Professional Documents
Culture Documents
Corporate Mission
Core Values
Customer Expectations
Service
Innovation
Reliability
Cohesiveness
Integrity
Social responsibility
While Mr. M.A. Ispahani was the first Chairman of the new
dynamic airline; it was the first Managing Director of PIA, Mr.
Zafar-ul-Ahsan, who in his 4 year tenure, got the ball truly rolling
and set the shape of things to come. The PIA Head Office building
at Karachi Airport, which houses all the major departments of the
airline, was the brain-child of Mr.
Zafar-ul- Ahsan. In fact, on his
departure from the airline, the
employees presented him with a
silver replica of the building with
the caption, "The House You
Built".
BOARD OF DIRECTORS
Ch. Ahmed Mukhtar
Minister for Defense and Chairman – PIA
Mr Javed Akhtar
Mr Mubashir Iftikhar
Mr Husain Lawai
Mr Salman Siddique
Mr Muhammad Shuaib
Secretary-PIA
MANAGEMENT
Managing Director
Captain Mohammad Aijaz Haroon
Director - Marketing
Mr. Imran Ahmed Khan
Director
Mr. S. Kamran Hasan
No. of Aircraft 6
No. of Aircraft 9
No. of Aircraft 12
No. of Aircraft 7
Domestic Net work – 24 Destinations
International Network - 36+2 Destinations
DEPARTMENTS OF PIAC
PIAC Airline has been divided into the following function units.
Administration
Finance
Marketing
Engineering
Flight Operations
Airport Services
Flight Services
Coordination
Personnel Division
Sports Division
Finance Department
Finance department is one of the biggest departments in the
airline, which is responsible for provision of efficient and effective
accounting/budget. The feasibility of extending financial,
administrative, technical facilities is control by this department. It
is also responsible for internal auditor of PIAC. It has further
divisions, which are as under:
Accounting
Internal Audit
Marketing Department
It looks after development of Marketing Plans & Policies. This
department performs all marketing functions. Subdivision is given
below:
North (KHE) Division
UK (LON) Division
Engineering Department
This department takes care of planning, base/line
maintenance and overhauling of whole of the PIA’s fleet. To keep
pace with the new technology, it has a special branch named as
“Development Engineering” to meet the future challenges in the
sphere of avionics. Following are its further subdivisions:
Planning and Project Division
North Division
Standards Division
Technical Division
Coordination Division
Training Division
North Division
given blow:
Coordination Department
The purpose of Coordination Department, which is headed
by Director Coordination, is to coordinate all matters received
through Government of Pakistan. Co-ordination playing very
important role in airlines so PIAC as has well established co-
ordination department so it may run it’s business affairs swiftly.
Which brings more productivity and positive working relations
with the Government departments.
Recruitment and Selection:
Recruitment is the discovery of the potential applicants for
actual or anticipated positions. The vacancies are created after the
approval of the finance department. The PIA recruitment and
selection procedures involve the following:
i) Recruitment Policy:
The recruitment policy given the following conditions for
recruitment:
The age limits for the recruits are between 18-26
The educational qualifications of the employee.
Officers (Executive Category) Master Degree /MBA/MPA
/BBA(honors)
(Any recognized University by Federal Govt.)
Assistant Officers/below Category Matriculation to B.A./B.Sc
ii) Sources of Recruitment:
Whenever a vacant position is available, the head of
department make reviews of the existing personnel and carry out a
search within the organization for suitable persons before trying the
outside sources. But if a person with the required qualifications for
a given job is not available, fresh recruitment is made.
iii) Techniques of Recruitment:
The vacant posts are advertised through the local and
national newspapers and applications are invited with the job
specification and description showing the job requirements and
eligibility.
iv) Selection Procedure:
The selection process is concerned with the securing relevant
information regarding the applicant. The selection procedure uses
the screening devices so that the most efficient and professional
employees should be available to the organization. The selection
procedure in PIAC is based upon three important principles,
namely:
I. Competence
II. Equality of Opportunities
III. Neutrality
The following screening devices are used in the PIAC during
the selection process.
a) Application Blank:
Each applicant blank provided by the Admin. Department.
The application form has to be filled by the applicant in his own
handwriting submitted to the admin dept before a specific date. The
format of the application blank is given in the appendix. In the
application, the personal data, educational qualifications and
experience etc. of the applicant is give.
b) Test:
These applications are scrutinized and the candidates passing
through the security are called for a written test. The test s
conducted by a Board from the Head Office with the assistance of
the Administration department at the concerned stations.
c) Interview:
Those qualifying the written test are called for an interview
administered by the selection board assisted by the administration
department.
d) Physical Examination:
There is usually a formal physical examination of the
candidates. Another requirement is the submission of a formal
Medical Fitness Certificate from a doctor.
e) Approval by the Competent Authority:
After going through the whole process of selection, the list
of recommended applicants is sent to the competent authority for
approval.
f) Offer of Appointment:
After the approval, the Administration Department notifies the
decision to the candidates through a “letter of appointment”.
g) Orientation Period:
After appointment, the employees go through an orientation
period i.e. Probation, for MBA/MPA/BBA/BPA (honors) as
executive the period is 5 weeks. And for employees of under-
officer class, the period is 3-6 months.
h) Confirmation:
After successful completion of the orientation period, the
employees apply for confirmation to a competent authority.
2009 2008
Current Ratio = 16880.56/68817.62
15039.28/72528.40
= 0.25 0.21
Current Ratio
1.2
1
0.8
Ratio
0.6
0.4
0.2
0
2009 2008 2007 2006 2005 2004
Years
Interpretation
Current ratio is less than one only in year 2004 it is above one that’s why
currently our asset are not enough to pay our obligation.
5
0
Loss (Rs)
50
40
30
Rs
20
10
0
2009 2008 2007 2006 2005 2004
Years
Interpretation
For consecutive five years corporation is facing loss it means no earning
or share holder only in 2004 share holder earn some money on their share
.Although net asset per share are increasing but it does not have any
impact because obligation are also increasing.
Revenue per employee =operating revenue /average no of employee
2009 2008
5269938 4926994
6000000
4000000
Rs
2000000
0
2009 2008 2007 2006 2005 2004
Years
Interpretation
Corporation’s revenue per employee is increasing which shows that if
employee’s efficiencies are increased corporation can achieve more
profits
2009 2008
94563765/160013178 88863258/139669867
0.59 0.64
0.65
0.6
ratio
0.55
0.5
2009 2008
years
Interpretation
This ratio is decreasing because of inefficiency of corporation in utilizing
its resources well .corporations main assets are its plains air ports
buildings& hotel .if we take an example of air port Peshawar air port
remains closed because of terrorist attack for long duration and also few
air ports are built on political basis which are not yielding as required.
Cash ratio= cash & bank balance/current liabilities
2009 2008
742945/68817616 789555/72528401
0.107 0.0108
cash ratio
0.01085
0.0108
ratio
0.01075
0.0107
0.01065
2009 2008
year
Interpretation
Cash ratio shows that in last year corporation was in good position as
they have more bank deposits the decline in deposits is because of
payments of installments of borrowings &also because of intake of
employee sacked out of organization in past.
Fixed asset turnover =operating revenue/fixed asset
2009 2008
94563.77/133647.52 88863.26/115123.49
0.71 0.77
0.78
0.76
ratio
0.74
0.72
0.7
0.68
2009 2008
year
Interpretation
Fixed asset turn over ratio is also not showing healthy trend as
corporation is not utilizing its recourses well many of its air ports &other
assets are built on political basis that’s why they are not better source of
revenue but proving them selves as a burden on corporation s ability to
produce profit.
7978187/160013178 5757849/139669867
0.498 0.0412
0.06
0.04
ratio
0.02
0
2009 2008
year
Interpretation
This ratio shows that corporation is acquiring more debts on
their asset which is not healthy sign as this trend can lead an
organization to be washed out of the seen. This is all because of
Losses, Corporation facing that’s why they are acquiring more
debts to to cover their expense and also to pay out borrowing
installments.
PIA PERFORMANCE
PIA increases its over all capacity by 1.7% while its passenger traffic
declined by 0.24%over the last year which caused 1% decrease in seat
factor. The closure of Peshawar air port also reduced the number of
flights consequently the seat factor.
Interpretation
In common size analysis we analyze the data in vertical shape for that
purpose largest figure of balance sheet is taken as denominator.
Assets analysis of balance sheet shows that in non current assets fixed
assets increases every year as they constitute a huge part of total
assets.
In current asset we can see that trade debts are increasing and cash
&bank balance is decreasing .corporation is losing its bank balance as
it is not generating profit.
BALANCE SHEET COMMON SIZE %
Interpretation
If we look at the total equity figure we can see corporation is carrying
huge figures in the form of loss they are opting for long term finances
so that grace period for repaying should be long, deffered liabilities
are increasing with every passing year most of the assets including
plains are subjected as guarantee in order to get finances mark up on
interest is increasing because of the devaluation of local currency.
Interpretation
In common size analysis of profit & loss account we take revenue as
denominator.
Profit &loss account Shows Company paid a lot in 2008 in the form of
fuel expense as fuel prices were rising in the whole world devaluation
of currency is also an important aspect in this regard. In 2009 gross
profit figures were high as company generate more revenue and
minimizes its expenses although administration expenses rises because
of the intake of sacked employee’s again re employed.net losses of
2009 are very much less than 2008 but not enough to put corporation
in better condition.
Suggestions
BIBLOIOGRAPHY
1. www.piac.com.pk
2. http://en.wikipedia.org/wiki/Pakistan_International_Airlines_destin
ations
3. http://en.wikipedia.org/wiki/Pakistan_International_Airlines
4. Annual report of PIAC 2008 2009.
5. www.google.com
6. HR, Finance, Sales promotion Departments Multan office.
7. special thanks to Mr. javed akhtar sheikh head finance department
Mr. Irfan manager sales promotion
Mr kaleem sidiqui senior manager HR department
Ch abdul hamid accounts officer