INTERNSHIP REPORT

SAUDI ARABIAN AIRLINES

(G.S.A SOUTHERN TRAVELS PVT. LTD.)

PESHAWAR, PAKISTAN

M. AAMER WAQAS IDREES

BBA (Hons.)

ROLL # 02

SESSION 2010-14

INSTITUTE OF MANAGEMENT STUDIES

UNIVERSITY OF PESHAWAR

I

INTERNSHIP REPORT

SAUDI ARABIAN AIRLINES

(G.S.A SOUTHERN TRAVELS PVT. LTD.)

PESHAWAR, PAKISTAN

Internship report submitted to the Institute of Management Studies,

University of Peshawar in accordance with the fulfillment of

requirements for the degree of Bachelors of Business Administration.

INSTITUTE OF MANAGEMENT STUDIES

UNIVERSITY OF PESHAWAR

II

INTERNSHIP REPORT

SAUDI ARABIAN AIRLINES

(G.S.A SOUTHERN TRAVELS PVT. LTD.)

PESHAWAR, PAKISTAN

Supervisor:

Signature: _______________________________

Name: _______________________________

Designation: _______________________________

Institute: _______________________________

III

PREFACE

This internship report is based on the data and information gathered

verbally / non-verbally from the concerned department heads and officers

while I was having my internship. I am thankful to the staff of Saudi

Arabian Airlines G.S.A. Peshawar specially;

Mr. Sardar Ahmed Gul (Regional Director)

Mr. Asif Rauf (Area Manager)

Mr. Salman Khan (Supervisor – Finance Dept.)

Mr. Asif Ikram (Supervisor – Reservations Dept.)

Mr. Babar (Supervisor – Sales Dept.)

This report highlights the emergence and development of Saudi Arabian

Airlines quite comprehensively. Saudia’s history has been summarized

and its development process is being categorized in era’s instead of year

by year description, thus enabling the readers to have a quick overview of

the history of Saudi Arabian Airlines.

Moreover, the foundation to SBUs of Saudi Arabian Airlines are being

identified and categorically explained along with their executive

summaries and management structures. The report sheds light over the

detailed introduction of Saudi Arabian Airline besides its history. The

privatization process, the expansion of services and operations, alliances

and formations with several airline alliance bodies, its operational and

functional perspectives, are the key notes of the report.

V

In the later part of the report, Saudi Arabian Airline’s operations in

Pakistan are being discussed. Its scheduled and special operations are

listed and further its operations through Bacha Khan International Airport,

Peshawar; Khyber Pakhtunkhwa, Pakistan is being discussed in detail. The

departments, services and operations are stated in regional perspective.

The airline operations and services are being analyzed after the

introduction. Analysis is carried out on both factual and analytical

grounds. On the basis of analysis certain recommendations and deductions

have been carried out and mentioned in the concerned section of this

report.

Since, this is an internship report and it is basically based upon the data

and figures gathered through observation and personal experience of

internship period, therefore, preference is given to state actual facts and

deductions are being made on that basis. Hence, this report is being

prepared under certain limitations such as lack of first hand data, limited

access to airline’s internal affairs, lack of published annual reports by the

airline or G.S.A. showing company’s position in numeric terms, and very

short span of internship period.

Besides, I am thankful to my teachers, family, friends and all formal and

informal mentors who supported and guided me throughout these years of

my graduation.

M. Aamer Waqas Idrees

BBA – Hons.

IMS – University of Peshawar

TABLE OF CONTENTS

PREFACE .................................................................................................. IV

LIST OF ACRONYMS.................................................................................9

LIST OF TABLES, GRAPHS AND CHARTS............................................ 11

CHAPTER – 1: ........................................................................................... 12

INTRODUCTION TO THE REPORT ....................................................... 12

1.1. BACKGROUND OF THE STUDY: ................................................ 13

1.2. PURPOSE OF THE STUDY: .......................................................... 13

1.3. SCOPE OF THE STUDY: ............................................................... 14

1.4. LIMITATIONS OF THE STUDY: .................................................. 14

1.5. METHADOLOGY OF THE STUDY: ............................................. 15

1.5.1 PRIMARY DATA:..................................................................... 15

1.5.2 SECONDARY DATA: ............................................................... 16

1.6 SCHEME OF REPORT: .................................................................... 17

CHAPTER – 2: .................................................. Error! Bookmark not defined.

ORGANIZATIONAL REVIEW ........................ Error! Bookmark not defined.

2.1. INTRODUCTION TO SAUDI ARABIAN AIRLINES: ..............Error!

Bookmark not defined.

2.2. MISSION & VISION:.......................... Error! Bookmark not defined.

2.4. HISTORY: .......................................... Error! Bookmark not defined.

CHAPTER-3: .................................................... Error! Bookmark not defined.

OPERATIONAL REVIEW ............................... Error! Bookmark not defined.

VII

3.1. SAUDI ARABIAN AIRLINES: .............. Error! Bookmark not defined.

3.1.1. SPECIAL AWARDS:....................... Error! Bookmark not defined.

3.1.2. STRATEGIC BUSINESS UNITS (SBUs): ...... Error! Bookmark not

defined.

3.1.3. SERVICES: ..................................... Error! Bookmark not defined.

3.1.3.1. GROUND SERVICES: ............. Error! Bookmark not defined.

3.1.3.2. INFLIGHT SERVICES:............ Error! Bookmark not defined.

3.1.4. CLASSES OF TRAVEL: ................ Error! Bookmark not defined.

3.2. SKYTEAM: ............................................ Error! Bookmark not defined.

3.3. SKYTRAX: ............................................ Error! Bookmark not defined.

3.4. IATA (INTERNATIONAL AIR TRANSPORT ASSOCIATION):

............................................................... Error! Bookmark not defined.

3.5. SOUTHERN TRAVELS PVT. LTD.: ..... Error! Bookmark not defined.

3.6. SAUDI ARABIAN AIRLINES G.S.A. BRANCH OFFICE

PESHAWAR, KPK, PAKISTAN:........... Error! Bookmark not defined.

3.6.1. EXECUTIVE SUMMARY: .............. Error! Bookmark not defined.

3.6.2. DEPARTMENTS:............................ Error! Bookmark not defined.

3.6.2.1. ACCOUNTS: ........................... Error! Bookmark not defined.

3.6.2.2. SALES DEPARTMENT: .......... Error! Bookmark not defined.

3.6.2.3. RESERVATIONS & BOOKINGS DEPT.:..... Error! Bookmark

not defined.

3.7. DEFINITIONS: ...................................... Error! Bookmark not defined.

3.7.1. E-TICKET: ...................................... Error! Bookmark not defined.

3.7.2. TICKET NUMBER:......................... Error! Bookmark not defined.

3.7.3. PNR (PERSONAL NAME RECORD): ........... Error! Bookmark not

defined.

3.7.4. FLIGHT NUMBER:......................... Error! Bookmark not defined.

CHAPTER-4: .................................................... Error! Bookmark not defined.

VIII

ANALYSIS ........................................................ Error! Bookmark not defined.

4.1. GENERAL ANALYSIS: ......................... Error! Bookmark not defined.

4.1.1. SWOT ANALYSIS: ......................... Error! Bookmark not defined.

4.1.2. PESTLE ANALYSIS: ...................... Error! Bookmark not defined.

4.2. FINANCIAL ANALYSIS: ..................... Error! Bookmark not defined.

4.2.1. PASSENGER LOAD RATIO: .......... Error! Bookmark not defined.

4.2.2. RATIO OF FLIGHT OPERATIONS CARRIED OUT BY SAUDIA

IN KSA: Error! Bookmark not defined.

4.2.3. RATIO OF CARGO OPERATIONS CARRIED OUT BY SAUDIA

IN KSA: Error! Bookmark not defined.

CHAPTER–5: .................................................... Error! Bookmark not defined.

CONCLUSION & RECOMMENDATIONS...... Error! Bookmark not defined.

5.1. SAUDI ARABIAN AIRLINES: .............. Error! Bookmark not defined.

5.1.1. ORGANIZATIONAL:...................... Error! Bookmark not defined.

5.1.2. FUNCTIONAL: ............................... Error! Bookmark not defined.

5.1.3. TECHNOLOGICAL: ....................... Error! Bookmark not defined.

5.1.4. HUMAN RESOURCE: .................... Error! Bookmark not defined.

5.1.5 OPERATIONAL:............................. Error! Bookmark not defined.

5.2 SAUDI ARABIAN AIRLINES G.S.A. SOUTHERN TRAVELS Pvt.

Ltd. PESHAWAR, PAKISTAN: ............. Error! Bookmark not defined.

5.2.1 ORGANIZATIONAL:...................... Error! Bookmark not defined.

5.2.2 FUNCTIONAL: ............................... Error! Bookmark not defined.

5.2.3 TECHNOLOGICAL: ....................... Error! Bookmark not defined.

5.2.4 HUMAN RESOURCE: .................... Error! Bookmark not defined.

5.2.5 OPERATIONAL:............................. Error! Bookmark not defined.

RECOMMENDATIONS: .................................. Error! Bookmark not defined.

APPENDIX........................................................ Error! Bookmark not defined.

IX

DATA SOURCE FOR TABLES 1-4:.............. Error! Bookmark not defined.

BIBLIOGRAPHY: ............................................ Error! Bookmark not defined.

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LIST OF ACRONYMS

AACO Arab Air Carrier Organization.

BBA Bachelor of Business Administration.

BODs Board of Directors

CEO Chief Executive Officer.

CRM Crew Resource Management

DC Douglas / Dakota (model name of aircraft)

Email Electronic Mail.

Franklin D. Roosevelt Franklin Delano Roosevelt.

G.S.A. General Sales Agent

GM General Manager.

GS Ground Services.

Hons. Honors.

IATA International Air Transport Association.

IMS Institute of Management Studies.

ISO International Standards Organization.

IT. Information Technology.

KSA. Kingdom of Saudi Arabia

LTD. Limited.

No. Number

PIA Pakistan International Airline.

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PNR. Personal Name Record.

PVT. Private.

SAA Saudi Arabian Airlines.

Saudia Saudi Arabian Airline IATA name.

SMS Short Messaging Service.

SOPs Standard Operating Procedures.

SV Saudi Arabian Airline IATA Code.

U.S. United States of America

UOP University of Peshawar.

VIP Very Important People.

12

LIST OF TABLES, GRAPHS AND CHARTS

Figure 1: SkyTeam Alliance Members ................... Error! Bookmark not defined.

Figure 2: SkyTeam Logo....................................... Error! Bookmark not defined.

Figure 3: SKYTRAX Logo....................................... Error! Bookmark not defined.

Figure 4: IATA Logo ............................................. Error! Bookmark not defined.

Figure 5: Executive Summary: Saudi Arabian Airline, G.S.A. Peshawar.........Error!

Bookmark not defined.

Table 1: Calculation for Total Seating Capacity of the Fleet.. Error! Bookmark not

defined.

Table 2: Ratio of Passenger Load in Trends ........... Error! Bookmark not defined.

Table 3: Percentage Ratio of Flight Operations carried out by Saudia in KSAError!

Bookmark not defined.

Table 4: Percentage Ratio of Cargo Operations carried out by Saudia in KSA

.......................................................................... Error! Bookmark not defined.

Graph 1: Percentage Passenger Load Ratio........... Error! Bookmark not defined.

Graph 2: Percentage Ratio of Flight Operation carried out by Saudia in KSA Error!

Bookmark not defined.

Graph 3: Ratio of Cargo Operation Carried out by Saudia in KSA Error! Bookmark

not defined.

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CHAPTER – 1:

INTRODUCTION TO THE REPORT

This internship report is in accordance with the mandatory academic

internship of eight weeks in a recognized organization. The internship is

then followed by report writing which is an integral part in fulfillment of

Bachelors of Business Administration (Hons.) as regulated by Higher

Education Commission of Pakistan. The report is to be assessed and

analyzed by the respective institute / department at which the internee is

pursuing his bachelor degree. Therefore, this report is submitted to the

Research and Development Division(R&DD) of Institute of Management

Studies, University of Peshawar.

The report is written under supervision of an experienced and qualified

faculty member. The report is analyzed and properly evaluated according

to the rules and standards of report writing.

This report is being written upon Saudi Arabian Airlines, the leading

airline of Gulf region. It specifically focuses upon its operations in

Pakistan, particularly form Peshawar, Pakistan. Saudi Arabian Airlines has

a General Sales Agent office at Peshawar Cant. Pakistan.

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1.1. BACKGROUND OF THE STUDY:

The study is based upon the verbal and non-verbal experiences and

information gained at Saudi Arabian Airlines G.S.A. Peshawar

Cantonment. This office is owned by Southern Travels Pvt. Ltd, Pakistan.

Southern Travels is the appointed General Sales Agent of Saudi Arabian

Airlines in Pakistan. The airline has outsourced its Sales and Ticketing

through Southern travels in Pakistan’s various cities. Southern Travels is a

growing well reputed Sales Agent of the region.

Both, the airline and the agent have strict data and information sharing

policies, therefore, the report consists of only those data which is

publicized by both the companies. Organizational, SOPs are being

observed while writing the report.

1.2. PURPOSE OF THE STUDY:

Aim of the study is to work in real life situation and to apply management

skills. This report is based on the study carried for the fulfillment of the

degree requirement of the Bachelor of Business Administration (BBA

Hons.) at the Institute of Management Studies, University of Peshawar.

In this context its objectives are:

To understand the various operations of Saudi Arabian Airlines

in general, its functions and operations in Pakistan particularly.

15

To perform operational and financial analysis of the Airline,

SWOT analysis, general and financial analysis of the airline in

Pakistan’s perspective.

To make recommendations in accordance with the results of

analysis being performed.

To provide an overview of the airline compared to its

competitors.

1.3. SCOPE OF THE STUDY:

As discussed, the study is restricted to an overview of the basic operations

and functional structures of Saudi Arabian Airlines at G.S.A. Peshawar,

Pakistan. So the report does not include detailed description of all the

operations which are carried out at/by Saudi Arabian Airlines. Similarly,

the general and financial analysis is also being performed on the basis of

parameters and variables existing at Peshawar, Pakistan specifically.

1.4. LIMITATIONS OF THE STUDY:

This study was conducted in accordance with the objectives of the study.

The study may not include broad explanations of facts and figures due to

the limited access given to an internee during a short span of just eight

weeks. The limitation which affects the study is the restriction on

mentioning every fact is due to the problem of secrecy. Also the

availability of required data is a problem as all the documents and files are

16

kept strictly under command and control of the managers due to their

confidential nature.

The problem of short time period also makes the analysis restricted as one

cannot properly present and write a detailed comprehensive report in a

short period of time to describe each and every operation of a

multinational operating airline whose operations are spread over

continents.

Moreover, no financial statements or annual reports are available

publically of the airline; therefore, in the financial analysis effort is being

made to perform an analysis based upon figures and in accordance with

the company’s standard operating procedures. It has been consciously

observed that no data is incorporated in the analysis that misleads

company’s statistics or strategy.

1.5. METHADOLOGY OF THE STUDY:

The data collected for analysis and review includes both primary and

secondary data. The methods used for collecting primary and secondary

data are as follows:

1.5.1 PRIMARY DATA:

Data collected for the first time is called primary data. Therefore, the data

is collected through the following techniques:

Through observation of staff / floor operations.

Discussions with concerned officers.

Formal and informal interviews with various managers / officers.

17

Company’s brochures / pamphlets.

Interaction with customers.

Personal experience of the system and operations when given

access.

1.5.2 SECONDARY DATA:

The data collected by someone else and that has gone through

mathematical and statistical techniques is called secondary data. In

secondary data collection, following techniques have been incorporated

for data collection:

From working manual.

Brochures and pamphlets.

Job working orders

Websites

Airline manuals.

Annual reports (available ones only).

Customer responses / feedbacks.

18

1.6 SCHEME OF REPORT:

The report has been divided into five sections for better understanding and

comprehensive explanation of the operational and functional aspects of

Saudi Arabian Airlines. The classification is in following order:

Chapter-1: This chapter covers the basic introduction to the report,

mainly the abstract of the report. Furthermore, it covers the background of

study, its purpose, scope, limitations, methodology as well as the scheme

of the study.

Chapter-2: This chapter gives a brief introduction to the airline i.e.

Saudi Arabian Airlines. It has described about the mission, vision, history,

slogan, organizational history, evolution and development.

Chapter-3: This chapter consists of a complete overview to the airline,

its operations carried out all over the world, products and services, its

SBUs, awards, alliances with global travel partners and agents, its

operations in Pakistan. Furthermore, it also sheds light upon the

introduction and Executive summary of Southern Travels Pvt. Ltd., the

appointed G.S.A. of Saudia in Pakistan. A brief introduction to G.S.A.

Peshawar is also been given in the chapter.

Chapter-4: In this chapter, general and financial analysis is being

performed through methods like SWOT analysis, PEST analysis,

consisting of various variables and parameters. The reports are being made

in accordance with the data available.

19

Chapter-5: In this chapter, we summarize the findings and

recommendations. Suggestions assumed to be the possible solutions to a

few problems that were reported and noticed during internship experience

are made. The chapter also suggests some recommendations for further

improvement in the performance, which are both in quantitative and

qualitative terms.