Advisor to PM on Aviation, Sardar Mehtab Ahmed Khan has said that induction of most modern technologies in all PIA departments is of utmost importance for increasing efficiency and attaining profitability, while adding that cost cutting measures are must to shift the productivity of the airline.
He said this while chairing a meeting of the Commercial Department (Marketing) of PIA.
Secretary Aviation and Acting Chairman PIA M. Irfan Elahi was also present during the meeting. Tahir Niaz, Acting Chief Commercial Officer gave a detailed briefing on various functions of the Department.
Addressing the meeting the Advisor said that PIA must be run purely on commercial grounds and cost cutting measures should be adopted at every level to reduce expense.
He said, marketing is the key area of PIA which must bring improvement in its existing working for the betterment of PIA. He further advised the team to come up with innovative ideas for attracting more customers and increasing revenue.
He directed that action should be taken against those who have not met the targets and acted irresponsibly in giving losses to the company. Further promotions will be performance based with KPIs developed by HR department. Indicators should be developed for passenger and cargo sales followed by regular performance monitoring. Performance accountability should be implemented across the board, he emphasized.
Sardar Mehtab Ahmed Khan asked the Commercial Department to have strong coordination with the Engineering and Maintenance Department for reducing maintenance related delays and cancellations. Scheduling should be done in a manner that cost is reduced as much as possible, he said.
He said the Commercial Department must show marked improvement in terms of quality and customer service and within three months should make its signature visible. Marketing and sales should take decisions based on commercial viability to recoup lost market and to avoid operational losses.
The Advisor was briefed that station performance, revenue management and scheduling performance are reviewed on daily basis and decisions are taken after obtaining feedback from stations. He was also given an overview of PIA’s summer schedule for 2017 including plans for the upcoming Hajj operation.
He was also informed that route rationalization exercise for under-performing routes is done periodically, while expansion strategies are developed on profitable routes and more emphasis should be given to innovation and technology.
It seems CFO is some third class MBA “He said, marketing is the key area of PIA which must bring improvement in its existing working for the betterment of PIA”
Now how will marketing cover the bad services, delays, poor hospitality… Marketing is used to attract more , here marketing will further disgruntle.. Firstly fix issues… Do destination based Flight cost benefit analysis, and close or reduce all non profitable destinations..
Do analytical review that is financial accounting ratio bases… Identify major root cause from where profits were turned into losses… More I dont have time to waste
Cost Cutting = Poor Maintenance and Repair = Deaths