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It contains the input of the two years spent at the institute of dministration and the very essence of my student life. It is the result of an attachment of two months with an n trying to grasp every aspect of its working, questioning people and detailed observation with the effect that may contain more about the organization than the people working there themselves know. It is endless hard ation, many nights of planning and brooding over the report, and many more days spent in front of the setting and re-setting with an attempt to achieve something new within limited spheres. this is not an individual effort, it was due to the help, patience and guidance of a number of people that this le……. gements thanks to the following : lty members at the institute of business administration, for the knowledge imparted by each one is condensed rt. nisar for her continuos and dedicated effort, in placing me with nestle' milkpak limited and for her help as the ordinator. usman janjua, the financial accounting manager, at nml, my reporting boss, who saw to it that my attachment ned long time benefits for me. m ahmed, the incharge general ledger department, from whose knowledge i benefited greatly, his readily elp, and the lively atmosphere of his department. mbers of the accounts payable section and gld, who made me understand the working of their departments
n taufique, the budget and control manager, who arranged a visit to the sheikhupura factory and numerous th members of different departments of the organization and brand managers for the purpose of this report. ple i visited in the organization in order to obtain material for this report. I've tried my level best to include every e in the report.
came into being in 14th August, 1947 there was only one airline in operation called Orient Airline. After some ore airlines Pakistan Air Limited and Cresent Airways started commercial operation. None of these small air mpanies could succeed to cover the requirements of the Air Traffic of the country. Ultimately two of these failed their operation. In 1952 Orient Airways was the only operational company operating on domestic routes.
nd the people of Pakistan were sincerely struggling hard for development of their country with the aim to reach ar level of advancement as of other free nations of the world. Communication system is the basic requirement So in 1955 the Govt. took an initiative and passed an ordinance to form an air fleet under the name of ternational airlines (PIA) to meet the needs of domestic and international air traffic.
operation on Karachi-Dhaka sector with three aircrafts in 1955. later PIA and Orient Airways, a private carrier, ed to form PIAC (Pakistan International Airline Company). Over the years PIA gradually expanded its network serving 83 destinations.
d the international aviation with service from Karachi to London via Cairo and Rome. Until about the middle of had been running in loss as a result of which Boeing 707 was added to the PIAC fleet. PIA was the firs airline ets in Asia. New York-Karachi route was inaugurated in 1957. Boing flight was introduced between two wings in 1961-62. PIA became the first non-communist airline to fly to the people’s republic of china and operated s between Asia and Europe via Moscow in 1963-64. PIA made record operating surplus of Rs. 49.22 Million 1% of paid up capital). In 1966-67 engine overhaul shop was commissioned and completed.
first batch of PIA pilots completed their training from PIA flying school and received commercial pilot’s license. anger for Boeing was completed in
1969-70 PIA started to extend engineering services to other airlines like Royal Nepal Airlines Corporation. g services, domestic operation, international operation, agreements were signed with other airlines like Airlines. Terminal facilities were expanded at Islamabad and Karachi and management agreement was air Malta under which PIA seconded a management team to Malta in 1972-73. During this year wide body C-10 was introduced. Full time chairman of the board of directors was appointed in 1973-74. During 1974, two given to air Malta on lease. Weekly all Boeing service was introduced to New PIA earned Rs. 158.08 million duced pension scheme employees and added four more aircraft to the fleet during 1976-77. Technical Somali airlines, air Malta and Yemen airways, were started in 1977. iaries were established and registered in the UAE to promote hotels. Boeing 747 was introduced in 1977.
omputerized reservations systems (REPAK), New Flight Control System at Karachi Airport are the nts of 1980-81. PIA introduction first time. “Direct Inward dialing” telephone facility in Pakistan and installed computers in PIA Head Office .Automation in budgeting finance revenue, and started from Peshawar, and Lahore.
h Service was introduced in 1983-84. Flight kitchen of. PIA, which was commissioned in February 1977 was nd modernized in 1983-84. Five 737-A300 aircraft were introduced into the fleet of PIA in 1984-85 “Sohni” class on all PIA B-747 aircraft on international flights was first uced by the corporation in 1985.
ng, flight kitchen at Islamabad routes on Civil Air Transport, were achievements of PIA in 1986-88. During the y new routes were including Twin Other operation to Muzaffarabad and Rawalakot. reservation and ticketing facility introduced at Larkana during 1989-90.two women pilots were inducted in PIA e in the history of Pakistan to operate passenger flights in 1989-90. 1990-91 direct Haj flights from Lahore and al flights from Mohen-Jo-Daro airport (Larkana) were started
G PROGRESS OF PIAC
nternational airlines established.
super-constellation (Ap-Afq) registered on April 24, 1954.
d its regular service from May 10, 1954.
vice introduced between West and East Pakistan (now Bangladesh)
nternational airlines corporation formed with merger of PIA and Orient Airways.
ed the world of international aviation with service from Karachi to London via Cairo and Rome.
ng base takes shape. First super constellation engine overhauled at PIA’s own shop. Extensive training es launched.
aced for two Lockheed super h constellations and three with option of five Vickers viscount turbo prop airliners.
making a profit. Until about the middle of 1956, it had been running at a loss of about Rs. 10 million annually.
viscounts began operating and traffic increased on all domestic and European routes.
d modernizing its fleet by replacing the caviars with turbo prop viscount with turbo viscount aircraft.
7-320 “international” introduced on the London route.
he first Asian airline to operate a jet (by leasing one from pan American world airways).
of five Fokker F-27s received and order placed for three Boeing 720B jet aircraft.
ew York service inaugurated.
of Feeder services linking eight new places was introduced in West Pakistan. two Boeing 707-340s. dents completed 22826 student hours in PIA’s integrated Ground Training School.22 million 54. 87. was installed in PIA. ial. n of Boeing 720B fleet completed. and operated a service between Asia e via Moscow. he first non-communist airline to fly to the People’s Republic of China. eing 720B aircraft arrived.revenues increased by 39% over previous year. perating surplus of Rs. 49. 401. the first computer in Pakistan. cademy started functioning. one trident 1E and two F-27.71% of paid up capital was made. rdin uniform for air hostesses introduced. . unsubsidized helicopter service operated through East Pakistan (now Bangladesh). Order for three Sikorsky S6 in helicopters placed. verhaul shop was commissioned and completed. Two more Fokker F-27 aircraft were received just after the close of the year. 0B introduced between the two wings of the country.7% of all flights operated on time or within 15 minutes of ng 720B received in January. were added to the fleet. aft.
he first airline to introduce a second route to People’s Republic of China over the Karakoram ranges. nt signed with the Yugoslav airline JAT for lease of three Boeing 707 aircraft. one more F-27 placed. rs carried on domestic services crossed the million marks. ent agreement signed with air Malta under which PIA seconded a management team to Malta. h of PIA trainee-pilots completed their training from PIA flying school and received Commercial Pilot’s License.Fokker F-27 and one Boeing 707 received. eing 707 received. ced for a Boeing 707 flight simulator. cted to purchase three long range wide body Douglas DC-10 Series 30 Aircraft. nt signed with LAA for domestic operations in Libya. acilities at Islamabad and Karachi expanded. . ntic service resumed. Chairman of the Board of Directors appointed. hen in Karachi inaugurated. uit television system installed at Karachi airport. 0 30s were added to the fleet. hangar for Boeings and a supporting airframe overhaul shop/ commissioned and completed.
s were given to Air Malta on lease. two B-707 aircraft and one 720B aircraft were added to the fleet. tablished for testing CF6-50 engines and components of DC-10 aircraft. of two additional Boeing 747s and four A300 aircraft.08 million. of domestic stations to in-house computerized reservations system. of Air Cargo Centre at Karachi Airport. subsidiaries established and registered in the UAE to promote and manage hotel projects abroad. service introduced. porate identity programme implemented. 152. Air Malta and Yemen Airways. assistance provided to Somali Airline. REPAK. d a record operating surplus of Rs. . purchase two B747s was exercised. roduced on domestic routes. ngs 747 acquired on lease and successfully inducted on transatlantic route. form for PIA air hostesses was introduced. all time freighter-Boeing service to New York was introduced. 0-30. 10-30 was added to the fleet and a fourth ordered. eing 720B aircraft were added to the fleet.
shopping complex inaugurated at Karachi airport. d an all-time high operating surplus of Rs.00 million. and modernization of the PIA flight kitchen undertaken. of Air Cargo Centre at Karachi Airport. and modernization laid at Karachi airport for the employees. control system opened at Karachi Airport. Airbus and 707 were added to the fleet.ment of new downtown sales office. 441. C 10. revenue and other important areas introduced. n of PIA Township laid at Karachi airport for the employees. ated as the leading and the most efficient airline for the year 1981 Hajj operation. finance. . nal stations cut-over to the in-house computerized reservations system. “C and D” checks were carried out on Boeing 747 AND DC 10 respectively. d New York flight via Istanbul inaugurated. uced “Direct Inward Dialing” telephone facility first time in the country. n budget. ch services between Lahore and Karachi and Islamabad and Lahore introduced.REPAK. ervice to Abu Dhabi and Dubai from Peshawar inaugurated. y hangar and related workshop commissioned. o computers installed in PIA Head Office.
exceeded the Rs. kly flight to New York introduced. urated services to Toronto. ng 737-300 aircraft inducted into the PIA fleet. d first international course on civil air transport. for the first time in Pakistan’s history to operate passenger flights. en pilots were inducted in PIA. on of Sohni executive class on all PIA B747 aircraft on international flights. d flights to New York. uced auto-ticketing facility.000 million. uced feeder service in the country. for the first time. enue. ht introduced to New York. hen at Islamabad inaugurated. rm for the airhostesses introduced.p first ever planetarium of Pakistan at Karachi. ion of China and Singapore operation to Boeing 747. . on of twin otter operation to Muzaffarabad and Rawalakot. kly flight to New York introduced. 10.
uced the first ever direct Hajj flights from Lahore to Jeddah. nt signed for acquisition of B747-200 simulator. boarding facility introduced. Jakarta. Peshawar. (GDS). flights introduced. Almaty. aima introduced. harjah resumed.Jeddah via Lahore. 1. uced a new international flight. Al-Ain. anizational structure undergoing change. profitable. . Ashkabad. Galileo and Amadeus-Global Distribution Systems. uced flights to Zurich. to Tashkent introduced. ahore Bangkok flight introduced. corporate identity introduced. 20 billion and unprecedented operating surplus of Rs.58 billion. hts between Islamabad and Singapore and Lahore and Kuwait introduced. A300 B4 Simulator installed. Fujairah and Parachinar introduced. nts signed to link PIA reservations with Sabre. record revenue of Rs. 310-300 aircraft inducted into PIA fleet. added as fourth point for Hajj operations. Baku.
ns flight was suspended and then re introduced. . on March 18.v. eekly Boeing 737-300 flight on PASNI. Abbottabad. hts from Faisalabad and Multan to Dubai introduced from May 01. uced B747-300 services effective may 01. flights.SHARAJAH. 1999.PASNI sector was introduced. 1999 regular shuttle service was introduced on KHI-ISB-KHI and KHI-LHR-KHI routes with flights hours in each direction. ce weekly flight with A-300/a-310 aircraft was introduced on Quetta Peshawar Quetta sector. frequencies provided on Katmandu by operating four frequencies per week with Boeing 737 air craft. to Yangon introduced. motion Activity upgraded to Divisional level. The airline will operate with business my class only. tem revamping started.7-200 simulator installed. service introduced from Islamabad. rew first class facilities on international flights effective 1st June 1998. A Hong Kong er. 1999. may 01. ation from Sukhar and Multan carried out for the first time. ment to acquire five Boeing 747-300 aircraft on dry lease was signed with Cathay pacific airlines. 1999 on UK and Saudi Arabia routes. option on one used Airbus A300-B4 Aircraft on Lease from Air France executed. Lahore and Sialkot to promote tourism. ncreased to Saudi Arabia by additional PEW-RHU-PEW and ISB-LHE-JED v. nt signed for installation of SATCOM System in Boeing 747 and Airbus craft.
to promote any organization outside Pakistan for the purpose g in any activity of a kind which the Corporation has power to carry out. ’S MANAGEMENT on n (PIAC) has been divided into thirteen departments as shown in organizational chart. accessories ments thereof or therefore and also to manufacture such parts. efficient. ire. and to carry out all rial work. mentioned earlier in the preface that after having a thorough look on the organization and its finance . following are the main objectives of PIA Corporation. whether movable or immovable. PIA is one of the biggest l organizations in our country and has worldwide operation. uire. previous approval of the Federal Government. objectives of the finance department (Punjab) Lahore which consists of a Finance . or any air transport undertaking. economical and properly coordinated domestic as well as al air transport system. air. hold or dispose of nay property. the corporation has network of flights around the ontrol worldwide operation. I have the functioning. overhaul. e and further develop safe. vehicles or other machines and parts. Each department is headed by a Director. manage or participate in the running of management of.ES OF PIAC o PIAC Act 1956. run. adequate. each division is headed by section by manager and subsections and units are controlled by assistant managers. accessories and instruments whether the hicles or other machines are owned by the Corporation or by any other person. reconstruct assemble or recondition aircraft. own. Administration t consists of seven Divisions and units. any hotel or business connected ide for the instruction and training in matters connected with aircraft or flight by aircraft of persons employed or being employed either by the Corporation or by any other person. ate any air-transport service or any flight by aircraft for a commercial or other purpose. there is a department meant for overall management of PIAC.
assistant manager finance and 12 Sr.Punjab). Technical naging Director Deputy Managing Director gineering And Maintenance Director Quality Assurance Director Flight Operations Director Flight Services nance Director Administration Director Airport Services Director Precision Engineering P Services Director Marketing Director Corporate Planning Director General Services aterial Support TE PROFILE . Asstt. Accounts Officers and 53 junior officers and staff working as a s department at Lahore. onal chart N Secretary Security Services y Public Affairs Director General Sp.
Bakhtiar Ahmad Chaudhry ght Operations eed Director-PIAC Umar Ghafoor ordination Mashkoor PIAC Office g am International Airport kistan External Auditors Adil Saleem & Co. (Retd) Hamid Nawaz Khan Secretary Chairman-PIAC al (Secretary General Finance & Economic Affairs ) Ahmad Saeed (Managing Director-PIAC ) Salim Arshad of Air Staff Khursheed Anwar ating Officer (Retd) Aliuddin eneral-CAA Kaleem Malik nance han Hasan ght Services aishgi AVM Syed Javed Raza ecision Engineering Shah Wasim Bari rgo Sales & Services n Afridi Syed Farooq H. AL REPRESENTATION OF THE FACTS AND FIGURES IONAL SALES OF THE IATA AGENTS 2001 . Taseer Hadi Khalid & Co. Gen. Shah arketing AVM (Retd) Niaz Husain gineering mood Capt.F DIRECTORS EXECUTIVE MANAGEMENT etd) Hamid Nawaz Khan Secretary Defence & Chairman-PIAC Lt.
NET INTERNATIONAL SALES LAHORE 2001 SALES INTERNATIONAL LAHORE 2001 .
Y ER R ISE NET INTERNATIONAL SALE LAHORE 2001 .
RNATIONAL SALES MIX OF LAHORE 2001 WISE TRAFFIC MIX LAHORE 2001 .
guard their subordinates. in day to day operations. ssion of share: . This sponsibility is to first clarify the diary number of each letter which is sent to the share holder and than dispatch record in her personal computer.IAL POLICIES t G. Each signature to such transfer shall be duly attested by the f one creditable witness who shall add his address and occupation. & regulate relations with the unions and staff association. M. TE SECRETARIAT secretariat section is also called share section. esponsibility of the manager is to maintain the profiles of board members. To enda paper. To arrange the board meetings. This section is headed by the Manager Javed Mansha Sahib. dinate with other sectional heads so that smooth functioning of Corporation can be achieved. ct with relevant out side organizations and agencies in order to enhance the performance of PIAC.E. of shares patch ssion of shares of shares: unction of this section is to transfer of shares.000 shares holders each and every share holder need some information about their shares like as erification.O. address. rm any other duty assigned by the C. spatch: e 48. This section is also dealt with ministry of defence. after their down area and to solve day to day problems. different bank information changes of ACE number and about dividend up to date information. The instruments of transfer of any share in the corporation shall n and shall be executed both by the transferor and transferee and shall contain the name. And this section also calls the annual general nd calls extra ordinary meetings. re the main functions of corporate secretariat. may without assigning any reason refuse to register any transfer of share to a person of whom it does not shall be made to minor or person of unsound mind of to a person not qualified. and both of the transferor and transferee and the transferor shall be deemed to remain the holder of such share me of the transferee is entered in the register.
or such other legal representation upon such terms as to indemnify or otherwise it may TE PLANNING unction of corporate planning is to make strategic plans on daily. from some competent court having jurisdiction in Pakistan in writing his election either to be himself registered as a shareholder in respect of the share or to make such the deceased.the shares to another after the death of previous is handed by this section. at in any case where the board in its discretion thinks fit. This department generates daily performance report and capacity utilization report on daily e basis of this report monthly reports are published named as TT bulletin (traffic trend bulletin ). . The basic sources for the ble is FIA. CA concerned air line etc. Many other also published like market share comparison which help in making yearly reports. it may dispense with the production of a succession etters of administration. monthly and yearly basis for every e Pakistan international air line. (here in referred to as (a tled by transmission) shall within three months of becoming so entitled produce to the Board such evidence as sonably required by it to prove his title including in the case of death a grant of probate or letter of ion or succession certificate as the case may be. weekly. TING INTELLIGENCE n provides daily monthly half yearly appraisal report of each and every sector and aspect of flights for the of future plans. becoming entitled to a share in consequence of the death of any share holder. MIC AND FORECASTING unction of this division is to make annual financial estimates of different functions of PIA for the preparation of tegies as well as long term forecasting for minimum 5years in maximum 10 years for both passenger in cargo this division kept eye on overall economy of the both internal and external related environment to take future ATIONAL AFFAIRS on of this division is to obtain traffic right for PIA all over the world through assisting in government negotiation nter-air line agreements the type of agreements they done are. bankrupt.
g agreement. cally agreement al agreement rative agreement ATIONAL CHART OF PARTMENT R ADMINISTRATION .
-┘ RAL MANAGER NAL RAL MANAGER S& ERATION RAL MANAGER WER NG RAL MANAGER RIAL ONS RAL MANAGER RAL MANAGER RAL MANAGER .
named as. and discipline regulations. process manual (2 volumes). mmunication of personnel information of employees with regard to promotion and transfer. --------------Policy ------------┐ es │ ority -----------------. e employee grievances in respect of service matters. e uniform implementation of personnel policies and procedures in all departments of PIAC .of -------┘ e diagram it obvious that management practice in PIA is highly regulated and managers have to follow strictly e mentioned three books to perform day to day operations. NS OF PERSONAL DEPARTMENT nel department of PIAC perform following functions. nt style in PIA is not bureaucratic rather PIAC has open door policy. ain personnel record of permanent & temporary employees. or and maintain leave and passage record of permanent employees. ommonly known as Green Book) e of power. For example if their is a job to be done all managers practice following procedures.MENT PRACTICES AND STYLE managerial functions uniformly by mangers PIA has published three manuals. e manuals are provided to each and every manager so that he can perform his job according to the rules & .
10615 10 . nt authority may relax the maximum age limit up to 10 year.12180 .8440 450 . integrity & good character candidates.5460 250 .igher management of PIAC policies and procedures.530 . RE OF ORGANIZATION IN TERMS OF PAY GROUPS nd Labour force (here the labour laws are applicable). ns will be filled by above average intelligence.350 .11625 95 .8480 .10255 .310 . ment shall be made on merit.6355 . dard of suitability and merit shall be determined by the management of PIAC.10040 530 . ho is dismissed or convicted of an offence shall not eligible for any post. right time and in a right manner. ficer involved in important works . appropriate qualification.8520 310 . ers te Managers g Directors Pay Scales 80 . sections for required amendment in personnel policies.6350 350 .350 . nt Managers (also includes some senior officers). unless otherwise decided by top management. employees at a right place.5860 210 .actual working hands.14300 .7350 10 .4370 210 .8885 310 .6990 250 . ion certificate is only acceptable document as a birth certificate. tments shall be made on clearance certificate from police.8480 . he training needs of PIAC MENT nt policies of PIA are as follows. s in permanent posts shall be advertised in press.450 .
Dearness Allowance and including Pay Group VIII (i).M.) . ADVANTAGES. P. FACILITIES.ay nt of personal pay has been introduced. ay for various pay groups will be as under: Personal Pay (Rs. CONCESSIONS nel officer has a complete record of every employee's entitlement and utilization of facilities and benefits: re the major benefits and facilities to employees: ment eimbursement heads of expenses for officers in pay group V to X (i) at the prescribed rate: NMENT ND EXPENSES UP MAGAZINES (Accountable) FUEL 0 700 167 20 980 181 820 1170 215 965 1310 250 30 1700 173 0 1700 150 t will be payable @ 60% of the personal pay. ance ance admissible to officers has now been revised as follows: .
) 5 e 320 Allowance allowance is introduced for officers working in rotating shifts. nce is given @ Rs. for not practicing private @ ic pay but not more than Rs. P.59 6 . Per Night) e 105 ances ance is given to officers who work at a stretch. Rate (Rs.3320/month. Beneficiary of this allowance is not car allowance and re-imbursement of fuel charges. e Allowance nce is also given to the officers from group (V) to (VII-II) @ Rs. ees . wance nce is given @ 10% of basic pay to officers from group (V) to (VII-II).3220/month. cing Allowance nce is for permanent medical officers and doctors who are full time employee.675 for officers from group V to group VIII (II) and @ Rs.M.105/month to officers from group (V) to (VII-II). .59 2 .59 4 .950/month.275 working in group V & above. n Pay CMAs working in finance department sh all be paid @ Rs.645 for officers from group IX to Allowance nce is given to female officers @ Rs.Revised (Rs.00 8 lowances lowances is given @ Rs. nance Allowance nce is for those offices who do not using conveyance allowance and owned car.
1170 MENT INFORMATION SYSTEM ION rganization setup process that provides information to all levels of management to support the operation and aking in the organization. Minor mistake can cause huge loss. observation reports. CATION DEPARTMENT ation department is headed by a General Manager. which shows trend either they are going up or falling down.A. traffic . ON: spection they make sure that none of the department is compromising on quality. Like monthly reports. specific reports.nce is also given to the officers of information system department except communication division @ Rs. ation system in P. corporate progress meeting report and implementation weightage y also prepare airline services standard report. There are two types of ation in P. MIS department prepare different reports. They usually highlight and pinpoint the weakness of different departments.A is like oxygen. This department plays a very vital role in any organization e know that without effective communication system any organization cannot perform its operations properly. They conduct surveys and interview to know the actual performance.I.I. SE e is to provide management system that reports overall performance of air line for the chief executive . orts.
If a telephone line is busy (Agent is all is automatically transferred to other agent. these calls may come from inside the organization or outside the n this type of communication is called incoming traffic.g traffic NG TRAFFIC: affic means the calls which come in P.I. . Only General Managers has direct excess to national and international calls. n contains 15 agents who receive the calls of customers for reservation.A. PIA training center.I.A. The calls which are indirectly done also recorded in computers.. For local call the employees first dial 0 (zero) and then required number. or al. NS: mmunication between different departments P.A. CRC section is also under the direct control of communication . ING TRAFFIC: affic means the calls which are done by the employees of the P. These type of lines are very cheaper and beneficial for P. phone number. domestic. TION DEPARTMENT wo types of counters working for Reservation al Counter Counter onal counter there are two sections. This network can also be used mmunication (with in the city). E: means to hire a telephone line at a fixed charging. P.I. onal with (calls) time duration.A have a telephone network. Engg: department and M. These calls may be local.T on the other hand Jinnah Terminal.I. head office.A has to pay fix amount to Pakistan Telecommunication PTCL) every month. If the other employees want to side the city they have to request to the operator. system contains two big switches 1 and 2.I. R SECTION: cation department contains a computer section which maintains the record of all calls whether local. domestic. These are operating through the cable system.
about seat number of about luggage it is solved there in reservation . USA and Canada. One given to that person who gets the facility of PTA and two coupons are received by PTA section to take as a ELLING SECTION on the facilities is provided to the people who want to get the ticket from the head office.1 reservation are taken only for Europe. The section is also computerized and reservation is done mputers. USA and Canada. he tell the computer operator and the computer operator solve the problem of that person if here is a complete hold of computer operator on all functions i. e four coupons issued by that person. This whole records are maintained by PTA section. The selling price of the ticket is same el agents give them a ticket. what is the er. One coupon is received by the counter who receives the money. The Karachi head office inform Lahore head office for the issuance of ticket to that erson. reconfirmation or holding confirm. enger wants to have some help in the airport. So the people who do ticket from the travel agents they also get the ticket from the head office. So all the passengers relating to these ountries come in his section and reserve their seats. Because the personnel of airport takes corrective action and satisfy the passenger. So all the passengers who travel inside the country have to vation from this counter.e. oarding Section oarding cards are issued in this section. so the passengers have no difficulty at the airport in case of boarding card. Passenger come ses their problems relating to confirmation. East Asia and Arab Countries. It is so because this section also sell the ticket on the face value of the ticket. ger is in Lahore and he wants to go Karachi but he does not have money. If a passenger wants to have late early flight. what is the date of confirmation. Counter er is only works for reservation of domestic tickets. ation is taken there only for Gulf. So he has to inform his relatives to in Karachi head office.e. then the operator send this message through computer and the feel easy at the airport. which is the side. articular section all passengers are related to the reservation for Europe. aid Ticket Advoice) Section acility of passengers who do not have money in a particular city to get the ticket for a particular city. if any problem is faced senger regarding date of departure. facility to get this boarding card. way the passengers feel also very easy because there is no huge crowd there and each person has opportunity his seat very easily. So all facilities are also available have for passengers as discuss in section-1 i. So because of this the passengers have no problem in case of date of departure. So if the passenger wants to get boarding card from the head office. arrival or ion. .
So in this way the sales agent feel o holding confirm and then reconfirm the seats. and es Bureau. This ratio is very high in Pakistan. This is very fruitful for the organization. The operator are there and receive the calls and takes booking on computers.e. There are taking booking for some rules and regulations. So every list like relating to 24 hours before departure is checked only by one ome problem is there for any seat then the second member has to linked with the operator or travel agent to he particular seats. cular section the complete bio data of the passengers who will be travel on a particular flight is feeded in the nd confirm the requirements of passengers as well as the requirement of personnel. CRC is further divided into four cells: ts cell. Reservation planning. hecked three time before the departure. r Lahore to Karachi he has to take booking at least three days before and for other cities at least two days departure. . Discussion will concentrate on CRC. servation Control (CRC). e sales. e this ratio the facility is provided to the persons who are in waiting list. Flight Analysis) ight is departure this particular section check all bio date of flight. l agents have direct link with the operator and gets information according to their recruitment.TION ON TELEPHONE so the facility provided by PIA to passengers or sales agent to confirm the seats on telephone call. The travel ke all booking through telephones either it is holding confirm. Either it is from the travel agent or it is through the . cell. urs. if the passenger does not travel according to the confirmation by the travel agent erator is not responsible.e. agent makes the booking internationally he has to take it at least 2 weeks before departure. member check the flight list and only one member is responsible to check the list relating to any hours i. then departure and then 24 hours before departure. So it is a counter check of flight check. HECK k is a sensitive area in PIA where the booking is originated. tio means the passengers who books their seats and do not travel in time. or 48 hours or 24 hours. the agent is responsible about this particular seat. Firstly the flight is checked before 72 hours before the departure. PIA also fines the travel agents if em is incurred according to the confirmation of seats. waiting confirm or reconfirm. ome problem incurred i. Haj & Charter Planning are three sections of division under on.
. As the passenger enters the check-in lounge the duties of traffic ts till the passenger boards to the aircraft. who is infact the representative of Director Airport Services. c department relates to passenger services. since all units of the mprising Airport and Flight Services Departments report to the Station Manager. the passenger services comprises of the following units: r Handling: ntroller charge Counters alance Unit Control Unit andling Unit Handling Unit uiries t Unit Found Unit MENT on has a Station Manager. e sales. SERVICES DEPARTMENT people are in direct contact with the passengers and they handle different stages occurred during a s way from check-in lounge to the aircraft. and es Bureau. Reservation planning. Discussion will concentrated on CRC. cell. Haj & Charter Planning are three sections of division under on. CRC is further divided into four cells: ts cell.servation Control (CRC).
Balance Unit ting the coupon from passengers at check-in counters a weight and balance sheet known as "Trim Sheet" is Trim sheet is detail of total load on aircraft including load in holds and cabin.hours working in traffic department and 4 shifts are engaged in their duties in this very section. on chart of Traffic Section is as given on next page. passengers weight. e of preparation of this load-sheet is to get balance and centre of gravity conditions of the aircraft. and ake off fuel and water methanol. Actual lending weight is calculated by subtracting trip fuel and water om actual take off weight. collected from the passengers on the spot and Boarding cards are issued having different colors specified to ghts and classes. MANAGER -----------┴-┬---------------------┐ ager OIR OIC ager s ER HANDLING troller troller controls entire activities of passenger flow. Each counter is facilitated with weighing machines and a conveyer belt behind the counters es. which is the summation of total traffic load (PLU) and dry operating weight. actual take off prising zero fuel weight. harge Counters (OIC) ncharge of check-in counters which are 11 in number at Lahore Airport including one counter for utive/First Class. . re weighed on weighing machines and charged if over weight and then baggage tags of different colors are ding to the flights.
A VIP coach takes him/her to the ile VVIP travels to the aircraft in their own flag cars. It is supervised by Assistant Section Manager. The basic purpose of TLS is to e total revenue earned.Control Unit ers Manifest all activities regarding departure are controlled by using computers. Departure Registers ate registers of arrival and departure flights are maintained in which TLS's are recorded. ht Report eparture of flight a Post Flight Report is prepared with the help of Post Flight Unit. infant). This report consists of tion passengers list. The functions included are handled by the Protocol Officer. ers Loand Summary Passengers Load Summary is prepared. This information includes the following: ected time of arrival (ETA). NQUIRIES es about the flights are provided to passengers by this unit. seat me of check-in. no record passengers list. validity.P Handling Unit. ndling Unit eals with the passengers who are required special handling. These documents are used in preparation of Trim Sheet. child. . oad Summary hecking of coupon a Traffic Load Summary (TLS) is prepared for each flight. and no-show passengers list. mply hands over the ticket and inform about the luggage to Protocol Officer. etc.I. group (audit. GHT UNIT n deals with all the activities after the departure of each flight. fare and place of issuance of ticket. pieces and weight of baggage. The services provided in special cases cost and on courtesy basis. ndling Unit deals with the following types of cases: ccompanied Miners (children less than 12 years old) one Ladies sengers air Cases Passengers (must be non-violent) Cases L HANDLING UNIT also called V. ected time of Departure (ETD). Telexes regarding special handling cases are advanced from the Departure Station of the flight to the arrival station. etc. his type (revenue/non-revenue). Here the passengers manifest is hich includes each passenger's name. he coupons are checked in term of sector. ssengers in particular flight.
airport premises is the property of Civil Aviation Authority(CCA) and they have rent it out to PIAC. on Authority CAA is semi-autonomous body who is responsible for providing facilities on airport. artment also issues various types of magazines. shareholders and most important its worthy . the various personalities of the press. bodies. orization slip and bills are also verified through this departments. all the news published through print media in form of records. the airport are also owned and facilitated by C. ny type of news regarding PIA whether it is in favour of the organization or not. officials. for . in international travel). rlines ickets used by passengers are of other airlines. Expenses services provided to other airlines. ge. for compensation. ed baggage. in case of interline agreements are also recorded in this unit. The main functions of this department are: or the seminars and functions in PIA.A. booklets and pamphlets of PIA. Similarly. ess this department has a very vital role to play in the development of the goodwill and social standing of PIA. to the and the airlines as well mainly three types of lounges on Lahore Airport: Lounge (Departure and Arrival). which are: gage complaint. ELATIONS tion Department: only 1 day in this department and really enjoyed here. show biz and other govt. unctions extended or overnight delay of flight accommodation and meals are provided in hotel on the expenses of PIA. Irregularity Report (PR) a lost baggage complaint a Property Irregularity Report (PIR) is prepared just like as a FIR in a Police Station. he PIA to cope with all types of contingent events happening in the outer world relating not only to its s but also with other related parties such as media. by PIA can be used in any PIA office in the world. govt. oss.Excess Baggage Ticket has not get the PIR is prepared on courtesy bases. nal Lounges (Departure and Arrival).es of each and every incoming and out going flights are maintained on daily basis for the station requirements. any news of PIA through electronic media or press media. the coupons of these tickets are used as cheques. wo types of the situations are dealt by this unit. dvertisement of PIA. of excess baggage (more than 20 kg.A. FOUND UNIT also known as the Baggage Service Unit. in domestic travel and more than 30 kg.
he managers/officers in developing analytical tools for planning. controlling. one is required to complete management training group IX. motivating. At PTC separate unit was established in 1987. o new strategy courses were organized as: agement Courses 2 weeks nagement Courses 3 weeks nagement Courses 3 weeks ement was not satisfied with the periods of time for training. oup X (G. ory management Course (Period 1 week) iate Management course ment Course I (Period 2 weeks) ment Course II (Period 2 weeks) Management Courses (Period 2 weeks) r these courses were determined by the management on priority basis and nature of the job performed by the cerned. some suggestion came from A Karachi. cate awareness of team spirit for achievement of corporate objectives. We can say that in order to get promotion to next group. owing were the policies for management. in Karachi in 1986. so they extended initial management. This course includes two course of management and hnicalities. An other development course is offered by PIA to its engineers and planners. but for reaching to group X. communicating. For the purpose of airline. objectives were nd new training strategy was developed. Middle nt. meetings of top. one is required to complete management urses of his present group. standing proposal from PIA management to GM training that program must be modified in following way: anagement course roup IV & V) 3 weeks Management Training Course oup VI & VIII) 4 weeks Management Course roup VIII & IX) 4 weeks . Priorities were changed. and Senior management courses' time to 3. Objectives were defined as follows: of Management Training en the skills of PIA managers and officers and make them effective and efficient. 3½ and 4 weeks respectively. lving and decision making. foreign experts. ement of PIAC conceived this scheme. This Management and Development Course is of 3 weeks. Training programs were arranged for people working in group IV to X. and public Administration Institutes. Over 4 years period of time.MENT TRAINING anagement training was started at PIA Training Centre (PTC). Presently PIA Training Centre is o modified schedule. management were held.Ms) is ignored.
The department is headed by Director and under him are the General Managers. The difference is firstly because of personalized condly. ing of Air Transportation service is in some way unique. therefore it is more market-oriented. it is difficult to examine the quality of the product (i. they review and revise the me flexibility in these cases. They are strict to the targets but due to certain environmental changes. service) prior to the time of final sale. Number of passengers and revenues are correlated. They split this target to other stations as they storic date of the stations for assigning the targets. this department provides them with the brief relevant informations are compiled and . emphasis is on following courses: ment core subject udies. s have to meet the target of revenue and the number of passengers usly. Since PIA is commercial organization. agement (as a separate subject).al Management & Development eering & planning staff) 3 weeks ning. NG DEPARTMENT s the most important department of any organization because it is to sell the product made by the n. exercises. problem solving models.e. ket planning omotion vision velopment s planning ket planning own budget and they have their revenue targets each year. the duty of this department is that when Director or Managing to any foreign station. Different divisions of this are. In addition to it. are assigned to generate revenue in the beginning of the fiscal year and then in May and June meetings are e performance of the station is checked whole the year.
the annual world turnover of tourism industry has surpassed dollars 105 billion today. ethnic traffic is now declining. is fast A corporate tourism marketing objective is based on these hard facts. PIA tourism objective is to exploit ame tourist attractions and gain maximum market share by tapping the tourist traffic of the worlds tourist areas of the Pakistan and other destinations over PIA's network operations is most realistic. The tourism market will no doubt prove to be PIA's best choice because it 's fastest growing market. Pakistan ustry potential is immense and it attraction as tourist destination. The slackened nt pace in PIA's traditional target markets leaves it no choice but to diversify PIA's revenue earning resource n the present market conditions what PIA need most is to explore new r alternate target market segments. This is perhaps tourism most positive and constructive role which for reading political precautions. In fact in many countries tourism source of income and is therefore organized on a large scale under direct government care and involvement. From US$52 959. Compared to an ordinary traveller who travels out of a tourist does so out of choice. the word tourism market potential is limitless and its turnover mind boggling. The market potential is immense and evergrowing. d for promoting inclusive tours is more intensively felt today than ever before. ts economic benefits.er to them. d country can generate vitally needed resources for its development programs through tourism. Pakistanis ries resources. After analysing the performance of the ear and the forecasted position of the coming year. the passenger marketing plans are compiled. Promoting tours on the domestic routes in the local market may prove to equally n view of the growing awareness about the advantages of tourism among our countrymen. Time had come for w that we can bring people of different regions closer by promoting goodwill through travel and evelopment of domestic tourism will go a long way to help raise the quality and quality of necessary tourist re as well as the inflow of foreign tourists to the country. Travels helps create a climate of understanding tolerance and goodwill and those who in promoting tourism as a profession or in need working for a worthwhile cause. usive and intensive promotion of inclusive tour packages by the field offices is likely to open up bright new r PIA in the coming years. PROMOTION mmercial advantages apart by bringing different. lds a key position in the international travel trade today. as recorded during the past few years. After having passed its peak in es and early eighties. Tourism is the gest industry after oil and can play an important role in a countries economy. It is y a profitable business if done properly. people regions and country closures through frequent ridges the gap between them. with right promotion are likely to attract a steady stream of tourism industry's prevailing trends geographic location is ideal. promotion's role in country tourism . c objective or basic duty of this department is planning of targets.
DIVISION usiness is developing at a speed which is threatening to all other modes of cargo movement e. e that many Asian countries have given tourism top priority in their development plans. and briefing the field force on producing and marketing tour packages. ment of tour packages alongwith applicable costs at a given time besides production and supply of publicity ng familiarization/educational trips to Pakistan for foreign tour operators/travel writers etc. g tourist groups in transit. However. s section's set up & function. The present management of PIA has placed major emphasis on developing tourist traffic in PIA's ting strategy. the section ded inrationalization. to head the tours promotion section have been at di ns main functions and activities can be categorized as. The primary reason being al element of business nt today and surely to be progressively a more important factor in the international trade tomorrow. with the importance of tourism. . foremost tasks undertaken by the section is the projection of Pakistan as tourist destination. A careful survey at the principle deterrent to the growth of tourism in Pakistan was the high ground cost.ternational Airlines. PIA management has assigned a corporate manager to head the Airline's otion section. This is an additional source of traffic which holds great future potential. ng festivals in prospective tourist generating countries. government agencies/PTDC/hotels and PIA network of sales/handing units. ment of tourist traffic to abroad and within Pakistan ment tourist traffic on PIA routes. The trends of world o indicate PIA's decision about gearing itself specially for tourist traffic. ating between tour operations. Its offices all orld are the first resort for a foreign nation or a tour operator to get to know more about Pakistan travel there. has been forefront in promoting tourism to and within he airline reflects Pakistanis hospitality culture and progressiveness in the multifaceted activities.g rail. d package cost which is now a little lower than that in the neighbouring countries. being the flag carrier of the nation. road and not to suggest that in near or even in the distance future any of these cargo modes would be totally but the air mode is definitely destined to unimagineable heights of growth in future. Field offices of the section are also being opened at various stations as a part of the overall activity to lookafter the tours promotion business Managers.
tems airlifted by PIA are carpets. For instance. These are fixed by IATA and these rates vary from commodity to commodity and product to product ew exception for charging of freight which are valuable like gold. It is also course of increasing exports PIA has even been arranging h foreign importers and Pakistani importers in an attempt to promote export from the country.air cargo has now been an old time business in developing countries any significant development in Pakistan until the late 50s a limited scale commodity movement between the two wings of Pakistan east and west was perhaps only cargo business activity. perfumes) provided there packaging prevents the escape of mells. Infect. . sacrificed at Minaa during Hajj and donated to the Afghan refugees in Peshawar by Saudi Arabia. maximum benefits from cargo division. The targets are fully discussed with on's team and other professionals then the target is accepted and practical steps are taken for their ment. The reservation of space is same way the case of booking of passenger accommodation on a particular flight . The out side of each piece of cargo must be free from any spoilage of the constants. PIA has achieve. soft fruits and other goods which may leak or sture provided the packing is leak prove. IA is earning 12 to 15% of revenue. These containers are shifted to available cargo space on the air craft with the help of most uipments. s can except strongly smelling goods like (hides. handicrafts. The carrier can cargo including cool goods wet fresh flowers and vegetable. particularly readymade garments. diamonds and other precious items are % above the normal rates plus some other charges dead bodies are charge on normal charges. anagement at its heights level sets a certain targets for cargo revenue. ts are packed in pallets the capacity of one pallet is 2. There was only one cargo agent until late 60s. major portion of cargo activity was still confined to domestic movement ing in this section is done in a similar way as it is done in marketing of a products or selling of tickets. a total of 5000 tons of booked at all airports in Pakistan in 1962 50% of this volume of this cargo was carried on domestic routes. During 1983 first time PIA freighters uplifted the frozen f 25000 sheep and goats. s far as PIA is concerned. leather textiles. surgical instruments. if viewed in the international and erspective the growth in air-cargo has outpaced passenger growth by almost bassies. In this oduct is (space).those items are not booked which are banned items by IATA. sheep-casing / skin. so we can say that this division sells the space in the aircraft. sports goods. passenger growth in last few years has been recorded between 2-3 percent whereas in cargo department has been I double figures. automatic system of shifting the pallets from one aircrafts to another one and also from ground to aircraft. It uck services from air craft to the destination.5 tons and the capacity of that container in which they is 800 kg to 1 ton.
cargo was very much a sort of passenger appendage or an earned bonus. n is headed by passenger sales manager and there are four sales assistant managers all the SPO's have ir agency and their report about the agency to agency assistant sales managers. Saudi Arabia and Africa.e. Assistant manager marketing deals with the proper feed passengers. special. program different type of fares such as domestic international. Every manager has his working. Basically the incentive is directed toward the wholesales. defense personnel rebated fair etc. are made readily available and can be displayed by . rly days. argo division has computerized system and that modern equipment will tell the cargo space situation on a ht or B747 every hour and at every individual flight.has been carrying out market survey for Pakistani product abroad and reporting its findings to Pakistan The exports are mainly to Europe. normal. velopment otion is the main sub section of the sales section. ecord and also to maintain the statistical record. seasonal. This system will tell at which particular station PIA can pick nd at which place will bring PIA more revenue. Spo's go to the fields. one way round trip. students rebated fair. They cover all the 72 IATA IATA agencies under IATA group 9% official incentives or concession is approved for the agency on al routes and 3% on domestic routes. The targets are assigned to the spo's for this purpose and they are motivated to ac e targets. nt tries to give incentives on the bulk quantity because 83% of revenue is generated by the traveling nuine reason i. One of the primary function is to promote the sales and e revenue. Their job is to maintain productivity. it is an integral part of the air line operation and a major contribution to . It has since grown in d made its present felt. There is a very close coordination between nd recruiting agencies. the Far East. It is only done at that time when agents give bulk business. Both the cells have to be alert. In the mid 80s. before y fill a form about their program and when they come back they fill the called report. Gulf. manager for special projects deals with the irregular works or which are not according to the rules. The sales strategy is not possible with out proper feed back.. Up until the 1960`s there was only one cargo agent in the whole country and he mainly handle the domestic now there are large number of cargo agents in the whole country and these agents handle the domestic cargo. They give the o the agency according to their efficiency. ales manager recruiting deals with the recruiting agencies. PIA offices are in the particular area and agents are very familiar with the environment and s are spread over the city and it helps the passenger to go indirectly to the traveling agencies.
Two officers work on load monitoring on daily basis. fort are to turn the business in a good position. It is the nerve center of the marketing . LES PLANNING and reservation comprise of two sections lanning anning e network of the agents. sort out monitoring this section have divided its department in to four section and four assistant managers are e for different four areas.mple code stem which display the desire and required air fare on the terminal this fare used by PIA. The main purpose of this section is to increase the sales rather then to decrease. McCarthy popularized four-factor classification of these tools called the oduct. and promotion. unction of this department are as follow ng the station activity and maintaining a proper record in order to keep an upto date profit. NG MIX OF PIAC mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market. place (i. All terms and conditions and policies regarding agents are followed which are made A under all the rules and regulations. and rvice (for Cargo). PIAC is also providing services to which can be categorized as follows: ice (for passengers). acquisition. or consumption that might satisfy a want ost products we think of are physical products. The aim is to patronize the system in such a way that the sales ease. price. but it also includes services.e. This sales ection is very fundamental. terally dozens of marketing mix tools. use. distribution). Then it is divided in to several sub division. sales planning coordinates with the various division of the marketing. wing lines the 4 P's of PIAC are discussed: s anything that be offered to a market for alteration. g the station of various sales lead ating with various departments in related work of station and solving them on day to day basis competitors activities in order to improve leads of they stations if and when required. s any act or performance that one party can offer to another that is essentially intangible and does not result in . In the air line view point the world is the market.
Services are nseparable. was even the year. Provided client interaction is a ure of services marketing. When demand fluctuates. Services are activities. supplier nd adaptability. Since the client is also present as the service is being produced. They will draw interface about the quality of the service from the place.hip of anything. they cannot be seen. To reduce uncertainly. PIA has to h more equipment because of peak-period demand on a specific route than it would. or satisfactions that are offered for sale. and perishable. As a result. heard or smelled are bought. Service aware of this high variability and frequently talk to others before selecting a service provider. as they depend on who provides them and when and where they are provided. and can be detected and corrected. PIA bstantial sums to train their employees in providing good service. The first is investing in good personnel selection and training. demand can be cultivated. communication material. mand Side al Pricing to shift some demand from peak to off-peak periods. e highly variable. Both the provider and the client affect the service outcome. . symbols and price that they will see. then the person e service. d step is monitoring customer satisfaction system. the PIA's task is to manage the evidence. benefits. variable. service firms have difficult For example. Like overnment owned corporation. The perishability of services is not a problem when demand is cause it is easy to staff the services in advance. ovided by PIA are intangible. e following strategies for producing a better match between demand and supply. felt. tested. they normally require more quality control. to tangibles the intangible. Therefore. PIAC also do not properly monitor customer satisfaction. Unlike physical product. people. If the service is rendered by a person. if demand. ity e typically produced and consumed at the same time. the buyer cannot see the result before the purchase. the look for signs and f the service quality. customer surveys. m can take two steps towards quality control. teristics of the services provided by PIAC are depicted in following lines. ty annot be stored and they have no shself life.
airlines provide discounts through their agent on some routes. Ticket shows e for the route while airlines charge discounted fare by cutting their prescribed share of profit. he fares of flight to the northern areas. ning Demand ng Costs g competitor's prices & offer g a pricing method g the final price. for seat. greater demand tends to no discount. the other elements produce costs. f Cargo Airway Bill. however. Swat. etc. Price is the amount of money that customers y for product/service. ply Side e efficiency routines are introduced. are subsidized in order to encourage al Routes for international routes are set by International Air Travel Association (IATA). PIA establishes the pricing strategies on different international routes keeping in view the following points. different pricing policies are used by PIA. The IATA dose not allow any n any international route. like the Gilgit.on system is one way to manage the demand level. and PIA employ it extensively. domestic routes and international routes. . f passenger tickets. It is one of the most important elements determining organization's market share and Price is the only element in marketing mix that produces revenue. anization face the task of setting a price on their product/service. tor's price. ervices are developed by interline agreements. Sakardu. Aircraft used. The PIA's management estimates the price by using following six-steps procedure and sent to the t for final approval: g the Pricing Objective. ices set? PIAC has to deal with pricing aspect in two types of situation. operation. Routes omestic routes are fixed by government of Pakistan for PIAC. The cost plus method is used to set price at vel. types of routes. Employees perform only/essential tasks during peak periods.
e one public sector organization that not only meets all its foreign exchange requirements but further to national balance of payments. the International Advertising Limited tries to bring certain facts into public h as: e biggest corporation in the country. whereas the literacy rate is barely 15%. ngers travelling out of Pakistan's airport experience frustration and annoyance at the lack of ground facilities. goodwill. It is largely dictated by government d preferences. ve recognition for the company's achievements and services. n of media is not based on the maximum advertising advantages above. search is about non existent. is impossible. ve public recognition for the devotion to duty of its employees. mestic regularity compares favourably with the best American domestic operators. c media cannot be effectively used until the airlines service facilities improve at par with other airlines. ary medium for PIA's advertising is Press. ates 1540 flights a week throughout its network. rtising for PIA in the domestic press.ON OF PIA vertising Objectives of PIA rce PIA's image as a national airlines and as Pakistanis "travelling ambassador". handles its total advertising requirements and caters to stations where PIA's associate agencies cannot provide services. the airline better known and appreciated. ve of advertising by IAL for PIA is to inform passengers about the extent of PIA's operations and the efforts to the facilities. some of which are not the responsibility of PIA. ned public awareness that the company recognizes its economic and social responsibility. Promotion al Advertising Limited. e and institutional advertising is based on these objectives. Oriented Campaign passenger oriented motivational campaign for employee's attention towards the passenger's problem and m to adopt a more sympathetic attitude. a 100% subsidiary of PIA established in 1966. of mass media in Pakistan shows striking peculiarities which determines media selection for PIA's advertising: ber of publications exceed 900. The campaign was based on the management s new line of thinking . 60% of the air travel market in and out of Pakistan 22% more than the international norm for national carrier. Therefore. assessment of leadership viewers etc.
Ogilvy and Methase advertise for PIA in many well known magazines. Customer ailed to each employee supported the campaign. America Digest all Street Journal e Review. al Promotion tional promotional work for PIA is entrusted in the hands of Ogilvy and Methase. some important of which are: ek (Pacific & Atlantic Issue) press. PIA monthly letter from the Director. monthly scribing pads. on system is a key resource. The choice for this agency was made strictly on merit keeping into consideration the fact ency has offices in all those regions where PIA operates their flights. caters to the needs and requirements of particular areas and regions and r from region to region. Bangkok News. PIAC directed to individual employees' summing up the rent position and emphasizing the need for further improvement in customer services. It lines to n facts about PIA and compares the corporation with other airlines and tries to prove its comparative The regional advertising. This was followed up by posters. Paris ern Economic Review egel.ENGER IS THE MAN WHO PAYS OUR SALARIES. It represents a corporate commitment to large numbers of independent companies whose business is distribution and to the . Normally it takes years to build. ticklers in the form of postcards and folders. Frankfurt ker. an American advertising ased in Singapore. The two main strategies adopted by Methase in consultation with PIA regarding advertising campaign are: e advertising advertising advertising talks of PIA as an experienced airline and this strategy is purely institutional in nature. and it is not easily changed. Bangkok Bangkok NT/DISTRIBUTION channels can be viewed as sets of independent organizations involved in the process of making a product or ilable for use or consumption. newspapers and cation. IF HE WAS NOT HERE WE WOULD NOT BE HERE ign commenced in the letters from the Chairman. however.
fers to the activities which bridge the gape from the starting point to the terminal point. Therefore nd control move together. hannel he two levels of channels. Many travel agents are provided to ticketing and system. Normally. these are ere PIA does not have sales point.markets they serve. Here PIA sells the tickets directly to final users. which are depicted below: cies 30 IATA approved travel agencies which deals with PIA. The commission provided to General Sales Agents is as follows: nal Sector = 12% Sector = 5% of Finance Department of a typical finance department can be classified into two generic categories. has partially owned distribution system. are involved in selling of tickets to the customers. Channel agents. PIA has ticket and booking office to sell tickets directly to the customers all such offices of PIA are ed and directly linked with the head office at Karachi. as intermediaries. here is one in Lahore. which are described in the following paragraphs. The first category is planning and function is controlling. Channel d a direct-marketing channel). Commission of these agents is as follows: nal Sector = 9% Sector = 5% es Agents he agents who exclusively deal with PIA's ticket and cannot deal in other airline's ticket. There are two types of travel agents. vities are inter-related and inseparable because if there is no planning there will not be any control. These agencies can also be stocked and sell the her airlines. through its ticket counters. Planning in the finance .
The budget review. nning there is no basis for controlling as planning provides the foundation upon which the control function he planner should be able to visualize the proposed pattern of activities individually and collectively. e participation in the budgeting process at each level within the organization. of determining the desirable and possible objectives. these managers must fully cooperate and must understand making the budget system successful. the preparation of the budget so that there is a reasonably high probability of successful attainment of the . Budget preparation should be oriented to the problems and opportunities of the participants. a process of sensitizing an organization to external opportunities . the climate of budget preparation to eliminate the anxiety and defensiveness. has been termed as “budgetary company’s organizational chart and its chart of accounts form the basic framework on which to build a d and efficient system of managerial planning and budgetary control. decides. particularly in connection with the control phase of management. but also the basic link of accounting with management. G fundamental to the management process. budgets. The organization chart defines the esponsibilities of executives and thereby justifies their budgets.under review refers to the activities of Cash Flow and Budget preparation. Structure the activity of the budget by involving the people who will be responsible for the implementation of the budget and who will d accordingly to its accomplishments. All managers should understand the limitations and constraints of their participation and the bounds of their aking. internally ally. suggest and approve various policy matters and then all the work is submitted to the Director/ Chairman for the final consideration and approval. Individuals should have the d authority to influence and accept their own performance levels. the budget becomes a management committee. all managers are responsible for the preparation and execution of their departmental a budgetary control system is to be successful. cedes the cash flow or cash budget. Although final responsibility for the budgets xecutive management. a. It is a powerful forces in coordination the various activities of the nd in controlling the operations. In performing these functions. and of deploying the resources to match the objectives. Budgeting process is usually directed by a budget committee. Participants should be told. is not only the most important plan of an enterprise. and should assume the responsibility for the ment. targeted objectives. prior to the time. velopment and Implementation ure used in developing a budget may be as important as its content and should include these fundamental adequate guidance so that all management levels are working on the same assumptions.
When challenging the attainable objectives achievement, feeling of success, confidence, and satisfaction are nd aspiration levels are raised. A careful distinction should be made between controllable factor for which should be responsible and for uncontrollable factor for which they are not. get implementation requires adherence to the following principles:
reward and reward contingencies that will lead to achieving the organizational objectives. Too often, the process does not provide the sufficient rewards to induce employees to accomplish organizational objectives.
nization should focus on rewarding the achievement rather than punishing the failure. Feelings of success and ely determine attitudes towards the budget and the level of performance to which employees will aspire.
apid feedback on the performance of each work team or individual. This principle necessitates the use of reporting procedures that are understandable to workers and supervisors at the department level, so that nalyze their results and initiate corrective action.
or Cash Budget
statement the actual inflow/ outflow of cash during a period generally of one year. I accounting practice there ansactions which do not involve cash like depreciation, are not taken into consideration while preparing cash
get or cash flow involves detailed estimates of anticipated cash receipts and disbursements for the budget ome other specific period. It has generally been recognized as an extremely useful essential management tool. nd controlling cash is basic to good management. Even if a company does not prepare extensive budgets for nd production. It should setup a budget or estimate of cash receipts and disbursements as an aid to cash nt. purpose of cash budget
get of cash flow:
he effect on the cash position of seasonal requirements large inventories, unusual receipts and slowness in ccount receivable.
he cash requirements needed for a plant or equipment expansion program.
need for additional funds from sources such as bank loans/overdraft or sale of securities and the time factors this connection, it might exert a cautionary influence on plans for plan expansion, leading to a modification of enditure decisions.
the availability of cash for taking advantages of discounts. planning the financial requirements of bond retirements, income tax and payments to pension and retirement.
e availability of excess funds for short-term or long term investments.
s a basic for evaluating the actual cash management performance of responsible individuals, using ent criteria such as the target average daily balance as compared with the actual average daily balance in account.
w is followed by the Projected Profit and Loss Account which is also a part of the Profit planning and estimated d profit/ loss can be examined. It summaries of sales, manufacturing and operating expenses. It projects net e goal towards which all efforts are directed, and it offers management the opportunity to judge the accuracy of work and investigate causes for variances. No new estimates are actually made; figures taken from various e merely arranged in the form of an income statement.
s budget gives the expected sales revenue; the manufacturing budget furnishes manufacturing costs and cost old which, when deducted from sales give the estimated gross profit. Estimates from the marketing and ive budgets are subtracted from the estimated gross profit to arrive at income from operations. Finally or income tax is deducted to determine net income. cash flow
h availability - inflow
h availability - outflow
uired for FMR
uired for capital investment
uired for repairs
uired for short/ long term investment
or cash - short term and long term
on of the finance department is carried out in the light of standards set in the planning stage. The actual e is compared with the preplanned objectives and standards, which lead to rectification of any deviation and nt suggestions which will assist in future planning.
nt control is the systematic effort by the business management to compare performance with plans. The ction is of prime importance in the accomplishment of objectives. The need for control increases with the size exity of the organization. Continuous supervision of an activity, task or job is required to keep it within defined boundaries. These boundaries are termed as budgets in the planning phase, are set up for ing, marketing, finance and all other activities. Actual results are measured against plans; and if significant are noted, remedial actions are taken.
n this phase the actual performance is derived from the preparation of the monthly Profit and Loss Account pared with the projected profit and loss account in order to observe the actual variance. When the variance is en it is analyzed to know the reasons/ causes resulted in the variance. If these causes or reasons are e then corrective measures are taken to rectify it. The difference is projected and actual performance (surplus s taken to the next period and adjusted accordingly.
ofit and Loss Account – tool of control
n of actual Vs projected or judicial figures which leads to variance.
t of finance
nine divisions in the department Revenue Division is the most important division. Some of the important e described below in detail. DIVISION:
space and services and these are measured in terms of money. The revenue In terms of money is controlled nue division. It is further subdivided into three sections:
er (PAX) Revenue evenue
third is the flight/ lift coupon and fourth e coupon. The money paid by the nsoring the ticket in advance and after the checking of the documents of the nominee of the sponsorer is issued this ticket. So Revenue Division is discussed in units: NGER (PAX) REVENUE: evenue function starts from printing of tickets. Regarding following four documents are important: er Revenue/ Extra Baggage Carrier Ticket: has four/ three coupons. friends. Two types of ticketing are practiced i. audit issue office and exchange coupons. ticket advice (PTA): sponsoring the tickets of the relatives. second is issue coupon. es 46 locations for direct sales all over the network of PIA. whereas indirect Sales are by agents. etc. . from any other country/ destination. Flight coupons are arranged for one/ two or four sectors. Audit coupons are sent to head office with ments from each station. First is audit coupon.Revenue pe of revenue stream there is an independent unit. Whereas auto volves advance system of computerized ticketing and on the spot computerized ticket printing. neous charges order (MCO): uments contain. Accounting to entry is based on audit coupon. Audit coupon and flight are the most oupons. manual d auto ticketing. Sales of tickets may be: e or ale s mean sales at stations of PIAC. Tickets are sold at station and at agents’ offices. whereas audit coupons is meant for PIA’s revenue record. etc. Tickets of airline contain few coupons with a jacket (bearing on it). Manual ticketing involves procedures of pencil paper work on printed tickets. The responsible stations communicate through telexes. These are meant for exchange if for the time being ant to block a seat. Because flight coupon is the only coupon to be used either for the lift or for refund / reissue / travel on rrier.e.
IATA approved agents. These may be daily/ weekly/ monthly as the be. International flights are 20% to 30% over booked for covering the seats of passengers not oupons are directly recorded in accounts by sales unit. No matter when the ticket was sold and where it was sold. t: ho do not report 72 hours before the flight the seat is automatically canceled.charged from passenger following taxes are included: c: % sector to CAA (Airport Tax). This unit uired documents from sales unit and that gets these from stations concerned. further subdivided into lift control and life automation sub units.300 Aviation Authority Rs.300 (CAA) Tax r ticket as foreign travel if ticket is issued in Pakistan. SALES hree types of agents selling tickets of PIA. Lift unit is concerned with checking of flight tickets according to schedules of flights for gers actually lifted. Unearned revenue is treated as earned when gers are actually lifted. In case of international tickets the . Domestic ticket is directly treated as revenue ional tickets are treated as unearned revenue which is liability. he central Exercise Duty to central government of Pakistan. Domestic tickets are treated as revenue directly because experience tells that people on outes rarely miss travel. general sales agents (GSAs) and non-IATA ents are paid commission on domestic 5% and on international 9% and sometimes paid 3% above the normal nts as well as stations are required to submit the sales statements. But international tickets coupons are fed in computer g of list with lifted passenger’s record. onal y class Rs. But to international due to non-completion of document people miss the flights and cur unusually. 200 Airport Tax ecutive class Rs.
Lift unit keeps the tracks of the cargo sales revenue and monitors ation and collection made by the stations. handling charges. Whereas miscellaneous includes refunds. Stations are responsible for reports to head office about airway bills. o sales are made a liability is created until the cargo is actually lifted. When cargo sales are made airway bills ed by stations/ agents. erned with FOB payments by consignee. be of two types.ets are fully refunded. units: mation received from all stations. Few stations have on line systems er manual work is not totally eliminated due to non. R-3 is collection report. argo Revenue Manager Sales Unit Assistant Manager Lift Unit Officer nts Officer nts Officer unts Officer ue Accounts Officer ous rchy above R-2 stands for revenue generated by PIA’s own counters where there is no commission on sales. cargo sales may be domestic or international R-2 is statement omestic cargo sales and international cargo sales for PIA counters whereas R-11 is a statement for agent’s s. From the statements and airway bills ns lift unit prepares original accounting entry. in which commission factor is involved. In PIAC accounting is fully automated and computerized. R’s are returns are a statement for agent’s cargo sales.O. R-3 is collection report. When sales are made entry passed is books of accounts looks _____ . both of agents and gent reports to stations and stations to H. Jacket covering the coupons of the ticket bears instructions and procedure of n charges with specified rates. R’s prepared by the stations and sent to lift unit. sometimes enables this unit to monitor accounting and prepare floppies and em to main frame.availability of the on line systems at some stations. REVENUE SECTION ng into details it will be helpful to look at the organization set up of this section. R-11 stands for a document he agent’s sales revenue and remittance report. sales on PIA’s own counters and sales by agents.
through cash clearance account and total advances account. concerned with revenues and accounting of the revenues from mail carried by PIA carriers. – when tickets is purchased by passengers from PIA but are lifted by some other carrier. IATA clearance house has its member airlines. Every year there g and carrying of mail at national and international levels through with agencies. ATIONAL REVENUE SECTION render services and these are measured in terms of money. Mail may be of following mail nal mail ing about Rs. checked and sent to DPC in a form to be fed in computer system. cargo airway bills this cell is concerned with mail way bills on the basis of which accounting are done. 12 crore revenue yearly from all types of mails carried at national and international levels. ous revenue cell deals with return R-4 which consists of handling charges (credit and cash) transactions and .cargo revenue Rs. Cash receipts and invoices and disks along e attached R-4. Stations ’s summary on monthly basis to Head Office. _______ arned Rs. Different sources are also prepared by this unit to feed the data in main ledgers in main frame computer system. But non – IATA member airlines are dealt according to the standing agreements . Data is arranged. This unit has been divided into two more cells one is mail scellaneous. – prepaid (PIA) airway bills – PIA and other airlines airways bills – other airlines payments and receipts of airway bills – prepaid other airway bills ces are prepaid by the lift section and sent to DPC. sactions are settled through IATA clearance house. _______ nting is function of the unit under discussion. Revenue decision is responsible to keep the the revenue. Interline revenue has two aspects: le – when ticket is purchased by passenger from any other airline but lifted by PIA. These e their accounts with IATA. ______ he cargo is actually lifted unearned revenue is converted from liability account to earned revenue account a count and entry like cargo revenue Rs.
These types of the settlements are on the basis of mileage. explore the records of suspected d agents but still undercut is rapidly growing. s regular check on undercut. This section monitors these underground olations of the IATA rules. ervices Division tion: ervices division consists of three sections: xes section ment section: and artmental finance sections . It acts as regulating authority of the airline. the station managers prepares proposals expected to be charged and sends these proposals to marketing department. collect evidences from people passengers. For settlement there are three currencies in which payments are receipts are made: currency erling G n of the revenue division was established in 1975. ed peroration. r airlines undercut fares and PIA feels that it must also undercut. o IATA rules approved fare written on the face of the tickets should be charged as that fare is approved. Final approval is made by the “director sales”. of this section are to: e sales and undercutting nds through secret accounts ether the undercutting is made according to approval or not nting for this commission item onciliation of secret accounts. with undercutting and special incentive commission with statements received from stations and GSAs. But undercut their fare especially in other than the base country. revenue is divided according to sectors carried.As IATA regulates the airline industry in the world most of the settlements are through IATA. Marketing department analysis als and approve them after comparing with last year’s figures.
salary structure change adjustment advice for multiple changes on multiple dates in the salary and its attendance form. sick leaves. master tape amount adjustments/ change. and others are recorded in this d if employee exceeds the extended limits of leave. any single change in the salary. It is called salary structure change adjustment advice. medical allowance. are also paid to employees. Payroll of each employee is calculated on the basis of the previous months Salary preparation system is computerized and payments are made by cheques through employee’s bank sement unit: es and payments made by the employees on behalf of the corporation are reimbursed and paid back to them. sent by the manager employment contains basic information about employees. Disbursements of the salaries are gh banks this function is watched by unit under discussion. medical leaves. Attendance account of each employee is dept by er system. qualification allowance and others ted and deducted/ added. / funds including house rent allowance. Regarding salary/ loans refund. entertainment. . car allowance. termination advice. accident leaves. Casual leaves. for miscellaneous recoveries of loans and advances this source is not concerned with salary but with loans ces. no more in use. Payroll/ taxes section has further been two units: d taxes unit ements and foreign salaries unit nd taxes unit alary and taxes to be deducted at source are the responsibility of this unit. etc. master taps statistical data change advice. Following are the sources for ng all information regarding on employees salary. s travel. prepared by this section to make deduction from the salary.re concerned with payroll/ taxes section which is headed by manager. provident fund. the deductions are made from the salary. taxi fare.
In case of pension. rance scheme is major scheme of the PIAC. This section ble to discharge those responsibilities of PIAC. or minated by PIAC administration on disciplinary grounds atuity and pension in all three cases are different. Nowadays PIAC has about 20 policies. benefits section: of PIAC have some rights on PIAC after retirement/ termination/ resignation as the case may be. passengers and baggage etc. Negotiations or determination of amount of loss by this section. who is responsible to deduct tax at source form aries of the employees according to current tax rates by the federal government. . f insurance is certain percentage of sum assured. Provident fund both employees and employer’s contribution is paid to him along with esignation. Under the control of GM and manager insurance and terminal n assistant manager is responsible for these benefits.under control of the assistant manager salary and taxes. Provident fund is the major amount to be kept and paid me of termination to employees. An employee can be separated by following ways from his/ her normal es his age of retirement s. Insurance chases policies on behalf of the PIAC and claims compensations on behalf of PIAC whenever loss occurs. In case of heavy insurance policies corporations insuring t reinsurance from international market of insurance in the world. and terminal benefits n is headed by a qualified GM. resignee gets only own contribution of provident fund and same is applicable to the person who erminated on disciplinary grounds. The division consists of: e benefits e section s into contract with some insurance companies to insure its aircraft. e from different departments and sections and are sent by this section to insurance companies. he will be paid pension according to the on declaration and order. paid by this section.
O. PIA Finance Department Lahore re the main functions of finance department. . ccounting reports help management in decision making.onal Chart e Department Lahore anager Punjab manager payments Assistant manager receipts ursement A. Revenue d cy Sales oll A. Document Control Reconciliation mation counts Officer es counters cash at Lahore is controlled by Accounts Officer Revenue. O. nds when required commercial organization. It is very important to control the different types of sales and purchase.
accounting reports are helpful indicating the profitable routes. very large organization and its business operates all over the world and its offices as well as finance office are over the world that is why it difficult to cover or to elaborate whole of the PIA’s financial structure within the nternship report that is why I am going to give the accounting get up and account system in Lahore. One continent to another continent. Cargo taking is second function of PIAC. As the PIA business is a pe of business from a routine business. Its main function is to carry passenger from one place to other place. epresentation of facts and figures nalysis PANY’S PERFORMANCE ANALYSIS lysis alysis Size Analysis . One country country. That is why its accounting system is some what different and reports are different from the routine reports. commercial organization.
784 18.161 3.511 RM DEPOSITS AND OTHER LIABILITY 11 328.922 52.308 403.591 127.270 ON UNDER FINANCE LEASES 8 3.SHEET AS AT DECEMBER 31.939 d for disposal 23 188.8.131.522 68.987 753 48.338 4.598 215.472 817.652 BLE CAPITAL 6 4.575 81.779.321) (5.085 7.669.092 6.007 3.078.889.637 investments 24 27.475 11.789 26.706 42.575.749 .516 8.395 LIABILITIES turities 12 2.712 4.732) 2.130.185 94.461.884.845 4.739 391.604.680 452.591.620 2.285.618 4.063 474.900 3.862 215.323.242 RMS LOANS 7 268.785 43.730 5.862 RM ADVANCES 19 3.849 accrued expenses and other liabilities 14 18.211 2.393 393.450) ) (3.065 302.609 50.621.343 D DEPOSITS & OTHER LIABILITY 10 2.262.762 23.266) (11.023 27.130.884.130.330 2.943) (80.944 41.880 ON REVALUATION OF FIXED ASSETS 5 2.133 5.432.986.273) (214.863.778 41.235 1. 2001 2000 2001 1999 housand (US$ in thousand) ers’ Equity (Restated) al 3 3.637 194 236.980 3.280 21.348 5.644 23.884.858.147 5.380 393.196 RM DEPOSITS AND OTHER RECEIVABLES 20 413.023 450 3.744 3.274 659.337.306 38.300.198.949 24.792 3.667 k-in-progress 17 45.934.621 loans 13 7.712 ed loss (12.827.666 61.520.436 s 25 3.062.050 2.353 4.799 SETS ixed assets 16 23.654.618 3.324.452.319 or taxation-net advance tax 76.569 5.613 236.191.196 24.636 3.392 58.557.807.308 4.142.371.447.681.717 ON UNDER HIRE PURCHASE 9 2.483.056 3.618 64.895 427.479 504.161.844 D COSTS 21 494.502 16.311 RM INVESTMENTS 18 215.641.148.725.406 4.622 1.503.730 ENCIES & COMMITMENTS 15 38.230.456.841.859.386 ASSETS spares 22 3.337 4.077 972.862 3.053.235.
160 42.574) (2. much insight can be obtained into the sh solvency of the firm and the firm’s ability to remain solvent in the event of adversity.746.deposits & prepayments 26 533.188.530 8.844) (5.273) (214.625) (31.869.273) (5.323) (5.992) (232.357 ROVISIONS & ADJUSTMENTS 32 (206.450) (184.926 36.246 bank balances 28 2.450) (182.49) ALYSIS SHEET RATIOS RATIOS tios are used to measure a firm’s ability to meet short term obligations. They compare short-term obligations to current) resources available to meet these obligations from these ratios.R 2:1 lities .032 189.669) -.104) 34 4.242.200. ncial statements were authorized for issue in the Board of Directors Meeting held on May 24.227.702 35.818 961.859.205534) (5.353 4.799 ed notes 1 to 39 form an integral part of these financial statements.644 9.779. 2002.436) 847.672 713.22) (0.321) (5.104 (377.343) 2.114) ATED LOSS BROUGHT FORWARD AS PREVIOUSLY REPORTED (10.806 35.600.043) n relating to prior period on reinstatement of grounded aircraft (155.395) (599.450) hare (Rs/ US$) 36 (5.448) ORE TAXATION (1.195 COME 33 558.(280.10) (5.830) L CHARGES 31 (2.478) (13.162) (43.266) (11. 2001 2000 2001 1999 housand (US$ in thousand) 29 43.104.608.549 vables 27 1.250) 280.364) 1.700 726.332.922. It shows a firm’s ability to cover its current liabilities with its current assets.076 -d forward (12.052.137) 6.274 659778 41.779.595) -ed loss brought forward as restated (11.437.163 451.224 9.301.180) ER TAXATION (2.881.641 31.078.336) revaluation of fixed assets realized 35 424.078.727.133.449.604) (5.051 12.107 1.491. RATIO sets divided by current liabilities.125 7.683) (3.453 1.988 ND EXPENDITURE 30 43.837 720.000) 9.541 12.200 38.779.759) (2.917) (305.91) (14.897.310.075.371 39.214 573.456.550) (3. ND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 31.(2.166.907) (1.416) (3.000 -. 153) (616. or C.311 (2.948) (36.886 386.881.930) 98) (56.
37 3.37 4. This crease is due to gradual incurrent maturities. to the current ratio is analyzing liquidity. tio = Current Assets – inventories bilities or Quick Ratio 1:1 bilities CULATION CURRENT RATIO 5.57 . then there is improvement in current assets. It shows a firm’s ability to meet current liabilities with its most k) assets. This ratio concentrates primarily on more nt assets cash. the whole situation was a result of sale policy and RTD.39 TATION erves as a supplement.58 . 040 0.200 0. irm has financed its assets (sources of finance in % age)? stion is answered by balance sheet leverage ratio.872 0.CULATION CURRENT RATIO 9. PIA’s acid test is ecreasing since 1999.042 0. On the assets was a decrease in stores and spases from 1999 to 2000. marketable securities and receivables in relation to current obligations. resent management deficiency and co’d less ability to pay its current liabilities. So we can say that PIA is maintained its bad liquidity position. and then there is little bit improvement in 2001. L LEVERAGE (DEBT) RATIOS s answered the question. T (QUICK) RATIO sets less inventories divided by current liabilities. creditors accused expenses and other liabilities.032 0.40 TATION internally for three year PIA current ratio has gradually decreased from 1999 then there is slightly increase in mprovement is considered nominal. EQUITY RATIO how the extent to which the firm is financed by debt uity ratio = Total Debt .082 0.
217 1. TOTAL ASSETS RATIO o-total assets ratio is derived by dividing a firm’s total debt by its total assets.08 0. While the 5% of the financing comes from shareholder’s equity. Thus in 1999.591 9. And 2000 108% from financed with debt and now 2001 ced with debt. It means rs are not providing more loans to the PIA because of losses and loss in shareholder’s equity.17: (1) TATION the extent to which the firms is using borrowed money this ratio is used of capital (owner’s equity). The ratio of ance is consistently declining from 1999 to 2001. Here the financial risk is very high and the cushion of protection afforded the firms creditors are very s not in the favor of the co.12 TATION ighlights the relative importance of debt financing to the firm by showing the %age of the firm’s assets that are by debt finagling. It is due to continuous losses suffered by the company and it is covering the loss through und. s CULATION CURRENT RATIO 0.47: (1) 0.0136 . 95% of the firms assets are financed with debt (of various types). s Debt alization alization m Debt and shareholder’s Equity CULATION CURRENT RATIO .54: (1) 3.217 ) 13.591 1. RM CAPITALIZATION capitalization is derived by dividing a firm’s total long term debt by its total capitalization.er’s Equity CULATION CURRENT RATIO 0.919 0.919 17.95 3.
It has very alarming situation in 2000 with ratio (1.14 TATION s designed to relate the financial charges of a firm to its ability to serve or cover them. The mimesis ligure of ratio is greater than one (1) because the company is in the situation of losses. Activity ratios primarily focus on how effectively the firm is wo specific assets groups. Some aspects of lysis are closely related to liquidity analysis. it means that as no sufficient income to meet its financial charges. or cover tham. It includes three ratio . How effectively the firm is using its assets. or times interest earned. in is little bit improvement to meet the charges. (PERFORMANCE) RATIOS s. fore interest and taxes (EBIT) pense CULATION CURRENT RATIO 830) 0. The share of creditors in long term financing is y increasing.821 1.16).21) 11 0. in general.44 TATION ells us the relative importance of long-term debt to the capital structure (long term financing of the firm). higher the ratio. This ratio serves as one the firm ability to meet its interest payment and thus avoid barlosupty.21). greater the hat the company could cover its interest payments without difficulty.0. Where ization represents all long-term and shareholder’s equity.89 2. most traditional of the coverage ratios is the interest coverage ratio.154 1. CHARGES RATIO fore interest and taxes divided by interest charges. It indicates a firms ability to cover interest charges. also known as efficiency or turnover ratios.137) 1. Receivables and inventories and its total assets.16) 1.26 6. In 1999 the ratio is (0. In general. TATEMENT AND INCOME STATEMENT / BALANCE SHEET RATIOS COVERAGE RATIOS relate the financial charges of a firm to its ability to service.
ACTIVITY ells when firm wants to study its own prompted of payment to suppliers or that of potential credit customer. rnover Day (PTD) he year nover ratio P. s Turnover Ratio ot credit s Turnover Days (RTD) he year Turnover RTD 33 Days 31 Days 16 Days TATION turnover ratio tells us the number of times accounts receivable have been turned over (turned into cash) year.D 90 Days 114 Days 39 462 Days TATION co payable ratio is very low. LES ACTIVITY able turnover (RT) ratio provides insight into the quality of the firm’s receivables and how successful the firm is ctions.T. The higher the turnover. But it increased in 2000 & 2001.w. it increased too much. This ratio is calculated by dividing receivable into annual credit sales. and its payable days are also decreased. This change was due to reduction in . the shorter the time between the typical sale and cash collection. Upto 2001. Since 1999.O.T. RY ACTIVITY urnover Ratio (I. ater fluctuation in this ratio.R) Goods sold .
T. ILITY IN RELATION TO SALES t (loss) margin . it this change was. this ratio is PIA should a some fluctuation in inventory turnover from 1999 to 2000 it increased to 11. it decreased. Cycle = Inventory Turnover Days le Turnover Days 2000 2001 Cycle 74 61 57 on: ult of both liquidity and efficiency ratios is the concept of firm’s operating cycle.R I. This change was due to decrease es as well as in inventory level.D 41 30 31 TATION ne how effectively the firm is managing inventory and an indication of the liquidity of inventory. which resulted in low RTD and ITD. Together. which is a good sign for Cycle: of time from the commitment of cash for purchases until the collection of receivables resulting from the sale of ervices. it was high but in 2000. ating cycle shows a fluctuation in 1999. basically. As the length of operating cycle is an important factor in determining a firm’s current assets needs. Although a short operating cycle is better for a firm but it does not prove so in case of PIA. ILITY RATIOS ratios are of the types. due to change in inventory turnover is decreasing. These showing profitability in ratio to sales and those showing profitability in sedation ent. these ratios indicate the firms overall effectiveness of operation.80 time but in 2001. A firm’s operating cycle is the me from the commitment of cash for purchases until the collection of receivables resulting from the sale of ervices.Turnover days (ITD) year urnover ratio O.
the cost of producing the a measure of the efficiency of the firms operation. PIA is maintaining loss on assets.78%) %) (13.T. The net profit (loss) margin is a measure of the firm’s of sales after taking account of all expenses and income taxes. . It does not go in its favor.D %) (91.54%) %) (5.ofit (Loss) x 100 Loss) Margin (Loss) after taxes x 100 O. This ratio shows the same fluctuation as in ss profit margin.T.78%) %) (13.R I. after defecting.39%) %) (45.R I.53%) TATION s profitability on these assets. a bad situation ROE us the earning shows very drastic and alarming situation about continuous losses.P is positive which shows the little bit improvement. bear very high level of loss. e G.D %) (5. ILITY IN RELATION TO INVESTMENT nvestment (ROI) (Loss) after taxes x 100 s equity (ROE) (Loss) after taxes x 100 er’s equity O. as well as indication of how products are preced PIAs gross margin shows a fluxion but still it is in loss.06%) TATION t (Loss) margin ratio tells us the profit of the firms relative to sale.
18.54 96) x 102.10) = (5.16) x (8.30 = (13.61.97) 54) x 1.ANALYSIS e Du Pont approach wer ofitability ficiency Profit (loss) Margin ts turnover xes s 8) x 0.69 x (12.94) ) x (1.47) 8) x (110. but here items are related to net sales.86 = (4. e.17) ze Analysis (Vertical Analysis) TATION: ze analysis express the various component of a balance sheet as % age’s of the total assets of the company. common size balance sheet income statement are shown alongside regular statement in table above for . The expression of nancial statement items as %age of totals helps to spot trend with respect to the relative importance of these time.56) Du pont analysis Total Equity ists x multiplier over es x Net sales x Total assets otal Assets Shareholder’s Equity 8) x 85. this can be done for the for the income statement.
31% 42.57% 0.37% 10.24% 61.79% deposits and prepayments 0.43% ed losses (13.72% 8.12% 0/25% 0.19% 74% 71.3% 7.44% 6.58% loans 14.78% 45.46% deposits and other liabilities 1. The huge amount is financed by lease in 2001.47% 91% 28. Long term loans have declining trend.05% 0. fixed assets and investments have almost same percentages.18% 1.29% oans 1.21% 6.93% 1.18% 1. SHEET 2001 er’s Equity al 9.17% 9.62% 0.27% d for disposal 0.06% 0.96% 10.67% 5.57% 5. In 2001.09% 59.03% 7.35% 6.25% sets spares 9.28% 6.55% advances 6.34% ccrued esp.21% 10.age of owner’s equity decreased from 1999 to 2001 that is due to heavy losses.49% 2.85% or taxation net of adv.55% 1.65% %` 100% .& other liab.89% under higher purchase 14. current ave increasing trend and decrease in long-term financing.32% abilities 5.81% 10.01% 1.68% under Finance lease 0.60% .04% ost 3.02% 0.36% 9.83% bilities turities 10.03% 4. There is % age decrease in differed is an improvement.81% .71% s 8.19% 9. Tax 0. there is improvement ble capital.11% 34% 59.57% 8.03% 1.95% ies comments 100% 100% 100% ets Fixed Assets 58.28% 1.38% 8. 27.80% deposit and other receivable 1.52% 0.32% 2.35% vable 0.75% balance 0.72% 12.94%) (29.02% 0.81% le capital 8. ets side.46% 8.00%) (32.71% 0.49%) 2%) (12.57% 0.64% 19.97% 1.22% 1.P.21% 12.24%) revaluation of fixed assets 11. 0.50% 4.02% 7.60% 7.86% 6.
81%) 144. long term deposits and other receivables increased in 2000 .TATEMENT: 2001 00% 100% 100% xpenditure (43. in 2000 long terms loans in 2001= it increased.11% 0. in 2000 redeemable capital decreased and highly increased in 2001. e in 2000 capital work in progress is highly increased and in 2001 suddenly highly decreased. there is also decline in financial d other provisions from 2000 to 2001.61)% 18.17%) (5.96% -03%) (0.74%) axation (17.96% sion 2.34% 5. statement there is significant decrease in expenditure from 2000 to 2001.80% 0.34% 8.28% e taxation (17. deposits. the amount of loss carried forward in reduced from 2000 to 2001.47% me (2. ts. ALYSIS (HORIZONTAL ANALYSIS) TATION: alysis in balance sheet at the side of owner’s equity the share capital and reserves are some in 3 years loss ed in huge amount in 2000 and some loss decline in 2001 surplus.06%) ssets the air craft for disposal has decreased in 2001.64%) (18.16% 13% 0. cash balance and other receivables.19%) 0.14% 4. The cause of the losses in 2000 long term deposits other liabilities decreased after all in roved.32% 80%) 0.44%) (2.11% 2.54% %) (0.44%) 1. Long term is the same in three years long term advances.20% 96% 0.34% harges 8. In current liabilities side in 2000= current maturities increase and in 2001 it decreased. there is improvement in advances. On revaluation of fixed assets suddenly in 2001.34% 99.
deffred cost is also decreased.10% 124.94% loans 100% 91.21% 53. At SHEET 2001 er’s Equity al 100% 100% 100% 00% 100% 100% ed losses (100%) (191.02% 0% 114.27% 47.38% 00% 144.63% d for disposal 100% 100% 4.64% 47.57% 6% 100.95% 100% 12.54% abilities 100% deposits and other liabilities 100% 49.82% 100% 10567% 91.25% 79% 106.63% ts Fixed Assets 100% 96.05% or taxation net of advance tax 100% -.80% under higher purchase 100% 121.92% ies comments 100% 92.40% bilities turities 100% 113.87% 140.50% ost 100% 67.80% sets spares 100% 93.61% 4% 103.82% 111.19% 50.63% .52% 205.58% under Finance lease 100% 67.94% 52.66% . 100% 195.29% 97.20% 118.P.07% oans 100% 72.08%) 6.87% 100% 100% 100% advances 100% 118.40% 327.66% 109.70% 62.15% revaluation of fixed assets 100% 99.43% 100% s 100% 102.68%) (116.14% 103.90% 102.51% le capital 100% 68.08% vable 100% 148.94% balance 100% 154.99% 158.35% 81.91% 100% 636.54% 107.24.72% 92.se in 2001.
Taxation is also increased.18% 102.08 1.17: (1) o assets ratio 0. Other receivable.49% 106.58 0.37 0.12 capitalization 0.71% sion 100% (72.89%) (78. NALYSIS 2001 o 0.22%) (41.89 1.39 uity ratio 17. cash to bank balance is also tement side revenue.50% 52% 12.37% heeses 100% 104.50% 0% 75.54:1 13.86% 00% 100% -6%) (347. At last net eased.53%) current assets short term investment is suddenly increased. cost to expenditure increased in 2000 and 2001. adjustments to other income are also decreased. In 2000 G.44 .95%) axation 100% (251.47:(1) 9.26 1.P suddenly increased but in ased other provisions.TATEMENT 2001 00% 110% 111.11% (429.33%) e taxation 100% (354.78%) (33.44%) me 100% (33.18%) 35.37 0.17% xpenditure 100% 117.95 1.49%) 155.97% 101.40 tio 057 0.
304 340.16 27.648.558 18.914 1.900 eat Kilometers (000) 17.297 4. And the financial ratio is very high and the cushion of protection afforded the firm’s creditors are In long term capitalization the numeric figure of ratio is greater than one.14) llection period 33 Days 31 Days 26 days urnover in dap 41 30 31 s turnover 0.518 2.69 32.809.033 1.5% 63.699 143.318 425.982 1.54%) (0.540.694655 2.10 t margin (1.21 (2.399 asenagers KM (000) 11.798 101.027 cess Baggage & Cargo (000) 111.547 2.805.732.842 2. In the profit side PIA is bear very high level of loss.084.525.03 1.447 10.755.883 5.438.6% 64.150.619 10.417 359.70 35.6% 55.962 L evenue (Rs. In the financial side creditors are not providing more loans to the PIA because of losses and loss in r’s equity. 43.54%) (5. In the case of losses company has no sufficient charges.16) (1.17 36.7% 66. SUMMARY 1999 *1998 1997 1996 ON meters 265.330 574.05 27.39%) (45.53%) ANALYSIS internally for the three year we can say that PIA is maintained its bad liquid position.389 2.066 135. PIA is intimating loss on assets.938 1.2% 51.230 310.78%) (13.686 138.460 2.758 430.384 327.017 171.7% 66.212 75.653. in million).796 74.652.212 1.877 5.602 1.9% reight Tonne Kilometers (000) 371.29 .227.504.462 16.559.21) (0.528.6% tage Distance (Statute KM) 2.094 1.643 317.311 oad Factor 56.136 199.631.660. It does not go in as sent a bad situation.958 76.402.205 lometers flown (000) 70.392 2. The company’s activity position ood.403 78.39 Profit (loss) (Rs.168 2.95%) (13.89 354.763 17.306.151 il (000) 1.592.608 336.99 52.86 1.0% 56.303 1.494.14 32.453.033.491.860 134.288 ours Flow 121.68 Expenses(Rs.16 42.4% 55.808 1.65 48.4% 56.306 24 7.037 11.84%) margin (5.308.295 12.213 332.572.47) (902.336 16.839.691.014 onne Kilometers (000) 2. 366.394. in million).276 2.055.854.483 109.608.209 121.740 3.452.5% 59.verage ratio (0.57%) equity (91.9%) (5.914 8.399 Load Factor 65.06%) nvestment (4.526 107.45 76. Because the company is in the continuous losses.37 39.470.878 121.67) 3.06%) (7. PIA’s acid-test ratio is ecreasing.919 assengers Carried (000) 4. 43.242.930 1.709 onne KM (000) 1.78%) (173. in million).102 5.
35 . 2.91) (13.53) (23.50 11.371 195.86 9.97 14.755.052.35 15.19 4. 51.29 1. in million).010 122.02 15.12 (Rs. ALYSIS arison of half years ending June 2001 and June 2002 SHEET RATIOS RATIOS tios are used to measure a firm’s ability to meet short term obligations.31 25.230 119. (2.25 8.17 per share 29.K.253 es are for July 97-Dec 98 period (18 months).60 3.158.94 29.155.170 17.710. in million).11) 2.047.724.985.343.70 7. per US Gallon ).671 21.93 24.40 9286.176.510.760.00) 6.901 2.99 6.50 3.14 55.12 y Ratio (5.843. 13. 11.45 tio 0.17 ts (Rs.946 21.235. It shows a firm’s ability to cover its current liabilities with its current assets.434 0.35 65. of Employees 17. 23.R 2:1 CULATION CURRENT RATIO 2001 11.06 26.07 ces (Rs.964 148.42 13.0.760.75 EL o.15 18. 28. (4.614.60 0.28) 24.33 3. RATIO sets divided by current liabilities.40 0.94) (2.45 7.223.07 sets (Rs.469.25 .22 13.205.00 6.155.590. in million).38 10.57 0.978 143. in million).191.96 65.84) 0.165.75 er Share (5. 10 shares).159. They compare short-term obligations to (current) resources available to meet these obligations from these ratios.71 debts (Rs.897 1.96 12.30 3.77 26.73 31. or C.28) (2.48 18.181 er Employee (Rs).88 50.91 11.80) (5.343.888.11 12.794. 10.800 2.75 5 5. in million).82 es (Rs.205.00 7.88 6.907.78 (12.220.T.54 Employee 147.27) 2.79 9.69 30. (Rs).1077.41 bilities (Rs.00 3.353.40 11.854 18.08 9.969.60 0.10 8683.49) 5.80 61.after Tax (Rs.41 .413 12.28 20.002.13 12.854. 17.987.907 1.483.00 1.43 20.663 17.40 0.00 2.478.53) (5. much insight can be obtained into the sh solvency of the firm and the firm’s ability to remain solvent in the event of adversity.80 26.00 8.082 0. in million).53 54.58 7629.35.539.10 1.85 9.
673.314.10: (1) . this improvement is nominal.27 2001 7.095 0. On the assets here was a decrease in cash in 2002 then there is slight improvement in stores and spares and in investment. PIA’s acid test was ecreasing since 1999. EQUITY RATIO how the extent to which the firm is financed by debt uity ratio = Total Debt er’s Equity CULATION CURRENT RATIO 42. So we can say that PIA has maintained its bad liquidity position. accrued expenses and other liabilities however current liabilities have decreased now. T (QUICK) RATIO sets less inventories divided by current liabilities.27 TATION erves as a supplement.TATION internally for half year PIA current ratio has gradually increased slightly in 2002. tio = Current Assets – inventories bilities or Quick Ratio 1:1 bilities CULATION CURRENT RATIO 7.945 ) 10. irm has financed its assets (sources of finance in % age)? stion is answered by balance sheet leverage ratio.446 0. now it is same on June 2002 as it was on December 2001 the whole situation was a ange in sale policy and RTD.325. to the current ratio in analyzing liquidity. L LEVERAGE (DEBT) RATIOS s answered the question. It shows a firm’s ability to meet current liabilities with its most k) assets. This bad position is due to current creditors. This ratio concentrates primarily on more nt assets cash. marketable securities and receivables in relation to current obligations. resents management deficiency and less ability to pay its current liabilities.
but still it is very bad. Here the financial risk is very high and the cushion of protection afforded by the creditors is It is not in the favor of the company.17: (1) TATION the extent to which the firms is using borrowed money this ratio is used of capital (owner’s equity).2001 44. .38 6.430. Where ization represents all long-term and shareholder’s equity.44 TATION ells us the relative importance of long-term debt to the capital structure (long term financing of the firm). The share of creditors in long term financing was y increasing but in this half year it is increasing but still now it is not so good. Thus in 2001 debt is 112% of the assets this position is improving in 2002 and now is 111% . RM CAPITALIZATION capitalization is derived by dividing a firm’s total long term debt by its total capitalization.430. It is due to continuous losses suffered by the company and it is covering the h creditor’s fund.945 111% 2001 44.958 1.591 ) 9. s Debt alization alization = Long term Debt and shareholder’s Equity CULATION CURRENT RATIO 7.314. TOTAL ASSETS RATIO s CULATION CURRENT RATIO 42. The ratio is still cause of the profit in this half year negative equity is reducing and liabilities have also reduced because of the n obligation under finance lease and hire purchase.591 112% TATION ighlights the relative importance of debt financing to the firm by showing the %age of the firm’s assets that are by debt financing. It means rs are not providing more loans to the PIA because of losses and loss in shareholder’s equity. The figure of ratio is greater than ause the company is in the situation of excessive accumulated losses and heavy burden of debt.821 1.
254 =7.49 (1. (PERFORMANCE) RATIOS s are also known as efficiency or turnover ratios.87). fore interest and taxes (EBIT) pense CULATION CURRENT RATIO 1.329 1. It indicates a firms ability to cover interest charges. higher the ratio the greater the likelihood that the ould cover its interest payments without difficulty. It had very alarming situation in 2001 but there is good improvement in ow the company can meet the financial charges. It includes three g below.671.064.668) 0. in general.454 =6.19 25 Days . In general. How effectively the firm is using its assets.TATEMENT AND INCOME STATEMENT / BALANCE SHEET RATIOS COVERAGE RATIOS relate the financial charges of a firm to its ability to service or cover them. This ratio is calculated by dividing receivable into annual credit sales. Some aspects of lysis are closely related to liquidity analysis.79 27 Days 21. inventories and its total assets. most traditional of the coverage ratios is the interest coverage ratio.966. This ratio serves as one the firm ability to meet its interest payment. In 2001 the ratio (0.87) TATION s designed to relate the financial charges of a firm to its ability to serve or cover them. LES ACTIVITY able turnover (RT) ratio provides insight into the quality of the firm’s receivables and how successful the firm is ctions. s Turnover Ratio = Credit sales Turnover Days (RTD) he year Turnover ratio RTD 21. or times interest earned ratio.202. it means that company had no come to meet its financial charges. Activity ratios primarily focus on how effectively the firm is wo specific assets groups that are receivables. CHARGES COVERAGE RATIO fore interest and taxes divided by interest charges.
T. In 2002 it decreased his change was due to increase in receivables.710 =6.04 173 Days 23. ACTIVITY ells when firm wants to study its own promptness of payment to suppliers or that of potential credit customer. RY ACTIVITY urnover Ratio (I.R) Goods sold urnover days (ITD) he year urnover ratio O.710 =1.431.30 point in 2002. this ratio is or PIA. It showed some fluctuation in inventory turnover from 2001 to 2002 it decreased by 1.296.296.431. .O.35 28 days TATION ne how effectively the firm is managing inventory and an indication is the liquidity of inventory.D 19.R I.05 36 days 23.925 =1. Higher the turnover the shorter the time between typical sale and cash collection.T. rnover Ratio = Credit purchases rnover Day (PTD) he year nover ratio P.TATION turnover ratio tells us the number of times accounts receivable have been turned over (turned into cash) year.28 140 Days TATION yable ratio improved and its payable days have decreased.T.925 =5.D 19.
9)% TATION t (Loss) margin ratio tells us the profit of the firms relative to sale.529 *100 =8. Cycle: of time from the commitment of cash for purchases until the collection of receivables.P. these ratios indicate the firms overall effectiveness of operation. the cost of producing the .Ratio 1. Together.330. Short operating cycle is considered better for a firm.394. showing profitability in ratio of sales and those showing profitability in sedation to .ainly due to decrease in costs. ating cycle shows a fluctuation.503) *100=(10. ILITY RATIOS ratios are of the types. ILITY IN RELATION TO SALES t (loss) margin ofit (Loss) x 100 Loss) Margin (Loss) after taxes x 100 Ratio N. after defecting. As the length of operating cycle is an important factor in determining a firm’s current assets needs. resulting from the sale of ervices Cycle = Inventory Turnover Days le Turnover Days 2002 June 2001 Cycle 27+36=63 25+28=53 TATION: ult of both liquidity and efficiency ratios is the concept of firm’s operating cycle.11% (1.06)% (2.456) *100=(6.770.957 *100=2.35% 446. A firm’s operating cycle is the me from the commitment of cash for purchases until the collection of receivables resulting from the sale of ervices. it increased by 10 days.
957*100=10.67% ) (2.43)% ) TATION s profitability on these assets.454 =.957 =0.0117 38.503)*100=(49.957 X 21.17% 446.202. PIA’s gross profit (loss) margin shows a fluxion but now it G. PIA was maintaining loss on assets.a measure of the efficiency of the firm’s operation. 446.556 =0.05)% (2.394.124. ILITY IN RELATION TO INVESTMENT nvestment (ROI) (Loss) after taxes x 100 s equity (ROE) (Loss) after taxes x 100 er’s equity I.021X.O. during current year tive profit ROI is positive and improving.957 *100=1.339 . The net profit (loss) margin is a the firm’s profitability of sales after taking account of all expenses and income taxes.394. It did not go in its favor.E. R.503)*100=(6. This ratio shows the uation as in case of gross profit margin. though it is not too much but any how it is very good performance. ANALYSIS ON ASSETS = NET PROFIT MARGIN X ASSETS TURNOVER fter tax = Net profit after tax X sales s sales total assets 446.0117 446.P is positive which shows the very good improvement after many years. esenting a bad situation in ROE on account of heavy losses which made its equity negative though equity is e but now position is improving on account of profit.
83% 10. this can be done for income statement.503) X 21.34% ccrued esp.0605) (2.& other liab.586.22% 6. The expression of individual atement items as %age of totals helps to spot trend with respect to the relative importance of these items over SHEET December 2001 er’s Equity al 10.16% 6.64% 19.81% 0.655 ze Analysis (Vertical Analysis) ze analysis express the various component of a balance sheet as % age’s of the total assets of the company.11% 45.254 =.394.966.89% under higher purchase 3.472% 7.49%) 12.19% 9.87% 0.43% loss on measurement of investments (0.85% or taxation net of adv.503) =(0.68% under Finance lease 7.394.03% 5. but here items are related to net sales.53% 0.58% loans 14 .32% abilities 7.81% le capital 12.24%) gainst equity 1.29% oans 0.89% 6. 0.0605 39.79% 59.(2.60% .11% .19% 95% 0% 100% ets Fixed Assets 58. 49.55)% (32.01% 0.46% deposits and other liabilities 0.31% revaluation of fixed assets 6.07% 0.555 =0.83% bilities turities 7.47)% ed losses (31. Tax 0.P.76% 12.109X.
35% harges (5.28% before taxation (10.10% 9. There is % age decrease in differed is an improvement.86% 1. TATEMENT: June 2002 00% 100% xpenditure 106.28)% sion (0.25% sets spares 10.55)% (5.79% deposits and prepayments 2.92% 0.06% 91. There is also decline in financial here is net profit in current half year of 2. prepayments and other receivables. ets side.50)% after taxation (10.42 % 5. The %age of owner’s equity increased from 2001 to 2002 it tive but has improved by 1.90)% 2.11% as compared to the loss of 10.61% .20% 1.55% advances 9.67% 1.40)% 2.35% vable 3.80% deposit and other receivable 0. Long term loans have declining huge amount was financed by lease in 2001 now it is decreasing.67% 0.65% % 8. deposits.04% ost 0.75)% me 1.03% investments 0.47% 65% 0%` 100% TATION: ze balance sheet is shown in table above for PIA.46% 0.50)% (0.03% 0.There is improvement in advances. fixed assets and investments have almost same percentages.38% 8.25 %age points that is due to current period profit.90% of respective half of last ALYSIS (HORIZONTAL ANALYSIS) al Analysis we measure %age increase or decrease in each item of balance sheet and profit and loss .75% balance 4.71% s 0.27% d for disposal 0.11% TATION: statement there is significant decrease in expenditure from 2001 to 2002.46)% (0.19% 7.07% s 8.92% 4. Current liabilities are decreasing that is due nt of short term loans .
55% 3% NVESTMENT 100% 113.26% 100% 157.81% loans 100% 72. 100% 59.39% vable 100% 79.P.31% ts Fixed Assets 100% 95% .95% d for disposal 100% 100% investment 100% 644.21% abilities 100% 107.14% under higher purchase 100% 59.57% s 100% 102.54%) .51)% gainst equity 0% 100% revaluation of fixed assets 100% 100% le capital 100% 100% oans 100% 75.14% ost 100% 51.with respect to the base(previous) period.59% deposits and other liabilities 100% 100. SHEET 2001 June 2002 er’s Equity al 100% 100% 00% 100% loss on measurement of 0% (100)% ed losses (100%) (93.64% DEPOSITES AND other receivables 100% 102.19% under Finance lease 100% 91.17% or taxation net of advance tax 100% 5.59% bilities turities 100% 104.01% 79% 0% 96.64% advances 100% 102.91% 00% 103.74% .36% balance 100% 77.57% sets spares 100% 104.
41% % 133. Other receivable and cash & bank decreased.20% 00)% )after taxation (100)% 18. e in 2002 capital work in progress decreased. ssets short term investment is suddenly increased to 645% of last period .67)% sion (100)% (157.P suddenly increased in positive and financial charges are less so net profit increased in positive oss of the respective period of last year.08% heeses (100)% (91. Some loss declined in 2002 due eriod profit. . Long-term investment increased and deferred cost decreased. There is no change in redeemable capital and long terms loans decreased.15% ) before taxation (100)% 24.97)% me 100% 16.3% 0% 96.31% TATEMENT June 2002 00% 96.52% xpenditure 100% 83. statement revenue is less as compared to the respective last period but cost and expenditures are much In 2002 G. Obligation under se and hire purchase has decreased.67% TATIONS: of owner’s equity the share capital and reserves are same for both half years. In current liabilities in 2002 short-term loan decreased.
The structure of this department consist of 13 members in total including sales manager and assistant manager. Since the head office of PIA is at Karachi and all nal planning is done at Karachi. Travel agents are of two types that are: cies many approved IATA travel agencies which deals with PIA.5 million. as intermediaries. Then for rest of four day we observed the working of Passenger Sales. unction of this department are as follows. But the most critical duty of this section in Lahore is to deal with airs. For internship trainees briefing and observation method is used to train them. own as International Air Transport Association. This experience also broaded my vision and confidence. The commission of local agents or non gents is 5%. Travel agencies approved by the IATA have a bank guarantee of 3. We were ask any type of question regarding sales activities of PIA. A question answer session was held to arious aspects of PIAC. PIA do not require from internee to aff. The internship was scheduled for seven weeks. an International Airlines sells tickets directly to its customers or final users through its counters. We worked o weeks in this department. are involved in selling of tickets to the customers. agents. aining at PIAC was a great experience for me which not only provide me an opportunity to observe difference eory and practice. The schedule was given according to the department wise. PIA nd booking office to sell tickets directly to the customers all such offices of PIA are computerized and directly the head office at Karachi. The agents approved by IATA is given 9% commission. It is a regulatory body which gives licenses to airlines and gents. partmental system in the organization. The schedule was us on our very first day and we are asked to conduct our activities as per schedule. The detail of my activities program is as follows: otion department st day of PIA we are briefed about the overall organization of PIA. In Lahore. We only how to implement marketing programmes. This section deals in three types of activities namely tour sales development and agency affairs. Commission of these agents is as follows: c Sector = 5% onal Sector = 9% .the condition for a GSA is that if he want to approve himself with the IATA. It is called zero level channel. These agencies can also be stocked and sell the her airlines. he must have 5 million nd and 5 million bank guarantee. We learned very important information relating to travel agency and overall l programme of this department. Many travel agents are provided to ticketing and reservation system.PROGRAMME e prestigious organization PAKISTAN INTERNATIONAL AIRLINES CORPORATION for my internship on July as accompanied by 2 other internees. so we could not see how actually marketing planning is done at PIA.
There are basically two department n for Europion Countries . How sapce planning of ne and how cargo is boarded at aircraft. so checked some passports of the passengers with the help of some specific tools. During our stay at cargo ales we learn how documentation for ne. The whole reservation system of PIA is computerized.eral Sales Agents) he agents who exclusively deals with PIA's ticket and cannot deal in other airline's ticket. The commission given by PIA is 7% to Domestic Sales Agents. The n if fined upto 3000 dollars. It was established in 1992 in PIA. After the meeting all sales officer went into market and contact with various exporters then that they sent their shipments by PIA. Normally. This departments deal with passports all other document relating to traveling. e cell orked on day inadmissible cell there. The personnel of this department keep an eye on the customers and o are traveling. This is very active because all the exports of Sialkot and Lahore is handled here. The rules and regulations of IATA and PIA regarding cargo booking. We really enjoyed and learned a lot about this department even in a short time. We worked in this particular department for separate department for the reservation of demostic and international. We also spent two days at cargo Lahore airport. We have also seen very important documents and passport of untries that was very informative for us. Here we learn how sales people eir jobs. These tools are used in e documents whether it is original or bogus. During these days we learn how cargo is arrived & received by PIA. It exist where the offices of PIA also exist. It also plays an important role for PIA. It al with international tickets. Because if a guilty passenger is traveled in PIA. ALES AND CARGO TERMINAL s is responsible for cargo booking and cargo terminal is responsible for handling of cargo at airport. In the morning all officers of cargo sales attend a meeting in which performance of last day and f that day is discussed. All at Lahore are connected with main frame computer at Karachi. It sales only the local or domestic tickets. ssion provided to General Sales Agents is as follows: nal Sector = 12% Sector = 9% estic Sales Agent) as local ticketing agent. these are ere PIA does not have sales point. TION & TICKETING reservation & ticketing was very interesting.
reconform at the ticket has become reconform. There omputer operators who were along the reservation for theses particular counters. eally enjoy in this particular department. international counter.ad worked in these particular department. so please arrange her in such a way that she had no problem on the Khalid had also click some keys and told that all the procedure had been completed. So we had two days there and really enjoyed the whole procedure. e saw the whole procedure of booking on the domestic counter. It is so because some difficult keys were used in operating and it was only ough training. One came and asked him to reconfirm his seat on a particular date and also asked to book a particular seat Shahib had booked and also reconfirm the seat. So because of this distribution of departments the passengers were y easy and there were no problem to incurred there in the whole procedure of reservation. umbers are allotted to different passengers who were waiting for their number. holding confirms at the ticket is only holding confirm.e. in the section where the reservation about East Asia and for Arab counter were doing. section-2 i. Khalid Shahib who told us about the whole procedure of reservation. about some keys used by him during the confirmation of seats. He was very interesting man and had a very good personality. We firstly meet Mr. After that another lady came and asked him to reconfirm her told that she had also an old lady. He told us that all arrangement were taken by PIA for the passenger.e. We were very busy . After that he had task to sit with the computer operator and understand the whole procedure of reservation. was on duty at that time. book this lady I asked a question to him that what type of arrangement had been taken by PIA to the old s. were coming after another asset told the operator about any change which they went to do. We had met with the manager and manager had told us about this of marketing because all the bookings and reservations are done through this department. so the passenger feel very easy and problem for traveling. We sat with Mr. The computer ave fall attention and also had a very good behavior with the passenger. It is so that all the informations relating to the seats date and about the passenger had to the airport personnel and when the airport personnel received the information it take all necessary actions e passenger. for only sale at the ticket is only sold and do not have any confirmation. He told us about some keys eg. The same procedure who the section-1 i. Different passengers we are r one another. We saw that it was a very tough job ave required more skilled people.
Because this is very fruitful for the n. RTA onsible for booking the seats. Flights is checked three times before espectively 72 hours. He help me to understand the whole of booking on telephone.so all the process of reservation goes through the operator personally. Qazi Farhan ervation Ticket Assistant was very cooperative and interesting man. How it is linked with other PIA office as well as with the . If there is some the passenger does not go according to the confirmation by the agents then the operator is not responsible. After understanding the boidata is feeded in the computer and all relevant to the passenger and their requirements and staffs is kept. n telephone booking are that if a man wants to book his seat internationally he should make sure his seat at ks before. 24 hours before the departure of the flight. . I received some calls of customers on telephone and made booking. s responsible for that particular seat which was empty by PIA. PIA also finds the agents if there is some cording to the confirmation. He gets informations o the requirements. can be booked by the travel agents and travel agents directly linked with the operators. ed the system of telephone booking and worked with them. 48 hours. Senior members are checked ghts lists before 72 hours and if some problems is incurred then they contact with the operator and also the onfirm the seat. So to decreassse s the facility is provided to the passengers who are in waiting list. We busy to understand the whole procedure of the reservation. Domestically from Lahore to Karachi the customers should ensure their seats at least 3 days before nd from other areas there are at least 2 days to confirm their seats.artment for a week. Where the booking is originated either it is from the travel om the organization booking department. has two way ticket and in that case he will be given a time limit by the operator and on the expiry of that period will not be responsible for that. ovide reservation facility on telephone. HECK DEPARTMENT ck is very important and sensitive area in the PIA. It was really an interesting task. So the computer operator was a very busy man. It is so because many people visited the department for different cases and the computer ad the duty to solve the problem of each passengers. to give detail of finance department and how it works. In case of return ticket there is a time limit of 72 hours to confirm his seat. e whole procedure of booking on telephone and advance booking. We learn how staff of PIA deal with customer and how reservation s performed. Before 48 hours or 24 hours the list is checked and if there is some problem found then they hose agents in case of seats lying vacant RATIO e person who books their seats and do not travel in time. This ratio is very high in Pakistan.
That amount is accounted for in a med R-1. Remaining 50% will be recovered from the army engthy billing procedure. When cheques of credit sale are received it is deposited into the bank and bank credit it to the nt. traveling on official duty travel against an A. mean air passage hese APW are also deal by credit control section. W. Such tickets are accounted for by the H. A. defense personals ernment of Pakistan rules army men has to pay 50% fare. e tickets to different clients gent makes a satisfactory sales. The entire cash sale is deposited in the bank on daily e are different types of sale: e rd sale defense personal against voucher tickets to different client and agents ated tickets es are banked on daily basis and bank slips along with sale reports of the same day sent to the revenue section staff made a initial audit of the report and the deposited into the bank. P. . This accounting circle revolves till the monthly closing course. Some passenger are VIPs are eler or from commercial points of view PIA managements feels they are valuable such as persons are th incentive tickets. de UE DEPARTMENT: n business is selling of by air tickets. issued by their authority. ard sale it card sales are sent to revenue section on daily basis and their they are sorted and listing are made for billing erned bank. He also claims it for a rebated air ticket. PIA has a very modern and fast working system of ticketing. All the daily sales to army personal are received in revenue section ad the handed ther section dealing all the credit sales named credit control section. P. s at PIA counter are controlled by the revenue section. All the and ticket system is computerized. W.. O.
As there are so many tickets are used on daily basis by PIA itself and by the agent. Sales proceeds are received from agents on basis. So it main documents or important paper is airway bills. for an other audit by the staff working in H. Whether all tickets are reported which are sold rrect amount is reported in the sales report? Fair calculation is a very technical job. and Singapore from there they are received by the H. O. Then H. O.ated tickets er organizations PIA employees are awarded with free/ rebated air tickets. So a separate section named document control section is working for this purpose. S. Ticket sold by the agents are reported in a sales report and submitted to this section fortnightly a cheques of same amount reported in sales report after deducting 9% commission allowed to the agents. sends these tickets ccording to their requirement. Where they are kept in strong room and issued to after proper recording and maintained. All tickets are used in sequence. of the sections is to check the sales report of each agent. ENTS CONTROL SECTION ction is to sell air ticket and carry cargo from one place to another. Whole the sale amount against the passenger sales are reported in R-10 and ales amount received against cargo sales are reported in R-11. ide ment section . So it is very o control all the ticket. O. The function of the section to check the agents and coordinates with the solving pe of problem. CONTROL SECTION this section is control the serial of all revenue documents tickets. All the sales A/C are re-controlled on daily basis. ve sales are received in the revenue section along with their support there they are sorted out and accounted merit after all job is completed al the supporting paper are pound correct and properly attached. All are printed in U. The main this section is to check and control and to avoid any misuse or any break in sequence. These reports H. Y SALES UNIT PIA are sold by agents. Checking of fair calculation tive of their section. A. After checking all the sales reports received from the agents are feeded in computer and data is transferred to head office. O.
All payments are made through cheques.e honour to introduce computerized payment system in the country. To make the pe of payment to there employees for example salary payment transfer expenses setting allow. All payments proved by the regional manager. All unutilized tickets are returned to PIA and refund is claimed. In this section bills are thoroughly bills are found correct in all respect. All outside party payment are made by this section. There are about 20 branches of different banks giving facility to PIA for payment of salary. Computerized salary slips are printed at Karachi main IBM computer is installed. bills are received by the section. section iness is sales of ticket. PIA salary system is also computerized. WAPDA house branch Lahore. All salaries are paid through banks. a cheque is automatically printed with the pay voucher. Due to totally ed accounting payment system. All payments are b bank limited. 3000/. The unused ticket is presented in refund section. All pay vouchers are approved by the authorized r approval of pay voucher cheques are also signed by authorized officer. After proper scrutiny of the voucher is prepared along with cheques. oucher is duly approved by the concerned officer. After printing these pay voucher. Salary of all is prepared at Karachi head office. 3000/-. All the payments process is computerized and whole accounting is automatically done by computer only enter the specified A/C code allocated by PIA for each type of payment. . Because payments are of pe and nature. This pay voucher and cheques duly approved and signed by the officer. All payment cheques are delivered s cash officer. The duty of this cash officer to balance the impress A/C on daily basis and make arrangements ry funds to meet out the daily petty expenses and operational payments. So many accounting code used to proper accounting as per PIA set rules. For each payment a separate pay voucher is prepared. ection ing about the PIA set up at Lahore there are about 2000 employees worth in PIA at Lahore base. Then a pay voucher is prepared on computer cheques are also printed on long with pay voucher. All such payment is made through this section. After proper approval by the authority. When any spare part is purchased a bill is raised r. ction e small payments regarding refund of amounting less Rs. After printing the pay slips these slips are dispatched to Lahore station.a cash officer is deputed for such payments ment for petty expenses and all employees payment less than Rs. There are other payments involved regarding PIA employee. Cheques are automatically printed with the voucher. All sources for the payment and adjustment of allowances are prepared at ce and dispatched to Karachi for final settlement in payroll. To deal with such ticket ction is working in PIA finance.
go sales is reported in R-2. There so many problems in encashment of such voucher. own coding system there are different types of sales earning revenue receipt and payment. So to monitor the all accounting transaction and provide the nt any information or report as and when required by local management or by the H. eipt against cargo which means booked by another station on credit basis or to pay basis means collection . W. sh sales at PIA counters are reported in R-1. e raised to controller of military accounts. All MNA/MPAs are eler voucher by the govt. Now the data of Lahore station for one month is ready to transfer to H. P. O. air passage uch A. Where finance automation cell head office receive this data. all payment are made from this A/C.O. PIA is monitoring two accounts A/C No. tomation cell discussed PIA system is computerized. All sales and services performed by PIA on credit basis. 7th of every month is the closing date for the previous month en all the previously discussed section complete their monthly closing and balance all their accounts. These vouchers ent value. Credit ls with all credit sales ad recovery of such amount is responsibility of credit section. W. after the reconciliation is completed. There are so many s which dealing with PIA on credit basis. When a ticket is issued to MNA/MPAs or senator they give travel voucher instead of cash. P. All such information or provided b this section. are billed to controller of military. ty of bank reconciliation starts when the bank statement is received and bank balance is reconciled with cash ready discussed whole the PIA accounting system is computerized and whole the accounting is matched by er automatically bank reconciliation is also computerized. 28140/513. nciliation Section nting system is based on monthly closing basis. If it is a official travel ticket are issued against A. Now when all the report is all section are completed and their respective accounting is and all balance are complied and bank reconciliation is OK. These entire vouchers are cleared by state bank of travel is issued against travel voucher. All the data for the whole month is transferred to Karachi through mail.ontrol section n of this section is to deal with all credit sales made by PIA and recovery of such amounts. All these recoveries is make by this section. So PIA has such way. all receipt or received and credit in this A/C other is payment A/C 27140/514. PIA banker in Lahore is Habib Bank WAPDA house nk statement is received on daily basis. All tickets issued to MNA/MPAs are against these travel vouchers. As per govt. By this way each month all data of Lahore base is to head office on 17th of each month. rules all the army men are allowed 50% rebate on 0% will be paid by the concerned traveler and remaining 50% will be recovered by PIA through billing. Finance automation cell receives such data from all station and then compiles it.
is a report in which all the sale of agents are reported. They are allowed to sell domestic as well as international tickets. They deal both in domestic and international tickets. Recovery from army persons. payments made against unutilized PIA tickets presented for refund are reported in R-6. They are allowed 5% commission. cargo sales. lowed 9% commission on international sale and 5% commission on domestic sale. It shows the consolidated amounts collected and reported against each source for the clearer picture system. scellaneous collection or recoveries from staff are reported in R-4 example all airport taxes. ts: s are registered agents. mestic Sales Agents s sell only domestic tickets. consolidated statement of all receipt. Agents are % commission on all INTL.wise balances of all the credit parties. There are three types of agents which deals in ticket these are known as Pax agents. maintained by the credit control section. D PERSONNEL . eneral Sale Agents: s can sell only PIA tickets. They are allowed % commission on international sales. While studying R-9 we can judge at glance the source-wise collection month. argo sales by agents are reported in R-11. All these cheques are reported on R-10. This shows the party. cargo sales are submitted by agents on fortnightly basis. They sell tickets of each airline. and verable balances. ection made on behalf of other stations are reported in R-7. eipt/ collection recovered against credit sale are reported in R-5. y PIA staff. I am providing a copy of R-9 for the monthly closing of November. Recovery of MNA/ MPAs ticket issued vel voucher. GSAs submit their cheques for the sale on weekly basis and IATA agents are allowed to submit cheques on basis. All rent received.stination all such collection are reported in R-3. All these sales are reported in R-11.
The main functions of personnel division are: employees personnel record. g the promotion cases of the employees. and termination letters. Personnel intains the records of employees leaves. It is the responsibility of this mplement these policies effectively and also check the performance of the policies. ce of the employees e of warning. e each division one by one. ruiting. on: n also handles promotion cases. Manager handles personnel division. and then sends to the personnel division. During our stay in department we are told about ings. . es like. charge sheets. death cases and record of Annual progress and attendance are also kept by this division. ecords of the employees. nctions of personnel division are: ment policies e on ment Personnel Policies: ement of PIA makes the policies. Give rewards to those employees gular and punctual and use punishment for those who are not regular or not punctual. rd of permanent & non-permanent employees is maintained. e & passage record is maintained. e: e responsibility of personnel division to maintain the discipline and punctuality in the organization. Policy for maintaining the regularity and punctuality.Personnel department is the life blood of any organization. show cause notices. ges system is also controlled via this division. ent records of the employees. leaves are also dealt by this division but long period leaves are dealt by the top management. Promotion cases group 5 and above are dealt by the personnel division and group 5 (five) are dealt by the relevant department. This division he "(Carrot and Stick)". selection and training policies of PIA. ng the efficiency and adjustments of employees. of this department.
rovided by Automation Unit: unit of personnel record and statistic section is well equipped to extend the following information services to ement and other users. NNEL RECORD & STATISTIC: re the main units of this division. tions of Unit: the task of computerization of personnel bio data/services history. CATION DEPARTMENT ation department is headed by a General Manager. This department plays a very vital role in any organization e know that without effective communication system any organization cannot perform its operations properly. ain each unit one by one. sing of role (film) is also dealt by this unit. nt/Division/Section and location wise data. to facilitate quick retrieval of information erate various reports. The main objectives of this unit are: a central data bank.n analyses the regularity. e personnel information as quickly as possible for higher management decision. ale employees ratios statements. p / Domicile / qualification wise data information. punctuality. This unit makes the duplicate of every film and a code number must every film and this film is distributed to every department of PIA. . on el record ms of personnel files. The main function of this unit is to change the files of employees in the shape of films. performance etc and then promotes them according to their e and seniority. stablishment statistic status. agencies and management and certify the vacancy ms of Personnel Files: as established in 1984. el Record: nction of this unit is to provide information to the ministry. on: unit was established in 1983. ese films save all the data of employees.
ation system in P.I.A is like oxygen. Minor mistake can cause huge loss. There are two types of ation in P.I.A. traffic g traffic
NG TRAFFIC: affic means the calls which come in P.I.A., these calls may come from inside the organization or outside the n this type of communication is called incoming traffic.
ING TRAFFIC: affic means the calls which are done by the employees of the P.I.A. These calls may be local, domestic, or al. Only General Managers has direct excess to national and international calls. If the other employees want to side the city they have to request to the operator.
R SECTION: cation department contains a computer section which maintains the record of all calls whether local, domestic, onal with (calls) time duration, phone number. The calls which are indirectly done also recorded in computers.
E: means to hire a telephone line at a fixed charging. P.I.A has to pay fix amount to Pakistan Telecommunication PTCL) every month. These type of lines are very cheaper and beneficial for P.I.A.
n contains 15 agents who receive the calls of customers for reservation. If a telephone line is busy (Agent is all is automatically transferred to other agent. CRC section is also under the direct control of communication .
NS: mmunication between different departments P.I.A have a telephone network. This network can also be used mmunication (with in the city). For local call the employees first dial 0 (zero) and then required number. These are operating through the cable system. system contains two big switches 1 and 2. head office, PIA training center, Engg: department and M.T on the other hand Jinnah Terminal.
tion Department only 1 day in this department and really enjoyed here. The main functions of this department are to monitor rs and functions in PIA. Its personnel are responsible for giving any news of PIA through electronic media or a. It also responsible for advertisement of PIA. If any news is printed in newspapers then this department situations and link with the people giving news in newspapers either it is good or bad news. This department any type of action if the news is against PIA. This department is also responsible to keep the record of all ws either these are good or bad. So the personnel of this department are responsible to take records of all the the newspapers relating to PIA.
onal airline lity services ble well defined goals and objectives services for Hajj and Umrah riented organization onsored organization cess to the destinations y in the domestic routes bol of Pakistan in airline
l of commitment for the organization es er management not belongs to the airline rvention n on seniority basis wards and appraisal ort in the field of marketing
ies and threats”
pansion hake hand cruitment policy stability ovt. intervention aining program ork evaluation techniques
y policy nt fleet den of employees ount of loan m c destinations ht schedule of money ance incapability ES BLEMS rge public organization like other organization P.I.A is also facing some serious problems. Some of them are below.
t. tioning under ministry of defense instead of ministry of communications or aviation. this effects efficiency and business of the organization. director is appointed from out side the organization. ndation g director and executive should always be appointed from with in the organization so that he may know basic . department delay payments. In PIA. motivational campaigns for employees very low. They use their power mostly for low level appointments so the upper and lower nts affect the rest of proportion. agency sale agents don’t realize airport taxes which make complication in realization of revenue. oking and mishandling also create trouble. ovt. major problem is that there in high political interference in the appointment and selection area. Now a days chairman of PIA is a PMA political person as much knowledge of a commercial organization as a prompted. These executives then favorite person for the new vacancies weather they have technical knowledge about job or not so.AL INTERFERENCE are the people who can improve or fail any business. ference yee have there unions. nd. areas jobs are not clearly defined which effect efficiency and working relation of employees. Employees sometimes misuse the PIA transport. planning is discovering PIA arranges internal exams given appreciation letter. opriation of work in one of the main problems e. engineer works as accountant etc. n computer up gradation also effect out put. ic Structure of the organizations is more like on elite govt. show cause letters but s given by same old procedure on seniority basis. es n on non economic rates. er of insurance policies from Insurance Corporation. They should know their basic jobs authorities and ties. customers have to come to the office which creates problem for the them.g. es. working at air port irritates the customers. this is also because of erference. set up and less like an efficient forward looking organization. talented persons.
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