Revenue Pia

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    PROJECT REPORT ON:

    REVENUE

    SUBMITTED BY:

    TAQDEES TAHIR

    INSTITUTE OF BUSINESS ANDTECHNOLGY (BIZTEK)

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    ACKNOWLEDGEMENT

    I am thankful to Almighty ALLAH who gave me the strength to work on such a projectand gain tremendous knowledge. With all due respect I would like to thank our instructorMr. Nazeer Tahir who have been a great influence through out the project and help withthe entire problems encounter, he taught us and been very polite and helpful. It wasindeed due to his effort we achieve success.

    I am thankful to Management of PIA who provides us the platform to learn and gainpractical knowledge and to work in group context as well as individual all those who helpout in making report.

    I would like to express my heartfelt thanks and appreciation to the following dignitarieswhose assistance and support,has done so much to contribute in completing my project.

    Mr. Abdul Jawad Khan

    Mr. Aijaz Chaudry

    Mr. Nazeer Tahir

    Mr. Ali Arshad

    Mr. Jamal Waseem

    Mr. Khalil

    Miss. Gulshan

    Mr. Tariq

    Mr. Pervaiz

    Mr. Aqeel Chisti

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    CONTENTS

    INTRODUCTION TO PIA

    Brief HistoryPIAs Subsidiaries and Associated Companies

    o Personnel

    o Organo gram

    o Destinations

    o Domestic route map

    o International route map

    FINANCE DEPARTMENT

    o General Accounting

    o Budget

    o Funds Management

    Revenue

    REVENUE DIVISION

    Pax Revenue

    Physical Checking Units

    Quasar System Units

    Other Units/ SectionsCargo Revenue

    Cargo Lift

    Cargo Sales

    Cargo Pricing

    Cargo Interline

    Cargo Mail

    APPENDIXES

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    INTRODUCTION

    Pakistan International Airlines is the national flag carrier, and as a symbol of

    National pride. PIA head office is located in Karachi Airport. Principal

    activity of the PIAC is to provide air transport services (passengers and

    freights). In addition, the corporation is engaged in providing engineering,

    training, and other allied services. PIA play vital role in the growth of GDP

    as well as earn sufficient foreign exchange for the country. It became

    member of IATA (International Air Transport Associations) and commercial

    operation as a scheduled carrier for passenger and cargo transportation.

    Pakistan International Airlines Corporation (the Corporation) was

    incorporated on April 18,1956 under the Pakistan International Airlines

    Corporation Act, 1956(PIAC Act, 1956) and its shares are quoted in all the

    stock exchanges of Pakistan.57 % shares held by Government of Pakistan,

    and rest of 43 % shares held by Financial Institutions, Investment

    Companies, Individuals, Joint Stock Companies, Foreign Companies etc. As

    the government is the principal owner of the airline so the government

    selects the Board of Directors and the Chairman/CEO.

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    BRIEF HISTORY

    In the days when Pakistan was still in the revolting position (June 1946) Mr.Mohammad Ali Jinnah, the Founder of the upcoming Nation, instructed Mr.M.A. Ispahani, a foremost industrialist, to set up a national airline, on

    precedence basis. With his stupendous vision and forethought, Mr. Jinnahhad anticipated that with the formation of the two wings of Pakistan,alienated by 1100 miles, a swift and well-organized mode of transport wasimperative.

    The novel airline was primarily a pilot project, registered in Calcutta asOrient Airways Ltd, on 23rd October, 1946. With A.M. Ispahani as the

    Chairman and Air vice Marshal O.K. Carter as the General Manager of thenew air hauler, operating license for the airline was obtained in 1947 withCalcutta as the base.

    Orient Airways was a privately owned company, with limited capital andresources. It could not be expected to grow and expand on its own. It wasthen that the Government of Pakistan decided to form a state-owned airlineand invited Orient Airways to merge with it. The outcome of the merger wasthe birth of a new airline, named Pakistan International Airlines (PIA) on11th March, 1955.

    Pakistan International Airlines established in 1954. PIA's first Super-Constellation (AP-AFQ) registered on Apri'24, 1954. PIA started its regularservice from May 10, 1954. Pakistan International Airlines Corporationformed with merger of PIA and Orient Airways. PIA entered the world ofinternational aviation with a service from Karachi to London via Cairo andRome. Boeing 707-320 "International" introduced on the London route. Firstthree of five Fokker F-27s received and order placed for three Boeing 720B

    jet aircraft. PIA is the first Asian airline to operate a pure jet aircraft.

    At present, PIA operates to 75 destinations (38 international and 37domestic) in countries spread over 4 continents of the globe. One could saythat since its inception in 1955, PIA has indeed, come a long way.

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    PIA'S SUBSIDIARIES + ASSOCIATED COMPANIES

    PIA'S SUBSIDIARIES

    1) PIA Holdings (Pvt.) Limited2) Duty Free Shops Limited3) International Advertising (Pvt.) Limited4) Sky rooms (Pvt) Limited

    Airport Hotel, Karachi Airport5) PIA Shaver Poultry Breeding Farms (Pvt) Limited6) Midway House (Pvt.) Limited

    Hotel Midway House, Karachi Airport

    ASSOCIATED COMPANIES

    (Overseas)1) PIA Investments Limited2) Minhal incorporated Pakistan3) Pakistan Services Limited4) Pakistan Tourism Development Corporation Limited.

    PERSONNEL

    Captains / Pilots / Co - Pilots 538Aircraft Engineers 697Flight Engineers 90Airhostesses 1055Flight Stewards 978Others 15,028Total Number of Employees 18,386

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    ORGANO GRAM

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    DESTINATIONS

    PIA takes flights around the globe that are

    Asia

    Europe

    North America

    Domestic

    For details see appendix-A.

    DOMESTIC ROUTE MAP

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    INTERNATIONAL ROUTE MAP

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    FINANCE DEPARTMENT

    Finance department is divided into 4 sub departments that are:

    1- General Accounting2- Budget3- Funds Management4- Revenue

    Finance Department Hierarchy

    S.VPFinance

    G. ManagerRevenue

    G. ManagerAccounting

    G. ManagerBudget

    G. ManagerFunds Management

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    REVENUE

    Revenue department deals with all the revenue generated by PIA through

    sales of tickets and other freight services. It is divided into three sections thatare

    1- Physical Checking Units2- Quasar System Units3- Others Units/Sections

    PHYSICAL CHECKING UNITS

    Domestic Sales Unit

    A. Domestic counter sales R-1B. Domestic counter refund R-6C. Domestic Agents SalesD. Domestic Agent Refund

    International Sales Unit

    A. International counter salesB. International counter refund R-6C. Agents salesD. Agents refund

    QUASAR SYSTEM UNITS

    Pax Lift

    A. Prep

    B. ScanningC. Tile verificationD. Visual Quality AssuranceE. Extended Ticket Capture

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    TCN

    Interline Revenue

    A. Receivable unitB. Payable unit

    Sales Balancing

    OTHER UNITS/SECTIONS

    Credit Control (R-8) Reconciliation

    Tax

    General Refund

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    PHYSICAL CHECKING UNITS

    Domestic Sales Unit

    The Domestic Sales Unit is a unit of Pax Revenue Accounting in which the followingactivities are being performed:

    Receiving the sales reports.

    Checking of fares, taxes, commission, fare basis and class of travel.

    Physical checking of all sold and supporting documents.

    Checking of values, validity and rules of all refunded and surrendered coupons.

    In case of any discrepancies, Raise debit memos and maintain the record.

    Preparation of boxes and binders and handed over to the record room.

    RECEIVING OF SALES REPORTSThe sales reports contain passenger coupons/tickets, EBTs, MCO, PTAs etc. with othersupporting documents. These sales reports are received either daily or fortnightly at theHead Office sent by all stations.We receive the sales reports of a month in an unsorted manner. The sales reports includesdocuments, supporting documents, refund reports with documents.

    TYPES OF REPORTS

    I. Agent Sale Report (ASR)Reports from all Agencies in Pakistan And PIA Agents.

    II. DQBReport by agents through ABAKUS System.

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    TYPES OF TICKETS

    1) Paper Ticket.

    2) E-Ticket.3) Prepaid Ticket Advice (PTA).4) Miscellaneous Charges Order (MCO).5) Excess Baggage Ticket (EBT).

    PAPER TICKETIn Paper Ticket, we have four coupons which include Audit coupon, Agent Coupon,Passenger coupon and Flight coupons along with the Jacket.

    E-TICKETPakistan International Airlines has just introduced the Electronic Ticket. In E-Ticket, wehave three coupons which include Audit coupon, Passenger coupon and PassengerItinerary.

    PREPAID TICKET ADVICEIn Prepaid Ticket Advice (PTA), a person can buy a ticket from any other country or city.But For this service, a passenger has to pay some extra charges i.eFor Domestic they charge Rs.250For International they charge Rs.1500

    MISSELLANEOUS CHARGES ORDERMiscellaneous Charges Order (MCO) is used for the adjustment of the fares.In MCO, we have three coupons which include Audit coupon, Agent coupon andExchange coupon.

    EXCESS BAGGAGE TICKETExcess Baggage Ticket (EBT) is used for excess luggage. PIA has given a limit ofbaggage to their passengers for domestic and international flights. If the baggage is overweight then they charge some extra money as per Kilogram.

    TYPES OF AGENTS

    1) Domestic Sale Agent (DSA)2) Passenger Sale Agent (PSA)

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    3) General Sale Agent (GSA)

    COMMISSIONS

    1) Domestic Sale Agent (DSA) 7% of Fare.2) Passenger Sale Agent (PSA) 7% of Fare.

    3) General Sale Agent (GSA) 5% of Fare.

    TYPES OF CLASSESS

    FOR DAY

    1) Economy Class (K)2) Economy plus (P)3) Business Class (C)

    FOR NIGHT

    1) Economy Class (N)2) Economy plus (L)3) Business Class (B)

    TAXES

    Pakistan International Airline (PIA) takes some taxes with fare which includes,

    i. Central Exercise Duty (CED) 15% of Fare.

    ii. Embargation Fee Rs.120

    The CED goes to the Government and Embargation fee goes to Civil AviationAuthority (CAA).

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    DIFFERENT FARES

    1) PIA has different fares for different age group:

    Adult Full Fare.

    Child 50% Fare (below 12 years).

    Infant 10% Fare (below 2 years).

    2) PIA has different fares for different people:

    Groups

    Family.

    Senior Citizen.

    Journalist Handicap

    Industrial people

    Defence People (APW)

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    International Sales Unit

    The International Sales Unit is a subunit of Pax Revenue. International Sales Unitreceives sales reports from stations all around the world where PIA has its online &offline stations. These stations send the sales reports to the Head office on daily, weekly,

    monthly & fortnight basis.

    WORKING PROCEDURE:

    The International sales unit performed following activities:

    1- Receiving the sales reports from Int. Stations.

    2- Receiving of funds report from Int. Stations.

    3- Checking the physical availability of all supporting documents.

    4- Checking physical availability, values, validity and rules of all refunded and

    surrendered coupons.

    5- Checking fares, taxes, fare basis, class of travel.

    6- Preparation of Batches and sequential arrangement of Sales Repots.

    7- Fare audit with approvals and to clear.

    8- Check collection and reporting of all applicable Taxes (Pakistani & Foreign).

    9- Check all Reissued transactions (PK / OAL) for values, routing, and ensurephysical availability / validit7y of all surrendered coupons.

    10- Preparation of boxes and binders and handing over to the record room.

    11- Raise debit memos in case of any discrepancies.

    12- Maintaining Debit memo following report.

    13- Maintaining Dad approval record.

    14- Maintaining email record.

    15- Maintaining correspondence record.

    16- Correspondence with all Int. stations sending sales report.

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    TYPES OF SALES REPORT:

    1. Counter sales report.

    2. Refund reports (R6).

    3. BSP (Bank Settlement Plan)

    4. Agency sales report.

    5. ARC (Airline Reporting Corporation)

    ACTIVITIES OF INT. SALES UNIT

    1. Receiving of Sales reports from mail control unit & balancing unit.

    2. Segregation of Sales reports according to station, Agent & date wise

    3. Processing of Sales Reports.

    4. Keeping record of various files.

    5. Setting of Target Date for processing, checking of sales reports.

    6. Controlling of sales reports (counter & Agents) on control sheet.

    7. Controlling of R-6 from various station on control sheet.

    8. Distribution of counter sales, Agent sales, Refund reports to processing stall, dully

    sorted & arranged.

    RECEIVING OF SALES / REFUNDS REPORTS:

    1. The sales reports contain Audit coupons, void flight coupons, MCO, PTAs, and

    EBT with other supporting documents.

    2. These sales reports are received either daily, weekly, monthly fortnightly at the

    Head Office sent by all stations through mail control & balancing units.

    3. The sales reports of a month are in unsorted manner which includes documents,

    supporting documents, refund reports with documents.

    4. The sales reports received are to be segregated by the staff according to region,

    station & date wise.

    5. The sales reports to be given to the processing staff according to the stations

    allocated to them.

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    6. A sales report control sheet is to be entered when the segregation is complete. It

    would indicate the status of reports received from the stations.

    7. The sheet would be given to MIS for entry in to system.

    SEGREGATION OF SALES REPORTS:

    The sales reports are then segregated by staff into regions and given to them region-wise.The regions are:

    Far-East

    Middle East /Gulf

    Europe

    USA & Canada

    London Territories.

    The sales reports are further segregated by them station and then date wise.

    PROCESSING OF SALES REPORTS:

    The staff performs the following functions during the processing of sales reports:

    1. Physical checking of all the tickets reported in the sales reports.

    2. Missing tickets/coupons are checked

    3. Checking of all voided coupons with auditors coupons.

    4. Check fare basis, class of travel, late reporting, Date of travel, Approval codes

    etc.

    5. Checking the amount of DADS amount being reflected on the tickets as per

    procedure.

    6. Checking collection and reporting of all taxes implemented from time to time.

    7. Checking all refunded flight coupons are physically available.

    8. Ensure refunded tickets are stamped as Refunded along with supportingdocuments

    9. In case of any discrepancy, the debit memos should be raised. These debit

    memos are issued to the concerned station.

    10. These debit memos includes the amount that is short collected with proper

    working/calculation and supporting documents.

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    QUERIES/INFO CELL:

    The query cell is made for accepting the queries from the processing staff relating

    the processing procedures/approvals.

    The query cell handled the queries from audit & refund sections.

    After handling these queries would be entered in the query sheets and then these

    sheets would be given to MIS.

    RECORD KEEPING:

    After the handling of queries the record keeping process comes in. This section

    includes the record in the form of boxes, registers and binders.

    Debit memos be are allocated to the regions serial wise.

    Debit memos sheets

    Correspondence through emails, mail, telexes and faxes.

    Follow-up sheet.

    FILES MAINTAINED:

    Approvals

    Box registers

    Binder files

    Debit Memos

    Monthly status of reports processed.

    Wrongly uplifted coupons.

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    QUASAR SYSTEM UNITS

    PAX LIFT

    PAX LIFT

    From sales report control unit, the coupons send to the department wherephysical checking is done. From there, the coupons send to Pax lift unit. Inthis unit, the coupons are passed from different stages.

    DIFFERENT STAGES:Following are the different stages of Lift unit:

    1) Prepping2) Scanning3) Tile4) Visual Quality Assurance (VQA)

    PREPPING:In Prepping, the coupons are separated according to the class and then thechild or infant coupon is separated.

    SCANNING:In this, the coupons are scanned in a system with the help of bar cade

    present on a coupon through scanner.

    TILE:In this, fare and actual amount is matched.

    VISUAL QUALITY ASSURANCE:In this, the stock number and ticket number is matched.

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    TCN (TRANSACTION CONTROL NUMBER)

    INTRODUCTION

    TCN stands for Transaction control number. Every ticket sales dataelectronically recorded in Computer Reservation System and thentransferred through TCN file and ETC file to TCN Edit Process. Where it iscorrected in work flow queue and then tickets are prorate and saved in ticketdata base.

    SOURCES OF DATA

    In TCN data comes from different sources which are1- BSP (Bank settlement plan)2- ARC (Airline reporting corporation)3- ETC (Extended ticket capture)

    TCN PROCEDURE

    TCN procedure has following steps:

    1- Logon to client manager by entering user id and password.2- In client manager window click on server in menu bar and click on

    send trans to connect with QUASAR system.3- In quasar security logon window enter password and press ok. Button

    to proceed further.4- In quasar main menu press the workflow icon button to open

    workflow window.5- In workflow window click on queue on main menu bar and then list

    exceptions.6- In list exception by queue window input the desired criteria and select

    list to view exceptions.7- Now select any ticket to open for correction.8- In tickets coupon window read the message and correct the error.

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    9- Tickets coupon and fare bases are corrected and then up date theinformation and then press the save /send button..

    TCN PROCESS

    1. Ticket information recorded in computer reservation system.

    2. Through CRS data is send to TCN file and ETC file and from there itcomes in TCN edit process.

    3. Through TCN edit process errors and rejected tickets are corrected inworkflow queue.

    4. In workflow queue data is manually corrected and send back toworkflow queue.

    5. After correction data again comes in TCN edit process and forwardedto ticket proration process if any other errors and rejections does notexist.

    6. When ticket is prorated data is stored in ticket database for furtherusage.

    TCN EDIT PROCESSTICKETPRORTION

    ERRORS

    MANUALCORRETIONWORKFLOW QUEUE

    TICKETDATABASE

    ETC FILEFROM

    REJECT

    TCNFILE

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    TCN PROCEDUREStep 1WINDOW: LOGON

    PURPOSE:To connect with Client Manager by entering User ID and Password

    FIELDS DEFINITIONS

    USER ID It is unique identity of every employee.

    PASSWORD Security key words to control unauthorized access.

    BUTTONS DEFINITIONS

    OK It is used to proceed further.

    CANCEL It is used to close the window.

    HELP It is used to when any help is required.

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    Step 2

    WINDOW: Client Manager

    PURPOSE:

    To be connected with Quasar system through server connection.

    FIELDS DEFINATIONS

    Server name It shows the server list to beconnected with.

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    Status It shows that server is connectedor disconnected.

    Step 3WINDOW: Quasar Security Logon

    PURPOSE:

    To access the Quasar system by entering password of provided user id.

    FIELDS DEFINITIONS

    USER ID It is unique identity of every employee.

    PASSWORD Security key words to control unauthorized access.

    BUTTONS DEFINITIONS

    OK It is used to proceed further.

    CANCEL It is used to close the window.

    Change password It is used to change or reset the password if desired byemployee.

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    Step 4

    Window: Quasar Main Menu

    PURPOSE:

    This window contains different functions of Revenue Accounting. In TCN it helps toaccess the workflow window.

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    FIELDS DEFINITIONS

    Work flow It is used to correct the errors.

    Step 5Window: WORK FLOW SYSTEM MAIN MENUE

    PURPOSE:

    This window helps to access the list exception window.

    Field Definition

    Queue It is used for exception selection.

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    Step 6Window: List Exception by Queue

    PURPOSE:This window helps to input desired criteria and select List to view exceptions.

    FIELDS DEFINITIONS

    Queue It is used for exception selection. E.g. tax audit, TCN,Unmatched usage etc.

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    Filter method It is used to Shrink the data according to need.

    Status It shows the ticket working status. E.g. all, new. in work.

    Employee ID It shows the employee ID who is working on TCN.

    Cycle # It shows the reporting frequency of ticket.

    Queue Date It shows the date at which ticket comes into system.

    BUTTONS DEFINITIONS

    Correct It is used to correct any ticket.

    Refresh It is used to refresh the list.

    List It is used to show the desired list of documents.

    Step 7Window: TCN/CRS Coupon

    PURPOSE:To correct fair calculation area and errors those are mentioned in message window.

    Fields DefinitionsAgency The unique agency code provided by IATA.

    Fare currency The currency in which fare is paid.

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    EAP currency The currency in which fare is converted.

    Fare calculation Whole ticket journey is constructed with flight carrier and fareamount.

    Itinerary Coupon wise ticket detailed is given.

    Messages Errors are mentioned in this area.

    Conjunctive It shows that ticket is conjunctive or not (if more than 4 coupons areattached it is conjunctive.)

    Issue date Date on which ticket is issued.

    BUTTONS DEFINITIONS

    Ticket form type It shows the type of ticket like EBT (excess baggage ticket), MCO(miscellaneous charges order) etc.

    Save It is used to save the changes that are made.

    TSL List It is used to show the list of ticket sales location (agency).

    Step 8Window: Update TCN/CRS Coupon

    PURPOSE:To update the ticket coupon information if wrong filled.

    FIELDS DEFINITIONS

    Origin Shows the place from where journey is started.

    Flight date Shows the date of travel.

    Destination Shows the place where the journey is ended.

    Airline Shows the airline carrier.

    Fare basis It shows the conditions of fare to be valid or not. E.g. NOW(night one way) etc.

    Book It shows the class e.g. Club (c ), economy (k) etc.

    Ticket Designation In this any type of discount is mentioned.

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    INTERLINE UNIT

    INTRODUCTION:

    Interline unit works on those documents (Tickets) which includes more than one Airline.When a passenger buys a ticket of more then one sector and he will travel through twodifferent airlines on a single ticket. In interline documents of one airline is also used byother airline to provide services are Interline Documents.

    INTERLINE DOCUMENTS (TYPYES OF TICKETS):

    Interline Documents which are used in Interline Unit are:

    1. FLIGHT COUPON: Simple lifted Coupon.

    2. EXCESS BAGGAGE TICKET: This ticket is raised when the weight of baggage increasedfrom fixed weight.

    3. MISCELLANEOUS CHARGES ORDER: When PIA is credited to customer, PIA raiseMCO, which shows the evidence at the time of other transaction or claim.

    4. FLIGHT INTRRUPTION MANIFEST: This ticket is raised when other flight is arranged atthe time of any emergency.

    5. UNIVERSAL AIR TRAVEL PLANT: When the customer make payment on credit card, thisticket issued.

    6. PREPAID TICKET ADVICE: The ticket is issued at on area and the charges of this ticketare paid at other destination.

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    The cases of Prepaid Ticket Advice and Flight Interruption.Manifest tickets are very rare.Other type of tickets are mostly comes in Interline unit.

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    INTERLINE SECTIONS:

    Interline Unit consists of two sections:

    INTERLINE RECEIVABLE.

    INTERLINE PAYABLE.

    INTERLINE RECEIVEBLE:

    When PIA provide services on documents of other airline, are deals in Interline

    Receivable.For Example PIA provide service on documents of Emirates Airline than allthe revenue is collected by Emirates Airline. The revenue of PIA Airline is payable forEmirates Airline and Receivable for PIA Airline which are deals in Interline Receivable.

    In Interline Receivable, Interline documents are comes from Lift Unit. The Revenueof PIA from these documents is separated through Proration Method (method ofdistribution of revenue between or among participating airline).

    PRORATION METHOD=THROUGH FARE SUM OF SECTOR FARE REQUIRED SECTOR

    TROUGH FARE = Total Fare of Document.

    SUM OF SACTOR FARE = Weighted Mileage of all sectors which are showed inDocuments.

    REQUIRED SECTOR = Weighted Mileage of required sector

    INTERLINE RECEIVABLE PROCEDURE:

    Interline Receivable works in ARIES SYSTEM in ETC (expended ticket checker) FILE.Steps of Interline Receivable Procedure are,

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    RECEIVEBLE UNPOSTED STATUS:

    Data of those tickets for which we are supposed to receive revenue are recorded inReceivable Unposted status.

    After scanning from Lift, these tickets are comes in RECEIVABLE UNPOSTED

    STATUS.

    From RECEIVABLE UNPOSTED STATUS tickets are imported to ETC File.

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    ETC CLIENT. ARIES STATION:

    In ETC CLIENT the data of interline tickets are recorded for the purpose of raising theinvoice.

    By selecting the Ticket Number image of ticket showed.

    Fill the itinerary, Date of Issue, Agency Number,Currency/Fare,Commision Rate,

    Number of Tickets then press ENTER.

    If the ticket has no error, then it is electronically saved in Invoice (Link Invoice

    Batch File).

    In case of error in data, that ticket comes back to Work Flow System.

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    WORK FLOW SYSTEM MAIN MENUE.

    Those tickets which are not correct come in Work Flow System for correction.WORK FLOW SYSTEM works in QUASAR system.

    Select QUEUE from Work Flow System.

    By selecting QUEUE, illustrate List Exception.

    By selecting list Exception, SUSPENCE REVIEW RECEIVABLE opens.

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    SUSPENCE REVIEW RECEIVABLE.

    In this File the correction of tickets take place which are comes from ETC File.

    Enter Date, Airline Number and then press Search.

    All the tickets list is displayed which contains error.

    Select tickets and press Ticket Entry.

    Than make the correction of ticket.

    After correction this ticket automatically comes in Invoice.

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    LIST INVOICE BATCH-RECEIVABLE.

    All the Interline Tickets comes in LIST INVOICE BATCH-RECEIVABLE. This file

    explain all important information about related ticket.

    In Batch, number shows the number of ticket types which are used in Interline

    Unit.

    SRC shows the correction link of ticket,

    01 means ticket comes directly from ETC.04 means from other files. For example, from Interline

    Payable.14 means ticket of Flight Interruption Manifest.

    8000 means ticket of Excess Baggage.9000 means ticket which comes from SUSPENCE REVIEW.

    In St, L defines that these ticket are flight.

    Gross show the revenue amount.

    ISC means the Commission.

    Tax which are imposed.

    This invoice is than transfer to Dallas System for further processing.

    Mail of this invoice is raised for related stations.

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    INTERLINE PAYABLE:

    Other airline provides services on documents of PIA airline, are deals in InterlinePayable.For Example Emirates Airline provide service on PIA documents. Then all the revenue is

    collected by PIA Airline. The revenue of Emirates Airline is payable for PIA Airline andReceivable for Emirates Airline which are deals in Interline Payable.

    In Interline Payable, invoices and PK documents comes from different airlines forwhich the PIA is payable. In these invoices the payable amount is mention. InterlinePayable Unit verify the mention amount through Proration Method (method ofdistribution of revenue between or among participating airline).

    PRORATION METHOD=THROUGH FARE SUM OF SECTOR FARE REQUIRED SECTOR

    TROUGH FARE = Total Fare of Document.

    SUM OF SACTOR FARE = Weighted Mileage of all sectors which are showed indocuments.

    REQUIRED SECTOR = Weighted Mileage of required sector.

    INTERLINE PAYABLE DOCUMENTS:

    Lifted PK documents.

    Summary of Invoice.

    Rejection Memo (issuing in case of over billing).

    INTERLINE PAYABLE PROCEDURE:

    Interline Payable Procedure works in INTERLINE SECTION in QUASAR SYSTEM.

    o All the Lifted Coupons with Invoices are raised from stations of other airlines and

    comes in Interline Payable Unit.

    o All the data of Lifted Coupons are electronically saved in QUASAR SYSTEM,

    which is comes from IDEC (Head office of IATA).

    o Interline unit calculate the fare amount which is payable for PIA through

    Proration Method and tally it with amount, which is mentioned in invoices.

    o If Prorated amount matches with the invoice amount, than that ticket is accepted

    as payable.

    o If not than Rejection Memo will be issued against that ticket.

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    WORK INVOICE RELEASE-PAYABLES:

    This file shows all the lifted documents (tickets) which are payable.

    This data comes from IDEC (Head office of IATA).

    Select any one invoice than press Release.

    By pressing Release, invoice comes in SUSPENCE RAVIEW-PAYABLE.

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    SUSPENCE REVIEW- PAYABLES:

    Suspense Review Payables is starting window of Invoices working.

    Put the number of airline than click on Search.

    Than select the invoice through month and click on Unsuspend.

    By clicking on Unsuspend, DETAIL SUSPENSE REVIEW PAYABLE opens.

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    DETAIL SUSPENCE REVIEW PAYABLES:

    Complete tickets of invoice of related month are saved in DETAIL SUSPENCE

    REVIEW PAYABLES.

    Add Invoice Number, Year, Batch Number, and Source Code.

    Select any ticket, by selecting ticket, TICKET DETAIL opens.

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    TICKET DETAIL:

    In TICKET DETAIL, all the information about ticket is there.

    Check all the data of ticket.

    Compare the fare of Coupon Value with Proration Method Value.

    If fare is same, click on Accept.

    If case of Over Billing, print the Rejection Memo.

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    PRINT REJECTION LIST and MEMO:

    PRINT REJECTION LIST and MEMO is used in case of over billing.

    PRINT REJECTION LIST and MEMO print the Rejection Memo of related ticket.

    Enter Beginning and Ending date.

    Select MEMO than click on Print.

    If you want to print the Rejection Memo of all ticket of Invoice which are Over

    Billing, than select Pull Listing.

    These Memo than send to related airlines through IATA.

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    SALES BALANCING UNIT

    INTRODUCTION:

    Sales balancing unit is also one of the sub unit of Pax Revenue department. The mainfunction of the sales balancing unit is to check the balancing of the ticket that have beensold by checking the fare and the taxes. In SALES BALANCING, we balance the amountof International and Domestic tickets. It includes Counter sales and Agent sales throughout the world. It includes every type of ticket.

    Sales balancingIn sales balancing, all unbalanced transactions are processed and discrepancies are settled

    through debit memo, when sales are generated, there are two data generated, one goes toTCN and others go to sales balancing. Basically there are two types of unbalancedtransactions.

    Types of unbalanced transactionsThere are tow types of unbalanced transactions which are as follow

    1. Sales

    2. Exchange

    Sales:-In sales credit card, AC and APW are included

    TAC:-It stands for transfer assurance certificate. it is issued to government officials(These have 50% discount)

    APW:-It stands for air passenger warrant. it is for armed forces

    There are three types of credit card

    1. American Express. Its code is CCAX and no commission is charged.

    2. VISA:-Its code is CCVI and 2% commission is charged.

    3. Master card. Its code is CCIK and 2% commission is charged.

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    EXCHANGE:-In exchange the coupons are exchanged. They may be several reasons for that may be he

    or she wants to change their destination. In exchange there are two things are involved.

    1. PREPAID TICKET ADVICE (PTA)2. MISCELLENEOUS CHARGE ORDER (MCO)

    Types of reporting in sales balancingThere are two types of reporting in sales balancing

    ABACUSIt is used for agency sales.

    ASRIt is stand for agent sales report .it is used for PIA ticket office domestic, international

    agencies.

    TYPES OF TICKETS:

    1. Paper Ticket.

    2. E-Ticket.

    3. Prepaid Ticket Advice (PTA).

    4. Miscellaneous Charges Order (MCO).

    5. Excess Baggage Ticket (EBT).

    PAPER TICKET:

    In Paper Ticket, we have four coupons which include Audit coupon, Agent Coupon,Passenger coupon and Flight coupons along with the Jacket.

    E-TICKET:

    Pakistan International Airlines has just introduced the Electronic Ticket. In E-Ticket, we

    have three coupons which include Audit coupon, Passenger coupon and PassengerItinerary.

    PREPAID TICKET ADVICE:

    In Prepaid Ticket Advice (PTA), a person can buy a ticket from any other country or city.But For this service, a passenger has to pay some extra charges i.e

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    For Domestic, they charge Rs.250For International, they charge Rs.1500

    MISSELLANEOUS CHARGES ORDER:

    Miscellaneous Charges Order (MCO) is used for the

    In MCO, we have three coupons which include Audit coupon, Agent coupon andExchange coupon.

    EXCESS BAGGAGE TICKET:

    Excess Baggage Ticket (EBT) is used for excess luggage. PIA has given a limit ofbaggage to their passengers for domestic and international flights. If the baggage is overweight then they charge some extra money as per Kilogram.

    TYPES OF CLASSESS:

    FOR DAY

    1) Economy Class (K)2) Economy plus (P)3) Business Class (C)

    FOR NIGHT

    1) Economy Class (N)2) Economy plus (L)3) Business Class (B)

    TAXES:

    DOMESTIC:

    Pakistan International Airline (PIA) have some taxes on its domestic flights whichincludes,

    iii. Central Exercise Duty (CED) 15% of Fare.

    iv. Embargation Fee Rs.120

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    The CED goes to the Government and Embargation fee goes to Civil AviationAuthority (CAA).

    INTERNATIONAL:

    Pakistan International Airline (PIA) has some taxes on its international flights also which

    includes,

    1) Embarkation Fee (SP)

    For Economy class Rs.700

    For Economy Plus Rs.700

    For Business class Rs.1300

    2) Capital Value Tax (CVT) 15% of Fare

    3) Foreign Travel Tax (FT) Rs.1500 / passenger

    4) Fuel surcharge $ 10

    Only Europe, USA, UK and Canada have $20

    DIFFERENT FARES:

    3) PIA has different fares for different age group:

    Adult Full Fare.

    Child 50% Fare (below 12 years).

    Infant 10% Fare (below 2 years).

    4) PIA has different fares for different people:

    Groups

    Family.

    Senior Citizen.

    Journalist

    Handicap

    Industrial people

    Defense People (APW)

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    TYPES OF AGENTS:

    1) Domestic Sale Agent (DSA)

    4) Passenger Sale Agent (PSA)

    5) General Sale Agent (GSA)

    COMMISSIONS:

    DOMESTIC:

    4) Domestic Sale Agent (DSA) 7% of Fare.

    5) Passenger Sale Agent (PSA) 7% of Fare.

    6) General Sale Agent (GSA) 5% of Fare.

    INTERNATIONAL:

    1) Passenger Sale Agent (PSA) 9% of Fare.

    2) General Sale Agent (GSA) 12% of Fare.

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    MISCELLANEOUS UNITS

    CREDIT CONTROL UNIT

    Credit control unit function is to manage, categorize, organize, control, scrutinize,

    examine, evaluate, approve and monitor all the credit sales made by issuing

    authority also known as extending authority. Authority extending the credit is also

    accountable for its recuperation. Every single station has its own credit control

    committee whose function is to review all the credit transactions, conduct

    meetings related to credit control and report minutes and outcome of meeting to

    Head Office.

    Functions of Credit Control:

    Accounts observed, controlled, and checked in credit control unit are

    1. 21033

    2. 21034

    3. 21035

    4. 21036

    1. 21033 ACCOUNT:

    All the credit extensions made at international stations are recorded under thisaccount. For e.g. Credit sales made at international stations to any destination

    will be recorded in this account.

    2. 21034 ACCOUNT:

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    All the credit extensions made at domestic stations are recorded in this

    account. For E.g. sales made at domestic stations to any destination will be

    recorded in 21034 account.

    3. 21035 ACCOUNT:

    All the credit extensions made by head office departments are recorded in this

    account. For e.g. Technical Service provided on credit to Cathay Pacific

    airline by engineering department of PIA.

    4. 21036 ACCOUNT:

    Credit extensions made to armed forces personals are credited 21036 account.

    For e.g. ticket issued on (TAC) travel assurance certificate, (APW) air

    passenger warrant and exchange transaction.

    Minimum Value of Credit:

    Single credit transaction amounting to less then Rs 500/- in Pakistan cannot be

    extended or equivalent to US $ 100 abroad).

    Maximum Value of Credit:

    Single credit transaction amounting to more than Rs 500,000/- in Pakistan

    cannot be extended without approval of management or equivalent to US $

    50,000.

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    Categories of Credit

    There are seven forms of credit that are administered by credit control unit.

    1. Agency credit.2. Government credit.

    3. Commercial credit.

    4. Departmental credit.

    5. Personal credit.

    6. SpeedEx Credit.

    7. Sundry credit.

    AGENCY CREDIT:

    Sales made on credit to any agency are considered as Agency Credit. For e.g. an

    agent desires ticket of worth Rs. 1 million on a credit. The entry for this

    transaction will be Debit Accounts Receivable and Credit Sales account with an

    amount of Rs. 1 million. Resurgence period for this credit according to the credit

    control policy is 30 days which means that who so ever has made sale of Rs. 1

    million on credit is responsible for its collection with in 30 days. Credit sales for

    30 days will be treated as outstanding credit against the agent and if the limit of

    30 days is surpassed than it will be considered as overdue outstanding credit. A

    financing cost of 1.25% per month is charged by PIA if the amount is not paid

    within the specified time period. If agent is unable to pay the debt and goes

    bankrupt or the station has made sufficient efforts to collect the amount and was

    unable to accumulate the credit amount, a minute is generated by the station from

    where the credit sales were actually made for writing off the debt. The only

    authority that has the supremacy to write off the debt is CEO of the company.

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    GOVERNMENT CREDIT:

    Ministries considered as government by PIA are

    Ministry of Defense (MOD).

    Ministry of Foreign Affairs (MOFA).

    Credit sales made by any station or booking office to these two ministries are

    recorded in government credit account. Recovery period for government credit is

    60 days. Till 60 days the credit is considered as outstanding credit and after that it

    is treated as overdue outstanding credit. Sales made to government are not

    recorded as bad debt because whatever sale is made to government is backed by

    its guarantee. If the amount is not recovered with in 60 days government is not

    charged any financing cost i.e. 1.25% per month it means that government can

    pay the debt any time but after 60 days reminders are sent to ministries for

    overdue payment.

    COMMERCIAL CREDIT:

    Credit sales made to any commercial organization or any ministry except two

    acknowledged above are treated as commercial credit. For e.g. PIA has a contract

    with Bank Alfalah that whatever amount of tickets for the month will be used by

    the bank for its employees will be invoiced to the bank at the end of month.

    Recovery time period for commercial credit is 30 days and if the bank fails to pay

    the amount with in 30 days credit is considered as overdue credit for which

    reminders are sent to bank for the early payment of credit. Station that has made

    sales on credit to any commercial organization is liable for its recuperation and if

    he fails to do so a minute is generated by that station for head office to write off

    the debt amount.

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    INTERDEPARTMENTAL CREDIT:

    Interdepartmental credit is a class of credit in which expenses rendered on account

    of one department by another section/ division/ department are recorded. After

    rendering these expenses invoice against that department is generated by the

    department that has made expenses on account of that department. The

    department on account of those expenses were made is supposed to payback the

    amount within one month.

    PERSONAL CREDIT:

    Station head has been given the authority to extend personal credit on his ownguarantee by ensuring the credit worthiness of the individual seeking personal

    credit. For personal credit station manager/ head is held accountable for recovery

    within 30 days. If he is unable to recover the amount with in 30 days credit

    amount is deducted from his salary. Maximum credit that can be extended by

    head / manager of domestic station at any specific time is Rs. 20,000 while in case

    of foreign stations credit amount is limited up to $ 2,000.

    SPEED Ex CREDIT:

    After realizing the actuality that courier service provided by other companies was

    costing a lot to the organization, a courier service with the name of Speed Ex was

    started by PIA back in year 2002 that is functioning as a subsidiary of PIA whose

    main function is to provide courier service to PIA and other companies. For e.g.

    Speed Ex is engaged in an agreement with Alfalah Bank that it will deliver all of

    its deliverables at any destination on credit for the whole month and after a month

    whatever the bill of service is will be invoiced to the bank. Time period for

    clearing the debt for Speed Ex credit is 30 days that means debtor is supposed to

    pay off the debt with in 30 days, if not paid within 30 days financing cost of

    1.25% per month is charged. After providing the service as per contract Accounts

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    receivable (Speed Ex) is debited and Service income account is credited. When

    payments are made by the organization, whom service was provided accounts

    receivable is credit and cash / Bank is credited.

    SUNDRY CREDIT:

    Credit that cannot be classified into any credit is considered as sundry credit. For

    e.g. credit expenses made on the visit of CEO at any destination by that

    destination station are recorded as sundry credit. After recording these expenses

    as sundry credit an invoice is made in the name of specific department. When

    expenses are made on credit accounts receivable is debited and sundry expenses

    account is credited.

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    RECONCILIATION

    MAIN REASON FOR RECONCILIATION:

    Every organization whose job is to provide goods and services wants to generate a

    surplus i.e. revenue exceeding the expenses that it has rendered to provide those goodsand services. The main reason behind reconciliation (R-10) is to find out the net sales in a

    given time period.

    AGENT SALES REPORT (R-10):

    All the sales reports by agents are forwarded at PIA stations from where the reports are

    sent to sales report control unit where the information associated to agent and sales

    report is recorded after that these sales report are forwarded to reconciliation unit

    where the reconciliation process takes place.

    These reports are formulated in two ways

    1. Fortnightly i.e. for days ranging from 1 to 15 th of a month.

    2. Monthly i.e. for the whole month.

    Agent Sales Report Routing:

    Process of reconciliation:

    After receiving the sales report on fortnightly and monthly basis by agents these reports

    are sent to Station Controlling Head office. Agents forward their sales report to station,station process the agent report and advance it to station control and head office forfurther processing after that this data is used by DPC (Data Processing Center) to recheckthe process and then a hard copy of that data is sent to General Ledger & station forfurther processing which helps in reconciliation of data.

    When all the data is received by reconciliation unit by all the processing units, itgenerates a final reconciliation report for management perusal.

    AGENTSALES REPORT

    STATIONCONTROLLING

    HEAD OFFICE

    DATAPROCESSING

    CONTROL

    STATIONPROCESS

    R-10

    HARD COPY TO GENERALLEDGER

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    Report:

    Reports generated by R-10 unit are in the form of

    Location

    Agent Station

    Components of R-10:

    Sales

    Commission

    Dads

    War risk (WR)

    Fuel surcharges

    Functions of Reconciliation:

    Receivable = Sales commission (domestic &international) DADS+WR/fuel surcharge +Tax

    Net sales = Sales commission (domestic &international) +WR/fuel surcharge

    Net sales =Net sales DADS

    Receivable Received Balance

    1000 1000 0

    1000 800 200 (unlinked)

    Period for payment:

    The grace period for payment is 45 days.

    Transaction month:

    The month in which transactions takes place are called transaction month

    Processing month:

    The month whose invoices are in process is terms as processing month.

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    Accounting of R-10:

    Accounting of R-10 depends upon the following entries

    Account receivable (Dr) X X X

    Sales (Cr) X X X

    Clash clearness account (Dr) X X X

    Account receivable (Cr) X X X

    Cash (Dr) X X X

    Clash clearness account (Cr) X X X

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    TAX UNIT

    Tax unit handle the payment of all sort of taxes.

    Types of taxes:

    Embarkation fee

    On Domestic route = 120100----civil aviation (E bill) 5 % of it PIA takes

    20----- Government of Pakistan (G bill)

    On International route = 700 for economy class and 1300 for business classBilling (invoice) comes from civil aviation.

    At the end of month PIA tax units receive invoice from all types of taxes either fromGovt or civil aviation they pay all taxes with in 45 days. All sort of transaction relatedto taxes are handled by tax unit of PIA

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    REFUND

    Refund is claiming back the amount paid by surrendering ticket. The refundshave been classified under two heads that is cases which are settled at

    1- Station level2- Head Office .

    TYPES OF REFUND1. Refund against domestic documents2. Refund against unexpired or current PIA documents3. Refund of expired PIA documents4. Refund against lost documents

    5. Replacement documents issued in lieu of lost document6. Release of bank guarantee/security money or cash deposit7. Refund against lost-inmail or misplaced documents8. Refund against wrongly uplifted coupons9. Retroactive refund of student rebate10.Refund against excess collection11.Refund of un-used PTAS12.Refund of difference of fare on PIA documents on PK flights13.Refund of difference of fare on PIA documents if journey performed

    on other Airlines14.Refund of difference of fare on other Airlines tickets if journey

    performed on PIA flights15.Refund of other airlines unexpired documents issued in exchange of

    PIA documents16.Refund of other airlines expired documents issued in exchange of PIA

    documents17.Refund of documents issued against UATP/ATC Cards18.Refund of documents issued against credit cards such as

    AMEXP/DINERS club and other Bank cards19.Refund of tickets issued against Air Passage Warrants (APW)20.Refund of PIA and /or other airlines documents where multiple

    exchanges/complications are involved21.Extension of validity/Re-issuance of PIA documents22.Refund of employees rebated tickets23.Unused OCS and 100% free staff tickets

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    24.Reporting of refunds

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    CONDITIONS FOR REFUND TICKETS

    1. Refunds claims for fully or partly unused documents should besupported with the flight coupons intact with Passengers Coupon.

    2. Each claim for difference of fare should be supported withPassengers Coupon in original.

    3. Refund is made by the office (station, agents or carrier) whichoriginally collected the passage money.

    4. Refund is made in the country and currency of original payment.5. Refund is made to the person who originally paid for the document or

    his duly authorized nominee.6. No refund is entertained after 3 years from date of issue of the

    document.

    7. No refund shall be allowed against domestic lost documents.

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    CARGO REVENUE

    Introduction:

    Cargo revenue is a sub unit of revenue department. It generates 12 to15% of the PIA totalrevenue. There are 4 units of cargo revenue section, which are as follow

    cargo sales unit

    cargo pricing unit

    cargo lift unit

    cargo mail unit

    Working Procedure:-

    Firstly sales report and airway bill comes from stations to cargo revenue section. Then

    they are sent to lift after processing. In lift section the fares of airway bill are matchedwith the rates reports which are approved by the marketing department.

    In lift section the lifted air way bills are matched with data of air way bills which issaved in cargo file. The data of air way bills is transferred from station where the air waybills are dispatched.

    Cargo Revenues

    Cargo revenue has grown by implementing Yield Management, basic guidelines ofWhich have been an increase in Yield / RFTK, per pallet earning, priority to better

    density, commodities etc. From time to time additional capacity has been arranged by tripleasing aircraft to meet specific market demands.

    Due to our market credibility, we are preferred for pure cargo charters business. This isapparently due to our long-standing and reliability in Air Freight business worldwide.

    In Pakistan, Karachi, Lahore and Islamabad are the main cargo stations for PIA.

    Outside Pakistan, we have been using handling companies to operate standard Terminalsand are able to handle cargo as per desired international requirements.

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    PIA Cargos Role in Pakistans exports

    PIA has played an active role in Pakistans export and has pioneered the opening ofcertain markets around the globe for Pakistani commodities, particularly perishables(fresh fruits, vegetables, fresh Flowers, seafood). Inspire of open sky policy since 1992,

    as a result of which other carriers have been able to induct capacity at will, PIA cargo hasretained its market share in the uplift of perishables. Annually PIA is uplifting 13,000tons of perishables, out of which significant movement is the uplift of mangoes duringJune-September, which is approximately 5000 tones. PIA keeps a very close liaison withexporters of Pakistan directly and through various associations, Chambers of Commerceand Export Promotion bureau. As a national carrier, we remain aware of ourresponsibility to assist exports and we continuously plan and formulate policies to ensureefficient flow of exports. We have also actively participated in various export exhibitionsof Pakistani goods all over the world, by carrying exhibition goods on special terms.

    PIAs Major Commodities ex-Pakistan

    PIA is uplifting around 30,000 tons cargo per year including dry and perishables ex-Pakistan.

    CommodityPercentage of

    Total Uplift

    (Dry cargo . . . . . . 48%)

    Garments/Textile 29%

    Carpets 12%

    Finished Leather/Leatherproducts

    25%

    Surgical 10%

    Sports goods 3%

    General cargo 21%

    Perishable cargo. . . . . . . . 52%

    PIA has specialized in uplift of special cargo like Relief goods, live animals ( sheep,cows, camels, horses) shipments for cargo aircraft only etc. These commodities havebeen uplifted from time to time, on our freighters leased on trip lease basis .

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    PIA Cargo Network

    Besides country wide domestic network, cargo is directly serving 40 internationaldestinations round the globe, while rest of the world is being served through interlinecarriage beyond PK points. PIA's average cargo revenue is around US dollar 82 million

    per year, with system uplift of approx. 75,000 tons, on an average system wide yield ofUS dollar 1.10 per kilogram. PIA, s network is spread over internationally definedfreedoms as mentioned in the chart below.

    Freedom wise performance average tons uplift per year.

    PIA has divided its network in 09 different regions according to the geographical locationof the stations. Out of total revenue, 49% is earned in Pak rupees, while 51% of thesystem revenue is being earned in foreign exchange. Region wise revenue/tonnagecontribution to the system is as given below.

    Region wise performance

    PIA's international network is charted below.

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    Automation

    During the last decade PIA has systematically automated its cargo reservations,Warehouse and terminals at all major stations . The FAST-IV system through SITA wasInstalled and at the moment almost 80% of PIA cargo activities are automated. The use ofthis Electronic system has improved the service standards and brought the airline in withother developed carriers.