How Pakistan International Airline is using Transaction Processing System in managing tickets.

1. Case
Study:
PIA
March 13
2014
Brief study on How PIA is using
Transaction Processing Systems in
tickets
Group Members:
Abdullah (10658)
Cyrus Variava (9926)
Sameen Salman (9929)
Sidra Kanwal (10792)
Date: 13th
March, 2014

2. 2 | P a g e
Pakistan International Airline
Company Profile:
Pakistan International Airlines also known as
PIA was initially state- owned enterprise but
now it has been partially privatized. Its
Headquarter is at Jinnah International
Airport in Karachi. It offers its services to 24
domestic destinations and 38 international
destinations in 27 countries across Asia, Europe
and North America. Its main presence is at
Karachi, Lahore and Islamabad/Rawalpindi
PIA was the first Asian airline which operated a
jet aircraft and Boeing 737 aircraft. It is currently undergoing through a procedure
of privatization. PIA is in limelight because of a controversy that they have employees more than
required. They have employed 18,043 people and still they are recruiting people.
 Vision
PIA’s vision is to be a world class profitable airline meeting customer expectations through
excellent services, on-time performance, innovative products and absolute safety
 Mission
Offering quality customer services and innovative products
Using state-of-the-art technologies
Ensuring cost-effective measures in procurement and operations
Developing Safety Culture
PIA is experiencing a little growth, but its aging armada is emerging in losses. Increasing
number of flights have been postponed due to maintenance problems, is traveling by air, given
the choice of PIA or external carriers, passenger preferred others. PIA was the First airline in the
world to use scheduled helicopter services and also the first airline in South Asia to introduce
auto-ticketing facility.
It was crucial that PIA modernize its fleet and introduce modern technology into business model.
However more recently, the privatization commission of PIA approved 26% shares to be sold to
a strategic investor.

3. 3 | P a g e
How is PIA using TPS in ticketing?
PIA has outsourced their online activities to SabreSonic Web – Sabre Airline Solutions. They
use real-time TPS for their online ticketing service, reserving the passenger’s seat and
maintaining customer database. The essence of having TPS is that it manages data which has to
be left in a consistent state. So for example if an online transaction takes place from one account
to another then the system must either update the accounts or none of them at all.
The process occurs as such that the customer on a computer device accesses PIA’s website,
chooses his or her flight and has an option to use a promotion code if available at that time. Then
he gets an option of giving his personal details and then mode of payment via Visa or Master
Card. Finally he or she receives a confirmation message on their phone and email with the flight
details.
What TPS does is that not one customer at one time is looking for seats so when one customers
looks at a vacant seat, it should be locked for other customers until the person reserves it. So that
customers do not look at the same seat as empty when in reality it is actually getting booked. So
integrity is maintained.
How is PIA Benefiting from TPS?
TPS helps them to process data extracted by and about the transactions like processing orders,
purchasing equipments of material (engine, generator or fans).It reduces the time stress level for
the Airline reservation system to make sure that data of the customers or the suppliers are current
and can be used for the future analysis.TPS helps PIA to produce documents or the reports, for
example order slip, inventory updates, paychecks this helps PIA to perform routine business
transactions.PIA also takes the advantage of the software that helps them to reduce the
processing time.
This leads to increase in checkout efficiency, another benefit would be utilizing that information,
processed and stored by TPS in strategy building, identifying key clients who are the main
source of revenue generation of the firm and targeting those specifically to offer them better
facilities and special services in order to increase satisfaction and customer base. TPS brings,
accuracy, timeliness, helping in cutting labor costs and serves as a competitive advantage for the
firm. Data integrity is another benefit as mentioned previously, when multiple users are
accessing the system for booking, then the seat being looked upon should be locked for others so
that error doesn’t occur. This is the main feature of TPS for PIA as multiple users are protected
from attempting to change the same part of information at the same time; i.e. one seat cannot be
booked by or sold to two people on a flight.

4. 4 | P a g e
Recommendations for Similar firms to use TPS:
PIA is successfully using TPS, and the impact of that is substantial. PIA provides choice of Easy
Paisa for transaction of tickets, which provides greater customer value. Other firms in the
industry must make use of their TPS to gain competitiveness and of course for internal
processing to be error free and free flowing. A few recommendations for other firms would be;
Other firms in this industry, such as Shaheen, Indus, Air Blue, there is a potential for
using TPS and use the information of clients acquired through TPS in strategy building,
MIS etc.
Incorporate E-ticketing as a part of TPS of the firm, as it doesn’t only help the company
run smoothly but also guarantees customer satisfaction.
Using TPS will facilitate effective internal processing.
Outsourcing the system if the firm doesn’t have the required system sophistication.
If building in-house system then, Using Programmed Airline Reservations System (if
applicable) from IBM for airline reservation which is an online real time system.