LAHORE - PM’s Adviser on Aviation Sardar Mehtab Ahmed Khan has said that the Pakistan International Airlines (PIA) must be run purely on commercial grounds and cost cutting measures should be adopted at every level to reduce expenses.

He expressed these remarks while chairing a meeting of the PIA Commercial Department on Wednesday. The secretary aviation and PIA Acting Chairman Irfan Elahi was also attended the meeting. During the meeting, Acting Chief Commercial Officer Tahir Niaz gave a detailed briefing on various functions of the department.

The Aviation adviser said that marketing is the key area of Pakistan International Airlines (PIA) which must bring improvement in the national flag carrier. He suggested the team to come up with innovative ideas for attracting more customers and increasing revenue. He said that induction of most modern technology in all PIA departments is of utmost importance for increasing efficiency and attaining profitability. PIA must be run purely on commercial grounds and cost cutting measures should be adopted at every level to reduce expense, he maintained.

He directed that action should be taken against those who could not meet the targets and acted irresponsibly in causing 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.

Mehtab 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 so that the 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, he added.

The adviser 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 rationalisation exercise for under-performing routes is done periodically, while expansion strategies are being developed on profitable routes.