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THE AIRLINE INDUSTRY:

Few inventions have changed how people live and experience the world as much as the invention of the airplane. During both World Wars, government subsidies and demands for new airplanes vastly improved techniques for their design and construction. Following the World War II, the first commercial airplane routes were set up in Europe. Over time, air travel has become so commonplace that it would be hard to imagine life without it. The airline industry, therefore, certainly has progressed. It has also altered the way in which people live and conduct business by shortening travel time and altering our concept of distance, making it possible for us to visit and conduct business in places once considered remote. The airline industry exists in an intensely competitive market. In recent years, there has been an industry-wide shakedown, which will have far-reaching effects on the industry's trend towards expanding domestic and international services. In the past, the airline industry was at least partly government owned. This is still true in many countries, but in the U.S. all major airlines have come to be privately held. Airlines vary from those with a single airplane carrying mail or cargo, through full-service international airlines operating many hundreds of airplanes. Airline services can be categorized as being intercontinental, intracontinental, or domestic and may be operated as scheduled services or charters.

HISTORY OF AIRLINE INDUSTRY:

THE FIRST AIRLINE:

DELAG, Deutsche Luftschiffahrts-Aktiengesellschaft (German: acronym for "German Airship Transport Corporation") was the world's first airline. It was founded on November

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16, 1909 with government assistance, and operated airships manufactured by Zeppelin Corporation. Its headquarters were in Frankfurt.

FAILED ATTEMPT:

Americans, such as Rufus Porter and Frederick Marriott, attempted to start airlines in the mid-19th century, focusing on the New York-California route. Those attempts foundered due to such mishaps as the aircraft catching fire and the aircraft being ripped apart by spectators

Failed attempt at an airline before DELAG

ASIAN AIRLINE INDUSTRY:Some of the first countries in Asia to embrace air transport were India, Hong Kong, Indonesia, Malaysia, Pakistan and the Philippines. One of the first countries in Asia to embrace air transport was the Philippines. Philippine Airlines was founded on February 26, 1941, making it Asia's oldest carrier and the oldest operating under its current name. The airline was started by a group of businessmen led by Andres Soriano, hailed as one of the Philippines' leading industrialists at the time. The airline’s first flight was made on March 15, 1941 with a single Beech Model 18 NPC-54 aircraft, which started its daily services between Manila (from Nielson Field) and Baguio, later to expand with larger aircraft such as the DC-3 and Vickers Viscount. Another airline company to begin early operations was Air India, which had its beginning as Tata Airlines in 1932, a division of Tata Sons Ltd. (now Tata Group) by India's leading industrialist JRD Tata. On October 15, 1932, J. R. D. Tata himself flew a single engined De Havilland Puss Moth carrying air mail (postal mail of Imperial Airways) from Karachi to Bombay via Ahmedabad. The aircraft continued to Madras via Bellary piloted by Royal Air Force pilot Nevill Vincent.

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Neighboring countries also soon embraced air transport, notably with the beginning of a new nation, Pakistan began Orient Airways Ltd (Pakistan International Airlines), Cathay Pacific founded in 1946, Singapore Airlines and Malaysian Airlines in 1947 (as Malayan Airways), Garuda Indonesia in 1949, Japan Airlines in 1951, and Korean Air in 1962.

INTERNATIONAL AIR TRANSPORT ASSOCIATION:

International Air Transport Association

Formation April 1945

Headquarters Montreal, Canada

Membership 240 airlines

Key peopleGiovanni Bisignani, Director General and

CEO

Website http://www.iata.org

The International Air Transport Association is an international industry trade group of airlines headquartered in Montreal, Quebec, Canada, where the International Civil Aviation Organization is also headquartered. The main objective of the organization is to assist airline companies to achieve lawful competition and uniformity in prices. The Director General is Giovanni Bisignani.

IATA was formed in April 1945, in Havana, Cuba. It is the successor to the International Air Traffic Association, founded in The Hague in 1919, the year of the world's first international scheduled services. At its founding, IATA had 57 members from 31 nations, mostly in Europe and North America. Today it has over 240 members from more than 140 nations in every part of the globe.

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10 MAJOR AIRLINES OF THE WORLD:

Skytrax is known for its World Airline Awards - they survey more people than anyone else, and the travel industry consistently awaits the results every year. These then, are the top 10 airlines in the world according to Skytrax.

1.SingaporeAirlines : No stranger to awards, Singapore Airlines snatched the overall Airline of the Year title for the quality of both its economy and premium class services. From topnotch food to friendly flight attendants, any long-haul flight on this airline, which flies more passengers every year than the entire population of Singapore, is bound to be a pleasurable experience.

2.ThaiAirways:Jumping up from fourth position in 2006, Thai Airways came in second place overall. Famous for its in-flight service and well-dressed cabin crew, the airline also won the Best First Class Lounge award for its lounge at Bangkok Airport which includes a Royal Spa complete with sauna and yoga classes. Oh to travel first class!

3.CathayPacific:A former title winner, Cathay Pacific performed well overall ranking in the top four or five positions in almost every section of the survey. The flagship carrier of Hong Kong is also one of only six airlines worldwide to carry Skytrax's prestigious five-star rating.

4.QatarAirways:A relative newcomer, Doha-based Qatar Airways has drawn plenty of attention for its international service. While economy class passengers are treated to excellent in-flight service, with the airline taking out the Best First Class Airline tag, it's the first class passengers who, as usual, remain king.

5.Qantas:Long celebrated for its exceptional flight safety record, Qantas has dropped from second place in 2006 to fifth place. Australia's leading airline, however, consistently performs well and its budget domestic carrier, Jetstar, was named the World's Best Low-Cost Airline.

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6.MalaysiaAirlines:Moving up three places from the previous year, Kuala Lumpur-based Malaysia Airlines also regained its crown for the world's Best Cabin Staff Award, snatched away by Thai Airways in 2006. Along with Cathy Pacific, it is one of only six airlines worldwide to hold Skytrax's five-star rating.

7.AirNewZealand:At last, New Zealand's flagship carrier has finally nudged its way into Skytrax's top 10. Long recognized locally for its quality passenger service, it's good to see this Kiwi icon taking on the world's best.

8.ChinaAirlines:A surprising addition to this list is state-owned China Airlines, which in fact moved up two places from 2006. With its base in Taiwan not China, because of political tensions, passengers to and from mainland China must fly through a third port.

9.Emirates:Consistently cited as one of the world's best airlines, Emirates is the largest Middle Eastern Airline. Based in Dubai, most of its flight attendants are recruited from overseas.

10.BritishAirways:Relying too heavily on past reputation, British Airways has slipped from its first place ranking in 2006 all the way down to 10th position. The founding member of the one world travel alliance obviously needs to lift its game if it wants to regain the top spot.

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PAKISTAN INTERNATIONAL AIRLINESINCE 1955

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THE AIRLINE INDUSTRY IN PAKISTAN:

The Pakistan aviation industry was started up when Orient Airways merged with Pakistan International Airlines Corporation (PIAC) to become the national flag carrier of Pakistan called Pakistan International Airlines (PIA). PIA remained the only operator for many years after its creation, but soon private airlines arrived at the scene to compete with the national flag carrier as conditions of the country stabilized.

It was not until the early nineties there was a major growth in the Pakistani aviation market with four new private airlines launching operations. The airline did very well to compete with the well established flag carrier, PIA which was controlled by the government. However, this was not to last as the UN placed economic sanctions on Pakistan and its neighbor, India that caused the airline market to suffer. It caused two of the four airlines to file for bankruptcy and liquidate their assets. The airline industry remained quite stable with PIA developing a strong hold on the international and domestic market for many years. It was not until the early 21st century that the industry started to pick up again that allowed the entry of a new carrier in the market, Air blue which launched operations with new state of the art aircraft. As of August 2007, the aviation market is developing and allowing more services and facilities to be inaugurated as well as the development of a brand new airport to be built for the capital at Fateh Jang.

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PAKISTAN INTERNATIONAL AIRLINE:

BRIEF DESCRIPTION:

Pakistan International Airlines

IATAPK

ICAOPIA

Call signPAKISTAN

Founded 1946 (as Orient Airways)

HubsJinnah International AirportAllama Iqbal International AirportIslamabad International Airport

Focus citiesPeshawar International AirportMultan International AirportFaisalabad International Airport

Frequent flyer program PIA Awards Plus +

Fleet size 40

Destinations 58

Parent company Ministry of Defense (Government of Pakistan)

Company slogan Come Fly With Us

Headquarters Karachi, Pakistan

Key peopleAhmad Mukhtar (Chairman)Cpt. Aijaz Haroon (MD)

HISTORY:

Pakistan International Airlines, or PIA for short, can trace its beginnings to the days when Pakistan still was not an independent state. In 1946 Muhammad Ali Jinnah realized the need for an airline network for the forming country and called upon the help of an experienced industrialist Mirza Ahmad Ispahani to develop a flag carrier for the nation. Meanwhile, an airline called Orient Airways, registered in Kolkata, was formed on October 23 1946. Services were started in

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June from Kolkata to Sittwe and Yangon. This was the first post-war airline flight by a South Asian registered airline company. Two months after this service began, Pakistan was formed. Orient Airways began relief flights to the new nation and, soon after, it moved its operations to Karachi, where it began flights to Dhaka on June 7, 1954. In addition, the first two domestic routes in Pakistan were established, from Karachi to Lahore to Peshawar, and from Karachi to Quetta to Lahore.The Government of Pakistan, realizing the operation was failing economically, proposed that Orient Airways merge into a new national airline. On March 11 1955, Orient Airways merged with the government's proposed airline, becoming Pakistan International Airlines Corporation. During the same year the airline opened its first international service, from Karachi to London Heathrow Airport. In March 1960, PIA became the first Asian airline to enter the jet age when Boeing 707 services were introduced. The aircraft were wet leased from Pan American and in 1961 services were begun to John F. Kennedy International Airport in New York

FINANCIAL PERFORMANCE:

During the first quarter of 2007, the airline achieved a 5% growth in overall revenue mainly due to increase in passenger traffic. The revenue growth was lowered by a 10% reduction in cargo revenue. The EU ban on PIA in March 2007 reduced the revenue growth because only the Boeing 777 was allowed to enter in Europe. Many of the European routes were put on hold until the airplanes were repaired and brought up to EU standards. The impact of the 2006 salary rise, increased cost of leased airplanes, and higher maintenance cost of the PIA fleet increased the overall operating expenses by 19%. Consequently, the airline suffered an operating loss of Rs 2.5 billion in the first quarter of 2008.

MARKET SHARE:

Now PIA has the total market share of about 69% of total air transport in Pakistan

FLEET:

PIA's fleets of modern aircraft are spacious, comfortable, and designed to get you to your destination safely. PIA operates a range of advanced aircraft, ranging from the world's preferred Boeing 777 airplane to the super-quiet Airbus A-310.

A brief introduction of PIA fleet is given below:

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BOEING 777:

The Boeing 777 family comprises of long-range, wide-body twin-engine airplanes. PIA was the first airline in the world to operate all the three variants of the 777 family: 777-200LR, 777-200ER and 777-300ER, all of them are well loved by PIA's seasoned travelers for their spaciousness and comfort. PIA also holds the privilege of being the launch customer for 777-200LR, one of PIA’s aircraft holds the record for the longest commercial jet flight in aviation history. At present PIA is serving destinations in USA, Canada, UK and Europe through its 777 fleet.

BOEING 747:

The Boeing 747, often referred to as “Jumbo Jet”, is amongst the world's most iconic and recognizable jet airplanes. This 4 engine long haul wide-body airplane has a two-deck configuration. PIA operates two variants of 747 families which includes 747-300 and 747-200 Combo. 747 Combi is so called as it has mixed pax and cargo configuration on the main deck. At present due to its capacity, 747-300 fleet is mostly deployed to cater high density requirements like carrying intending pilgrims to and from Saudi Arabia.

AIRBUS A310:

The Airbus A310 is a medium to long range wide-body airplane providing a spacious interior to its travelers. PIA has deployed the A310-300 fleet on Far East, Regional as well as Domestic routes.

BOEING 737:

The Boeing 737 is one of the world's favorite narrow-body short/medium haul jet airplane. Amongst its many credits, it has the distinction of being the most ordered and produced commercial airplane of all time and Boeing continues to manufacture its variants, to date. PIA’s 737-300 aircraft mostly serve its domestic and regional routes.

ATR42

This modern technology turbo prop is the latest type inducted in PIA’s fleet. PIA’s fleet of seven ATR42-500 aircraft is configured in comfortable two class seating arrangement. This aircraft has enabled the airline to provide its valued customers the most convenient way to fly to far flung destinations of the country.

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LIVERY:

In December 2003 PIA introduced a new image that was applied to their first 777-200ER and on two leased A310-300s one of which was in service, due to negative feedback the design on the 777 and single A310 was modified before delivery to PIA with the tail being painted beige and a flowing Pakistan flag added to it, the PIA acronym was enlarged and moved onto the fuselage, the other A310 continued operating in the original version for a while before being repainted.

NEW LIVERY:

Pakistan International Airline, the national flag carrier, in its effort to portray the rich heritage it inherits has decided to change its livery partially, specifically its tail, to reflect the colors and artistic excellence of its four Provinces and proudly fly around the globe, for one and all to reflect on its grandeur.

In so doing, it has chosen some of the finest of motifs characteristic of the four Provinces comprising Pakistan. Not only was this need for change qualified by the massive change occurring in PIA as a whole, but was also reinforced by the national flag carriers desire to pool in its humble contribution in the integration of the country as a whole. The result is a colorful tail of PIA's airplanes, which in itself is named after the most remarkable characteristic of each province. All this is bonded by the retention of the National Flag repositioned for more emphasis on the main body of the fuselage. PIA aircrafts will be done in this livery on the tail over approximately a two year time span, before the entire fleet is completed.

Let us take the Provinces one by one and describe what each tail design represents for the entire fleet of PIA aircrafts.

Frontier:

Home of the proud Pathans, the North West Frontier Province stretches from the famous Khyber Pass in the north-west to the mighty Karakorum Range in the north-east. The airplane is named after the Khyber Pass, and the tail is resplendent by the "Phulkari" (flowering) pattern that reflects a rich and colorful tradition of embroidery generally done on shawls, shirts and linen. Often bearing strong Greek influence from the days of Ghandhara civilization, these vibrant geometric patterns and motifs, a'il in primary colors, reflect exquisite detail and precision of craftsmanship. The tail of the airplane bears witness to this design.

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PUNJAB:

As the land of the five rivers the Province of Punjab in Pakistan offers a feast for the senses. With its lush valleys and verdant plains the crafts of the Punjab have a rich and vibrant tradition from the 'royal' craftsmanship of its urban centers to the village crafts of the rural areas? The patterns and the motifs vary from floral designs to figures of birds to majestic elephants. Its historical buildings and gardens, its glasswork shimmering in the Sheesh Mahal, the art of Punjab is best exemplified in the exquisite tile decoration of the Wazir Khan Mosque in Lahore, which is the design on the tail of the airplane. The airplane is named after the, Garden of the Moguls.

BALOCHISTAN:

Pakistan's Balochistan Province stretches from the coast of Makran in the west to the mountain passes of Bolan and Gomal in the north. This is the land of the thousand of years old Juniper Forests. The local craftsmanship reflects the proud Baluch tribal tradition. A striking and colorful reflection of robust creativity is seen in the kilims, carpets and rugs woven with wool, goat or camel hair and mixed yarn. The pattern is mostly bold geometric motifs in primary colors dominated by red and making it strikingly beautiful. This is the design and motif on the tail. And the airplane is named after the Orchards of Balochistan.

SINDH:

Situated in the heart of the Indus Valley Civilization, exemplified by the ruins Moen-jo-daro, the Sindh Province in Southern Pakistan has an ancient and rich tradition of art and crafts. Among them, Hala tile work is one of the most striking representations of a craftsmanship that transforms clay into an object of undying and pristine beauty. Exquisitely adorned with electric blue and white floral patterns and motifs, the Hala craft signifies a labour of love and a passion for perfection. These floral patterns and motifs constitute the design of the aircrafts tails and the aircraft itself is named after the deserts of Sindh.

PIA’S NETWORK:

PIA’s vast network spans the globe, covering all the major cities of Pakistan and a host of international destinations.

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WORLDWIDE DESTINATIONS:

COUNTRYWIDE DESTINATIONS:

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PRIVATISATION:

PIA is owned by the government of Pakistan. In the late 1990s, the Government of Pakistan thought of giving the airline to the private sector due to the persistent losses suffered by the airline. The Government announced the privatization plans but were never implemented. The rising fuel prices are increasing the operating costs of the airline which consequently increase the losses. Another source of PIA's inefficiency has been the over-staffing of employees over the past 10-20 years that has crippled the organization’s finances. Back door discussions with potential buyers continue without any positive results. Following the global trend, several steps towards outsourcing of non-core business have been initiated. Catering units (starting with Karachi Flight Kitchen), Ground Handling (starting with Ramp Services) and Engineering, are to be gradually carved out of the airline and operated as independent companies.

MARKETING AND SPONSORSHIP:

Pakistan International Airlines (PIA) supports a first-class cricket team that plays in the ABN AMRO Patron's Trophy in Pakistan.

PIA is also sponsoring the Pakistani team for the A1 Grand Prix. PIA also promotes the Shandur Polo Gala that takes place every year in

the Chitral and Gilgit regions of northern Pakistan during the summer period.

PIA is one of the official sponsors of the "Destination Pakistan 2007" festivals.

PIA also has its own Boy Scouts Association (PIA-BSA) working in partnership with Pakistan Boy Scouts Association. After the earthquake, PIA-BSA was working in partnership with other charity organizations to provide relief help.

PIA Planetariums located in Karachi and Lahore is owned by PIA, which enable the public to see static aircraft as well as astronomy shows.

PIA Horticulture, set up in 1996, provides flowers for display in PIA's offices and for a range of events, winning several awards and accolades at flower exhibitions across the country.

PIA also supports non-profit organizations within Pakistan such as; Al-Shifa Trust, Zindagi Trust, The Citizens Foundation and Sindh Institute of Urology and Transplantation (SIUT).

SPECIAL OPERATIONS:

PIA has some special operations such as:

Charter services Hajj Umrah services Head of state transportation

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HAJJ FARES:

PIA was charging Rs47,500 last year when petrol was available at $90 per barrel in the international market. But it will be a grave injustice to charge Rs87, 000 fare from the intending pilgrims when the price of petrol has been decreased to $78 per barrel,” he said.

Due to the above reason the NWFP chapter of Pakistan Hajj Organizers Association (PHOA) Monday announced to move Supreme Court against Pakistan International Airlines (PIA) if the airlines did not decrease Hajj fares.

PESSANGER OPENION ABOUT PIA:

The passengers that often use PIA for both national and international flight have mixed opinions about their services, customer care andIn-flight entertainment. In this regard we interviewed few passengers of PIA on different routs. Here are there views about the hospitality and customer care 31 OCTOBER 2008 : MOHAMMED AHSAN: Manchester-Islamabad B777-300ER. The flight was nice, fantastic seats. The food was not bad, good IFE with good movies to watch. Islamabad-Man B777-200LR was one of the worst flights ever! The seats weren't as good as the B777-300ER and the cabin was dull and depressing. I could hardly push my seat back no the recline and the seats were cramped, and I'm only 5"2. The food was again not bad and the flight entertainment was just rubbish.

4 NOVEMBER 2008 : F AHMED: Lahore-Karachi-Lahore Economy Boeing 777-200ER. During the 8 hour flight we received 2 hot meals of good quality and plenty of opportunities to get soft beverages. PIA is a dry airline being Muslim country but they do not object if you bring your own bottle. Light sandwiches are available during other times should you need a snack. IFE is a little lacking even though screens on every seat with only few movies shown and then a couple of short programs (some in English, others in Urdu). Toilets were clean and crew attentive.

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.AIRBLUE INTERNATIONAL:

BRIEF DESCRIPTION:

HISTORY: The airline was established in 2003 and started operations on 18 June 2004 with 3 leased Airbus A320-200 aircraft serving Karachi-Lahore and

IATAED

ICAOABQ

Call signAIRBLUE

Founded 2003

Hubs Jinnah International Airport

Focus citiesAllama Iqbal International AirportBenazir Bhutto International Airport

Frequent flyer program

Blue Miles

Fleet size 8

Destinations 10

Headquarters Karachi, Pakistan

Key people Shahid Khaqan Abbasi

Website: http://www.airblue.com/

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Karachi-Islamabad with three daily flights in each direction. The airline was inaugurated by the then Prime Minister of Pakistan, Shaukat Aziz.

During the first year the airline became very popular, which allowed the airline to compete directly with the flag carrier PIA and the two other private carriers. This allowed the airline to expand into more cities in Pakistan including Peshawar, Quetta and Nawabshah. On August 14, 2005 (Pakistan's 58th Independence Day) Airblue launched its first international flight from Karachi to Dubai and recently added Faisalabad to its network.

MARKET SHARE:

It is Pakistan's second largest airline with a 20% share of the domestic market.

SERVICES:

Airblue was the first airline in Pakistan to introduce e-ticketing, wireless check-in and self check-in kiosk facilities. The airline also became a member of Sabre system that is used by over a hundred airlines to help it with ticket automation services.

SELF SERVICE CHECK-IN:

Leading the way with innovative new technology Airblue became the first airline in South Asia and only the second carrier in the region behind Emirates to introduce the latest self service check-in facilities at Jinnah International Airport, Karachi. The system allows passengers with baggage to obtain a boarding card through the touch screen menu without needing to report to the counter. Airblue plans to extend the self service check-in facilities to Lahore and Islamabad, and eventually to all cities on its network

ONE MILLIONTH PASSENGER CELEBRATION:

On March 22, 2006, Airblue celebrated the completion of handling of one million passengers on Tuesday at Jinnah International Airport, Karachi. The passenger was Californian resident Samara Azam.

JOINT VENTURE WITH JS AIR:

To comply with Civil Aviation Authority (CAA) regulations the airline started operating on socio-economic routes by flying to Nawabshah in central Sindh however the service was soon suspended because of low passenger load factors and the unsuitability of the A320 aircraft for this route. The suspension meant that Airblue was not compliant with CAA regulations and therefore had to incur penalty fees. To overcome the issue of non-compliance Airblue entered into a joint venture with start-up charter airline JS Air to operate flights on its behalf on

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socio-economic routes. This represented the first time in Pakistani aviation history that 2 air operators entered into a joint venture arrangement. The first destination under this agreement was the port city of Gwadar which was connected to the Airblue network on 17 June and was served twice daily, except Fridays, from Karachi. The flights were operated using JS Air's 19 seater Beech 1900C aircraft which are specifically suited to serving low yield 'commuter' destinations. This service was also suspended in 2007 due to insufficient demand despite using suitable aircraft.

FLEET:

The Airblue fleet includes the following aircraft (as of 4 October 2008)

Passenger Fleet

Type TotalPassenger(Economy)

Routes Notes

Airbus A319-112 2 144 Short haul on lease

Airbus A320-231 2 156 Short and Medium haul

Airbus A320-232 1 156 Short and Medium haul

Airbus A321-231 3 185 Short, Medium and Long haul

Total 8Updated: October 2008

ACHIEVEMENTS AND RECOGNITIONS:

First airline in Pakistan and only the third carrier in the region behind Emirates and Royal Jordanian to introduce the state-of-the-art self-service check-in facilities at Jinnah International Airport, Karachi.

First private airline in Pakistan to initiate long-haul services on (Islamabad-Manchester) sector.

First private airline within Pakistan to place an order for new aircraft.

COST CUTTING MEASURES:

To deal with the fuel price hike worldwide, Airblue are converting their fleet to all economy class. This will also be applied to their new aircraft which will be delivered starting in 2009. They are also ending full meal services and replacing it with sandwiches and pastries. In 2006 Airblue did away with chinaware crockery service for meals in economy class to cut costs and weight, replacing it with plastic ware as per normal industry practice.

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DESTINATIONS:

Airblue plans for a large-scale expansion from Summer/Winter 2008 schedule which is expected to see five new destinations added Birmingham, Delhi, Kuwait and Sharjah. Air Blue also began flying to Abu Dhabi on 24 August and Muscat since 15 September.

In Spring/Summer 2009 Kuala Lumpur as well as Copenhagen and Oslo are planned to be started.

Future destinations include Bangkok, Dhaka, Jeddah, London-Gatwick, Mumbai and Singapore. as well as Multan and Sukkur at home.

MARKETING TACTICS:

Air blue is using various marketing tactics to gain competitive advantage over PIA and Shaheen Air International

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ABN-AMRO & AIRBLUE TO LAUNCH CO-BRANDED CREDIT CARD:

ABN AMRO and Airblue have signed an agreement to issue a co-branded credit card. Though this card, AND AMRO and Airblue intend to provide customers with a superior travel experience while offering exciting frequent flier incentives.

Present at the signing ceremony were; Shahid Khaqan Abbasi (Chief Operating Officer), Syed Nasir Ali (Director Commerical) and Sarosh Bhatti (General Manager Marketing) from Airblue along with Naved A. Khan (Country Executive), Mir Nejib Rahman (Head of Consumer Banking), Ali Hasnain (Country Head Cards and Personal Loans), Saqib Hussain (Head of Product Management, Unsecured Assets) abd Uzzam Malik (Product Development Manager) from ABN AMRO, Pakistan.

Mr. Shahid Abbasi, COO at Airblue said: "Airblue has gained the reputation of being an industry leader through innovative travel and services. We look forward to working with ABN AMRO to give our customers unique financial and travel solutions."

Mr. Naved A. Khan, Country Executive, ABN AMRO in Pakistan stated: "ABN AMRO is known for providing its customers with outstanding service. We intend to continue this commitment with the support of Airblue, providing the best for our customers in the shape of an extraordinary co-branded credit card."

RBS Airblue MasterCard:

The Credit Card for high flyers!!!

The Royal Bank of Scotland Limited in collaboration with airblue has launched a co-brand MasterCard Credit Card. The RBS airblue MasterCard is designed to provide customers with a superior travel experience. The RBS airblue MasterCard is specifically targeted towards frequent and aspiring travelers. The co-brand credit card offers cardholders incentives such as free tickets against spend on credit card and through travel on airblue, priority check-in, priority baggage handling, bonus BlueMiles, access to Blue Lounge, discounts at leading retail outlets, Travel Inconvenience Insurance and much more.

AIR BLUE DESTINATION TABLE

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AIRBLUE DESTINATION TABLEDOMESTIC ROUTES INTERNATIONAL ROUTES

KARACHI-------------------ISLAMABAD KARACHI-------------DUBAIKARACHI-------------------PESHAWAR LAHORE-------------DUBAIKARACHI-------------------LAHORE ISLAMABAD----------DUBAIKARACHI-------------------QUETTA PESHAWR-----------DUBAIKARACHI-------------------FAISALABAD ISLAMABAD---------MANCHESTERISLAMABAD----------------LAHORE LAHORE--------------ABU-DAHBI

PASSENGERS OPENION ABOUT AIRBLUE SERVICES:: The people have mixed opinions about the hospitality and the services provided by Airblue to gat their opinions I personally interviewed some passengers at the airport and they have the following opinions

7 NOVEMBER 2008 BABAR KHAN:Heathrow to Islamabad return. The worst travel experience I have ever had. Flight delayed by 11 hours outbound and 2 hours on return. On both occasions no information was given and staff repeatedly told us "15 minutes" and that there were "problems with the plane" (not what any one wants to hear just before take off!). Staff were uniformly rude and unhelpful and there was no in flight entertainment.

23 OCTOBER 2008 YASMEEN NAZ:Manchester to Islamabad in Business class. The check in has got to be the worst I have experienced. They had three desks open, where 1 was meant to be for business class customers. Passengers were so frustrated with the unacceptably long delays that they were using all three desks. It took us 1.5 hours waiting in the shorter business class queue to check in. The check in personnel was surly, tired and clueless. Despite the fact we had paid for business class seats he gave us economy tags for hand luggage and check in baggage - (priority tags were added to all checked in baggage). He did not direct us to any lounges or fast track and when questioned said they all closed at 7.30 pm and therefore he thought it best we go to the gate. The flight left at 11pm, after demanding some food or refreshments they started serving us in business class at 2am! Each passenger was served one at a time. Once the first passenger had been served each course and had finished each course and then coffee did she move onto the next passenger? At 3am we finally got served. We were stopped by the flight attendant from using the toilets as they were for

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business class customers (remember she had served us a meal not too long earlier). I wonder if Air Blue trains their personnel. We had to disembark for the re fuel in Turkey (this took an hour). At Islamabad despite having priority tags on our luggage all business class passengers were left waiting until the end. All of the economy passengers had left the airport before our luggage came through. Maybe priority in Air Blue language means sends it out last? If you like us were concerned about the service from PIA and were looking for better value for money, convenient flight times and good service and therefore are thinking of Air Blue - DON'T. Air Blue has got to be the worst airline I have ever flown. The service is appalling; the staff is rude and should not be in employment. I recognize that Air Blue offer discounts, these do not compensate you for the poor service, long delays and problems at both airports.

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SHAHEEN AIR INTERNATIONALShaheen Air International is a Pakistani private airline based in Karachi. It operates scheduled services in the main cities of Pakistan and to the Persian Gulf countries. Its main base is Jinnah International Airport (KHI), Karachi, with a hub at Islamabad International Airport (ISB), Islamabad.

BREIF DESCRIPTION

Shaheen Air International

IATANL

ICAOSAI

Call signSHAHEEN AIR

Founded 1993

Hubs Jinnah International Airport

Focus cities

Allama Iqbal International Airport Islamabad International Airport

Peshawar International Airport

Fleet size 7

Destinations 10 (4 Domestic, 6 International)

Headquarters Karachi, Pakistan

Key people Khalid Mahmud Sehbai (Chairman & CEO)

Website: http://www.shaheenair.com

HISTORY:The airline was established and started operations in December 1993. It was formed as a project of the Shaheen Foundation, Pakistan Air Force. In October 1994 it was designated as the second national carrier of Pakistan and in February 1995 began international operations, with a scheduled service between Peshawar and Dubai. When the airline started it operated a fleet of leased

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Tupolev Tu-154 aircraft on most of its domestic flights. Shaheen Air International (SAI) was given the status of being the "second national airline of Pakistan" during the first couple of years of operation; however this status is no longer recognized.

During 2005, the cargo division of the airline also grew when it signed an accord with the Pakistan Post and British Airways Cargo. For cargo use, Shaheen Air Cargo acquired IL-76 aircraft. The aircraft will be used on Dubai - Karachi routes .

he initial two flights on January 3 and 5 carried about 100 metric tonnes export cargo that was delivered at Dubai for onward transportation to Europe and USA by British Airways flights.

In 2006, Shaheen Air International (SAI) became Shaheen Air and the airline introduced a new livery and website. The airline also introduced flights to Quetta - Karachi. The Governor of Balochistan said that the improvement of air links was also discussed in the ongoing talks between Pakistan and Iran and he has offered the management of Shaheen Air to operate Quetta - Zahidan sector flights. He said that initially SAI is operating with eight flight schedules on Karachi-Quetta route and Quetta - Lahore route. He announced that SAI would also operate flight between Islamabad and Quetta later on.

On May 22, 2006 the Civil Aviation Authority stopped all flights of Shaheen Air as it owed millions of rupees to the CAA. On May 25, 2006 Shaheen Air International (SAI) was cleared by the Civil Aviation Authority (CAA) to resume its domestic and international operations. The clearance letter was issued by CAA following receipt of the cheque from SAI towards payment of the outstanding dues.

On September 18, 2006, it was announced that Shaheen Air was to start a four times weekly service from Islamabad to Robin Hood Airport Doncaster Sheffield in the UK. However, no flights were ever launched.

On October 2007, Shaheen Air International announced at the World Travel Market in London that they would be commencing flights from Islamabad to London Luton Airport. On February 7, 2008, their second UK destination Leeds Bradford Airport flights were launched. On November 2007, Shaheen Air International acquired 2 Airbus A310-300 aircraft for the long-haul routes to the UK leased from Turkish company, Saga Airlines. The first delivered long haul A310-300 (TC-SGC) has an all-white colors scheme with large Shaheen Air titles on both side of the fuselage. The aircraft flies twice weekly on both the new Islamabad - Lahore - Kuwait route and twice weekly service to Leeds Bradford Airport in England.

SUSPENSION OF UK OPERATIONS:

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Shaheen ceased operating to Leeds Bradford Airport in England from 1st June 2008 no reason was given. They have not announced any resumption plans nor addition of planned new destinations (Birmingham, Glasgow, Luton and Stansted). The airline also failed to introduce the second A310 into service, while TC-SGC will be returned to its owners.

SERVICES :

NEWSPAPERS AND MAGAZINES:

Newspapers and magazines are available to all First and Business class passengers on SAI flights. Free newspapers are also provided to all Economy class passengers. The SAI in-flight magazine, Parwaz, is provided to all passengers on all flights. Parwaz was introduced on SAI flights in 2007 and it is published monthly.

ROUT MAP:DOMESTIC ROUT MAP

INTERNATIONAL ROUTES

FROM TO

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KARACHI DUBAILAHORE DUBAI

LAHORE QUWAIT

LAHORE MASCUT

LAHORE ABU DHABI

ISLAMABAD ABU DHABI

PESHAWAR DUBAI

PESHAWAR DOHA

PESHAWAR AL AIN

PESHAWAR ABU DHABI

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SERVICES:

Our in flight services and cabin comfort with extra leg space is what we offer you to keep your smile with each mile all the while. The warm welcome of our cabin crew on ground and on board will make you feel at home. With these value added services, its pleasure for Shaheen Air to welcome you back onboard, every time you fly with us.

CUISINES:

To serve you the delicious cuisines in the skies for a memorable dining experience, we have our own flight kitchen in Karachi and have arrangements with leading hotels in other cities, where fresh and mouth-watering meals are prepared in most hygienic environment under strict quality standards.

E-TICKETING :

Now, whenever and wherever you are, you can avail our e-ticketing facility to book your tickets online at www.shaheenair.com. The time bound e-booking or computer generated Passenger Reservation Number (PNR #) will be confirmed upon payment at Shaheen Air office or your nearest travel agent. Your seat will be reserved and e-ticket will be generated. The user friendly website will further guide you through the simple steps of e-ticketing.

E-CHECK-IN :

Shaheen Air's latest electronic check-in, boarding and baggage facility now saves your precious time and allows you to get computerized boarding card and baggage tags within seconds. Your luggage is easy to identify on arrival and more secured than ever before.

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FLEET:

The Shaheen Air International fleet includes the following aircraft (as of 28 August 2008)

Passenger Fleet

Type TotalPassengers(Economy)

Routes Notes

Boeing 737-200 7 136 Short and Medium haul

Boeing 737-400 2 146+ Short and Medium haulto be added in late 2008from Nok Air

Shaheen Air has a fleet of seven self-owned Boeing 737 aircraft that are operating on all domestic and international routes. Each aircraft has the seating capacity of about 120 passengers and has extra leg space to keep the passengers comfortable throughout their journey.

Boeing 737 is one of the aviation industry's most popular twin engine narrow-body short to medium haul jet aircraft. Besides many economical and commercial benefits, it has the distinction of being the most ordered and produced commercial airplane of all time and Boeing continues to manufacture its variants, till date

CARGO:

Shaheen Air Cargo is the fast growing division of Shaheen Air International that was established in 1993, soon after the inception of the airline.

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As an airfreight transportation service provider, the aim of the cargo division is to become the preferred cargo carrier of every logistics & forwarding company by offering comprehensive, reliable and efficient domestic and international airport-to-airport cargo and freight services to our valued customers across Pakistan & Gulf.

The cargo division delivers quality service with full commitment for all the air cargo needs through a team of highly experienced and specialized cargo professionals, who possess the required skills to transport and handle the comprehensive range of cargo commodities, from the origin airport to the final destination airport, in the most efficient and safe manner.

Shaheen Air Cargo Division offers wide range of services to suit the cargo needs of our customers in way of General Cargo and Courier as well as various other customized air logistic services, to benefit the clients.

GENERALCARGO All types o: general cargo like garments, textiles, spare parts, computer chips, electronic items, foodstuff etc can be sent as general cargo. We provide personalized service and security escorts for handling certain type of general cargo.

PERISHABLE CARGO :

Items such as fresh fruits, vegetables, meat, fish and flowers go under perishable cargo. Management of transit times and temperatures are crucial to perishable cargo, however we ensure that perishables arrive on time and in good condition.

LIVE:ANIMALS Shaheen Air Cargo undertakes transportation of live animals ranging from cats and dogs to parrots and pigeons. Live cargo shipments demand high levels of care and attention. Time, conditions and security are all momentous in ensuring the safe arrival of such priceless creatures.

VALUABLE CARGO:

Valuable items require a different kind of attention. These goods require constant monitoring and secure handling processes. We ensure that valuable shipments like bank notes, jewellery or gemstones are always safe and secure, right from the moment of acceptance to the final delivery at the destination.

SPECIAL ARGO:

Shaheen Air team of highly qualified and licensed staff is trained in the acceptance, handling and loading procedures of dangerous goods. They ensure the highest safety standards at all stages of transporting dangerous goods shipments o the final destination.

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COURIER SERVICES:

Shaheen Air provides special services for sending small consignments which are time sensitive in nature. This exclusive product caters to the need of airport to airport transportation of documents and packaged boxes. All courier products have the benefit of shortest acceptance time at the origin, higher loading priority and highest offloading priority at the specified destination.

A COMPARITIVE ANALYSIS OF AIRLINES OPERATING IN PAKISATN

CHARACTERISTICS PAKISTAN INTERNAL AIRLINE

SHAHEEN AIR INTERNATIONAL

AIRBLUE

MARKET SHARE 69% VERY SMALL MARKET SHARE

20%

FLEET SIZ 40 07 10

DESTINATIONS 58 10 18

HEAD QUARTERS KARACHI PAKISTAN

KARACHIPAKISTAN

KARACHI PAKISTAN

FOUNDED 1946 AS ORIENT AIRWAYS

1993 2003

CARGO SERVICES MIDDLE EAST &EUROPE

GENERAL,PERISHABLE,LIVEETC

PAKISTAN,UK,USA

POPULARITY GOOD GOOD EXCELLENT

PASSANGER OPONION

GOOD HOSPITALITY

FAIRHOSPITALITY

GOOD HOSPITALITY

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ACKNOWLEDGMENT: We M.Usman Yaqoob Cheema and M Adnan have tried our best efforts to collect every possible data from every possible source that we can have. We visited several places and read many articles over different internet sites so that we can get the best possible first hand information regarding affairs of airlines operating in Pakistan. We faced few problems while collecting the information from airports head offices of airlines because we were not given the university identity card, so that we may identify our selves as students of international Islamic university. some of them refused to answer us. Below are the different sources from where we collected the data and information:AIRBLUE:Airblue Limited (Headquarters)Ground Floor, Saudi Pak BuildingJinnah AvenueIslamabad 111-247-258

Benazir Bhutto Shaheed AirportIslamabad

www.airblue.com,

PAKISTAN INTERNATIONAL AIRLINE:

Benazir Bhutto Shaheed AirportIslamabad

www.piac.com.pk

SHAHEEN AIR INTERNATIONAL:52-Ground Floor, Beverly CentreNazimuddin Road, Blue Area, Islamabad Ph      : (92-51) 111 80 80 80Fax     : (92-51) 287 0573

Benazir Bhutto Shaheed AirportIslamabad

www.shaheenair.com