pia.final compile
TRANSCRIPT
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Table of Contents
Dedication ....................................................................................................................................... 2
Acknowledgement .......................................................................................................................... 3
Abstract ........................................................................................................................................... 4
Introduction and History of PIA ...................................................................................................... 5
Current problems related to operational management ............................................................... 10Productivity ................................................................................................................................... 12
Strategies ...................................................................................................................................... 13
Forecasting .................................................................................................................................... 15
Services Design.............................................................................................................................. 16
Capacity planning .......................................................................................................................... 19
Facilities layout ............................................................................................................................. 20
Work measurement ...................................................................................................................... 21Transportation .............................................................................................................................. 21
inventory Manamgement ............................................................................................................. 22
Waiting line ................................................................................................................................... 23
Recommendations and suggestions ............................................................................................. 24
Appendix ....................................................................................................................................... 26
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DEDICATION
We dedicate our project to our Parents, Family, and Teachers and to each group member.
Because; whatever we are its because of our parents and Family and Our teacher makes us
able to face different challenges and win those challenges. Last but not least group members,
who support us a lot and contribute their full effort to make this project possible.
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ACKNOWLEDGEMENT
Thanks to ALLAH. The almighty, which enabled us to present this project within this stipulated
time period. All respects are for the holy prophet HAZRAT MUHAMMAD (S.A.W) who enables
us to recognize our creature.
After that we would like to express our sincere gratitude and heartily thanks to our respected
PROFESSOR MARIF SOHAIL, who encourage us for this interesting project. Through this he tries
to polish our minds towards business world. We are also thankful to our parents, without their
love and encouragement it was not possible for us to complete our project. And we also would
like to thanks our seniors.
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ABSTRACT
This research is done to identify the reasons for the crisis of the PIA.An airline which was once the pride
of Pakistan and the favourite ofexpatriates all over Europe has today been placed under scrutiny. The
research is also been done to create awareness among the nation toretrieve its lost status. This report
also reveals the reasons whichcaused the organization heavy losses.
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Introduction and History of PIA
History of the PIA
PIA came into being in 1931 under a different name - National Association of MutualInsurance Agents (NAMIA), a non-profit association.
'Pakistan International Airlines', can trace its beginnings to the days when Pakistan wasnot a nation, rather a region of British India. In 1946 founder of Pakistan Jinnah
realised the need for an airline network for the forming country and called upon the
help of an industrialistMirza Ahmad Ispahanito develop a flag carrier for the nation.
Meanwhile, an airline called 'Orient Airways', registered inCalcutta, was formed on 23October 1946.
In February 1947, the airline brought three DC-3 airplanes from a company in Texas,and in May of that year the airline was granted a licence to fly.
In March 1960, PIA became the first Asian airline to use jet aircraft when Boeing 707services were introduced.
In 1979, the airline bought their first Boeing 747-200BM aircraft. In 1978 the airline provided help to Somali Airlines, Air Malta and Yemenia and
established a hotel management service in theUnited Arab Emirates. PIA leased two of its own Boeing 720s to Air Malta during the 70s. In 1980s began with the opening of a cargo centre in Karachi and the delivery of a new
aircraft,Airbus A300B4-203.
In 1981, a duty-free sales service was inaugurated. During 1982, the first C and D checks were carried out on the fleet in Karachi. In 1984, domestic night coach fare service was introduced to offer lower prices for low-
income passengers.
In 1985 thePIA Planetarium tourist attraction was inaugurated in Karachi and later inLahore; also fiveBoeing 737-300sjoined the fleet making PIA the first Asian operator of
such a type.
In 1989, the first women pilots started their career on passenger airplanes.
http://en.wikipedia.org/wiki/British_Indiahttp://en.wikipedia.org/wiki/British_Indiahttp://en.wikipedia.org/wiki/Mirza_Ahmad_Ispahanihttp://en.wikipedia.org/wiki/Mirza_Ahmad_Ispahanihttp://en.wikipedia.org/wiki/Mirza_Ahmad_Ispahanihttp://en.wikipedia.org/wiki/Orient_Airwayshttp://en.wikipedia.org/wiki/Orient_Airwayshttp://en.wikipedia.org/wiki/Orient_Airwayshttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/DC-3http://en.wikipedia.org/wiki/DC-3http://en.wikipedia.org/wiki/DC-3http://en.wikipedia.org/wiki/Boeing_707http://en.wikipedia.org/wiki/Boeing_707http://en.wikipedia.org/wiki/Boeing_707http://en.wikipedia.org/wiki/Somali_Airlineshttp://en.wikipedia.org/wiki/Somali_Airlineshttp://en.wikipedia.org/wiki/Air_Maltahttp://en.wikipedia.org/wiki/Air_Maltahttp://en.wikipedia.org/wiki/Yemeniahttp://en.wikipedia.org/wiki/Yemeniahttp://en.wikipedia.org/wiki/United_Arab_Emirateshttp://en.wikipedia.org/wiki/United_Arab_Emirateshttp://en.wikipedia.org/wiki/United_Arab_Emirateshttp://en.wikipedia.org/wiki/Airbus_A300http://en.wikipedia.org/wiki/Airbus_A300http://en.wikipedia.org/wiki/Airbus_A300http://en.wikipedia.org/w/index.php?title=PIA_Planetarium&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=PIA_Planetarium&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=PIA_Planetarium&action=edit&redlink=1http://en.wikipedia.org/wiki/Boeing_737-300http://en.wikipedia.org/wiki/Boeing_737-300http://en.wikipedia.org/wiki/Boeing_737-300http://en.wikipedia.org/wiki/Boeing_737-300http://en.wikipedia.org/w/index.php?title=PIA_Planetarium&action=edit&redlink=1http://en.wikipedia.org/wiki/Airbus_A300http://en.wikipedia.org/wiki/United_Arab_Emirateshttp://en.wikipedia.org/wiki/Yemeniahttp://en.wikipedia.org/wiki/Air_Maltahttp://en.wikipedia.org/wiki/Somali_Airlineshttp://en.wikipedia.org/wiki/Boeing_707http://en.wikipedia.org/wiki/DC-3http://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Orient_Airwayshttp://en.wikipedia.org/wiki/Mirza_Ahmad_Ispahanihttp://en.wikipedia.org/wiki/British_India -
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In June 1991, PIA received the first of six Airbus A310-300 aircraft on from AirbusIndustries.
In 1995, PIA received a Boeing 747 flight simulation system and a used Air FranceA300aircraft was bought.
In 1996 the airline leased Tupolev Tu-154 aircraft(for a short time to deal with thedemand during the summer of 1996)
In 1999, PIA leased five Boeing 747300 aircraft fromCathay Pacificto replace its agingBoeing 747-200M fleet
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Table 1
Founded 1946 (asOrient Airways)
Hubs Jinnah International Airport (Karachi)
Secondary hubs
Allama Iqbal International Airport (Lahore) Benazir Bhutto International Airport (Islamabad)
Focus cities
Peshawar International Airport Multan International Airport Faisalabad International Airport Quetta International Airport Sialkot International Airport Dubai International Airport
Fleet size 112
Company
slogan
"Great People to Fly With"
"Come Fly With Us"
Headquarters
Jinnah International Airport
Karachi, Pakistan
Key people
Ahmad Mukhtar (Chairman) Nadeem Khan Yousufzai (Managing Director)
http://en.wikipedia.org/wiki/Orient_Airwayshttp://en.wikipedia.org/wiki/Orient_Airwayshttp://en.wikipedia.org/wiki/Orient_Airwayshttp://en.wikipedia.org/wiki/Airline_hubhttp://en.wikipedia.org/wiki/Jinnah_International_Airporthttp://en.wikipedia.org/wiki/Airline_hubhttp://en.wikipedia.org/wiki/Allama_Iqbal_International_Airporthttp://en.wikipedia.org/wiki/Benazir_Bhutto_International_Airporthttp://en.wikipedia.org/wiki/Focus_cityhttp://en.wikipedia.org/wiki/Focus_cityhttp://en.wikipedia.org/wiki/Peshawar_International_Airporthttp://en.wikipedia.org/wiki/Multan_International_Airporthttp://en.wikipedia.org/wiki/Faisalabad_International_Airporthttp://en.wikipedia.org/wiki/Quetta_International_Airporthttp://en.wikipedia.org/wiki/Sialkot_International_Airporthttp://en.wikipedia.org/wiki/Dubai_International_Airporthttp://en.wikipedia.org/wiki/Jinnah_International_Airporthttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Ahmad_Mukhtarhttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/w/index.php?title=Nadeem_Khan_Yousufzai&action=edit&redlink=1http://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/File:Pakistan_International_Airlines_Logo.svghttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/w/index.php?title=Nadeem_Khan_Yousufzai&action=edit&redlink=1http://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/Ahmad_Mukhtarhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Jinnah_International_Airporthttp://en.wikipedia.org/wiki/Dubai_International_Airporthttp://en.wikipedia.org/wiki/Sialkot_International_Airporthttp://en.wikipedia.org/wiki/Quetta_International_Airporthttp://en.wikipedia.org/wiki/Faisalabad_International_Airporthttp://en.wikipedia.org/wiki/Multan_International_Airporthttp://en.wikipedia.org/wiki/Peshawar_International_Airporthttp://en.wikipedia.org/wiki/Focus_cityhttp://en.wikipedia.org/wiki/Benazir_Bhutto_International_Airporthttp://en.wikipedia.org/wiki/Allama_Iqbal_International_Airporthttp://en.wikipedia.org/wiki/Airline_hubhttp://en.wikipedia.org/wiki/Jinnah_International_Airporthttp://en.wikipedia.org/wiki/Airline_hubhttp://en.wikipedia.org/wiki/Orient_Airways -
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Expansion
In July 2002, PIA purchased six Boeing 747-300 aircraft from Cathay Pacific, five of which werealready on lease with PIA. The sixth arrived shortly after
and PIA operated it mainly on its North American and
European routes.
In October 2002, after a period of ten years without anynew order, the airline purchased eight Boeing 777 aircraft
from The Boeing Company, including three 777-200ER
(Extended Range), two 777-200LR (Longer Range) and three 777-300ER versions.
During 2004, PIA also acquired six half life Airbus A310-300/ET from the Airbus management ona ten year lease agreement.
On 3 November 2005 PIA signed an agreement with the aircraft manufacturer, ATR to purchaseseven ATR42-500.
PIA started non-stop flights from Toronto to Karachi, Islamabad and Lahore from 3 March 2006taking advantage of Boeing 777-200LR's long range capability.
PIA planned non-stop flights to New York City and other US cities with sizable Pakistanipopulation centres, but was not given permission due to security reasons.
On 5 March 2007, PIA was included in the List of air carriers banned in the European Union ,theEuropean Commission, banned all but eight planes of PIA's 44-plane fleet from flying to Europe
citing safety concerns. The remaining eight, namely the fleet ofBoeing 777s, has been exempted
from the ban.
On 26 March 2007, Tariq Saeed Kirmani resigned after severe pressure from higher authoritiesbecause of the EU ban
,Zafar Khan was appointed as the new chairman of Pakistan International
Airlines.
On 5 July 2007, the EU lifted the restriction on 11 aircraft that PIA could fly into Europe, of whichfive were Boeing 747-300s and six Airbuses A310-300s.
During April 2009, the management decided to launch a long-term Business Plan of PIAincluding purchase of new aircraft.
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Corporate management
Structure
Fleet
The Pakistan International Airlines fleet includes the following aircraft (as of January 2011).
Table 2
Aircraft Total
Passengers
Total
Airbus A310-300 12
184
205
205
ATR 42-500 7 50
Boeing 737-300 6118
119
Boeing 747-300 5 478
Boeing 777-200ER
4
320
329
Boeing 777-200LR 2 310
Boeing 777-300ER 3 393
Total 43
Pakistan International Airlines Corporation (PIAC) is majority owned by theGovernment of Pakistan
(87%)
the remainder by private shareholders
(13%)
http://en.wikipedia.org/wiki/Airbus_A310http://en.wikipedia.org/wiki/Airbus_A310http://en.wikipedia.org/wiki/ATR_42http://en.wikipedia.org/wiki/ATR_42http://en.wikipedia.org/wiki/Boeing_737-300http://en.wikipedia.org/wiki/Boeing_737-300http://en.wikipedia.org/wiki/Boeing_747http://en.wikipedia.org/wiki/Boeing_747http://en.wikipedia.org/wiki/Boeing_777#777-200ERhttp://en.wikipedia.org/wiki/Boeing_777#777-200ERhttp://en.wikipedia.org/wiki/Boeing_777-200LRhttp://en.wikipedia.org/wiki/Boeing_777-200LRhttp://en.wikipedia.org/wiki/Boeing_777#777-300ERhttp://en.wikipedia.org/wiki/Boeing_777#777-300ERhttp://en.wikipedia.org/wiki/Boeing_777#777-300ERhttp://en.wikipedia.org/wiki/Boeing_777-200LRhttp://en.wikipedia.org/wiki/Boeing_777#777-200ERhttp://en.wikipedia.org/wiki/Boeing_747http://en.wikipedia.org/wiki/Boeing_737-300http://en.wikipedia.org/wiki/ATR_42http://en.wikipedia.org/wiki/Airbus_A310 -
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Current problems related to operational management
Following are some problems related to PIA with respect to operations management:
De-motivated employees:Pakistan International Airlines is a company which is constantly going in loss. Higher number of
employees and the company already going in loss de-motivates the employees. The employees
do not feel secure themselves in the company and try to move to other successful
organizations. Also certain issues such as centralized decision making and salary issues also de-
motivate the employees taking their attention away from their job.
Rising fuel prices in the World:There is been consistent rise in fuel prices in the international market. Fuel prices haveimpacted on almost every airline in the world. This has affected Pakistan international Airlines
more than any other airline due to its aged fleet. New planes are fuel efficient as compared to
old ones. In an airline normally 30-35% of expenses account for fuel expenses but in Pakistan
International Airlines this number goes to 45-50%. Due to these factors PIA has to charge more
fare to customers thats dissatisfies the customers.
Lack of expertise:In PIA, they do not have expert employees in each department, whether it is HR, Marketing or
Finance. The departments are running by outdated staff. The element of favouritism is also
present in this category.
Less technology advanced as compared to its competitors:PIA is competing with the airlines from all over the country especially with the Middle East
airlines which are coming in with heavy investment. Its competitors such as Emirates and Qatar
airways have great capital. Theses Middle East organizations are putting in newer and newer
technology and acquiring greater manpower. PIA being already in a financial crunch faces a
tough task.
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Lack of training facilities:Although PIA is running a training and development department in Karachi but it is insufficient
to feed such a big organization with almost 18000 employees. Special skills such as engineering,
technicians are lacking. If they are there, they are not delivering.
Aged fleet:Pakistan International Airlines fleet has total 43 planes. Out of those 43, only 33 are operating
at the moment. The average age of the fleet is 13 years which has become 13 years with the
induction of 4 new planes. Previously it was 14. Due to aged fleet the fuel is consumed more
and maintenance expenses are increase. Thus these factors result in increment in expenses.
Due to the aged fleet and maintenance problem PIA has to pay higher amount in terms of
insurance cost.
Over recruitment:Pakistan International Airlines is a large organization with 18,043 employees. Its fleet comprises
of 43 planes. It operating planes are just 33. It means round about 525 employees per plane.
The industry average is being between 150-250 people. This drives the cost of the company
further.
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Productivity
Increasing number of planes:PIA could improve employee productivity by having more planes and thus lowering its
employee to plane ratio and bring it down closer to the international level. This way it can have
a more efficient work force and have more flights.
Table 3
Types of plans in PIA No. of planes Capacity of persons
747 8 3200
A320 21 150
A332 13 150
Effective recruitment policy:PIA should introduce the effective recruitment policy because many high and even low level
employees do not know their work. By hiring efficient people and train them effectively in their
already s running a training and development department in Karachi.
Training programmes:By providing training facility to the new employees the productivity can go up in good ratio. Not
to the new but also existing employees can be trained for new techniques of tasks in the
market. E.g.: new technology.
Getting new technology:All over the world new technology is being used and introduced so , PIA should adopt these
new technologies to get the concept of IN-ITME. It is not about flights in time but there are
ways to do boarding and other different things which take less time and more accuracy.
Hire new pilots:PIA has very low percentage of pilots who used out dated ways for their work, and their duty
time is also very long which makes them tired and uncomfortable during their job. Their rest
time is very less so they also cannot concentrate on customer satisfaction and due to such late
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decisions during flight the customer satisfaction goes down, so by increasing it, customer
satisfaction will be improved and productivity can be increased.
Strategies
Corporate level strategyAccording to the PIA management, policies and strategies are made by corporate level people
either related with any department of PIA. The Managing Director (MD) and Chief Financial
Officer (CFO) make the strategies on long term basis and make plans about PIAs future. They
identify companys overall vision, mission & objectives and develop synergies at the corporate
level. These strategies are made at the Head Office, so no single employee is aware of, what is
being done or not. They keep these strategies confidential and secret. They are centralized at
corporate level.
Business Unit Level StrategyAt this level, When PIA have to implement their strategies then they involve Business level
people and they belong to the related department whose strategy is going to be implemented
and discuss about developing & sustaining the competitive advantage for the products and
services they have produced or offering. All Directors, General Managers are involved in
developing the business level strategies. At this level, they are decentralized.
Functional Level StrategyAt the functional level, all the managers of different departments discuss the issue relating to
functional business processes and value chain. All the departments like R&D, Marketing,
Finance, HR, Operations are involved so that it is decided that how the strategies will be
executed efficiently & effectively. Functional units of PIA are involved in higher level strategies
by providing input into the business unit level and corporate level strategy, such as providing
information on customer feedback or on resources and capabilities on which the higher level
strategies can be based. Once the higher level strategy or strategic intent is developed, the
functional units translate them into discrete action plans that each department or division must
accomplish for the strategy to succeed.
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MANAGEMENT STRATEGIES HRM Proper recruitment process Training & development Specialized people are hired Head office in Karachi Proper organization structure ADMINISTRATION
Head office is in Karachi so every single operation is done in head office and offices in other
cities, they are performing the duties as assigned by the head office
DECISION MAKINGAll the decisions are taken at higher level. CEO, Managing Director makes decision and all the
operations are done at head office Karachi. The employees, manager in Lahore and Islamabad
office dont even have the authority to take any decision. If there is some conflict or issue, they
will have to consult at head office and wait for their decision. So they have CENTRAILZED
decision making, which is not a positive sign in any organization.
MOTIVATION AND INCENTIVESPIA only motivation is in the form of handsome salary with respect to their competitors and
monetary bonuses and a yearly increment of salary from 100% to 200% of salary for executives.
But due to crisis, PIA is not focusing on motivation and incentives which is affecting the
employees and the passion for the organization.
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Forecasting
Offer more routes:PIA operates scheduled services to 24 domestic destinations and 39 international destinations
in 25 countries across Asia, Europe and North America. Now PIA should launch more routes
with new value added services domestically and internationally. Some teams has been made
under whose supervision it is been observed that where the customers need to be focused.
Cabin:PIA operates in three class configuration on its domestic routes which includes:
Business Plus Economy Plus+ EconomyHowever on their international flights there are two class configurations
Business Plus Economy
According to the Annual Report, PIA recorded a seat factor of 69%, a percentage drop. PIA
Business Plus passengers are offered flat bed seats on all Boeing 777 as well as select Airbus
A310 aircraft. As due to drop percentage PIA is now trying give more importance to its
customers by introducing more seats in planes and giving more facilities in cabins of same cost.
Economy Plus+ cabin will also be available for the international customers to enjoy the journey.
Grabbing more percentage of customers:PIA is having a sort of monopoly in the market but still customers prefer to travel by other
airlines (like air blue, emirates) to reach their destination. So steps are being made to get the
lost customers back are get increase in the percentage of customers and the revenues by the
quality assurance . The inspection should be done of the services provided in the plan through
before and after or sometime in flight inspection.
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Services Design
Corporate Social Responsibility
Corporate Safety & Quality Assurance Division is capable of providing assistance/services in the
following areas:
Flight & Ground Safety Services
Flight Safety AuditingFlight safety is a matter of cardinal importance in the aviation industry. PIA offers a range of
services to help airlines meet international regulations and improve operational safety
conditions.
PIA offers customized operational safety audits for small airline operators, backed by a team of
experienced internal flight safety auditors.
Aircraft Accident InvestigationPIA also offers the following consulting services:
Investigations following a serious aircraft accident Consulting services for flight and cabin safety Airside Ramp Familiarization & Defensive Driving
Corporate Safety & QA (CS&QA) has been conducting effective training on Airside Ramp
Familiarization & Defensive Driving. Majority of CS & QA Training Programs,.
Publishing ServicesPIA offers design, development, editing, and printing services to commercial operators for the
following products:
Aircraft Emergency Equipment Location Charts Passenger Safety Briefing Cards Flight Safety Publications
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Flight Data Monitoring (FDM) Services
FDM System Automation & Flight Data Analysis (FDA) FacilityAircraft weighing above 27,000Kg, it is mandatory to implement FDM/FDA. For establishing
compliance, you can outsource your mandatory Flight Data Monitoring (FDM) / Flight
Operations Quality Assurance (FOQA) program to PIA for comprehensive analysis. As otherwise
it will be an expensive & complex venture for relatively small operators. PIA is one of the
pioneers for implementing FDM/FDA and now enjoys a renowned position in this region.
FDM ReportsRegular FDM statistical periodic reports (both tabular & graphic) and specific reports (like steep
landing, unstable landing, hard landing, heavy landing etc.) focusing performance, can also be
generated for proactive Safety Management. Based on the requirements of Accident
Prevention Program we are using application software Airbus/Teledyne Flight Analysis Safety
Explorer (AirFASE) Version B having 3D Animation and Airport Visualization support, which is
state-of-the-art tool for Flight Data Analysis (FDA).
PIA has assistance capabilities for FDM which is at par with global aviation industry standards &
practices.
Crew Resource Management (CRM) Training Services
CRM Initial & Recurrent TrainingsPIA offers human factor training that meets the ICAO Annex-6 CRM. PIA offers CRM Phase 2
training for cockpit crew, cabin crew, and dispatchers. PIA's CRM facilitators have been trained
by Continental Airlines - USA, the airline that pioneered CRM training.
Operational Safety & Security Audit
Organizations having established safety & security management systems can use our Auditing
Capabilities to assess their level of compliance to subscribed standards. Our qualified QA
auditors will thoroughly evaluate the system and report their findings and observations as an
independent evaluation of your systems and their performance.
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Health Safety & Environment (HSE) Services
Design and Development of HSE SystemHighly qualified team of professionals with diversified expertise in manufacturing, maintenance,
services & food hygiene in the field of aviation and other industries, is capable to design,
develop, implement & controls of HSE system. PIA has established HSE Management system
with Strong commitment to health & safety of its passengers, customers & employees. PIA is
contributing its social responsibility towards care of environment and protection of natural
resources.
Occupational Health & Safety (OH&S) Risk AssessmentPIA has established an effective mechanism through which all significant hazards are identified,
analyzed, assessed their existing controls, and recommend additional controls to mitigate the
unacceptable risk level, if needed. Our HSE specialists assist other departments to carry out this
exercise on regular basis.
Study of environmental Aspects and their ImpactsPIA contributes towards social responsibility for the society towards green environment and
protection of natural resources. Our qualified HSE Lead auditors monitor environmental aspects
and analyze significance of their impacts to the environment through environmental audits and
random inspections.
HSE Audits & InspectionsAudit is an effective tool by which health of any management system can be monitored. HSE
section conducts scheduled audits and random inspections for assessing level of HSE
compliance against the audit criteria.
Food Hygiene & HACCP AuditsHSE section conducts HACCP based food safety audits and inspections to monitor the hygienic
standards of PIA flight kitchens, food suppliers/contractors.
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HSE TrainingTo create the basic awareness of Health Safety & Environment, HSE section imparts the training
module to all tiers of the management.
Fire Protection Services
Fire Fighting TrainingPIA offers Fire Response and Customized Fire Safety Training for general employees, fire
wardens and emergency team members. This service is being provided to national and
multinational companies.
Fire Safety SurveyPIA has a team of qualified and experienced fire officers for carrying out Fire Safety Inspection
and Survey of a property to evaluate the danger to life from fire and to evaluate and to
determine ways for minimizing fire risk to buildings and contents.
Installations ManagementThere is a system in place for inspection, maintenance and testing of portable and fixed fire
protection installations. The expertise to introduce the same is available for interested clients.
Capacity planning
Fuel tanks:Nowadays a normal Fuel tank has 80,000-90,000 lbs; some specific values are Boeing 757ER
contains 75,500 lbs and Boeing 767-300ER: 161,700 lbs. This capacity sometimes seems short
when the route is long. So PIA should plan to increase the capacity of tanks to reduce the down
time and cross train the staff to help clear bottleneck. So less time should be wasted in refilling
the tank during the voyage.
Number of seats:Luxurious seats should be introduced to be in the competition because the competitors are
doing much development in providing value to customers.
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Facilities layoutPIA is focusing on other areas of its activities which include Engineering & maintenance, Flight Kitchen,
Training Centre, Reservation and IT services etc. The engineering facilities have been upgraded to
undertake overhauling of most of the wide body aircrafts. PIA engineering is in possession of high
quality certifications from IATA and other regulatory agencies.
Engineering & maintenance department:This department takes care of planning, base/line maintenance and overhauling of whole of the
PIAs fleet. To keep pace with the new technology, it has a special branch named as
DevelopmentEngineering to meet the future challenges in the sphere of avionics.
Reservation and IT services:PIA has provided On Line booking facility and with it reservation of seat of ones own choice.
This is in line with international practice and thus PIA is amongst those few airlines of the world
that have this facility. However, on web site seat reservation it has blocked the front and jump
seats which are given only to dear ones by booking staff. When a facility has been created PIA
should remove this obstacle and people should first come first basis have the option even to
reserve their front including jump seats.
Training Centre:PIA is having one of the most advanced Airline training infrastructures approved by local and
international regulatory authorities.
Flight Kitchens:PIA runs two modern, well-equipped Flight Kitchens in Karachi and Islamabad that serve
culinary delights ranging from delicious Pakistani delicacies to tempting Western cuisines to
more than 15,000 passengers every day, travelling on domestic and international flights. Special
meals which are customized according to the passengers requirements like Diabetic Meal,
Vegetarian Meal, Low Cholesterol Meal and Baby Meals are also offered to our passengers
upon request. The two Flight Kitchens are also equipped with food testing microbiological
http://www.piac.com.pk/PIA_Experience/pia-experience_inflightdining_splmeal.asphttp://www.piac.com.pk/PIA_Experience/pia-experience_inflightdining_splmeal.asphttp://www.piac.com.pk/PIA_Experience/pia-experience_inflightdining_splmeal.asphttp://www.piac.com.pk/PIA_Experience/pia-experience_inflightdining_splmeal.asp -
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laboratories which conduct stringent daily microbiological tests to ensure that food produced is
safe, nutritious and palatable.
Work measurement
Pilots work timing:Executive pilots are scheduled on week days, the time spent during office are accounted for the
flight duty time limitations and the maximum scheduled flight duty time for a single set crew
(two men cockpit) is 10 hours. If the flight duty time exceed up to thirteen hours than an extra
pilot travel along the flight to provide relief to the operating pilot. The flight duty time of Long
Range (LR) flights is fifteen hours with double pair of pilot and crew. The pilot duty hours for
long haul flights according to International Aviation Policy are eighteen hours of flight duty
time.
TransportationPIA Cargo, the air freight division of Pakistan International Airlines, commenced freighter
operations in 1974, with initial flights to the USA, Europe, and Hong Kong. PIA Cargo delivers
cargo shipments to over 40 international destinations, while serving the rest of the world
through interlines carriage.
The cargo sales and service department has the same functionality as of passenger sales and
service. It allows shipment all over the world in PIA network. Cargo rates vary from country to
country. It has the booking of cargo, loading and unloading, refund etc. However PIA has none
of its planes specialized for cargo only. Six categories of goods in cargo are
Business related goods (textiles, accessories, machines etc) Perishable goods (meat, fruits and vegetables) Livestock Gifts Valuable goods (gold, platinum ,etc) Dangerous goods
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Careful packaging and carriage of shipment goods is done but there is an air of laziness in cargo
department as they are dealing with non-living objects might be.
Inventory ManagementPIA's fleet of modern aircraft are spacious, comfortable, and designed to get you to your
destination safely. PIA operates a range of advanced aircraft, ranging from the world's
preferred Boeing 777 airplane to the super-quiet Airbus A-310. With the operation strategy PIA
is implementing the ABC classification system theory. The inventory of PIA aeroplanes are
different not of equal worth and profits, and a usage volume.
A brief introduction of PIA fleet is given below:
BOEING 777The Boeing 777 family comprises of long-range, wide-body twin-engine airplanes. PIA was the
first airline in the world to operate all the three variants of the 777 family: 777-200LR, 777-
200ER and 777-300ER, all of them is well loved by PIA's seasoned travellers for their
spaciousness and comfort. PIA also holds the privilege of being the launch customer for 777-
200LR, one of PIAs aircraft holds the record for the longest commercial jet flight in aviation
history. At present PIA is serving destinations in USA, Canada, UK and Europe through its 777fleet.
Boeing 747The Boeing 747, often referred to as Jumbo Jet, is amongst the world's most iconic and
recognizable jet airplanes. This 4 engine long haul wide-body airplane has a two-deck
configuration. PIA operates two variants of 747 families which includes 747-300 and 747-200
Combi. 747 Combi is so called as it has mixed pax and cargo configuration on the main deck. At
present due to its capacity, 747-300 fleet is mostly deployed to cater high density requirements
like carrying intending pilgrims to and from Saudi Arabia.
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Airbus A310The Airbus A310 is a medium to long range wide-body airplane providing a spacious interior to
its travellers. PIA has deployed the A310-300 fleet on Far East, Regional as well as Domestic
routes.
Boeing 737The Boeing 737 is one of the world's favourite narrow-body short/medium haul jet airplane.
Amongst its many credits, it has the distinction of being the most ordered and produced
commercial airplane of all time and Boeing continues to manufacture its variants, to date. PIAs
737-300 aircraft mostly serve its domestic and regional routes.
ATR42
This modern technology turbo prop is the latest type inducted in PIAs fleet. PIAs fleet of seven
ATR42-500 aircraft is configured in comfortable two class seating arrangement. This aircraft has
enabled the airline to provide its valued customers the most convenient way to fly to far fling
destinations from the country.
Waiting line
No Weight, No Wait:If you have no baggage to check in, and travelling only with hand luggage, special "No Wait"
counters await for customers at the Karachi, Lahore, and Islamabad Airports. No more waiting
around.
City Check-In:PIA's City Check-In facility enables you to get your Boarding Pass 72 hours before your flight.
So customers do not have to stand in a queue hence you can report directly to the boarding gate
just 30 minutes before departure.
PIA staff at City Check-In Counters at PIA's Booking Offices will stamp and attach yourflight coupon to your boarding pass 72 hours before departure
This facility is only available for passengers travelling without checked baggage
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City Check-In Boarding Passes enable passengers to report directly to the boarding gate30 minutes prior to departure
City Check-In facilities are currently available in Karachi, Lahore, and Faisalabad. Return Check-In
PIA also offers return check-in facility for customers who travel between the two destinations
within 12 hours time period from Karachi, Islamabad and Lahore. The customers can obtain the
boarding passes for boarding at both the destinations in advance.
Recommendations and suggestions
Need better functioning of human resource and administration department Management need to perform its responsibility professionally by reducing costs and
trying to achieve more market share by combining the organization.
Modernizing the airlines fleet is badly needed as well proper maintenance of the fleet isrequired.
Must take advantage of the increment in the air transportation especially towardsMiddle East countries and India.
Better and modern functioning of training and development department Need for accountability. Interference of government should be less in making decisions because unfair policies
are affecting badly the inner structure of PIA.
Effective future planning is necessary for long term profits but due to lack ofresponsibility of higher management proper planning is not being made in recent past
years so PIA had to improve its planning capacity.
Old employees should be replaced by newly trained and skilled people in managementwho knows what their work.
Customer satisfaction is most important thing so PIA should take certain steps whichhelp them to attract more customers. E.g.: low prices, timely departures etc.
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PIA is somewhere behind in technological factor old and damaged machinery is beingused which could cause any mishap so new, advanced and up to date technology should
be introduced.
PIA has to increase the size of its fleet to be in the competition. Work management is not done properly in PIA, it sometimes happens that the pilots are
tired because of their last shift and new shift is up, time should be utilized in a proper
manner.
Fresh graduates will help to increase the productivity Due to lack to motivation the employees switches to other airlines so Incentives and
bonuses should be given to employees to keep them motivated.
PIA should decentralize its functions to make easy management decisions. Each department should be made as SBU. It will help them to get known of their
objectives and can establish a common business and operational strategy.
PIA is very strict about the holidays even then there are some examples that someemployees goes on leave and do not come back, but still the employees are being paid
and management is unaware of this fact.
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AppendixTable of tables:
Table 1 ............................................................................................................................................. 7
Table 2 ............................................................................................................................................. 9
Table 3 ........................................................................................................................................... 12