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

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

INTERNSHIP REPORT
SAUDI ARABIAN AIRLINES
(G.S.A SOUTHERN TRAVELS PVT. LTD.)
PESHAWAR, PAKISTAN

Supervisor:

Signature:_______________________________
Name:

_______________________________

Designation:

_______________________________

Institute:

_______________________________

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. Saudias history has been summarized and
its development process is being categorized in eras 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.
In the later part of the report, Saudi Arabian Airlines 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 airlines internal affairs, lack of published annual reports by the

airline or G.S.A. showing companys 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.....................................................- 1 LIST OF TABLES, GRAPHS AND CHARTS.............................- 3 CHAPTER 1:..............................................................- 4 INTRODUCTION TO THE REPORT....................................- 4 1.1.

BACKGROUND OF THE STUDY:................................- 5 -

1.2.

PURPOSE OF THE STUDY:.......................................- 5 -

1.3.

SCOPE OF THE STUDY:..........................................- 6 -

1.4.

LIMITATIONS OF THE STUDY:.................................- 6 -

1.5.

METHADOLOGY OF THE STUDY:.............................- 7 -

1.5.1

PRIMARY DATA:........................................................- 7 -

1.5.2

SECONDARY DATA:....................................................- 8 -

1.6

SCHEME OF REPORT:........................................................- 9 -

CHAPTER 2:............................................................- 11 ORGANIZATIONAL REVIEW.........................................- 11 2.1.

INTRODUCTION TO SAUDI ARABIAN AIRLINES:.........- 11 -

2.2.

MISSION & VISION:.....................................................- 11 -

2.4.

HISTORY:...................................................................- 14 -

CHAPTER-3:..............................................................- 18 OPERATIONAL REVIEW...............................................- 18 3.1.

SAUDI ARABIAN AIRLINES:...................................- 18 -

3.1.1.

SPECIAL AWARDS:...................................................- 18 -

3.1.2.

STRATEGIC BUSINESS UNITS (SBUs):.........................- 19 -

3.1.3.

SERVICES:...............................................................- 20 -

3.1.3.1.

GROUND SERVICES:..........................................- 20 -

3.1.3.2.

INFLIGHT SERVICES:.........................................- 21 -

3.1.4.

CLASSES OF TRAVEL:.............................................- 22 -

3.2.

SKYTEAM:.......................................................- 23 -

3.3.

SKYTRAX:........................................................- 25 -

3.4.

IATA (INTERNATIONAL AIR TRANSPORT ASSOCIATION):- 26

-

3.5.

SOUTHERN TRAVELS PVT. LTD.:.............................- 28 -

3.6.

SAUDI ARABIAN AIRLINES G.S.A. BRANCH OFFICE

PESHAWAR, KPK, PAKISTAN:.................................- 29 -

3.6.1.

EXECUTIVE SUMMARY:...........................................- 29 -

3.6.2.

DEPARTMENTS:.......................................................- 31 -

3.7.

3.6.2.1.

ACCOUNTS:......................................................- 31 -

3.6.2.2.

SALES DEPARTMENT:........................................- 32 -

3.6.2.3.

RESERVATIONS & BOOKINGS DEPT.:...................- 32 -

DEFINITIONS:...................................................- 33 -

3.7.1.

E-TICKET:...............................................................- 33 -

3.7.2.

TICKET NUMBER:....................................................- 34 -

3.7.3.

PNR (PERSONAL NAME RECORD):.............................- 34 -

3.7.4.

FLIGHT NUMBER:....................................................- 35 -

CHAPTER-4:..............................................................- 36 ANALYSIS................................................................- 36 4.1.

GENERAL ANALYSIS:..........................................- 36 -

4.1.1.

SWOT ANALYSIS:.....................................................- 36 -

4.1.2.
4.2.

PESTLE ANALYSIS:..................................................- 41 -

FINANCIAL ANALYSIS:..................................................- 45 -

4.2.1.

PASSENGER LOAD RATIO:........................................- 46 -

4.2.2.
RATIO OF FLIGHT OPERATIONS CARRIED OUT BY SAUDIA
IN KSA: - 49 4.2.3.
RATIO OF CARGO OPERATIONS CARRIED OUT BY SAUDIA
IN KSA: - 52 CHAPTER5:.............................................................- 55 CONCLUSION & RECOMMENDATIONS............................- 55 5.1.

SAUDI ARABIAN AIRLINES:...................................- 56 -

5.1.1.

ORGANIZATIONAL:..................................................- 56 -

5.1.2.

FUNCTIONAL:.........................................................- 56 -

5.1.3.

TECHNOLOGICAL:...................................................- 57 -

5.1.4.

HUMAN RESOURCE:................................................- 58 -

5.1.5

OPERATIONAL:........................................................- 58 -

5.2

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

Ltd. PESHAWAR, PAKISTAN:..................................- 59 -

5.2.1

ORGANIZATIONAL:..................................................- 59 -

5.2.2

FUNCTIONAL:.........................................................- 59 -

5.2.3

TECHNOLOGICAL:...................................................- 60 -

5.2.4

HUMAN RESOURCE:................................................- 60 -

5.2.5

OPERATIONAL:........................................................- 60 -

RECOMMENDATIONS:.................................................- 61 APPENDIX................................................................- 63 DATA SOURCE FOR TABLES 1-4:............................................- 63 -

BIBLIOGRAPHY:........................................................- 65 -

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

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

Franklin Delano Roosevelt.

LTD.

Limited.

No.

Number

PIA

Pakistan International Airline.

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.

LIST OF TABLES, GRAPHS AND CHARTS

Figure 1: SkyTeam Alliance Members.....................................- 17 Figure 2: SkyTeam Logo.........................................................- 23 Figure 3: SKYTRAX Logo.........................................................- 25 Figure 4: IATA Logo................................................................- 26 Figure 5: Executive Summary: Saudi Arabian Airline, G.S.A.
Peshawar................................................................................ - 30
Table 1: Calculation for Total Seating Capacity of the Fleet...- 47 Table 2: Ratio of Passenger Load in Trends............................- 48 Table 3: Percentage Ratio of Flight Operations carried out by
Saudia in KSA........................................................................- 50 Table 4: Percentage Ratio of Cargo Operations carried out by
Saudia in KSA........................................................................- 52 Y
Graph 1: Percentage Passenger Load Ratio...........................- 48 Graph 2: Percentage Ratio of Flight Operation carried out by
Saudia in KSA........................................................................- 50 Graph 3: Ratio of Cargo Operation Carried out by Saudia in KSA 53 -

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.

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 Pakistans 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.

To perform operational and financial analysis of the Airline,

SWOT analysis, general and financial analysis of the airline in
Pakistans 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

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 companys standard operating procedures. It has been consciously
observed that no data is incorporated in the analysis that misleads
companys 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.
Companys 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.

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.

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.