The University of Lahore

TOPIC:
Chapter 1: Introduction Of The Organization
SUBJECT INTERNSHIP REPORT

REGISTRATION NUMBER 70073121

SECTION 7A

SUBMITTED BY UMAIR ALI ARIF

SUBMITTED TO MISS ASMA

Submission Date 05 NOV, 2021

Due Date 08 NOV,2021

Remarks:

Marks:

/ 10

Instructor’s Signature
 Chapter 1: Introduction of The Organization
1.1 Aviation Industry Review (Global Perspective)
1.2 Aviation Industry Review (Pakistani Perspective)
1.3 Portfolio of Aviation Industry (Types of Organizations in Aviation Industry)
1.4 Company Profile
1.4.1 History of the Organization
1.4.2 Strategic Orientation of PCAA (Vision, Mission, Objectives, Values)
1.4.3 The Type of Ownership of the Organization (public/private ltd, main
shareholders and their shares etc.)
1.4.4 The Sector (Manufacturing/services)
1.4.5 The Customers (govt./corporate/individuals)
1.4.6 Organization Chart of the Organization (along with information on the
number of divisions/departments/employees)
1.4.7 Functions Performed by Divisions/Departments

 Aviation Industry Review (Global Perspective)

Aviation plays a significant role within the development of exchange, tourism and economy.
Almost more than half of the world’s population which is a huge number equals to 4.1 billion
people flew on 41.8 million different flights in till 2017. The demand for air passenger services
grew strongly in between 2010 to 2017 as of the industry wide Revenue Passenger Kilometers
(RPKs) in 2005 is 5.5% which than increased to 8.1% in 2017 which is the fastest growth in
aviation industry since the last decade. Not only the local aviation industry grew up but also the
number of international flights flew from 2010 to 17 were also increased incredibly which
results in increase of the contribution of aviation industry in world’s overall GDP. As of the
reports International tourists traveled by air are estimated to have spent $711 billion in 2017.
Although more than 70% of world trade is by surface transport but still one third of total world
trade is carried out by means of air. According to a report of International Air Transport
Association (IATA) the value of goods carried by air in 2017 was almost of $5.9 trillion,
representing 7.5% of world GDP.
All of this progress was full stop by COVID 19 in the start of 2019.It’s difficult to calculate that
how much the COVID-19 pandemic has devastated airlines financially. In 2020, industry
revenues was $328 billion, around 40 percent of the previous year’s. Which is the same as in
2000. The sector is expected to be smaller for years to come. According to experts air traffic
won’t return to pre covid levels before 2024. International Air Transport Association (IATA)
shows the passenger traffic, as measured by industry wide revenue passenger kilometers (RPKs)
was down 90% in April 2020 compared to the previous year. Whereas in march 2021 it shows an
improvement. But RPKs remain 67% lower than March 2019 largely due to limited international
travel. The industry is slowly rebounding itself and it is stated that the aviation sector seems to
regrow itself in just 5-6 years if business passengers and tourists fly accordingly.

 Aviation Industry Review (Pakistani Perspective).

Pakistan aviation industry started with Orient Airways, founded on 23 October 1946. Orient
Airways commenced operations with four Douglas DC-3s on 4 June 1947 and ceased its
operations on 11 March 1955 by merging into the Pakistan International Airlines Corporation to
become the national flag carrier of Pakistan called Pakistan International Airlines (PIA), There
are 36 operational airports. Karachi is Pakistan’s main airport but significant levels of both
domestic and international cargo are also handled at Islamabad and Lahore. The contribution of
global aviation sector in global GDP is 3.4% and if we compare it with Pakistan than the
contribution of Pakistan aviation sector in GDP of Pakistan1%.There is a good thing about
aviation industry in Pakistan is that International Air Transport Association (IATA) forecast
Pakistan domestic air travel will grow 9.5 percent per year that is more than two times faster
than the world annual growth rate which is 4.1 percent over the next 20 years. CPEC would
have deep effects on the civil aviation sector of the Pakistan and would result in major increase
in passengers, cargo activities and flights across all over the world through Pakistan.
  Portfolio of Aviation Industry.

A clear policy framework for Aviation Sector needs to be incorporated for sustained growth and
to meet the emerging challenges mentioned above. This policy framework is therefore aimed at
aligning with ICAO strategic objectives related to safety, air navigation capacity & efficiency,
security, passenger facilitation, economic development, aircraft manufacturing, licensing,
maintenance & repair, environmental protection, etc.

The existing regulatory mechanism of aviation safety and security oversight will be
strengthened. Airports and airspace infrastructure will be developed for efficient and sustainable
air transportation in the country. Quality of airport services will be improved through state of the
art technology, modern infrastructure, improved logistics and the best international work
practices.

 Department of interest.

There are various types of departments comes under this industry like Airports, Airlines ,PCAA
, ANS, flying clubs ,corporate aviation businesses. The department I choose for
internship is PCAA i.e Pakistan civil aviation authority.

 Organization Profile.

Pakistan Civil Aviation Authority (CAA) is a public sector body working under the Federal
Government of Pakistan through Aviation Division Cabinet Secretariat. Before to creation of
CAA, a Civil Aviation Department (CAD) in the Ministry of defence used to manage the Civil
Aviation related activities. The purpose of establishing CAA is to provide for the promotion and
regulations of Civil Aviation activities and to develop an infrastructure for safe, efficient,
adequate, economical and properly coordinated Civil Air Transport Service in Pakistan.

CAA not only plays the role of the aviation regulator of the country but at the same time
performs the service provider functions of Air Navigation Services and Airport Services.
Therefore the core functions of CAA are ‘Regulatory’, ‘Air Navigation Services’ and ‘Airport
Services’.

 History of the Organization.

The Pakistan Civil Aviation Authority (CAA) is a public sector independent body working
under the Federal Government of Pakistan. The formation of CAA was established on 7th
December, 1982 under the Pakistan Civil Aviation Authority ordinance 1982. Civil Aviation
Department (CAD) in the Ministry of defence used to manage the Civil Aviation related
activities before the creation off CAA.

Restructuring process undertaken in CAA between 2006 and 2010 has enabled the
Organization to meet the requirements of International Civil Aviation Organization (ICAO).
During the Universal Safety Oversight Audit Program (USOAP) ICAO audited Pakistan in
June, 2011 and rated Pakistan as about 83% compliant against the world average of 65%

 Strategic Orientation of Organization

To provide a mechanism for continuously monitoring the implementation of organizational

improvement process in Pakistan Civil Aviation Authority, Strategic Management &
Research branch was established. The Strategic Management and Research (SM&R) Branch
looks after the organizational improvement, development and transformation process and
carries out these activities through the platform of Planning & Change Management.

Pakistan civil aviation authority defines its vision, mission and values according to their
strategic orientation as follows

 Vision: Be a leader in the field of Flight Inspection and Calibration

  Mission: Provide top class and economical flight inspection / calibration services
at the right time for safe flight operations.
 Values: Professional Excellence, Customer Focus, Safety and Security & Integrity.

 The Type of Ownership of the Organization. (public/private

ltd & main Shareholders)

To promote local participation in the Aviation Sector, airlines will be encouraged to be

owned by Pakistani Nationals. Foreign equity partnership in domestic commercial air
transport carriers shall not exceed 49% At the Same time to promote aircraft manufacturing
industry pakistani nationals will be encouraged to invest in the same.
The Chairman CAA Board is the Secretary of the Division to which the affairs of the
Authority are allocated. Presently, it is the Secretary Aviation. CAA Executive Committee is
the highest decision making body of the Organization. It exercises such administrative,
executive, financial and technical powers as delegated to it by the Authority
DGCAA is the Chairman of CAA Executive Committee. The Federal Government appoints
the director General who is the Executive head of CAA and exercises such powers and
performs such functions as may be specified in CAA ordinance or delegated to him by the
CAA Board from time to time.
 The Sector of Organization.

There are different sectors working under Pakistan civil aviation authority which provides
services to different airlines at airport for example different ground handling agencies
provide services to different airlines on departure or arrivel of multiple flights of that specific
airline.
Ground handlers have a very important role for the safety and efficiency of aircraft operation
at airports. Only financially sound ground handlers with quality equipment would be allowed
to operate the industry due to high risk of hazards and safety issues. Ground handlers can set
up a joint venture with foreign companies or investors for provision of quality services.
Accordingly, the requirement of minimum paid-up capital shall be specified to improve
safety and quality of oversight of ground handlers by PCAA. At the same time PCAA would
also develop necessary infrastructure on airside and landside for efficient ground handling
and passenger handling.

 The Customers of Organization.

In the aviation industry nowadays customers become the most important factor of the whole
producing process. Besides flight safety, enhancing service quality, therefore customer
satisfaction is the most important pillar considering in aviation. Nowadays people are highly
price sensitive and they will switch the airlines for a minor difference too. So now the
airlines really have to work on something so that they can retain the customer while
satisfying them too. There are different types of customers in aviation today,

Old Travelers: They are aged customers probably retired and go on holidays frequently.

Business Travelers: They are frequent flyers and form a large segment.

Budget Conscious Travelers: They look for the most inexpensive airline without knowing
much about the different airline services.
 Organization Chart.

There are different sectors working at airports under the authorities set by Pakistan civil
aviation authority like,
• Ground handling service Providers
• Self-Handling for Domestic Airlines
• Policy Guidelines for Other Suppliers of Air Transport Services
• Policy Guidelines for Fuel Supply Services
• Pakistan Meteorological Department (PMD)
• Airport Security Force (ASF)
• Main Areas of Operation related to Aviation Sector

Besides all these department there is a group of people who work within the organization to
conduct safe and secure flights for passengers. The organization breakdown structure of these
authorities can be drawn as
 Departmentalization

It defines how the organizational structure groups the company’s functions, offices and
teams. Those individual groups are typically referred to as departments. Departments are
usually sorted on the basis of the kinds of tasks the workers in each department perform. This
is not the only way to create a company’s departmental breakdown. Most organizations, from
businesses to nonprofits to the military, utilize a chain of command. This helps eliminate
inefficiencies by having each employee report to a single manager, instead of to several
bosses.

The planning department of PCAA involving top level managers and planners apply tactical
and strategic planning techniques as discussed in interviews and through thorough research.
The use of tactical planning is of utmost importance to gain edge over competitors. Such type
of planning is seen active in the Air Navigation Services Department (ANS) where strategic
planning is the core essence of growth.

 References
https://caapakistan.com.pk