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Saudi Arabian Airlines Internship Report

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This is an internship report written on Saudi Arabian Airlines. For complete report contact at:
E: aamirwaqas1991@yahoo.com
f: www.facebook.com/aamer.waqas.39

Published in: Data & Analytics
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Saudi Arabian Airlines Internship Report

  1. 1. INTERNSHIP REPORT SAUDI ARABIAN AIRLINES (G.S.A SOUTHERN TRAVELS PVT. LTD.) PESHAWAR, PAKISTAN M. AAMER WAQAS IDREES BBA (Hons.) ROLL # 02 SESSION 2010-14 INSTITUTE OF MANAGEMENT STUDIES UNIVERSITY OF PESHAWAR
  2. 2. I INTERNSHIP REPORT SAUDI ARABIAN AIRLINES (G.S.A SOUTHERN TRAVELS PVT. LTD.) PESHAWAR, PAKISTAN Internship report submitted to the Institute of Management Studies, University of Peshawar in accordance with the fulfillment of requirements for the degree of Bachelors of Business Administration. INSTITUTE OF MANAGEMENT STUDIES UNIVERSITY OF PESHAWAR
  3. 3. II INTERNSHIP REPORT SAUDI ARABIAN AIRLINES (G.S.A SOUTHERN TRAVELS PVT. LTD.) PESHAWAR, PAKISTAN Supervisor: Signature: _______________________________ Name: _______________________________ Designation: _______________________________ Institute: _______________________________
  4. 4. III
  5. 5. PREFACE This internship report is based on the data and information gathered verbally / non-verbally from the concerned department heads and officers while I was having my internship. I am thankful to the staff of Saudi Arabian Airlines G.S.A. Peshawar specially;  Mr. Sardar Ahmed Gul (Regional Director)  Mr. Asif Rauf (Area Manager)  Mr. Salman Khan (Supervisor – Finance Dept.)  Mr. Asif Ikram (Supervisor – Reservations Dept.)  Mr. Babar (Supervisor – Sales Dept.) This report highlights the emergence and development of Saudi Arabian Airlines quite comprehensively. Saudia’s history has been summarized and its development process is being categorized in era’s instead of year by year description, thus enabling the readers to have a quick overview of the history of Saudi Arabian Airlines. Moreover, the foundation to SBUs of Saudi Arabian Airlines are being identified and categorically explained along with their executive summaries and management structures. The report sheds light over the detailed introduction of Saudi Arabian Airline besides its history. The privatization process, the expansion of services and operations, alliances and formations with several airline alliance bodies, its operational and functional perspectives, are the key notes of the report.
  6. 6. V In the later part of the report, Saudi Arabian Airline’s operations in Pakistan are being discussed. Its scheduled and special operations are listed and further its operations through Bacha Khan International Airport, Peshawar; Khyber Pakhtunkhwa, Pakistan is being discussed in detail. The departments, services and operations are stated in regional perspective. The airline operations and services are being analyzed after the introduction. Analysis is carried out on both factual and analytical grounds. On the basis of analysis certain recommendations and deductions have been carried out and mentioned in the concerned section of this report. Since, this is an internship report and it is basically based upon the data and figures gathered through observation and personal experience of internship period, therefore, preference is given to state actual facts and deductions are being made on that basis. Hence, this report is being prepared under certain limitations such as lack of first hand data, limited access to airline’s internal affairs, lack of published annual reports by the airline or G.S.A. showing company’s position in numeric terms, and very short span of internship period. Besides, I am thankful to my teachers, family, friends and all formal and informal mentors who supported and guided me throughout these years of my graduation. M. Aamer Waqas Idrees BBA – Hons. IMS – University of Peshawar
  7. 7. TABLE OF CONTENTS PREFACE..................................................................................................IV LIST OF ACRONYMS.................................................................................9 LIST OF TABLES, GRAPHS AND CHARTS............................................11 CHAPTER – 1:...........................................................................................12 INTRODUCTION TO THE REPORT.......................................................12 1.1. BACKGROUND OF THE STUDY: ................................................13 1.2. PURPOSE OF THE STUDY: ..........................................................13 1.3. SCOPE OF THE STUDY: ...............................................................14 1.4. LIMITATIONS OF THE STUDY:..................................................14 1.5. METHADOLOGY OF THE STUDY: .............................................15 1.5.1 PRIMARY DATA:.....................................................................15 1.5.2 SECONDARY DATA:...............................................................16 1.6 SCHEME OF REPORT:....................................................................17 CHAPTER – 2:..................................................Error! Bookmarknot defined. ORGANIZATIONAL REVIEW........................Error! Bookmarknot defined. 2.1. INTRODUCTION TO SAUDI ARABIAN AIRLINES:..............Error! Bookmarknot defined. 2.2. MISSION & VISION:..........................Error! Bookmark not defined. 2.4. HISTORY:..........................................Error! Bookmark not defined. CHAPTER-3:....................................................Error! Bookmarknot defined. OPERATIONAL REVIEW...............................Error! Bookmarknot defined.
  8. 8. VII 3.1. SAUDI ARABIAN AIRLINES: ..............Error! Bookmarknot defined. 3.1.1. SPECIAL AWARDS:.......................Error! Bookmark not defined. 3.1.2. STRATEGIC BUSINESS UNITS (SBUs): ......Error! Bookmark not defined. 3.1.3. SERVICES:.....................................Error! Bookmark not defined. 3.1.3.1. GROUND SERVICES:.............Error! Bookmark not defined. 3.1.3.2. INFLIGHT SERVICES:............Error! Bookmark not defined. 3.1.4. CLASSES OF TRAVEL:................Error! Bookmark not defined. 3.2. SKYTEAM:............................................Error! Bookmarknot defined. 3.3. SKYTRAX: ............................................Error! Bookmarknot defined. 3.4. IATA (INTERNATIONAL AIRTRANSPORT ASSOCIATION): ...............................................................Error! Bookmarknot defined. 3.5. SOUTHERN TRAVELS PVT. LTD.:.....Error! Bookmarknot defined. 3.6. SAUDI ARABIAN AIRLINES G.S.A. BRANCH OFFICE PESHAWAR, KPK, PAKISTAN:...........Error! Bookmarknot defined. 3.6.1. EXECUTIVE SUMMARY:..............Error! Bookmark not defined. 3.6.2. DEPARTMENTS:............................Error! Bookmark not defined. 3.6.2.1. ACCOUNTS:...........................Error! Bookmark not defined. 3.6.2.2. SALES DEPARTMENT:..........Error! Bookmark not defined. 3.6.2.3. RESERVATIONS & BOOKINGS DEPT.:..... Error! Bookmark not defined. 3.7. DEFINITIONS:......................................Error! Bookmarknot defined. 3.7.1. E-TICKET:......................................Error! Bookmark not defined. 3.7.2. TICKET NUMBER:.........................Error! Bookmark not defined. 3.7.3. PNR (PERSONAL NAME RECORD):...........Error! Bookmark not defined. 3.7.4. FLIGHT NUMBER:.........................Error! Bookmark not defined. CHAPTER-4:....................................................Error! Bookmarknot defined.
  9. 9. VIII ANALYSIS........................................................Error! Bookmarknot defined. 4.1. GENERAL ANALYSIS:.........................Error! Bookmarknot defined. 4.1.1. SWOT ANALYSIS:.........................Error! Bookmark not defined. 4.1.2. PESTLE ANALYSIS:......................Error! Bookmark not defined. 4.2. FINANCIAL ANALYSIS: .....................Error! Bookmark not defined. 4.2.1. PASSENGER LOAD RATIO:..........Error! Bookmark not defined. 4.2.2. RATIO OF FLIGHT OPERATIONS CARRIEDOUT BY SAUDIA IN KSA: Error! Bookmark not defined. 4.2.3. RATIO OF CARGO OPERATIONS CARRIEDOUT BY SAUDIA IN KSA: Error! Bookmark not defined. CHAPTER–5:....................................................Error! Bookmarknot defined. CONCLUSION & RECOMMENDATIONS......Error! Bookmarknot defined. 5.1. SAUDI ARABIAN AIRLINES: ..............Error! Bookmarknot defined. 5.1.1. ORGANIZATIONAL:......................Error! Bookmark not defined. 5.1.2. FUNCTIONAL:...............................Error! Bookmark not defined. 5.1.3. TECHNOLOGICAL:.......................Error! Bookmark not defined. 5.1.4. HUMAN RESOURCE:....................Error! Bookmark not defined. 5.1.5 OPERATIONAL:.............................Error! Bookmark not defined. 5.2 SAUDI ARABIAN AIRLINES G.S.A. SOUTHERNTRAVELS Pvt. Ltd. PESHAWAR, PAKISTAN:.............Error! Bookmarknot defined. 5.2.1 ORGANIZATIONAL:......................Error! Bookmark not defined. 5.2.2 FUNCTIONAL:...............................Error! Bookmark not defined. 5.2.3 TECHNOLOGICAL:.......................Error! Bookmark not defined. 5.2.4 HUMAN RESOURCE:....................Error! Bookmark not defined. 5.2.5 OPERATIONAL:.............................Error! Bookmark not defined. RECOMMENDATIONS:..................................Error! Bookmarknot defined. APPENDIX........................................................Error! Bookmarknot defined.
  10. 10. IX DATA SOURCE FOR TABLES 1-4:..............Error! Bookmark not defined. BIBLIOGRAPHY: ............................................Error! Bookmarknot defined.
  11. 11. 10 LIST OF ACRONYMS  AACO Arab Air Carrier Organization.  BBA Bachelor of Business Administration.  BODs Board of Directors  CEO Chief Executive Officer.  CRM Crew Resource Management  DC Douglas / Dakota (model name of aircraft)  Email Electronic Mail.  Franklin D. Roosevelt Franklin Delano Roosevelt.  G.S.A. General Sales Agent  GM General Manager.  GS Ground Services.  Hons. Honors.  IATA International Air Transport Association.  IMS Institute of Management Studies.  ISO International Standards Organization.  IT. Information Technology.  KSA. Kingdom of Saudi Arabia  LTD. Limited.  No. Number  PIA Pakistan International Airline.
  12. 12. 11  PNR. Personal Name Record.  PVT. Private.  SAA Saudi Arabian Airlines.  Saudia Saudi Arabian Airline IATA name.  SMS Short Messaging Service.  SOPs Standard Operating Procedures.  SV Saudi Arabian Airline IATA Code.  U.S. United States of America  UOP University of Peshawar.  VIP Very Important People.
  13. 13. 12 LIST OF TABLES, GRAPHS AND CHARTS Figure 1: SkyTeam Alliance Members...................Error! Bookmark not defined. Figure 2: SkyTeam Logo.......................................Error! Bookmark not defined. Figure 3: SKYTRAX Logo.......................................Error! Bookmark not defined. Figure 4: IATA Logo.............................................Error! Bookmark not defined. Figure 5: Executive Summary: Saudi ArabianAirline, G.S.A. Peshawar.........Error! Bookmark not defined. Table 1: Calculation for Total Seating Capacity of the Fleet..Error! Bookmark not defined. Table 2: Ratio of Passenger Loadin Trends...........Error! Bookmark not defined. Table 3: Percentage Ratio of Flight Operations carried out by Saudia in KSAError! Bookmark not defined. Table 4: Percentage Ratioof CargoOperationscarriedoutbySaudiain KSA ..........................................................................Error! Bookmark not defined. Graph 1: Percentage Passenger Load Ratio...........Error! Bookmark not defined. Graph 2: Percentage Ratio of Flight Operation carried out by Saudiain KSA Error! Bookmark not defined. Graph 3: Ratio of Cargo Operation Carried out by Saudia in KSA Error! Bookmark not defined.
  14. 14. 13 CHAPTER – 1: INTRODUCTION TO THE REPORT This internship report is in accordance with the mandatory academic internship of eight weeks in a recognized organization. The internship is then followed by report writing which is an integral part in fulfillment of Bachelors of Business Administration (Hons.) as regulated by Higher Education Commission of Pakistan. The report is to be assessed and analyzed by the respective institute / department at which the internee is pursuing his bachelor degree. Therefore, this report is submitted to the Research and Development Division(R&DD) of Institute of Management Studies, University of Peshawar. The report is written under supervision of an experienced and qualified faculty member. The report is analyzed and properly evaluated according to the rules and standards of report writing. This report is being written upon Saudi Arabian Airlines, the leading airline of Gulf region. It specifically focuses upon its operations in Pakistan, particularly form Peshawar, Pakistan. Saudi Arabian Airlines has a General Sales Agent office at Peshawar Cant. Pakistan.
  15. 15. 14 1.1. BACKGROUND OF THE STUDY: The study is based upon the verbal and non-verbal experiences and information gained at Saudi Arabian Airlines G.S.A. Peshawar Cantonment. This office is owned by Southern Travels Pvt. Ltd, Pakistan. Southern Travels is the appointed General Sales Agent of Saudi Arabian Airlines in Pakistan. The airline has outsourced its Sales and Ticketing through Southern travels in Pakistan’s various cities. Southern Travels is a growing well reputed Sales Agent of the region. Both, the airline and the agent have strict data and information sharing policies, therefore, the report consists of only those data which is publicized by both the companies. Organizational, SOPs are being observed while writing the report. 1.2. PURPOSE OF THE STUDY: Aim of the study is to work in real life situation and to apply management skills. This report is based on the study carried for the fulfillment of the degree requirement of the Bachelor of Business Administration (BBA Hons.) at the Institute of Management Studies, University of Peshawar. In this context its objectives are:  To understand the various operations of Saudi Arabian Airlines in general, its functions and operations in Pakistan particularly.
  16. 16. 15  To perform operational and financial analysis of the Airline, SWOT analysis, general and financial analysis of the airline in Pakistan’s perspective.  To make recommendations in accordance with the results of analysis being performed.  To provide an overview of the airline compared to its competitors. 1.3. SCOPE OF THE STUDY: As discussed, the study is restricted to an overview of the basic operations and functional structures of Saudi Arabian Airlines at G.S.A. Peshawar, Pakistan. So the report does not include detailed description of all the operations which are carried out at/by Saudi Arabian Airlines. Similarly, the general and financial analysis is also being performed on the basis of parameters and variables existing at Peshawar, Pakistan specifically. 1.4. LIMITATIONS OF THE STUDY: This study was conducted in accordance with the objectives of the study. The study may not include broad explanations of facts and figures due to the limited access given to an internee during a short span of just eight weeks. The limitation which affects the study is the restriction on mentioning every fact is due to the problem of secrecy. Also the availability of required data is a problem as all the documents and files are
  17. 17. 16 kept strictly under command and control of the managers due to their confidential nature. The problem of short time period also makes the analysis restricted as one cannot properly present and write a detailed comprehensive report in a short period of time to describe each and every operation of a multinational operating airline whose operations are spread over continents. Moreover, no financial statements or annual reports are available publically of the airline; therefore, in the financial analysis effort is being made to perform an analysis based upon figures and in accordance with the company’s standard operating procedures. It has been consciously observed that no data is incorporated in the analysis that misleads company’s statistics or strategy. 1.5. METHADOLOGY OF THE STUDY: The data collected for analysis and review includes both primary and secondary data. The methods used for collecting primary and secondary data are as follows: 1.5.1 PRIMARY DATA: Data collected for the first time is called primary data. Therefore, the data is collected through the following techniques:  Through observation of staff / floor operations.  Discussions with concerned officers.  Formal and informal interviews with various managers / officers.
  18. 18. 17  Company’s brochures / pamphlets.  Interaction with customers.  Personal experience of the system and operations when given access. 1.5.2 SECONDARYDATA: The data collected by someone else and that has gone through mathematical and statistical techniques is called secondary data. In secondary data collection, following techniques have been incorporated for data collection:  From working manual.  Brochures and pamphlets.  Job working orders  Websites  Airline manuals.  Annual reports (available ones only).  Customer responses / feedbacks.
  19. 19. 18 1.6 SCHEME OF REPORT: The report has been divided into five sections for better understanding and comprehensive explanation of the operational and functional aspects of Saudi Arabian Airlines. The classification is in following order: Chapter-1: This chapter covers the basic introduction to the report, mainly the abstract of the report. Furthermore, it covers the background of study, its purpose, scope, limitations, methodology as well as the scheme of the study. Chapter-2: This chapter gives a brief introduction to the airline i.e. Saudi Arabian Airlines. It has described about the mission, vision, history, slogan, organizational history, evolution and development. Chapter-3: This chapter consists of a complete overview to the airline, its operations carried out all over the world, products and services, its SBUs, awards, alliances with global travel partners and agents, its operations in Pakistan. Furthermore, it also sheds light upon the introduction and Executive summary of Southern Travels Pvt. Ltd., the appointed G.S.A. of Saudia in Pakistan. A brief introduction to G.S.A. Peshawar is also been given in the chapter. Chapter-4: In this chapter, general and financial analysis is being performed through methods like SWOT analysis, PEST analysis, consisting of various variables and parameters. The reports are being made in accordance with the data available.
  20. 20. 19 Chapter-5: In this chapter, we summarize the findings and recommendations. Suggestions assumed to be the possible solutions to a few problems that were reported and noticed during internship experience are made. The chapter also suggests some recommendations for further improvement in the performance, which are both in quantitative and qualitative terms.

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