Pia.final Compile

7/31/2019 Pia.final Compile

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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
http://en.wikipedia.org/wiki/Airbus_A310-300http://en.wikipedia.org/wiki/Airbus_A310-300http://en.wikipedia.org/wiki/Airbushttp://en.wikipedia.org/wiki/Airbushttp://en.wikipedia.org/wiki/Airbushttp://en.wikipedia.org/wiki/Air_Francehttp://en.wikipedia.org/wiki/Air_Francehttp://en.wikipedia.org/wiki/Air_Francehttp://en.wikipedia.org/wiki/Tupolevhttp://en.wikipedia.org/wiki/Tupolevhttp://en.wikipedia.org/wiki/Tu-154http://en.wikipedia.org/wiki/Tu-154http://en.wikipedia.org/wiki/Cathay_Pacifichttp://en.wikipedia.org/wiki/Cathay_Pacifichttp://en.wikipedia.org/wiki/Cathay_Pacifichttp://en.wikipedia.org/wiki/Cathay_Pacifichttp://en.wikipedia.org/wiki/Tu-154http://en.wikipedia.org/wiki/Tupolevhttp://en.wikipedia.org/wiki/Air_Francehttp://en.wikipedia.org/wiki/Airbushttp://en.wikipedia.org/wiki/Airbushttp://en.wikipedia.org/wiki/Airbus_A310-300


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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.
http://en.wikipedia.org/wiki/Boeing_747http://en.wikipedia.org/wiki/Cathay_Pacifichttp://en.wikipedia.org/wiki/Boeing_777http://en.wikipedia.org/wiki/The_Boeing_Companyhttp://en.wikipedia.org/wiki/777-200ERhttp://en.wikipedia.org/wiki/777-200LRhttp://en.wikipedia.org/wiki/777-300ERhttp://en.wikipedia.org/wiki/Airbus_A310http://en.wikipedia.org/wiki/ATR_(aviation)http://en.wikipedia.org/wiki/ATR_42http://en.wikipedia.org/wiki/Non-stop_flighthttp://en.wikipedia.org/wiki/Torontohttp://en.wikipedia.org/wiki/List_of_air_carriers_banned_in_the_European_Unionhttp://en.wikipedia.org/wiki/European_Commissionhttp://en.wikipedia.org/wiki/Boeing_777http://en.wikipedia.org/wiki/Boeing_747http://en.wikipedia.org/wiki/Airbus_A310-300http://en.wikipedia.org/wiki/File:Pia.b747-367.ap-bfw.750pix.jpghttp://en.wikipedia.org/wiki/Airbus_A310-300http://en.wikipedia.org/wiki/Boeing_747http://en.wikipedia.org/wiki/Boeing_777http://en.wikipedia.org/wiki/European_Commissionhttp://en.wikipedia.org/wiki/List_of_air_carriers_banned_in_the_European_Unionhttp://en.wikipedia.org/wiki/Torontohttp://en.wikipedia.org/wiki/Non-stop_flighthttp://en.wikipedia.org/wiki/ATR_42http://en.wikipedia.org/wiki/ATR_(aviation)http://en.wikipedia.org/wiki/Airbus_A310http://en.wikipedia.org/wiki/777-300ERhttp://en.wikipedia.org/wiki/777-200LRhttp://en.wikipedia.org/wiki/777-200ERhttp://en.wikipedia.org/wiki/The_Boeing_Companyhttp://en.wikipedia.org/wiki/Boeing_777http://en.wikipedia.org/wiki/Cathay_Pacifichttp://en.wikipedia.org/wiki/Boeing_747


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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.
http://www.1000ventures.com/business_guide/mgmt_stategic_resource-based.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/strategic_intent.htmlhttp://www.1000ventures.com/business_guide/crosscuttings/strategic_intent.htmlhttp://www.1000ventures.com/business_guide/mgmt_stategic_resource-based.html


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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

Documents

Pia.final Compile