Finance Team Is EMPLOYED IN Pia Business Essay

The report is approximately internship done at Pakistan international airline town office Quetta. The primary objective for collection of this business for the internship was to see how the finance department is working in PIA and how they control all PIA's fund and I also want to get knowledge about the finance division. In this report the intro of the PIA as well as all record of that organization how and when they start the way they shifted and achieved those goals and how do clear from problems which PIA is facing till now and also brought up some current information of the business. Then it will describe which types of company structure execute in PIA. A brief explanation of product, services and what packages PIA gives to its customers. SWOT research tells about each and every thing of the business. PEST Evaluation of the organization has also been done. Few departments and their functions are also brought up in the report. Then after SWOT bottom line drawn and also drawn suggestions to how to boost things. During internship its experience was great. I learned a lot of thing through internship this statement accentuates the details of my learning and observation at PIA. It also includes the genuine forms that are used in this firm to handle basic business techniques. And, I am sure that this statement will provide you a full and clear image of firm. .

INTRODUCTION:

PIA was proven in 14th august 1947. In Pakistan there is only one flight employed in Pakistan. At that time airline named orient airline. After the duration of time two more flight started procedure in Pakistan called of that flight were air limited and crescent airways was doing commercial operation. These companies not match the requirement of the environment traffic guidelines so both companies failed rather than continue their operation. In this manner orient was the only company handled in Pakistan for domestic routes.

The federal government and the folks of Pakistan both of them sincerely hardworking for the introduction of their air travel and reach those flight which is freely moves all over the world. The primary problem was took place in communication, so PIAC increased communication system. In 1955 Pakistan federal government take a initiatives and passed the ordinance and launched Pakistan international airline for both home routes as well as international and accomplish all need which is necessary for international passenger. .

So in this way Pakistan international airline come to its goals and broadened its network gradually now PIA serving the 83 destination with full of potential.

Brief history:

PIA started out the international aviation operation from Karachi to London via Cairo and Rome. Until1956 PIA have been running in damage due to the addition of Boeing 707 fleet. PIA was the first flight to operate jets in Asia. NY to Karachi routes was were only available in 1957. Pakistan became the first non-communist airline to travel to the people's republic of china and also providing operation between European countries and Asia via Moscow in 1963-1964. during 1960-70 PIA made a record of an enormous surplus of about 49. 22million. In 1966-67 machines overhaul shop was commissioned and completed.

1967-68 first batch of Pakistan pilot training was completed from PIA traveling university and received pilot certified. In 1969-70 PIA also started and extended anatomist service with other air travel like royal Nepal flight co. anatomist services, domestic procedure, and international operation made contracts with other airlines like Yugoslavia airline. Terminal facilities were expanded at Islamabad and Karachi and management agreement signed with Malta airline under which PIA seconded a management team to Malta in 1972-73. During this time period period wide body Douglas dc was created.

Full time chairman panel of director was appointed in 1973 to 1974. 720b fleet was given to air Malta on lease and at that time 158. 08 million earn income. In those days also began pension scheme for employees so in this way employees determined and during use more of potential. Added four more build in PIA during 1976-77. technical services at Somali flight, Yemen air travel and Malta flight were started in 1977. Two subsidiaries proven and recorded in UAE to market hotel and PIA flight. Boeing 747 was launched in 1977.

In house new technology presented computerized reservation system (REPAK), new flight control system installed at Karachi In the achievements of 1980-81. PIA add first time " direct inward dialing" cell phone center in Pakistan and also mini micro computer system installed in hq Karachi these technology also installed in other places like Peshawar, Islamabad and Quetta.

Night trainer service was created in 1983-84, air travel kitchen of PIA, which was commissioned in febuary1977 and completely modernized anticipated to other airline in 1983-84, five737-A300 were released in to the fleet of PIA in 1984-85 executive category for international airline flight PIA 747 was presented first-time in 1985. Vehicle ticketing, air travel kitchen at Islamabad routed on civil air transportation were getting of PIA in 1986-87. Throughout that time period many new routes were unveiled included same other operation to Rawalakot and Muzaffarabad. Automatic booking and ticketing facility at LARKANA in 19890-90, two women which was awarded for Pakistan international air travel obtaining first women were introduced and operate traveler airfare in 1989-91. Immediate hajj airline flight from Quetta to Saudi Arabia also began at 1990-91. June 1991 PIA received six air bus A310-300 air craft from air bus industries. 1999 PIA purchased Boeing 747 on rent and in 2002 PIA further purchased Boeing 747 -300 aircraft from the industry of Cathay pacific. Five airplane which were still on lease no repayment made. So in this manner PIA improving daily till now for the purchasing of airplane give maximum benefit to employees in a season every employee give allowance and a solution of PIA hajj also included in bonuses. So in this way PIA employees totally satisfied because of this organization.

Vision:

PIA'S eyesight is to become a world class profitable air travel full load customer need desires and demand through facilitate with effective and efficient service, punctuality, new ideas, product, technology and safe quest.

Mission:

Employee team work will add towards PIA a worldwide airline of choice through

Offering quality customer support and impressive products

Using advanced technology

Ensuring affordable steps in procurement and operations

Development security culture

Corporate prices:

Customer expectations

(Convenience, treatment, affordability)

Service

(Personalized, courteous, ardent)

Innovation

(New ideas, product, value added services)

Cohesiveness

(Respect for folks, team work and effective communication)

Integrity

(Business ethics, accountability and transparency)

Safety

(Passengers, employee, environment)

Social responsibility

(Welfare, health, education)

Objective of Pakistan International Air travel Corporation:

According to PIAC Function 1956, following are the primary goals of PIA Firm.

To provide and further develop safe, reliable, adequate, inexpensive and properly coordinated home as well as international air transfer system.

To operate any air-transport service or any airline flight by aircraft for a commercial or other purpose, and to perform all kinds of aerial work.

To acquire, own, run, control or take part in the functioning of management of, any hotel or business connected therewith.

To give the training and trained in matters linked with plane or air travel by airplane of persons utilized or desirous of being utilized either by the organization or by every other person.

With the previous approval of the Federal Government, to market any company outside Pakistan for the purpose of participating in any activity of a sort which the Organization has power to carry out.

To acquire, hold or get rid of any property, whether movable or immovable, or any air transportation undertaking.

CORPORATE INFORMATION:

Pakistan international flight has been segmented into thirteen departments as shown in the organization graph. PIA is one of the primary organizations in our country having worldwide procedures as well. The network of airfare around the world and its operations are monitored perfectly. PIAC administration office contain seven divisions with products. Every department is going by director and each division is headed by general director (GM) each section are managed by supervisor and subsection going by assistant director.

Product and services of PIAC:

A service is doing work like one get together can provide to other get together that is actually intangible and does not result in the possession of anything. Services can be explained as activities benefits and satisfaction after sale. Because of this they normally require more quality control dealer credibility and adaptability.

Pakistan international flight offering his services around the world the following countries which PIAC lead those countries.

Seat Service (for individuals).

Space service (for Cargo).

Seat Service:

The price for international routes is defined by (IATA) (international air travel association). IATA will not allow any discount on international routes, however flight provide some discount through real estate agents or time its fares rely upon demand and supply on that routes where better demand no leisure on fares and its own fares also depend on which kind of school and which art is used.

PIA cargo services:

PIAC also giving services of air cargo in one destination to another Speed ex girlfriend or boyfriend and cargo division will work for providing services to customer. PIA cargo provides higher thickness cargo at lower prices.

In domestic general cargo its two types of goods they copy from one location to another which is as follows.

Wet Cargo.

In damp cargo perishable item like fruits, veg and the ones thing which having limited real life newspaper.

Dry Cargo.

In dry out cargo nonperishable item included like catalogs, catalogues, textbook, paper.

Providing those services against those services they charges different rates in various commodity

Weight rates /kg.

1-4kg 130-270

5-44 41/kg

These fares are making use of only Quetta to Lahore. While in dangerous goods like ammunition or other such kind of item which is harmful for individuals life first of all take permission through authorize person than those item move from one place to another.

On the other hand PIAC provide services for the transferring car but it apply some conditions

Automobile must be significantly less than 5 legs while transferring the automobile from one destination to another PIA fee 26100 for pluck sheet. Pluck sheet moves cars from one destination to another smoothly and rather.

DEPARTMENTS:

Flight Check Office:

Flight check is a sensitive area in PIA where the arranging is originated. Either it is from the travel agent or it is through the head office. In this particular section the complete bio data of the passengers who will be travel on a specific flight is saved in the computer and verify the requirements of individuals as well as the requirement of employees. A flight is checked three times before the departure. First of all the journey is checked before 72 time prior to the departure, then 48 time of departure and then 24hours before departure. No show ratio means the passengers who catalogs their seats, nor travel in time.

PFA (Former Flight Evaluation)

When the airline flight is departure this particular section check all bio day of flight. So it is a counter check of flight check. Central Booking Control (CRC), Booking planning, Hajj & Charter Planning are three sections of division in mind. CRC is further divided into four cells:

Complaints cell

Post air travel cell

Telephone sales

Procedures Bureau.

AIRPORT SERVICES TRAFFIC Office:

The traffic employees are in immediate connection with the passengers and they handle different periods occurred during a passenger's way from check-in lounge to the aircraft. As the traveler enters the check-in lounge the obligations of traffic people begins till the traveler boards to the aeroplanes. As the traffic section relates to passenger services, the passenger services comprises of the next units:-

Passenger Handling:

Traffic Controller

Officer In charge Counter

Weight Balance Unit

Departure Control Unit

Special Handling Unit

Protocol Handling Unit

Flight Inquiries

Post Trip Unit

Lost and Found Unit

MARKETING Office:

Marketing is the most crucial office of any business because it is to sell the product made by the organization. Since PIA is commercial group, it is therefore more market-oriented. The marketing of Air Travel service is in a way unique. The difference is firstly because of customized service; secondly, it is difficult to examine the grade of the product (i. e. service) prior to the time of last deal. The marketing division is headed by Director and under him will be the General Managers.

Different divisions of the department are;

1. PAX market planning

2. Travels promotion

3. Cargo division

4. Sales development

5. Tariff

6. PAX sales planning

CARGO DIVISION:

Air cargo business is developing at a swiftness which is intimidating to all other settings of cargo movements e. g. rail, road and sea. This isn't to claim that in next to or even in the length future any of these cargo methods would be totally taken out however the air mode is obviously destined to unimaginable heights of growth in future. The primary reason being accelerate a vital component of business environment today and surely to be progressively a more important factor in the international trade tomorrow. While air cargo has been an old time business in growing countries any significant development in Pakistan had not been felt before late 50s a restricted scale commodity movements between your two wings of Pakistan east and Western Pakistan, was perhaps only cargo business activity. There was only one cargo agent until past due 60s. a total of 5000 tons of cargo was booked whatsoever airports in Pakistan in 1962 50% of this level of this cargo was carried on local routes. How ever as way as PIA is concerned, major portion of cargo activity was still limited to domestic movement The marketing in this section is performed in a similar way as it is performed in marketing of a products or selling of tickets. In cases like this the merchandise is (space). So we can say that this division sells the area in the aircraft. The reservation of space is performed in the same ways done in the case of booking of traveler accommodation on a particular airline flight. those items are not booked which are declare as forbidden items by IATA.

 

SALES DEVELOPMENT:

Sale advertising is the primary sub portion of the sales section. One of the most important functions is to promote the sales and generate the revenue. This section is going by passenger sales supervisor and there are four sales associate managers all the SPO's have defined their organization and their report about the company to agency associate sales professionals. They cover all the 72 IATA and 30 non IATA organizations under IATA group 9% formal incentives or concessions approved for the agency on international routes and 3% on local routes. Basically the incentive is directed toward the wholesales. They give the incentives to the organization according to their efficiency. It is only done at that time when real estate agents give bulk business. Management attempts to give bonuses on the majority quantity because 83% of income is made by the traveling agencies

Finance Department

The duties of the finance department can be categorised into two general categories. The first category is planning and the next function is handling. These activities are inter-related and inseparable because if there is no planning there will never be any control. Therefore planning and control move together. Planning identifies the actions which bridge the space from the starting point to the terminal point. Planning in the finance office under review identifies the activities of Cash Flow and Budget prep.

Revenue Division is the most crucial division. A number of the important divisions are defined below in detail.

REVENUE DIVISION:

Airline markets space and services and these are measured in terms of money. The earnings In conditions of money is manipulated by the income division. It really is further subdivided into three sections:

a) Traveler (PAX) Revenue

b) Cargo Revenue) Interline Income)

PASSENGER (PAX) REVENUE:

Sales: income function starts off from printing of seat tickets. Tickets of airline contain few coupons with a coat (bearing instruction onto it). Tickets can be purchased at station and at agents' office buildings. Sales of tickets may be:

Direct sale

Indirect sale

Direct sales indicate sales at stations of PIAC, whereas indirect Sales are by brokers.

Direct sales:

There are 46 locations for direct selling all within the network of PIA. Two types of ticketing are applied i. e. manual ticketing and auto ticketing.

Manual ticketing involves methods of pencil newspaper focus on printed tickets. While auto ticketing entails progress system of computerized ticketing and at that moment computerized solution printing. Regarding direct sales pursuing four documents are important:

a) Passenger Earnings/ Extra Baggage Carrier Ticket: The solution has four/ three coupons. First is audit discount, second is issue coupon, third is the airline flight/ lift coupon and fourth the revenue coupon. Airfare coupons are arranged for one/ two or four sectors. Audit coupon and trip are the most crucial coupons. Because air travel coupon is really the only coupon to be used either for the lift up or for refund / reissue / travel on non- PK carrier, etc. whereas audit coupons is designed for PIA's earnings record. Audit coupons are sent to hq with sales statements from each place. Accounting to entrance is based on audit promotion.

b) Miscellaneous charges order (MCO): These documents contain, audit concern office and exchange coupons. They are designed for exchange if for the moment you don't want to block a seating.

 

c) Prepaid solution advice (PTA): This is for sponsoring the tickets of the family members, friends, etc. from any other country/ vacation spot. The amount of money paid by the person sponsoring the solution beforehand and following the checking of the documents of the nominee of the sponsorer, sponsoree is released this solution. The responsible channels converse through telexes.

TAC (travel authorization certificate):

if traveler travel for personal goal she or he must acquire the TAC (travel authorization license) from CMA to avail 50 % off opportunity and posted to booking office with CNIC

there is 2 copy of TAC original backup is remain with the PIA but duplicate backup are send to CMA as a data for claiming the remaining 50 % amount by CMA because CMA paid left over 50% amount paid to PIA on the behalf of his or her employee

APW (Air passenger warrant):

If traveler travel officially then CMA issue APW to his / her employee and complete amount is paid CMA to PIA same on the above mentioned procedure

These varieties required

Name and designation of employee's

Rank

Nature of work and PA number

And attested from his / her department

Finance division also have the refund forms and before mailing collection bill to army office's department deduct the refund amount from the sales.

TYPES OF EMPLOYEES:

The staff of PIA can be categorized as under:

Permanent Workers

Temporary Workers

Seasonal Workers

Daily Wage Workers

Trainees

Permanent individuals:

Those personnel who are engaged on executing their services for the whole time are called long lasting workers. They can be appointed on those jobs, that happen to be of permanent characteristics.

In PIA these employees get different kinds of allowances and benefits.

These benefits are

House service (That is allotted based on the marks).

Medical Facility

Bonuses and Daily coupon

Temporary staff:

Temporary personnel are appointed on those careers, that happen to be of temporary mother nature.

They will tend to be Everlasting but work under deal period of few years and after work is completed they are simply dismissed from other jobs.

Seasonal staff:

These personnel are hired during the HAJJ operation, when the procedure is over they are lay off.

Daily wage individuals:

These will be the workers who proved helpful and get their remuneration on daily bases. They could be hired in virtually any section where they may be needed.

Trainee

These will be the learners. This is a work mean, to which allowances are paid through the training and following the conclusion of the course. Internship is also some sort of training but no remuneration is paid to trainee in this kind of training.

House Rent

House lease will be payable @ 60% of the private pay,

Dearness Allowance and including Pay Group VIII

Shift Allowance:

Shift allowance admissible to officials has been revised the following: Pay Group Revised (Rs. P. M. )V/V (i) 230, VI/VI (i) 275, VII & above 320.

Night Move Allowance

Night Move allowance is launched for officers working in spinning shifts. Pay Group Rate (Rs. Per Night)V/V (i) 80, VI/VI (i) 95, VII & above 105

Utility Allowance:

This allowance is given @ 10% of basic pay to officials from group (V) to (VII-II).

Conveyance Allowance

This allowance is also given to the officers from group (V) to (VII-II) @Rs. 950/month. Beneficiary of this allowance is not eligible for car allowance.

Car Maintenance Allowance

This allowance is ideal for those offices who do not using conveyance allowance and managed car. This allowance is given @ Rs. 675 for officials from group V to group VIII (II) Rs. 645 for officials from group IX to group XI-II.

Grooming Allowance

This allowance is directed at female officials @ Rs. 275 working in group V & above.

Non Practicing Allowance:

This allowance is perfect for permanent medical officers and doctors who are full time worker, for not practicing private @ 50% of basic pay however, not more thanRs. 3320/month.

Qualification Pay

C. As and ACMAs working in finance department will be paid @Rs. 3220/month. This allowance is also given to the officers of information system office except communication department @ Rs. 1170 monthly.

SWOT Research:

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STRENGTHS

LEADING MARKET POSITION

PIA is one of Pakistan's leading air service providers, with an increase of than 800 daily plane tickets. Around 150, 000 travellers a month travel on PIA, so that it is one of the major operators in the local market in conditions of traveler kilometers. PIA's international market share was 43. 5%, Inside the Home market, its market share was 69. 4%. Its strong market position is influenced by consistently low fares as well as reliable service, repeated and convenient flights, use of new technologies like e-ticketing and self check-in terminals, comfortable cabins and superior customer service.

BRAND Reputation:

PIA has high brand recall. It is identified by travelers all over the country. PIA is a national airline, working passenger and cargo services covering eighty-two home and international. PIA has gained the main standing in customer satisfaction

SUPERIOR OPERATING STRUCTURE

PIA has preserved its position as the low cost carrier. It's been first class Pakistani airline to utilize the most advanced technology. Factors' contributing consists of different series of Boeing and Airbus and an efficient, high-utilization and point- to-point route structure. Soaring one type of aeroplanes significantly simplifies scheduling, maintenance, flight procedures, and training activities.

NETWORK PRESENCE

PIA enjoys a strong network in key local and international spots. The business's network includes three the major airports in Pakistan, as well as major airport terminal such as Dubai International Airport. Having a strong network means that PIA can create traffic supply for both its home and international Flights.

HUB Air port AT KARACHI:

PIA runs from its hub in Jinnah AIRPORT TERMINAL, Karachi. Jinnah International is one of the world's busiest international airports in conditions of amount of passengers carried. It is also one of the most significant international gateways to Asia. Additionally it is the leading international air passenger (and cargo) gateway to Pakistan.

EFFECTIVE USE OF TECHNOLOGY:

PIA has successfully contained latest technology in all its systems, supplying it an advantage over competition. PIA needs credit for presenting most new systems to the Pakistani market. It had been the second carrier in Pakistan to include the e-ticketing system and the second in South Asia to introduce self check in systems at the Jinnah International Airport, Karachi.

WEAKNESS

FORMULATION OF GOVT. Guidelines:

The Basic flaw of the business is its consolidation that is centralized system. The key guidelines, strategies and group of laws are designed by the top management. The centralized system is one of the primary obstacles of long-term success of PIA. PIA centralizes structure lead to barrel between different level of management, reduced inspiration, and hard access to information.

HIGH RELIANCE ON PASSENGER Profits:

Passenger profits accounted for 87 percent of the PIA's total revenue in 2007. Cargo services allow airlines to generate additional profits from existing passenger flights. Furthermore, cargo income are usually counter cyclical to traveler revenues and also have lower demand elasticity than passenger business, which allows airlines to pass on gasoline price hikes to customers.

DEBT :

PIA has a substantial amount of 42 billion obligations. Current and future obligations would have important outcomes for stakeholders of the business. Debts could also put PIA at a competitive drawback to competition that have lesser debt and may also improve the company's vulnerability to interest increases.

RELIANCE ON Petrol PRICES

PIA's sustainability, expansion and revenues directly depend on oil prices. A steep rise in engine oil prices can significantly damage the long term viability of any air travel. Recently many airlines around the world travelled bankrupt credited to rising petrol prices. Airlines need to hedge against this risk by firmly taking proper actions.

OPPORTUNITIES

HAVING THE MAXIMUM Road AND FLEET

PIA is getting the maximum road and fleet local and international destinations network in Pakistan as compared to its Competitors. Route and fleet enlargement will positively impact the business's procedures by increasing earnings.

GROWING DEMAND FOR LOW PRICED AIRLINES

The growing demand for flights is motivated by lower fares and consumer self-confidence. A review by International Aviation Expert showed that solution price is the main criterion for individuals when choosing a airfare, well in advance of the availability of a non-stop service.

CUSTOMER Commitment :

PIA's frequent flyer and devotion programs can help it hold on to customers. PIA's Awards plus (recurrent flyer program) was established to develop passenger devotion by offering honours and services to recurrent travelers. Such strategies encourage repeat travel on PIA, as passengers seek to accrue the huge benefits directed at regular travelers.

SHIFTING CUSTOMER NEEDS :

The needs of air individuals are more and more changing, as they are becoming a lot more price sensitive. If PIA succeeds to make its prices more competitive, then the company will be able to gain significant market show.

INDUSTRY RECOVERY

Market analysts believe the global air travel industry will experience an upturn in fortunes over another couple of years. This represents an opportunity for PIA, as it could generate increased income and order market show if it capitalizes on rises in demand.

THREATS

HIGH INTEREST RATES

The past couple of years have seen Talk about Loan company of Pakistan impose high as well as low interest levels to check inflation and the over heating of Pakistani overall economy. Inflation in Pakistan may see another raise in the short-term.

ACCIDENTS

There had been 3 accidents with PIA outlined as below:

Pakistan International Airlines Flight PK 705 was a Boeing 720 - 040 B that crashed while descending to land on Runway 34 at Cairo International Airport on, may 20, 1965 producing in 119 fatalities.

Pakistan International Airlines Air travel PK740 was a Boeing 707-340C that crashed after takeoff from Jeddah International Airport on November 26, 1979. All 156 aboard were wiped out.

Pakistan International Airlines Trip 268 was an Airbus A300B4-203, registration AP-BCP, which crashed on method of Kathmandu's Tribhuvan International Airport on Sept 28, 1992. All 167 on board were wiped out.

STRONG COMPETITION BY AIRBLUE

PIA is currently competing against carriers such as Air blue and Shaheen Flight. PIA remains Air blue's most powerful competitor due to huge market it has gained as time passes, strong brand image and customer commitment. PIA has started new low-fares subsidiary "PIA Exhibit" to stop the Airblue market share growing to fast.

INTEREST AND FOREIGN CURRENCY EXCHANGE RATES

Fluctuating foreign currency exchange rates can have a significant effect on PIA's earnings. For example, as PIA is providing its services to the UK. Negative or positive effects occur from exchange rate moves as change in expenses

PEST ANALYSIS

POLITICAL FACTORS

Political factors will have a great influence along the way businesses operate in the flight industry and the spending power of customers. In recent years it has been observed that government played an productive role in increasing competition in the flight industry. Several new airlines such as Air Blue and JS Air have been awarded licenses to go into the home market. The over all industry will expand ensuing in more luxurious and comfortable flights.

ECONOMIC FACTORS

Currently, Airlines industry has three major players: Pakistan International Airlines, Air blue, Aero Asia and Shaheen Airlines. Their target market includes home travelers as well as Pakistanis living in foreign countries particularly in the united kingdom and USA. These countries have strong economies in conjunction with high purchasing electricity. Customers' purchase behavior depends very much on prices of the rivalling airlines as well as services offered. As inflation rate is unpredictable in Pakistan, spending electricity of consumers has effected in the long run. There was a worldwide depressive disorder in the North America, South America, Australia and European countries. However, in Asia especially Pakistan the result in the short term was normally. The economy commenced to boom because of greater remittances from overseas and whole sum immigration by expatriates. Because of this, demand for air travel in South Asia rose. Economic conditions of Pakistan are however bettering. PIA has cost a advantages over its rivals due to its newly acquired, advanced, long distance aircrafts from Boeing' which give longer range and better petrol economy than any other jet presently produced. This cost advantages is a hurdle to accessibility for new organizations.

SOCIAL FACTORS

The cultural and cultural affects on business vary from country to country. The cultural composition of Pakistan is tightly tied. The pattern is now changing as the general public is educated and is going after professional goals. Customers are more aware of market conditions and available choices and want to get best value because of their money. They spend time and effort and money on entertainment hence increasing the need of in-flight entertainment systems. Also, word of mouth has a substantial impact in the utilization of flight services. Hajj draws in a huge amount of customers. The interpersonal environment of Pakistan is turning liberal with the new program. The effort to automate check-in and solution reservation process might not be very popular with the general public (even educated human population) is still technology averse. E-ticketing might also face significant challenges as individuals are generally reluctant to provide their bank cards information over the phone and the internet. The consumers, however, have a warm a reaction to the prospect of less expensive but quality service plane tickets.

TECHNOLOGICAL FACTORS

Major technological changes are taking place in the airlines industry with inventions in the reservations and reserving systems. In-flight entertainment systems and automobile check in counters are two examples of such inventions. Internet plays a key role in-ticketing as consumer can simply reserve tickets or check the status of the flight. A key issue will be the degree, to which scientific developments (such as Internet) impact syndication and cost synergies from industry loan consolidation, can offset upwards pressure child costs. PIA has always led the path of technological innovations by introducing new technologies before its rivals such as its auto check-in counters which includes helped it gain market show. It had been the first flight in Pakistan to install Sabre system followed by the marketplace leader

MARKETING Combination:

Marketing combination is the set of marketing tools that the firm uses to go after to its marketing objectives in the prospective market.

Product:

Most products we think are physical but it addittionally include services. PIAC is also providing services to the country, which can be grouped as follow

Seat services (for passengers)

Space services (for cargo)

Variability Services are highly variable, as they depend on who provide them, when so when and where they are given. Services firm can take two steps towards quality control. The first step is buying good staff selection and training. PIA spends a big amount of money to teach their employees in providing good service. Second step is monitoring customer satisfaction system and PIA doesn't keep an eye on customer satisfaction properly. Perish potential Services can't store and they have no home life. When demand fluctuates, service open fire shave difficult problems, like PIA must apply much more equipment because of peak period demand on a specific route than it could, if demand, was even throughout the year.

Price

A profit corporation faces the task of setting a price on the product and services. Price is the money that customer prepared to cover the assistance. PIA established their prices on the basis of two kind of situation.

Domestic routes

International routes

Domestic routes

Prices for home route are fixed by the government of Pakistan for PIA. The price plus method is used to set the price at domestic level. The PIA management quotes the price by using following 6 steps. Selecting the price objective determining the demand Estimating costs Analyzing rival price and will be offering. Selecting a price method, choose the final price.

International routes

The price for international routes is set by international air travel connection (IATA). the IATA doesn't allow any discount on any international routes. Ticket show the full pries for the way while air lines impose reduced fare by reducing their show of earnings. However, PIA establishes the charges strategies on different international routes keeping in view the next points. Rival price Cost of procedure Type of plane use

Place

A syndication system is a key source. PIA has partially owned circulation system.

Level of channel

According to your impression, PIA uses two level of channel which is as follow".

Zero level channels

It is also called the immediate marketing route. Now the PIA markets the tickets to last users through its ticket counter. In Lahore, PIA has solution and reservation office to different destination to sell the solution to customer. These office buildings are computerized and immediately linked with the head office at Karachi.

One level channel

Here traveling brokers and intermediaries are included in retailing the solution to customers. Many travel agents are provided vehicle ticketing and reservation system. You will discover two types of realtors which are described as follow,

IATA agencies

There are 30 IATA approved organizations which offer with PIA. These organizations can also be stocked and sell tickets of other airlines. Fee of these agents is really as follow, International sector = 9%Domestic sector=5%

District sector agents

These are agencies who exclusively package with PIA ticket and cannot offer in other air lines normally these are located where PIA does indeed not have deal point.

The commission payment provided to basic sale brokers is International sector=12%Domestic sector=5%

Promotion

PIA has not invested much in this field. They just use brochures, news newspaper & some T. V commercial when top season is not there. Brokers play an important role in promotion as they convince traveler to travel through PIA. Some brochures, are posted below

Umrah made easier.

PIA offers more plane tickets to Jeddah in may, June and July for umra. These additional flights will not only provide more travel option to umra pilgrims but also allow more people to perform the holy ritual. Pilgrims can enjoy comfortable & luxurious trip in Boeing_777s

PIA "budget airline flight - enjoy up to 39% discount on regular fares.

PIA launched Budget Flight between Karachi, Lahore & Islamabad.

Fly PIA's new ATR

Up to 10kg palm baggage allowed

No examined in baggage

PIA flexible fare_ plan forward & pay less

Book international or home flights as early as possible because the earlier you buy, the cheaper you soar. A number of discount on Business, Overall economy plus & Overall economy Classes. .

Fly business school with a free ticket

Buy three tickets and get one free

Buy one ticket and pay only 50% for your companion

The offer is on international routes only This offer is unavailable on UK, USA& Canada sectors

Discount to college student on international and local sector

25% discount offered to students on home routes. 10% discount on international routes. Offer can be availed entirely from PIA Scheduling office buildings. The offer is offered only for Overall economy Class travellers.

Free pick and choose and drop service

PIA offers the free get and drop service from your door to airport terminal. This offer will be offer limited to Business class

RISK MANAGEMENT

Market risk

Market risk is the risk that the reasonable value of future cash moves of any financial instrument will fluctuate because of changes in market prices. Market risk comprise three types of risk: interest risk, currency risk and other price risk, such as petrol price and equity price risk. Financial devices damaged by market risk include loans and borrowings, bank deposits, available-for-sale opportunities and derivative financial equipment.

Fuel price risk

The Having company's earnings are influenced by changes in price of aircraft fuel. The Holding company hedges fuel costs to a limited scope through use of derivative deals. You will discover no derivative contracts outstanding as of season end, therefore, the Positioning company is not subjected to associated risk related to gas price derivative contracts.

Currency risk

Currency risk is the risk that the worthiness of an financial device will fluctuate scheduled to changes in foreign exchange rates. The Group's income channels are denominated in several foreign currencies leading to exposure to forex rate fluctuations.

Interest rate risk

Interest rate risk is the chance that the fair value or future cash flows of any financial device will fluctuate because of changes in market interest levels.

Other Price Risk :

Other price risk is the chance that the fair value or future cash moves of your financial device will fluctuate because of changes in market prices (other than those arising from money risk or interest risk), whether those changes are brought on by factors specific to the average person financial device or its issuer, or factors effecting all similar financial musical instruments traded in the market. The Group is not significantly subjected to collateral securities price risk.

Liquidity Risk

Liquidity risk is the risk that the Group will come across difficulty in getting together with commitments associated with financial liabilities that are settled by providing cash or other financial property. The Group manages its liquidity risk by maintaining sufficient cash and cash equivalents and through support of GOP either in the form of capital / loans or by means of guarantee to acquire financing from lenders.

Credit risk

Credit risk is the chance that one party to a financial tool will cause a financial damage for the other get together by failing woefully to discharge an responsibility. All financial property except cash in hand are at the mercy of credit risk. The transporting amount of financial resources as at

 

.

Learning and experience.

Rational and Duration

The internship is essential for the conclusion of our MBA course. I joined up with PIAC for internship. The internship was slated for six weeks.

Task performed

A brief benefits of PIAC code which is stated of different code were as follows

R1. Deal of solution from any counter.

R2. Cargo sales. Any sale which are related to cargo than its named put as R2.

R3. Inbound cargo sale

R4. Miscellaneous charges if any luggage weight is maximum that the given conditions than PIA take charges

R5. Repayment of invoice whenever we give ticket to the military personnel so we gather some cash at that moment with the voucher education and leftovers of amount we acquire from the office.

R6. Refund section. In case of journey cancellation so PIA deduct some charges of the ticket and snooze of amount given to passenger

R7. To gather the payment of our income by other station

R8. All fine detail of invoices

R9. assortment of all charges from R1, R2, R3, R4, R5, and R7 the full total of all payments are collected in R9.

R10. Different visiting agencies total of deal is described or added in R10.

R11, R12, D15 they also important however, not so much for the internee that is why he didn't tell me about those code.

After a depth description of this code I spent 1 week in R6 section which is generally called as Disbursement & refund section. Many customers come to office for go back of ticket during return of ticket NIC card is must whose name mentioned in solution after calculated.

Refunding ticket ratio is vary from season to season there are three classes if passenger cancelled promotion before 40 time deduct RS. 400 than slumber of amount will get to customer.

TAX STATEMENT:

INCOM Duty STATEMENT

GENERAL SALE Duty STATEMENT

INCOM TAX Declaration L:

PIA paid some resolved %time of payment to the income tax power PIA made these repayment against all the buys of services, supplies and landlord PIA made these repayments on the following bases products 3. 5 % (%time of tax paid on materials) Landlord 5 % (%age of tax paid on landlord ) Services 6 % ( % time of tax paid on service's We make the check paid it to tax authority

GENERAL SALE TAX STATEMENT:

PIA makes the overall sale tax assertion which company paid on the acquisitions PIA record the GST on purchases by 1 % and all the declaration with the GST form are send to the head office Karachi where the hq are assert all repayment to the federal government and issue cover further purchasing PIA make these declaration after each 15 day's.

Refund of ticket:

Process of refund amount

Document necessary for re fund

for the domestic flight pursuing documents are necessary for refund claim

(1) 3 copy of CNIC

(2) original ticked

for the home journey PIA make repayment on cash bases and deduct the cancelation charges with the passenger's which of 5 % of ticked amount for the International air travel following document are required

(1) 3 backup of CNIC

(2) 3 duplicate of passport

(3) Original ticket

passenger submit the case with doc and PIA paid these payment between 7 day's by fulfill the process of refund payment may be on cash if available or may be on check no cancelation charges are deduct on these refunding

MCO's( Miscellaneous Charges Order)

In this team I worked with cashier MR AMIR in an exceedingly short time because of Friday he explained about the work done in this office he told me we are issuing MCO (miscellaneous charges order) there exists 2 type of MCO's but both are released against the move forward payment by traveler or company One against the ticket booking company can receive this MCO for future solution by the help of advance repayment passenger can travel on this MCO no need to pay just show MCO the cashier deduct solution amount from MCO 2nd against the surplus baggage company paid advance payment for baggage and receive MCO of any extra on baggage the PIA deduct the surplus amount form MCO.

Finance Division:

Sales of PIA

PIA sales solution to army, military services and PAF staff on 50% off of total amount of solution if he

or she travel personally and 100% off if she or he travel officially Traveler can receive this amount form CMA team of army

TAC (travel authorization qualification):

If passenger travel for personal goal he or she must collect the TAC (travel authorization certificate) from CMA to avail 50 % off opportunity and submitted to booking office with CNIC

there is 2 duplicate of TAC original backup is remain with the PIA but duplicate copy are send to CMA as a information for claiming the rest of the 50 % amount by CMA because CMA paid remaining 50% amount paid to PIA on the behalf of his / her employee

APW (Air Traveler Warrant) :

If passenger travel officially then CMA concern APW to his or her employee and whole amount is paid CMA to PIA same on the above mentioned procedure

These varieties required

Name and designation of employee's

Rank

Nature of duty and PA number

And attested from his / her department

Finance office also receive the refund varieties and before sending collection bill to army office's section deduct the refund amount from the sales.

Next day my official provided me last 15 day's sales form of military to split up the APW and TAC varieties for saving the sales of ticket

For APW PIA use pursuing head for different office like

A(CS) for PAF employee

A01 for CMA employee

A02 for Army employee

And for TAC use following head

T 01 for CMA employee

T 02 for Military services Employee

T03 for PAF employee

On 6th July I submitted pervious 15day's TAC sales on it specific head of CMA, Military services, and PAF sales with form amount and ticked amount and flight date

Recommendation

Appoint Director Form the business.

Managing director and executive should always be appointed from within the business so that he may know basic problem and could in a position to work because of its improvement.

Decentralized organization

PIA should decentralize its composition which is easy managed increase desire quick access to information and withdraw problem from issue.

Employee empowerment

PIA should make attempts for empowering the employees that will more employee contribution in the decision making process so in this manner employee drive level increase and give chance to employees that they take decision itself.

Overhead Costs

PIA also needs to reduce its overhead costs that are it will manage its resources: labor better, so that with less input and more output may be accomplished, and the saved resources can be utilized in the areas such as presenting more classes for the employees so the quality of the labor force could be increased.

Two way communication

Here we suggest for employees to demonstrate be quite effective in increasing the operation because they are the ones who deal with them. Therefore, a top-down procedure should be replaced with two-way communications. In this manner, the employees would feel enthusiastic and appreciated as they would be included indecision-making.

Refund facilities enhancement

Refund facilities should be provided on airport.

Conclusion

The internship was an important requirement for the conclusion of MBT program the internship was also good for me in future while working in employment and in job seeking. Those individuals prefer who does internship and know work how they do work in business, how to take care of people and exactly how to manage or deal with every situation which is effective in future. I did internship in funding department. In PIA there are power weakness as well as opportunity and hazards. You will discover No. of talents and opportunity but scheduled to our federal PIA is burning off these talents and opportunities. So in this way that durability opportunity may convert to weakness and dangers. The basic power of PIA is that it is monopoly firm they set fares relating to fuel prices. Hire employees who've excellent skill knowledge and capacity and give proper training about work so in this manner PIA increase income. I learned a great deal of thing from internship and really enjoyed PIA's environment so in future I wish to become a part of it.

References:

Muammad Dawood Qureshi (Consideration Manager)

Muhammad Iqbal (Bank account Officer)

www. piac. com. pk/

Pakistan international airline annual information.

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