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PRESENTED TO:
OUR HONORABLE TEACHER
SIR ASAD BUTT.

PRESENTED BY:

ZOHAIB NASIR LODHI : M-

14208

HARIS SULEMAN : M-
13892
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TABLE OF CONTENTS
• ORGANIZATIONAL PROFILE….…………………………………..PAGE#7

• MISSION AND VISION STATEMENT....……………………….PAGE # 8

• INTRODUCTION …..………………………………………… ….PAGE #9

• HISTORY …………………….………………… ………….……. PAGE #10

• PURPOSE AND TRADE MARK………….………………….. …PAGE #12

• EXTERNAL ENVIRONMENT/ PEST ANALYSIS..….……….. PAGE #14

• SWOT ANALYSIS...………………………………..…………….. PAGE #15

• CONCLUSION ………………………………………………………PAGE#40

• Recommendations andSuggestions…………...………PAGE#41
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ACKNOWLEDEMENT

We would like to thank our course instructor SIR

ASAD BUTT for guiding and encouraging us in every
step of making of this project. Has his
encouragement been not there we would never have
been able to complete this project? We would also
like to thank the management of Shaheen air line
(SAI).
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EXECUTIVE SUMMARY:

In 1955 Pakistan International Airline formed. It is the 16th largest airline in Asia,
operating scheduled services to 73 destinations throughout Asia, the Middle East, Europe
and North America, as well as an extensive domestic network linking 24 destinations.

PIA is three stars International Airline. In our report we did SWOT analysis and PEST
analysis on PIA, identify major strength we find as leading market position, brand
recognition, superior operating structure, network presence, hub airport at Karachi, and
effective use of technology. Formulation on GOVT rule, High dependencies on passenger
revenues, high debt, and reliance on oil prices are major weakness, opportunities are like
having MAX route and fleet, growth demand for low cost airline, customer loyalty,
shifting customer needs and industry recovery, and major threats are high interest rates,
accidents, strong competition by Air blue, interest and foreign currency exchange rates,
and decline in industry. In PEST analysis we discover major Government’s active role in
increasing competition in the airline industry, inflation rate, turning of social environment
of Pakistan liberal with the new regime. Innovation in technology, and its impact on
distribution and cost synergies from industry consolidation.

We recommend PIA for better service to decentralized its management system, develop
SBUs, adopt transparent promotion polices, employee empowerment to increase the
employee motivation and moral. Try to decrease its overhead cost, adopt effective
marketing policy, two way communication and TQM. Upgrade its fleet; purchase new
Airplane with twin engines these will reduce the operating cost of PIA. Improve control
over fares. Hire the services of IT specialists; improve service standards focusing on
quality.
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ORGANIZATIONAL PROFILE

Type : Public Limited

Founded : 1993

Head Quarter : Jinnah International Airport

Karachi, Pakistan

Fleet size : 12

Destinations : 13 (5 Domestic, 8 International)

Industry : Pakistani private airline

Key people : Khalid Mahmud Sehbai

(Chairman & CEO)
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Mission Statement
SAI.s mission is to provide reliable, efficient and courteous
service to its passengers at a competitive price.

Vision
Our vision is achieving robust and consistent profitability;
expand our wings, farther through sustained efficient
service and to be a paradigm for other airlines.
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INTRODUCTION:-
Shaheen Air International Limited (SAI) is established as a public limited company under
the Companies Ordinance, 1984. It is mandated to carry on business of air transportation
of passenger and cargo. It commenced its operations as the first Pakistani private airline
in December, 1993.

ACHIEVEMENTS:-

As a start up airline, SAI commenced its business modestly on 10th December,

1993 with a single domestic sector of Karachi-Islamabad-Karachi with two wet
leased Boeing 737-200 aircraft. However before long, it caught the eye of the
government which accorded it the status of the Second National Carrier on 23rd
October, 1994. Since then it has not looked back and has grown tremendously
while bravely facing the vicissitudes of volatile fuel market with untold resilience.
SAI has constantly reviewed its strategic plans and is continuously focusing on
improving its service, capacity and creating attractive and advanced business
environment for further growth. These include the following:

• Having experimented with Airbus and Russian aircraft SAI is presently operating
self owned 12 Boeing 737-200 work horse aircraft.
• Expansion of Domestic operations to Karachi, Lahore, Islamabad, Peshawar, and
International Operations to Dubai, Abu-Dhabi, Al-Ain, Sharjah, Muscat, Kuwait,
Doha, and Mashhad (Iran).
• Inter-line agreements with 25 foreign Carriers.
• Ensuring high quality maintenance service.
• Electronic reservation and departure system.
• Providing better service to passengers and achieving an average of 83% seat
factor.
• Establishment of its own high quality flight kitchen.
• Provision of in-house Cabin Crew training facility and personalized in flight
service.
• Enhancement of security, safety and human resources.
• Re-branding the airline, its logo, tasteful livery of the aircraft and graceful
uniform of the cabin crew.
• Promoting Islamic values through free distribution of elegant literature to the
valued customers.
• Enhancing .cargo service to secure regional and international market.
• Increasing flight frequencies.

FUTURE PLANS:-
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• The present Management under its dynamic leadership has under taken to
restructure the airline and plans to further revitalize operations through the
following measures:
o State of the art maintenance facility for Boeing 737 and other aircraft up to
.C. check.
o Simulator facility for Boeing 737-200 aircraft.
o Top of the line infra-structure for offices and related facilities.
o Modernizing its fleet and expend its operations to Europe and Canada.

HISTORY:-

Shaheen Air launched a new corporate image in 2006. This aircraft represents the new
livery currently used by the airline

In 2006, Shaheen Air International (SAI) became Shaheen Air and the airline introduced
a new livery and corporate website. The airline also introduced flights to Quetta from
Karachi. The Governor of Balochistan said that the improvement of air links was also
discussed in the ongoing talks between Pakistan and Iran and he has offered the
management of Shaheen Air to operate Quetta-Zahidan flights. Initially SAI operated
eight flight to Karachi-Quetta and Quetta-Lahore. He announced that SAI would also be
allowed to operate flights between Islamabad and Quetta. On May 22, 2006 the Civil
Aviation Authority stopped all flights of Shaheen Air as it owed millions of rupees to the
CAA. On May 25, 2006 Shaheen Air was cleared by the Civil Aviation Authority (CAA)
to resume its domestic and international operations. The clearance letter was issued by
CAA following receipt of the cheque from SAI towards payment of the outstanding dues.
On September 18, 2006 it was announced that Shaheen Air was to start a four times
weekly service from Islamabad to Robin Hood Airport Doncaster Sheffield in the UK.[2]
However, no flights were ever launched to Doncaster.
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1) SWOT ANALYSIS

STRENGTHS:

i) BRAND RECOGNITION:
SAI has high brand recall. It is recognized by
travelers all over the country. SAI is a national airline, operating passenger and cargo
services. SAI has earned the number one ranking in customer satisfaction. This strong
market position gives the company a scale advantage and helps it strengthen its brand
image.

ii) NETWORK PRESENCE:

SAI enjoys a strong network in key domestic and
international destinations. The company’s network includes three the major airports in
Pakistan, as well as major international airport such as Dubai International Airport.
Having a strong network means that SAI can generate traffic feed for both its domestic
and international Flights.

iii) HUB AIRPORT AT KARACHI:

SAI operates from its hub in Jinnah
International Airport, Karachi. Jinnah International is one of the world’s busiest airports
in terms of number of passengers carried. It is also one of the largest international
gateways to Asia. It is also the leading international air passenger (and cargo) gateway to
Pakistan. The company’s strong presences in airports with heaviest traffic levels in
Pakistan give it a competitive advantage.

iv) EFFECTIVE USE OF TECHNOLOGY:

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SAI has successfully incorporated

latest technology in all its systems, giving it an edge over competitors. SAI takes credit
for introducing most new technologies to the Pakistani market. It was the second carrier
in Pakistan to incorporate the c-ticketing system and the second in South Asia to
introduce self check in systems at the Jinnah International Airport, Karachi.

10.2) WEAKNESSES:

i) FORMULATION OF GOVT. RULES:

The Basic flaw of this organization is its
consolidation that is centralized system. The key policies, strategies and set of laws are
designed by the upper management. SAI centralizes structure lead to barrel between
different level of management, decreased motivation, and hard access to information.

ii) HIGH DEPENDENCE ON PASSENGER REVENUES:

Passenger revenues
accounted for 87 percent of the SAI’s total revenue in 2007. Cargo services allow airlines
to generate additional revenues from existing passenger flights. In addition, cargo
revenues are usually counter cyclical to passenger revenues and have lower demand
elasticity than passenger business, which allows airlines to pass on fuel price hikes to
customers.

iii) DEBT:
SAI has a significant amount of 30 billion debts. Current and future debts
could have important consequences for stakeholders of the company. For example, debt
could impair SAI ability to make investments and obtain additional financing for working
capital, capital expenditures, acquisitions or general corporate or other purposes.

10.3) OPPORTUNITIES:
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i) HAVING THE MAXIMUM ROUTE AND FLEET:

SAI is becoming the
maximum route and fleet domestic and international destinations network in Pakistan as
compared to its Competitors. Route and fleet expansion will positively impact the
company’s operations by increasing revenues.

ii) GROWING DEMAND FOR LOW COST AIRLINES:

The growing demand
for air travel is driven by lower fares and consumer confidence. A survey by International
Aviation Authority showed that ticket price is the number one criterion for passengers
when selecting a flight, well ahead of the availability of a non-stop service.

iii) SHIFTING CUSTOMER NEEDS:

The needs of air passengers are increasingly
changing, as they are becoming more and more price sensitive. If SAI succeeds in
making its prices more competitive, then the company will be able to gain significant
market share.

iv) INDUSTRY RECOVERY:

Market analysts believe that the global airline
industry will experience an upturn in fortunes over the next few years. This represents an
opportunity for SAI, as it could generate increased revenues and command market share
if it capitalizes on increases in demand.

10.4) . THREATS

i) HIGH INTEREST RATES:

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The past few years have seen State Bank of Pakistan

impose high as well as low interest rates to check inflation and the over heating of
Pakistani economy. Inflation in Pakistan may see another raise in the short-term.

ii) ACCIDENTS:
There is a bid threats of SAI is the Accidents of the air line. This is a
very high risk of the company and there is no safety for the accidents.

iii) STRONG COMPETITION:

SAI is now competing against carriers such as
Airblue and PIA. SAI remains Airblue’s strongest competitor because of the huge market
it has gained over time, strong brand image and customer loyalty.

iv) INTEREST AND FOREIGN CURRENCY EXCHANGE RATES:

Fluctuating
foreign currency exchange rates can have a significant impact on SAI’s earnings. For
example, as SAI is providing its services to the UK. Negative or positive effects arise
from exchange rate movements as change in expenses.
Strengthening of foreign currencies against the British Pound will positively impact SAI
and vice versa.

v) DECLINE IN AIRLINE INDUSTRY:

A number of factors have caused the
current decline in the airline industry. For example, the threat of further terrorist attacks
since September 11 and a fall in the number of business travelers have both caused
passenger numbers to fall.

2) PEST ANALYSIS
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The macro-environment includes all factors influencing a company that are not within its
control. These include political, social, economic and technological factors. These are
known as PEST factors.

i) POLITICAL FACTORS:
Political factors always have a great influence on the
way businesses operate in the airline industry and the spending power of customers. In
recent years it has been observed that government played an active role in increasing
competition in the airline industry. A number of new airlines such as AirBlue and JS Air
have been awarded licenses to enter the domestic market.
Pakistan has achieved some political stability in recent years. If the management of SAI
believes that the present government will perform well (consistently), then there will be
more investment in the form of purchase of new airplanes and latest technology. The over
all industry will grow resulting in more luxurious and comfortable flights. With the
military takeover government policies have become more liberal.

ii) ECONOMIC FACTORS:

Currently, Airlines industry has three major players:
Pakistan International Airlines, an Airblue, Aero Asia and PIA. Their target market
includes domestic travelers as well as Pakistanis living abroad particularly in the UK and
USA. These countries have strong economies coupled with high purchasing power.
Customers’ purchase behavior depends very much on prices of the competing airlines as
well as services offered. As inflation rate is unstable in Pakistan, spending power of
consumers has effected in the long term. In fact growth in Pakistani economy has resulted
in an increase in spending power and has positively impacted the airline industry.

iii) SOCIAL FACTORS:

The social arid cultural influences on business vary from
country to country. The social structure of Pakistan is closely tied. The trend is now
changing as the general public is educated and is pursuing professional goals. Customers
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are more aware of market conditions and available options and want to get best value for
their money.
They spend considerable time and money on entertainment hence increasing the need of
in-flight entertainment systems. Also, word of mouth has a significant impact in the use
of airline services.
Hajj attracts a huge number of customers. The social environment of Pakistan is turning
liberal with the new regime. The initiative to automate check-in and ticket booking
process might not be very popular with the general public (even educated population) is
still technology averse.
E-ticketing might also face significant challenges as consumers are generally reluctant to
provide their credit cards information over the phone and the internet. The consumers,
however, have a warm reaction to the prospect of less costly but quality service flights.

vi) TECHNOLOGICAL FACTORS:

Technology is vital for competitive advantage and
is a major driver of the airlines industry. Major technological changes are taking place in
the airlines industry with innovations in the reservations and booking systems. In-flight
entertainment systems and auto check in counters are two examples of such innovations.
Internet plays a key role in e-ticketing as consumer can easily reserve tickets or check the
status of the flight.
A key issue will be the extent, to which technological advancements (such as Internet)
impact distribution and cost synergies from industry consolidation, can offset upward
pressures on costs. SAI has always led the path of technological innovations by
introducing new technologies ahead of its competitors such as its auto check-in counters
which has helped it gain market share. It was the first airline in Pakistan to install Sabre
system followed by the market leader.
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Servicing Process:-

1. The first and main step of the Shaheen airline is booking of

ticket. There are many ways of booking the ticket.
• You will book your ticket on Net.
• You will contact the travel agent for booking the ticket.
• You will directly go to Air port and book your ticket.

2. There is a main point for booking the ticket is the fair rate for
that day. Fair rate mean the discount for the ticket. shaheen
airline fair rate is start from 0% to 70% present for its ticket.

3. After booking the tickets when you go the air port then a
ticket check on the main gate.

4. When you enter the main gate then you will park the car on
the parking area.

5. When you enter the air port gate the guards will check you
and your bags completely.

6. After completing the security checking you will go to the

counter and collect the boarding card and tags and the
number for the bags.

7. Tags are used to identify the hand bag.

8. Numbers are used to identify the luggage and luggage

numbers are also shown in the boarding card.

9. After collecting the boarding card guard will again check you
and your bags then sent to the lobby or waiting area.
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10. When announcing the flight gate number and flight

number then again guard check the bags and the boarding
card.

11. After security checking you will directly go to the aero

plan.

12. On the aero plan gate air hosted again check your
boarding card and send you on your seat.

13. In the last when you reached the air port then you will
collect your bags and out from air port.

Which are the Most importing process:-

The most important and the main process are to booking of your
ticket.
Because if no seat available on aero plan then you will book
the next flight ticket. Fair rate is also based on seat of the flight. If
the fair rate is high then you will buy the ticket up to 70%. That’s
why booking of ticket is very important and main process.
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Core Competencies:-

• Customer Expectation.
• Convenience, Care, Affordability
• Services
Personalized, Courteous, Passionate
Innovation
New Ideas, Products, Value Added Services
Cohesiveness
Respect for individuals, team work& Effective
Communication
Integrity
Business Ethics, Accountability & Transparency
Reliability
Loyalty & Consistence
Safety
Passengers, Employees, Environment
Social Responsibility
Welfare, Health & Education
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Conclusion:

Suggestions:

Recommendations: