complaints and ensure rectification of discrepancies. 9.2.2 Assistant Manager Cargo Sales  Dealing with Charges Collect Shipment.  Preparation of statistical information for reporting.  Any other assignment given by Manager. 9.2.3 Senior Cargo Sales Officer  Collection / compilation of cargo uplift data of incoming flights on the network.

49

 Investigation of cargo agents as per instruction of IATA.  Load preparation for incoming and outgoing MNG freighters.  Collection, compilation of data and coordination with sales office.

9.3 Operations Cargo Sales perform following Operations: 1. Setting Cargo Tariff 2. Post mail 3. Developing a Marketing Plan 9.3.1 Setting cargo tariff Basically cargo Tariff set the IATA for all airlines and PIA set the fare according to the rules and regulations of IATA and it is not necessary to follow the fare of IATA but airline set according to demand and supply but it important writes fare of IATA in Air Way Bill. 9.3.1.1 How is Cargo Tariff Calculated? Cargo Tariff is charged on per Kilogram basis; on either the weight or the volume (which ever is higher). Goods, for example, Live Animals, Dangerous Goods, Perishables, and Valuables etc which require special handling are charged accordingly.

The process of calculating the Cargo fare 1. Calculation the Gross weight and Volume 2. Change volume in weight by IATA formula if you want to calculate in inches then this formula, total volume / 366. if you want to calculate in centimeter then this formula, totals volume / 600. 3. Compare the gross weight with result of step no: 2. and evaluate which is Grater if gross weight is greater then calculate fare with gross weight else calculate fare with result of step no: 2nd. 4. Open the IATA book which name is TACT and find which kind of goods, what are sector, destination and origin. 5. get a one KG weight and multiply with result of Step 3 rd and we got the fare of cargo.

50

A. Flow Chart of Calculating the Cargo Fare Calculate GW & Volume

Change Volume in Weight

Yes

If u Know the one KG rate

Calculate fare

No Compare the GW with the Volume weight

Analyze which is greater

Read the IATA book Find the goods no: and sector Take one kg fare and multiple with greater

Calculation fare with Greater

9.3.2 Post Mail In post mail PIA only deal with Pakistan Post Office and Speed X and Airline take charges according to distance of mail. It is very simply to calculate the fare for the post mail below is formula which formulated by IATA. Fare = Destination X .426 / 1000 9.3.3 Developing A Marketing Plan Procedure  Cargo Sales Managers to submit marketing plans to Product Managers Head Office by January containing the following information: 1. Cargo Load Performance of previos year with given prev year’s Target vs. Achieved along with Variation. 2. Cargo Revenue Performance of Previous year with given prev year’s Target vs. Achieved along with Variation. 51

3. Capacity utilization. 4. Cargo yield. 5. Commodity wise movement.

Chapter 10: CARGO OPERATION SECTION Cargo Operation Section functions under the domain of Sales Department. The section which is headed by a Manager and reports to the General Manager Cargo division encompasses/ monitors as well as to look after cargo handling facilities and cargo terminal facilities. 10.1 Organization Chart

DGM Cargo Operation Manager Cargo Operation

Senior Cargo Officer

Assistant Manager

Cargo Officer

10.2 Job Description & Responsibility 10.2.1 Manager Cargo Operation  Evolve and monitor implementation of cargo handling procedures  Coordinates with other sections of cargo division in order to ensure better utilization of available cargo space and secure maximum commercial benefits.  Processes cargo claims within shortest possible time.  Ensures distribution of cargo handling manual/circular, other reference materials pertaining to cargo handling. 10.2.1 Assistant Manager Cargo Operation    

Handling all claims cases domestic and international. Coordinating with legal department and attending to court cases. Handling all claims cases domestic and international. Coordinating with legal department and attending to court cases.

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 To look after terminal facilities and process CS for infrastructure development and equipment procurement.

10.3 Functions Cargo Operations performing several functions, few of which are given below: 10.3.1 SHIPMENT Sales section just only get the business but operation section is responsible for smoothly moving of goods form shipper to end user in this process involve the several operation which are below. 10.3.1.1 Loading / Unloading: it is too difficult task because there are many kind of goods such as Danger Goods, Perishable, Human Remains, Gases, Radioactive Materials, Corrosives, Live Animals, Heavy equipment, electronic goods and chemical goods therefore deferent technique used of loading and unloading. There are several equipment used in loading and unloading few of below and all equipment is recommended from IATA. •

ULD( Unit Load Device) Any type of container, container with integral pallet, aircraft container or aircraft pallet. • Plate: That is sheet through which labor move cargo to airplane Whit the help of these devise load and unload the cargo. 10.3.1.2 Protect from damage or loss After loading it is also important to safely goods transfer from origin to destination. So PIA used IATA certified device or cartoon for packing such as Dry cartoon, DGR cartoon and perishable cartoon and Human Remain. PIA also handle the live Animal, each kind of animal has go different requirements for air shipment regarding the size & type of the cage, health certificates and other documentation. Theses regulations vary from country to country. Each type of Dangerous Good has been allocated a specific UN number. Specified cargo instructions must be followed for their Documentation, Handling, Packing and Loading.PIA strictly complies with the IATA Dangerous Goods Regulations (as given in the IATA DGR Manual).

53

10.3.1.3 Arrange Extra Service Some time airline plane doesn’t go to destination city then PIA arranges transport for reaching cargo to destination. 10.3.1.4 Flow chart of Shipments: Shipper give cargo Packaging to goods Analyze the what kind of Cargo

Load & unload form Plane

Checked the Documents No

Talk with shipper

If Documen t is complete

No

If plane away from destinatio

Give to owner

Yes Yes

Analyze the goods

Provide Transport facilities

10.3.2 Claim Handling There are three type of claim come from customers Damage, Loss and Late. If cargo is lost, damage or late then PIA offer compensation for Lost / Damaged cargo. Process for Claim Handling

There are following steps involved in Claim Handling: Step 1st: request come from the customers and assistant manager handle the claim Step 2nd: Assistant manager collect the data for claim if claim is legal then prepare the minute. Step 3rd: Calculating the claim by formula 20 dollar per KG for international and 500 rupees per KG for domestic but that is vary to vary by important of goods which are mention in air way bill. Step 4th: If claim is within a 1500 dollar then compensation area manager can pay If claim is within a 1000 dollar then approve from Manager If Claim is 2000 dollar then approve from GM If claim is 3000 dollar then approve from SVP sales If claim is grater then 3000 dollar then approve from chairman th Step 5 : Report to the finance department for paying compensation to customer.

54

10.3.2.1 Flow chart of Claim Handling: Request form customer Collect the information

No

Stop the Process

If claim is legal

No

If they approve

Yes

Yes

Prepare the minute

Report to the Finance department

Approve from management

They send amount their account

10.3.2.2 Processing Claim Case of Cargo Settlements Procedure From customer:  All claims for Loss whether complete or partial must be filed with PIA within 120 days of sending shipment.  In cases of Damage, PIA must be notified in writing within fourteen (14) days of delivery or the claim will likely be declined.  Claimant to attach a letter of explanation if there are any special circumstances that PIA should know about.  Provide a copy of the signed Delivery Receipt, Airway Bill, Original Invoice, Invoices for repairs or replacements, and pictures (if available) , packing list, joint survey report, independent survey report indicating extent of damage when filing a claim. Pictures to be sent via post or email them to PIA From PIA:  PIA will send an Acknowledgement of Claim when claim is received. In no case will carrier accept responsibility for Consequential Damages or Special Damages beyond the value of the goods that are the subject of a claim.  Prior to any settlement, PIA will request applicable salvage rights. If salvage rights cannot be obtained, the claim will likely be declined. 55

 Prior to any settlement, all freight charges must be paid in full applicable freight charges must be included in claim presentation. Settlement claim would be processed within 30 days under normal circumstances after obtaining claim release forms from claimant. 10.3.2.3 Responding to Customer Complaints Procedure  Upon receipt of a customer complaint, Product Manager should identify the relevant area concerned with the issue and forward the same for comments/ actions and ensure their timely redressal from the concerned office.  Acknowledgement of receipt of complaint / querry to be sent within 24 hours to the customer 10.3.2.4 PIA Offers Compensation for Damage or Loss PIA Cargo is committed to take good care of the Cargo Shipments. However due to any unforeseen reason, if the shipment is damaged or lost, PIA does offer compensations to the shipper. The compensation is offered as per the international conventions like the Warsaw Convention and the Hague Protocol. Generally the legal liability is; • •

US $ 20 / Kg on International Sectors* Pak Rs. 500/Kg on Domestic Sectors*

*Conditions may apply. For valuable items, the value of the goods must be declared at the time of the booking of Cargo. In this case, Valuable Goods Handling Charges and Insurance will have to pay by the shipper. The compensation will be according to the Declared Value of the Shipment.

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Chapter 11: CARGO AUTOMATION SECTION, CARGO

COMPLEX SECTION & COMPARSION OF PIA CARGO 11.1 CARGO AUTOMATION SECTION Cargo Automation Section functions under the domain of Sales Department. The section which is headed by a Deputy General Manager and reports to the General Manager Cargo division encompasses/ monitors as well as to assist and prepare automated systems for cargo handling at network. 11.1.2 Organization Chart Manager Cargo Automation

Assistant Manager

Senior Cargo Officer

Senior Cargo Officer

Senior Cargo Officer

Cargo Officer

11.1.3 Job Description & Responsibilities

11.1.3.1 Manager Cargo Automation  Assist GM Cargo in automation related functions and activities and supervise automation unit.  Coordinate with IT department for automated systems development and implementation.  Coordinate with SITA regarding SITA FAST-IV cargo reservation system.  Coordinate with outside agencies such as custom department in providing the cargo related data for their PRAL system. 11.1.5 OPERATIONS 11.1.6 Authorities Designation To Access the Database Procedure  Upon request of station Manager/ Terminal Manager Reservation station is granted for its reservation staff against their P-Numbers, codes of RS & RA and for Terminal services staff codes of TS, WS and RS.  Head Quarters functions such as feeding & maintaining of schedule changes/ tables rest with Cargo Automation Manager Head Office. 11.2 CARGO COMPLEX SECTION

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Cargo Complex Section functions under the domain of Sales Department. The section which is headed by a Deputy General Manager and reports to the General Manager Cargo division encompasses/ monitors as planning and supervising all cargo related activities at the station and keeping the management abreast of the industry emerging trends and competition. 11.2.1 Job Description & Responsibilities

11.2.1.1 DGM Cargo Complex  Planning, evaluation, guidance and implementation of all cargo operational and Administrative functions and financial heads for budgetary approvals of cargo complex.  Liaison with all operational units (traffic / TGS / ENG / Operations) concerning cargo related activities.  Coordination / liaison with ASF / Customs and civil aviation authority regarding policy matters. 11.2.1.2 Manager Air Cargo Center  To look after supervisor the load plan/booking advised by cargo sales manager (CSM)  To accept cargo ensuring completion of all import / export documentation requirement.  To look after the daily booking of intake of dry cargo/perishable/courier booking. 11.2.1.3 Cargo Terminal Manager Export  Monitoring all cargo related activities at the station ensuring that the management is always in picture of industry trends. 11.2.1.4 Cargo Terminal Manger (Import)  To look after all international import, arrange distribution of cargo for delivery and manage transshipments. 11.3 .2 Cargo Complex Devises: There are several ULD and device used in cargo complex function such as LD36, LD3, LD6, AMA, AMD, PMC, PLA, PYB, PKC, PGA, PZA, PMC Q7, PMC Q6, Horse Stall, Cool Dolly and Pallet.

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11.3 COMPARSION ANALYSIS 11.3.1 PRODUCT Cargo Fleet PIA Type Have Order Airbus A310-300F Boeing 747-400RF Boeing 747-400F Boeing 747-8F 777 Freighter Airbus A300B44 200F Lease Airbus A300600RF Airbus A330-200F Total 4

Emirates Have Order 3 3 5 10 8

Etihad Have Order

2 8

21

2

3 3

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11.3.2 Awards: Emirates win Best Cargo Airline to the Middle East for an unequalled 18 years in a row.

11.2.3 FEATURE OF EMIRATES SKYCARGO 1. Today, we continue to set the standard. Flying to over 80 destinations worldwide 2. SkyCargo facilitate customers Through SkyChain, our online cargo logistics system. 3. SkyCargo fleet, too, demonstrates our commitment to excellence. Amongst the youngest of any airline, it comprises the latest wide-body jets from Airbus and Boeing. It is the first major airline to place an order for the revolutionary Airbus A380 super jumbo. 4. Our cargo solutions have been developed to provide our customers with cuttingedge air freight services. 11.2.4 MARKET SHARES

Domestic

PIA 72.886% Airblue 13.47 % Aero Asia 9.18% Others 4.46%

International

PIA 36.05% Emirates 21.5% Saudia 7.3% Others 35.31%

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Chapter 12: INTERNATIONAL AFFAIRS DIVISION & THEIR COMPARSION International Affairs functions also under the domain of Sales Department. The division which is headed by a General Manager and reports to the SVP Sales International Affairs division encompasses/ monitors as well as to enhance opportunities of operations to other countries and regions of the world through ASAs and help PIA increase its revenue through commercial agreements with other airlines. To liaise with government agencies to safeguard PIA’s interest.

12.1 TERMINOLOGY Freedoms of Air Five basic freedoms recognized by almost all countries, two others less widely accepted. Each is subject to specific conditions, which are determined through bilateral agreements between any two of the countries.  First Freedom: The right to fly and carry traffic over the territory of another partner to the agreement without landing  Second Freedom The right to land in those countries for technical reasons such as refueling without boarding or deplaning passengers.  Third Freedom The right to land in those countries and de-plane passengers coming from the airline’s own country.  Fourth Freedom The right to land in those countries and board passengers going to the airline’s own country.  Fifth Freedom Disembarking and embarking Passengers in the territory of third Country. For instance, US Airline flying between New York and Athens and carrying passengers boarding in London and disembarking in Rome.  Sixth Freedom The right to carry traffic from one state through the home country to a third state.  Seventh Freedom A right to operate stand-alone services entirely outside the territory of the Airline’s home country to carry traffic between two foreign countries.  Eight Freedom To carry traffic between two points within the territory of a foreign country, commonly known as Cabotage rights. Chicago Convention

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An International agreement made in 1944 where, interalia confirms the doctrine that airspace above sovereign territory was within the jurisdiction of sovereign country and defined the so-called Freedoms of Air.

Code-share An agreement between airlines to sell space on each other’s flights. The flights will have both the operating carrier’s flight number (the airline that is using its aircraft for the flight), and the code-sharing flight number (the partner airline in the agreement sells space on the flight as if it were its own, and has its own flight number). Hub Airport at which an airline has major operations and connecting flights to smaller destinations Air Services Agreements It is agreement between tow governments, which include safety, aviation security, security of travel documents, custom duties, safeguard, fair competition, environment protection, ban on smoking, sales and marketing of air service and capacity etc. Commercial Agreements: It is further description of ASA, it means what airline follow which freedom, which airport airline plane come. Open Sky Agreements: It means any plan come on airport without freedoms restriction. For ex: Dubai Airport is open sky of and airline. 12.2 Organization Chart

GM

DGM

Manager

SOCA

SOCA

SOCA

Office Attended

12.3 JOB DESCRIPTION & RESPONSIBILITIES: 12.3.1. GM International Affairs  To be aware of all safety and service quality requirements and to be responsible for the outcomes and findings of all internal and external safety/quality audits. 62

 To liaise with CAA and Government Departments on Aviation Policy.  Represent PIA in Government negotiations pertaining to Air Services Agreements and assist governmental agencies for obtaining favorable traffic rights under the Air Services Agreements with other countries.  Monitor Foreign Airlines operation to/from Pakistan.  Respond to all queries from Parliamentarians, Ambassadors, Government Departments, and Community leaders regarding operation, frequencies, capacity etc. 12.3.2 DGM  Maintain record of all service agreements.  Identify opportunities for PIA with regards to Commercial Agreements (Alliances, Code share, Pools, Royalties, Interline Pricing)  Coordinate and monitor implementation of commercial agreements.  To study the impact of all agreements concluded by PIA.  Keep record of frequency / capacity operated by foreign airlines and analyze vis a vis operations of PIA and other Pakistani Airlines.  Prepare recommendations / comments on national aviation policy.  Respond to all queries received from Senate, Assemblies, Pakistani Missions abroad and Community leaders regarding PK operation, especially frequency/capacity issues. 12.3.3 MANAGER  Assist DGM in reviewing all Pool/ Commercial/ Code-share and looking for required changes in it with a view to safeguard PIA’s best interest and business growth. The manager should also devise strategies with DGM Commercial to sign new agreements with countries that need to be renewed.  Assist DGM to maintain record of all air service agreements.  Review existing Commercial agreements in accordance with the long term plans and recommend specific changes for future negotiations.  Ensuring proper agreements are conducted with regards to capacity for Hajj operations.  Keep close ties with interline pricing and have all the info updated for DGM commercial to work on and plan and kept in a way that its utility to the airline while negotiating rates with other carriers relating to all commercial agreements. 12.4 OPERATIONS 12.4.1 Dealing for Air Service Agreements Following Steps involve in Dealing with Governments Step 1st: It the beginning step request to the CAA or Ministry of Defense for expend operation to other country. Step 2nd: Ministry of Defense start the negotiate with the other government for new agreements. 63

Step 3rd: Ministry of Defense try to persuade for conference if they are agree then they give a date for conference. Step 4th: PIA and govt. envoy try to persuade new agreement and safeguard the PIA’ s interest. Step 5th: If they are agree then PIA start the negotiate for commercial agreement. 12.4.1.1 Flow Chart for Dealing with Governments: Send request to the Government

Govt. Start the negotiate with other

If they are agree

Try to persuade them

No

Yes If they persuad ed

No

Announcement of date for conference

Yes PIA start the negotiate for commercial agreement

PIA & govt..’s envoy negotiate with other envoy

12.4.2 Dealing for The Commercial Agreements The Following step include in Agreement with other airlines Step 1st: Request come from sales or commercial division for get permissions for sales and commercial operation perform to other country. Step 2nd: After that they assess the previous agreements if it is already done then Go to next step if not prepare the report to government. If that is already mention in ASA then go to next step rd: Step 3 Prepare the report and get approve from the Top Management Step 4th: If Top Management approve the start the negotiate with airline and try to persuade for next agreements. 64

12.4.2.1 Flow chart of Commercial Agreements Request From Sales GM or Commercial

Assess Previous Agreements

No

IF It is mentio n in ASA

Prepare the report

Yes Prepare the report

No

Approv e From Top Level

Yes

Report To the Airline

12.5 COMPARATIVE ANALYSIS In this part I compare PIA agreements with Emirates, Etihad, Gulf Air and Qatar. 12.5.1 Code sharing Agreements 12.5.1.1 PIA No:

Airlines

Routes

65

1 2 3 4 5 6 7 8

Aerovist Airlines China Southern Airlines Thai Airways International Turkish Airlines Singapore Airline Malaysia Airline North Korean Airlines Qatar Airlines

Karachi/ Dubai/Kiev Islamabad/ Urumqi /Beijing Karachi/Lahore/Islamabad/Bangkok Karachi/Istanbul/Frankfurt

12.5.1.2 Emirates

No: 1 2 3 4

Airlines Air India Air Malta Air Mauritius Continental Airlines

5 6 7 8 9 10 11

Japan Airlines Korean Airlines Oman Air Philippine Airlines Royal Air Maroc South African Airways SirLankan Airways

12

Thai Airways

Routes Chennai & Cochin Larnaca & Malta Mauritius Newark New York & Houston via London Gatwick Tokyo Haneda, Fukuoka & Sapporo Seoul Dubai and Muscat Manila Casablanca Johannesburg Colombo, Dusseldorf, Frankfurt, Jakarta, Male, Munich & Singapore Bangkok

The advantage for our passengers is a wider choice of destinations plus the security of flying with an airline specifically picked by Emirates to operate on its behalf guaranteeing levels of service and facilities. 12.5.2.3 Qatar 1. 2. 3. 4. 5. 6. 7. 8. 9.

Air China Alitalia All Nippon Airways Asiana Airlines BMI Garuda Indonesia Lufthansa Malaysia Airlines Middle East Airlines

10. Myanmar Airways International 11. Philippine Airlines 12. Saudi Arabian Airlines 13. Swiss International Airlines 14. Thai Airways International 15. Tunisair 16. United Airlines 17. US Airways 18. Yemenia

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Chapter 13: GROUP TOURS & CHARTER DIVISION Group Tours & Charter(GTC) has been created as a new strategic business unit(SBU) in August 2005 with distinctive goals and smart targets. Headed by a General Manager, it is entrusted with the challenging job to improve PIA’s market share, enhance national image building and strengthen its revenue base. The GTC work portfolio includes design and marketing of travel packages for inbound, outbound and domestic tourism. This wide array of packages covers major tourist spots in the world and domestic destinations too. Following are:

Almost all the leading exhibition events in the country are being sponsored by PIA and are effectively being organized by GTC. In product designing GTC has to coordinate with a diverse mix of stakeholders like hotels, tour operators, ground transporters, civic bodies, Ministry of Tourism, event management companies, etc.

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To work as a driving GTC product line is best contributing in enhancing national image and destination selling. The width of product line encompasses vital market segments like adventure, religious, sports, corporate sector, event management companies, VFR, government organizations, commercial and business houses, cultural groups, academia, wedding group etc. 13.1 PIA HOLIDAY PIA Holiday is our new offering with many attractive domestic and international destinations. It cover international destinations enriched with cheerful and thrilling experiences. The domestic tourism packages are developed to promote the activities like steam Safari, Air Safari, Shandur Polo, Gandhara civilization Packages, Basant event etc. An innovation based promotion mix is supportion our this product line, which is characterized by smartly-designed brochures, leaflets and fliers which have been placed at all strategic locations our on-line and off-line stations. A wide and effective distribution mix is employed to reach target customers with all comforts and convenience witness the majestic beauty of Pakistan's Northern Areas, or take a unique oldfashioned train ride through the legendary Khyber Pass. Travelling outside Pakistan this year? Wander through Chiang Mai's Night Bazaar or laze on the beach in Malaysia. If Shopping is what get you going, there's no place like New York. The GTC work includes design and marketing of ravel packages for inbound, outbound and domestic tourism. In product designing GTC has to coordinate with a diverse mix of stakholders like hotel, tours operators, ground transporters, civic bodies, Ministry of Tourism, event management companies, etc. To work as driving catalyst GTC product line is best contribution in enhancing national image. 13.2 Organization Chart

GM GT&C Product Manager

DGM Senior Officer

Assistant Manager

Senior Officer

Senior Officer

13.3 JOB DESCRIPTION & RESPONSIBILITIES: 13.3.1 Product Manager

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 Develop action for providing direction and support to the field marketing personnel in developing inclusive Tours, Brochures for tours destinations in order to meet the targets.  Work closely with National Tourist Organizations and provide information on interesting developments to the field staff.  Analyze market potential of IT and Group Travels and develop revenue targets in coordination with stations.  Recommend the desired pattern of PIA schedules in order to meet the station’s requirements relating to bulk and group tours traffic.  Organize the educational tours for IT / Group Travel promoters to place of tourist interest in collaboration with the respective International Tourist Organizations.  Monitor Station’s monthly performance and suggest guidelines for making improvements in group tours. 13.4 OPERATIONS Main Functions is to developed tours promotion programs ensuring effective utilization of carrier tours to achieve optimum share of market.      

Group Tours and Charter perform three types of Operations: Formulation of Tours Selling of Tours Charter The Plane Increasing the Outbound/In-bound Group Movement Facilitating the Stations for the Holiday Packages

13.4.1 Formulation of Tours There are several steps perform during the formulation of tours which perform by Group Tours & Charter. A. Collect the Information form  Marketing Intelligence Section  Secondary source Information collect form Marketing Intelligence regarding freedoms, country laws and govt. rules and regulation you also collect information regarding Visa policy, which country visa easily available from deferent sources. B. Collect Information regarding country tour place, Hotel fare and Transport fare, country map of tour place and climate of county. C. Prepare a schedule, time table of tour, places, foods and transport. D. Set the fare of tour include all charges, hotel, transport, flight fare charges E. Set the terms and condition for tourists F. Finally promote the packages

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13.4.1.1 Flow Chart for Formulate Tours: Collect Information

Country Permissio n

Get Information about country

No If it is suitable for Target

Prepare a Schedule Yes

Set the Price

Promote the package

13.4.2 Selling of Tours Following steps include in selling of tours Step1. When request is come to the Group Tours and Charter then Group Tours officers is evaluate, which package is require to the customer or package is full fill the requirements of customer if yes then go the next 2nd step. Step 2. Collect the all relevant information from customer, when customers want to go, which additional place for tours.

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Step 3. Create the Package for customers, include all additional things which which customer want. Step 4. Send package to the customer if customer agree on package then sell to customer if not then again go to 2nd step

13.4.2.1 Flow Chart For Selling Tours: Request Receive

Assess Packag es

Collect Information from Customers

Formulate Package

No Persuad e Custom er

Yes

Sell

13.4.3 Charter The Plane Following Steps involve in the process of charter the plane: Step 1st: Request come form the charter the plane Step 2nd: Get routes Knowledge from International Affair if they say PIA can 71

perform operation on this country then go to next step else refused to customers Step 3rd: Get information from Flight Operation Section about plan If they say yes on this date plane is free then go next steps else try to persuade customer for another date. th Step 4 : Find the less cost routes which give more profit to PIA and set the price Step 5th: Try to persuade customer on price If customer is persuaded then sales the space else go to 3rd step.

13.4.3.1 Flow chart of chatter the Plane: Request

No

Approve From Internati onal

Tells for routes needs

Yes

Get Information from flight Operation

No

If Space is Availab le

No

If Custom er Persuad

Ask for another date

Yes

Yes

Find the Less Cost Route

Give Schedule to customer

Set the Price Sell the Space

13.4.4 Increasing the Outbound/In-bound Group Movement

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Procedure  GTC (commercial department) gets the group-handling request from Domestic/International District offices/Tour operators/Travel agents and sorts out the information about the group.  GTC Product Officer checks for the flight status for the desired traveling dates.  GTC Product Manager coordinate with the stakeholders i.e. hotels/resorts, tour operators etc. for the availability of space.  Product Manager/Officer GTC coordinates with CRC for confirmation of seats.  Product Manager GTC coordinates with concerned Product Manager for processing the requests for group discounts and sends it for the top management’s approved.  GM GTC also offers a complete tour Packages to clients inclusive of airport transfer, discounted airfare, hotel accommodation and sight seeing tours. A travel guide may also be provided, if required.  Product Manager GTC informs the District Manager about the seat confirmation which in turn is communicated to the traveling group members/leader. The District Manager requests for full package payment form the client.  The Product Manager GTC communicates the travel itinerary of the group to the concerned stations/tour operators /hotels  Product Manager GTC forwards any special group request such as special meal, handling etc. to the concerned section/division and seeks their confirmation.  Product Manager GTC usually arranges for Special handling of the group at stations with effective coordination with the concerned district manager.  Product Manager GTC collects feedback from the traveling group members through concerned District Manager. 13.4.5 Facilitating the Stations for the Holiday Packages

Procedure  GTC gathers Information about tour operators & hotels that are or can be involved in holiday businesses.  Product Manager GTC selects competitive & best service provider tour operators & hotels.  GM GTC / Product Manager GTC personally meeting them & making contracts/agreements for whole one year & involve PIA Legal department in legal activities.  GTC also coordinates with the Competitive Analysis section for the fares, which are to be quoted in preparing the packages.  Finalization of packages along with terms & conditions and forwarded across the Network.

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Chapter 14: SWOT ANALYSIS 14.1 STRENGTHS  In the past decade, air travel has grown by 7% per year. Travel for both business and leisure purposes grew strongly worldwide. Scheduled airlines carried 1.5 billion passengers last year.  PIA offer different type of service which gives competitors advantages in market such as ground service handling and Training Center etc.  Many new appointed Senior Officer is hard worker but they are unable to do for PIA due to poor management.  PIA organize different Travel Agents awards ceremony which motivate agent for ticket selling.  PIA introduces Kerb Side counter for its economy plus passenger, this facility will allow passengers to save time and have a hassle free journey.  The Company’s structure has been designed according to functions, which is simple and changeable. 14.1.1 Passenger Sales  PIA has still major market share in domestic, 71% and international is 50% in Pakistan which is show still PIA is dominates in Pakistan.  5pc growth in revenue because of 7.6 per cent increase in passenger revenue  PIA introducing with travel agent in Turkey  PIA has introduced group discount packages for its business class passengers traveling on international routes  Passenger revenue is the major contributor to the total revenue (around 85%) of the airline 74

 Ticket Office System used the Consumer Management System which work through Information Technology  PIA is the national flag carrier airline of Pakistan  PIA Award+Plus is the frequent flyer programme allows passengers to get free tickets, excess baggage vouchers, cabin upgrades, and a variety of exciting rewards and special deals  PIA During the first quarter of 2007, the airline achieved a 5% growth 14.1.2 Group Tours & Charters  GTC is offering very beautiful packages for Tourist which attract domestic and international 14.1.3 International Affairs  They got success in code sharing agreements with five airline Singapore airline, Malaysian Airline, Qatar Airline and North Korean Airline.  PIA is code sharing agreements only eight airline 14.2 WEAKNESSES  Top management is change year to year due to union problems  Organization structure is decentralized, this organization structure is not customer focus.  Head office expenses is more then their product expenses.  In head office employee perform work paper and computer base therefore it is cause for two side expenses.  If one employee is not there seats then another employee don’t take there responsibilities therefore they loss their business  The airline had sustained a loss of Rs13.1 billion during 2006  PIA suffer from over employment due to this PIA take loss  Management is unable to utilize resources effective and efficient manor, many new appointed Senior officer want to do for PIA but management is not proper utilize them.

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 Managers and employee have lack of motivation toward there work, they don’t perform there job willingly only time pass.  PIA was born 1946 and other airline was born few years ago but they are too strong now so why PIA is still suffer from losses  Mostly employee don’t work for their corporative vision and mission statement

14.2.1 Passenger Sales  Mostly Airplane late arrive form engineering section for takeoff so passengers are frustrate due to inefficient staff of engineering  Agents involving in fraud case, they get charges for business class but reserve seats in economy class when customer claim then they accuse on PIA  Attitude of front line staff is not good which are dealing with customers.  Agent accused that PIA call center not give a information to us. They only one time attaint the phone.  Agent not pay the ticket revenue on time due to not proper control or agents are very sours able business man.  If agent catch in fraud case then they don’t pay plenty easily they take lot of time.  Affective and efficient not utilization of human resource in Ticket Office system  PIA Airline is three star airline but Qatar is five start airways  PIA have 47 aircrafts but emirates have 147 and Qatar have 150 aircarfts  Emirates, 144 and Qatar, 44 sales office is day by day increases but PIA sales office is day by day decrease  Emirates win awards, In-flight Entertainment Excellence in 2006 but within 10 years not win any awards  PIA mostly aircraft is Boeing which inefficient in fuel and Emirates, Qatar and Etihad have mostly Airbus aircraft which are fuel efficient.

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 PIA is not sustain current service but Emirates day by day increases there service, mobile communication which allow passengers on board Emirates flights to use their mobile phones to call or text people on the ground  Competitors is vastly involve in marketing activities to win the customers  ON many website show the very expenses airlines is PIA

14.2.2 PIA Cargo  10 per cent reduction in cargo revenue  In post mail PIA cargo only deal with Pakistan  There is no section for competitor analysis 14.2.3 International Affairs  PIA is only eight code sharing agreements but other airline is many code sharing agreements 14.3 OPPORTUNITIES •

In the past decade, air travel has grown by 7% per year. Travel for both business and leisure purposes grew strongly worldwide. Scheduled airlines carried 1.5 billion passengers last year.

•

Air travel has grown by 9% per year in centered on the Asia/Pacific region and forecasts suggest that the number of passengers will double by 2010.

•

Pakistan is the Muslim country therefore PIA get billion of revenue in Hajj and Umra seasons

•

PIA national flag airline that give concept be Pakistani and buy Pakistani

•

Now a days countries going to adapt Open-Sky policy

•

EU take a ban from PIA fleet that is first symbol of Top management success

14.3.1 Passenger Sales

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 Emirates growth fallen below 20% a year 14.3.2 Group Tours & Charters  Heritages places, civilizations, northern areas, religious events and Indian oceans of Pakistan is attract tourist that is create business for PIA.

14.4 THREATS  Aggressive competition face in domestic and international market.  Fuel cost is increase day by day due to this problems price is going to increase  Major thread of our whole industry that is the load shading of electronic energy which make us PIA inefficient.  It has posted RS 5.6 billion losses during the first six months, despite stable fuel prices  Always America pressurized to our government for purchasing Booing aircraft due to this problem PIA is not full efficient airline

 Emirates offer Lounges for their passengers, located at several airports throughout the airline's network  The Emirates Group announced a net profits of Dhs 2.8 billion (US$ 762 million) for the financial year ended 31 March 2006. 14.4.1 Passenger Sales  Emirates Skywards is an exclusive club for frequent flyers with Emirates and SriLankan Airlines it means emirates is offer frequent flyers also with other airline  Emirates skywards is offer Chauffeur Drive Service on many airport  Emirates arrange an electronic visa for you for Dubai.

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14.4.2 Group Tours & Charters  Terrorism and instability in politics is resistance in the eyes of tourist  Visa is not easily available for western countries  Competitor is day by day is increase the services such as Emirates allow passengers on board Emirates flights to use their mobile phones to call or text people on the ground 14.4.3 International Affairs  American government not provide nonstop facilities due to security problems  PIA competitor day by day increase the code sharing agreement such as Emirates,12 and Qatar,18

Chapter 15: CONCLUSION, SUGGESTIONS & COPYRIGHT 15.1 SUGGESTIONS Internship program have provided to me useful learning experience and opportunities to work in such organization and saw how it actually operates. The Officers / Officials of each department were very cooperative during my Eight weeks internship program. After going through the process of said training the suggestions are made in the following order:  Decentralize the organization structure and make on customer base organization structure  PIA should implement the solar energy system  Formal training should be provided to engineering departments for making airplanes according to international standers  PIA should develop paper less environment within a head office and around the network.  It should be define in job description and responsibility if one employ is not there seat then who one is responsible for their job.  To compete and retain leadership in Airline industry in Pakistan, they should be improved the dealing with agents.  Top management should take action again those manager which are don’t utilize affective and efficient resources  Profitability can be improved by effective and efficient operation, selective marketing, and proper product mix in airline. 79

 PIA should increase the counter which wills facility passengers to save time.  Top management should make strengthen PIA Engineering’s position as a world class, reliable Engineering Aviation and Logistic services Company, offering its customers a full range of cost efficient and high quality aircraft maintenance and engineering solutions  Top management should educated employee for their vision and mission statement because employee work for their organization vision and vision is guide employee  Top management should take action regarding employee because few of employee have don’t work they involving in other discussion , sleeping and smoking.

15.1.1 Passenger Sales  They should develop the managerial body which are catch the fraud of agents.  To utilize affective and efficient human resource and Ticket Office system or downsize through golden hand shake  To formulate new complain handling system through this system complain handle in one section  Top management is take action against those ticket office which are closed  PIA should be involved broadly in promotion activities  PIA managements should work for to win a awards of 2007-08 it is necessary for build the image  PIA should offer Chauffeur Drive Service on profitable routes  PIA should offer Guaranteed seat reservations, even on fully-booked flights for their Award plus customers  PIA should offer Lounges for their passengers, on Manchester and New York airport or more profitable airport.  IT section should take action against those website which are show PIA is high cost airline  Audit compliance should comprehensive information send to tariff audit compliance section for solving the problems. 80

15.1.2 Group Tours & Charters  They should promote there packages domestic and international. 15.1.3 PIA Cargo  PIA should launch the eCargo and frequent cargo programme for sales promotion which make shipper more loyal  They should increase the business in post mail not limited with one organization such as Pakistan Post  They should develop the managerial boy for competitor analysis 14.1.4 International Affairs  They should start negotiation with government for don’t fully implement the Open-Sky’s policy due to foreign airline pressure  They should start the work for code sharing agreement with India Airline and others  They should negotiate with American government for non stop service in their country

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14.2 CONCLUSION •

Pakistan International Airline is the largest Airline of the Pakistan with 71% domestic and 51% international of market share in airline industry in Pakistan. It sales performance is show that it is still suffer from loses.

•

The most dynamic growth is centered on the Asia/Pacific region, where fastgrowing trade and investment are coupled with rising domestic prosperity. Air travel for the region has been rising by up to 9% a year and is forecast to continue to grow rapidly which create opportunities for PIA.

•

PIA Sales Department is divided in five division, Domestic, International, Group Tours & Charters, International affairs and PIA cargo.

•

PIA Sales Department has responsible for three SBU Group Tours and Charters, PIA Passenger and PIA Cargo.

•

PIA Passenger sales division is further divided in product management, Ticket Office System, Tariff, IATA affair, Audit compliance, marketing intelligence and Ticketing Staff.

•

Group Tours & Charters division is responsible, formulate tours, advertise tours, sales the packages and charter the plane.

•

PIA Cargo division is one of the independent division of PIA and perform five function Selling, Operation, Marketing & Planning, Product Management and Handling Cargo Complex.

•

The whole report suggested that PIA employee have lack of motivation toward there job.

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•

Recourses are not utilized affective and efficient manner mostly human resources.

14.3 BIBLOGRAPHY

1.

PIA

Website www.piac.com.pk

2.

Interview from Agents

Fareed Traveles(DM Mr. Zafar Hasan Khorasany) Fareed Traveles(CA Mr. Kamaran Yousuf)

3.

Magazines

Air World ( May 2007), Flyer (April 2007) Aviation Week & Space Technology, Vision Marketing Bulletin

4.

Internet

www.wikipedia.org, www.expedia.com www.answere.com, www.airlinequality.com & www.emirates.com.

5.

News Papers

Holiday, Dawan Sunday, June 24,2007

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6.

PIA

Basic Facts 2003-04 and Basic Fact 2005-06

14.4 COPYRIGHT

“Attention is drawn to the fact that copyright of this report rests with the author. This copy of report has been supplied on condition the anyone who consult it is understood to recognize its copyrights rest with its author and no quotations from report and no information derived from it may published without the prior written consent of the author” “The report content material, which is the property of PIA and that have given me permission for its reproduction, this material remains protected under their copyright”

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