The document discusses Pakistan International Airlines (PIA) and provides details about its history, vision, mission, organizational structure, departments, current issues, and recommendations. It summarizes that PIA has faced significant losses in recent years, declining market shares, an aging fleet, and issues related to leadership, recruitment practices, and rising costs. Recommendations include decentralizing PIA's structure, adopting merit-based promotions, empowering employees, purchasing new aircraft, reducing overhead costs, and implementing a participative leadership style.

2. Group Members:
Mubashar Maqbool 32
Shazma Rauf 14
Umair Aamir 36
Qadir Abbas 39
M.Zafar Hayat 12-20

3. Table of Contents
 Introduction of organization
 Mission & Vision
 Products and services
 Organizational Structure
 Departments of PIA
 Crisis of PIA
 Reasons for collapses
 Recommendations

5. In 1946 M. Ali Jinnah realize
the need of airline with the help
of industrialist Mirza Ahmad.
1947 granted a license to PIA.
First flight from Karachi to
Dhaka on 7 June 1954.

6. In 1955 Orient
airways merged
with Govt
proposed airline
and become
PIA
Corporation.

7. In 1960 PIA become first
Asian airline to use Jet aircrafts.
In 1961 services begun to New
York airport.
In 1964 first flight to Republic
of China.
In 1970 find new destination
due to war of 1971.
In 1974 provide Air freight
services.

8. In 1975 introduce Uniform for airhostess designed
by Sir Hardy Amies.

9. In 1980 open cargo
center in Karachi.
In 1981 offer duty free
sale services.

10. Vision and Mission
PIA’s vision is to be world class airline exceeding customer expectations
through dedicated employees, committed to excellence, innovation
products and absolute safety.
• PIAC’s mission statement as follows:
• Employee teams will contribute towards making PIA a global airline of
choice through
• Offering quality customer service and innovation products.
• Using state of the art technologies.
• Ensuring cost effective measures in procurement and operations.
• Development safety culture.

11. 9
Nasser N S Jaffer
Member, PIA Board of Directors
Chariman , PIA
Ghiasuddin Ahmed
Member, PIA Board of Directors
Member of PIA Board′s Audit Committee,
Board′s Human Resource & Remuneration
Committee and Board′s Customer Services
Committee

12. National flag tail introduced
by PIA

13. Pakistan International Airlines Corporation
(PIAC) is majority owned by the Government
of Pakistan (87%) and (13%) by private
shareholders.

15.  Jinnah International Airport, Karachi.
 Allama Iqbal International Airport, Lahore.
 Islamabad International Airport.
 Peshawar International Airport
 Faisalabad International Airport
 Quetta International Airport
 Multan International Airport

16. PIAFleet:
6 x ATR 42-500
9 x Airbus A310-300
3 x Airbus A320-200
1 x Boeing 747-300
4 x Boeing 777-200ER
2 x Boeing 777-200LR
3 x Boeing 777-300ER

17. Bahawalpur
Faisalabad
Hyderabad
Islamabad
Karachi
Lahore
Multan
Nawabshah
Peshawar
Quetta
 Rahim Yar Khan
Sialkot

18. London
Paris
New York
Chicago
Dubai
Jeddah
Kuwait
Medina

19. PIA-ACT

20. 20
ORGANIZATION HIERARCHY
Human Resources Corporate Planning
Flight Operations Marketing
Airport Services Finance
Flight Services Financial monitoring and Appraisal
Work Store Purchases
Information Technology Engineering
Quality Assurance Coordination
Presicion Engineering General Services
Chairman/CEO
Board of Directors

21. 10
 Marketing and sale promotion
 Finance
 Human resource
 Cargo
 Information technology

22. 11
 Marketing departments at PIAC are generally directly under control of SVP
and administratively under the control of district manger.
 The SVP marketing at head office advices the managing director (MD) on
the development of corporate plans and long term strategic gains from this
department.
 Marketing department of PIAC divided into two sections name
as
 Passenger section
 Cargo section

23. 12
Passenger sale section further divided into two section name as :
Passenger sale section
Passenger service section
The Passenger Sales Manager (PSM) who is assisted by four
Sales Promotion Officers (SPO) and one Assistant Passenger
Sales Manager heads the PAX (Passenger) Sales Section.

24. 13
 It is headed by director of finance (CFO).
 It is also responsible for internal audit of PIAC.
The duties and functions of a typical finance department can be classified into
two generic categories:
 Planning
 Controlling.

25. 14
 Revenue accounting
 General accounting
 Budget and financial management
 Fund management

26. 15
Hierarchy of finance department
Finance
manager
Assistant
finance
manger
Head of
revenue
section
Head of
disbursement
section
Head of
agency
section
Head of
payroll
section
Head of
reconciliation
section
Head of
refund
section
Head of
miscellaneou
s transaction

27. 16
 Revenue section
 Disbursement section
 Agency section
 Pay roll section
 Reconciliation section
 Miscellaneous transaction section
 Refund section

28. 17
 Human resource management
 legal
 Works and project
 Medical
 Organization development
 Industrial relation
 These six divisions are headed by human resource director.

29. 18
 Pakistan international airline corporation provides domestic and
internationals cargo services to customers.
 Share of domestic business is only 5% and international cargo share
is 95% of total cargo share.
 Cargo has main stake in whole revenue of PIAC is 15% of total.
 There are two sections in cargo department
 Cargo sale
 Cargo handling

30. 19
 The role of this department is confined to the problems related to the
computers and communication in the airport and offices of PIA as well
 Two software’s are used for this purpose:
 SABRE”, software, is used for Ticketing and Reservation
 “AVIVA”, software, is used for cargo purpose
 Wireless net is connected in the following routes:
 From Airport to I.T Room
 From Airport to Cargo
 From Airport to Engineering
 From Airport to Store

31.  During the last year Pakistan International Airlines (PIA) has stained a loss of
PKR13.4 billion ($207.5 million).
 Operationally, it was also blacklisted by the European Union during the year,
which hit its bottom line along with its prestige
 During the last four years the company has beard the accumulated loss
in excess of 30 billion rupees, while its total debt is almost reaching 1 billion $.
 PIA has lost its market share in domestic airline market, which has dropped to
69 % .
 Market share in the international market dropped from 48 to 43 %.
 PIA is currently facing a loss of approximately 40 million/day.

32.  Leadership and decision making in PIAC
 Delegation Of tasks
 Power and Politics
 Employee Attitude
 Over recruitment
 De-motivated employees
 Nepotism and Political involvement during recruitment and selection
 Lapses in the management

33.  Low scale advertisements and awareness
 Government’s and Civil Aviation authority’ policies
 Rising fuel prices in the World
 Aged fleet
 Maintenance problems
 Corruption at its peak
 Less technology advanced as compared to its competitors
 Poor image
 Lack of training facilities
 Culture
26

34. 30
 PIA should decentralize its structure
 PIA should convert its different departments into Strategic Business Unit.
 PIA should adopt transparent policy that employees should be promoted on
merit basis.
 Chairman of PIA should be appointed from within the organization.
 PIA should make efforts towards empowering the employees that is going to
lead to more employee participation in the decision making process and also
result in more employee satisfaction and enhanced motivation.
 PIA should purchase new fleets.
 PIA should reduce its overhead cost by immediate downsizing.

35. 31
 PIA should make a proper check and balance system on its employee’s performance.
 To motivate the front line employees because they have direct relation with the
customers.
 Latest technology should be adopted for its operating system and different software
must be used in different departments.
 Total quality management should be catered to within the work groups and
implementation of various skill enhancement programs for quality and productivity
improvements.
 Autocratic Style must be changed to Participative Leadership.
 Minimal Delegation of authority should be maximized.
 Top-down approach should be replaced with two-way communications.