Chapter4 Departments of PIAC

CHAPTER 4
DEPARTMENTS OF PIAC

PIAC’s major departments are:

 Finance Department
 Human Resource Department
 Marketing Department & its various sections

4.1 FINANCE DEPARTMENT

4.1.1 FUNCTIONS OF FINANCE DEPARTMENT

The duties of a typical finance department can be classified into two generic
categories. The first category is planning and the second function is controlling.
These activities are inter-related and inseparable because if there is no planning there will
not be any control. Therefore planning and control move together.
Planning refers to the activities which bridge the gape from the starting point to
the terminal point. Planning in the finance department under review refers to the activities
of Cash Flow and Budget preparation. 1

4.1.1.1 PLANNING
Planning is fundamental to the management process, a process of sensitizing an
organization to external opportunities and threats, of determining the desirable and
possible objectives, and of deploying the resources to match the objectives. Without
planning there is no basis for controlling as planning provides the foundation upon which
the control function operates. The planner should be able to visualize the proposed
pattern of activities individually and collectively, internally and externally.

4.1.1.2 BUDGETS
The budget is not only the most important plan of an enterprise, but also the basic link of
accounting with management. The use of budgets, particularly in connection with the

Department of Business Administration, Gomal University. 32

Chapter4 Departments of PIAC

control phase of management, has been termed as “budgetary control”. A company’s

organizational chart and its chart of accounts form the basic framework on which to build
a coordinated and efficient system of managerial planning and budgetary control. The
organization chart defines the functional responsibilities of executives and thereby
justifies their budgets. Although final responsibility for the budgets rests with executive
management, all managers are responsible for the preparation and execution of their
departmental budgets. If a budgetary control system is to be successful, these managers
must fully cooperate and must understand their role in making the budget system
successful
Budget precedes the cash flow or cash budget. Budgeting process is usually directed by a
budget committee. The budget committee review, decides, suggest and approve various
policy matters and then all the work is submitted to the Managing Director/ Chairman for
the final consideration and approval. In performing these functions, the budget committee
becomes a management committee. It is a powerful forces in coordination the various
activities of the business and in controlling the operations.

4.1.1.3 BUDGET-DEVELOPMENT AND IMPLEMENTATION

The procedure used in developing a budget may be as important as its content and should
include these fundamental principles;
 Provides adequate guidance so that all management levels are working on the
same assumptions, targeted objectives, and agenda. All managers should
understand the limitations and constraints of their participation and the bounds
of their decision making. Participants should be told, prior to the time.
 Encourage participation in the budgeting process at each level within the
organization. Structure the activity of developing the budget by involving the
people who will be responsible for the implementation of the budget and who
will be rewarded accordingly to its accomplishments.
 Structure the climate of budget preparation to eliminate the anxiety and
defensiveness. Individuals should have the freedom and authority to influence
and accept their own performance levels, and should assume the responsibility

Department of Business Administration, Gomal University. 33

Chapter4 Departments of PIAC

for the accomplishment. Budget preparation should be oriented to the

problems and opportunities of the participants.
 Structure the preparation of the budget so that there is a reasonably high
probability of successful attainment of the objectives. When challenging the
attainable objectives achievement, feeling of success, confidence, and
satisfaction are produced and aspiration levels are raised. A careful distinction
should be made between controllable factor for which individuals should be
responsible and for uncontrollable factor for which they are not.

4.1.1.4 CONTROLLING
This function of the finance department is carried out in the light of standards set
in the planning stage. The actual performance is compared with the preplanned objectives
and standards, which lead to rectification of any deviation and improvement suggestions
which will assist in future planning.
Management control is the systematic effort by the business management to compare
performance with plans. The control function is of prime importance in the
accomplishment of objectives. The need for control increases with the size and
complexity of the organization. Continuous supervision of an activity, task or job is
required to keep it within previously defined boundaries. These boundaries are termed as
budgets in the planning phase, are set up for manufacturing, marketing, finance and all
other activities. Actual results are measured against plans; and if significant differences
are noted, remedial actions are taken.
Generally in this phase the actual performance is derived from the preparation of the
monthly Profit and Loss Account and is compared with the projected profit and loss
account in order to observe the actual variance. When the variance is detected then it is
analyzed to know the reasons/ causes resulted in the variance. If these causes or reasons
are controllable then corrective measures are taken to rectify it. The difference is
projected and actual performance (surplus or deficit) is taken to the next period and
adjusted accordingly.
Monthly Profit and Loss Account – tool of control
Comparison of actual Vs projected or judicial figures which leads to variance.

Department of Business Administration, Gomal University. 34

Chapter4 Departments of PIAC

Department of Business Administration, Gomal University. 35

Chapter4 Departments of PIAC

4.1.2 ORGANIZATION OF FINANCE DEPARTMENT

All the financial activities and units at the various sub-stations level like
Peshawar, Chitral, Swat, Bannu, and D.I.Khan are administratively under the control of
Finance Manager Peshawar station. The entire District Sale Managers (DSMs) at other
stations are administratively responsible to GM (NWFP) for their station’s accounts. The
finance departments of all the regional head offices of NWFP is headed by the Finance
Manger, who is assisted by assistant finance Manager, and five officers. Besides, there are
four cashiers, four supervisors and lower staff. The supervisors and cashiers are
responsible to their respective account officer. The whole of finance section is
functionally responsible to the Director finance at the head office level. The Finance
Department is further sub-divided into five sections namely Revenue section,
Disbursement section, Agent sales section, Credit section and Refund section. The
organizational hierarchy of finance section of PIA Peshawar is given below 2

Department of Business Administration, Gomal University. 36

Chapter4 Departments of PIAC

(Chart no. 2)
The organizational Hierarchy of Finance Section of PIA, Peshawar3

FINANCE
MANAGER

PA

OA

OIC OIC OIC OIC CREDT

DISBURSEM AGENCIES GSA/DS CONROL/
ENT (IATA) A/AUTO REFUND
& PAYROLL

OIC OIC OIC

ABBOTTAB CARGO PRICING\ DOCUS/
REVENUE MIS REPAK
CHITRAL

D.I .KHAN
ONE ACCOUNT OIC
OFFICER AT EACH PASSENG
SAIDU STATION ER
SHARIF REVENUE

Department of Business Administration, Gomal University. 37

Chapter4 Departments of PIAC

4.1.3 STATION ACCOUNTING FUNCTIONS

The Accounting functions of finance department at Peshawar station are as follows.
1. Maintenance of accountable forms, control, custody and reserve stock and
requisitioning of accountable forms.
2. Acceptance, safe book keeping, deposit and reporting of proceeds from
passenger, cargo and other sales, including the preparation of the related sales
reports.
3. Making refund and disbursements and reporting of funds expended for
payrolls and other operational expenses.
4. Maintenance of details, accounts, routine follow-up and control of local
debtors.
5. Determining that credit practices confirm to prescribed limitations and
reporting of delinquent accounts to District manager/head office.
6. Maintaining record of fixed assets and reporting of new acquisitions, disposal
or movements of new assets from one location to another.
7. Performance of audit function.
8. Maintaining books and accounts for function station operation, making
necessary provisions, comparing with budget and reporting of variances and
analysis thereof.
9. Reporting of the inter station transactions.
10. Reporting significant changes in valuation of fixes assets4.

4.1.4 FINANCIAL PROCEDURE AT PIA PESHAWAR

4.5.1 Accounting Activities
a. The accounting activity at the station starts with the issuance of basic
accountable documents i.e. issuance of ticket, airway bill, miscellaneous
charges order, official receipt and preparation of pay vouchers etc.
b. Entries are made in the relevant report from the basic accountable
documents continuously in a systematic manner on the same day of its
issuance.

Department of Business Administration, Gomal University. 38

Chapter4 Departments of PIAC

c. Posting into the ledger, registers and other station records are made from the
office copies of the reports. For posting transactions like gross salaries,
expanses paid by the other stations and outstanding payments etc, such
transactions are made in the register. Posting with the ledger, registers and
other station records are made from the register or statements.

4.1.4.2 Inter office clearing

For collection made on behalf of other station, an invoice collection advice is
prepared and sent to the station on whose behalf the collection has been made. For
payments made on behalf of other station, an inter station advice is prepared and
sent to the station on whose behalf the payments has been made, entries are made
accordingly.

4.1.4.3 Submission of Reports and Statements to the Head Office

Reports and statements submitted to head office by station accounts are;
a. Daily
i. Passenger and baggage sales report R-1
ii. Cargo sale report R-2
iii. Cargo delivery and collection report R-3
iv. Miscellaneous cash/credit transactions report R-3
v. Invoice collection report R-5
vi. Refund report R-6
vii. Statement of cash transactions and banking control R-9
viii. Statement of staff advances and loans R-14
ix. Station disbursement report R-15.
b. Weekly
i. Refund report R-6
ii. Statement of staff advances and loans D-4
iii. Station disbursement report D-15
iv. Station sales performance report

Department of Business Administration, Gomal University. 39

Chapter4 Departments of PIAC

c. Fortnightly
i. Agents’ performance report and payment record.

d. Monthly
i. Reconciliation statement of collection bank’s account.
ii. Reconciliation statement of working or revolving funds of bank’s account.
iii. Foreign stations.
 Monthly statement of receipts and expenditures.
 Summary of statement of cash transactions and banking form R-9
dispatched to head office.
 Classified summery of expenditure.
 Summary of station disbursement report (D-15) dispatched to head
office.
e. Annually
Inventory of assets at station.
All the reports and returns are prepared in the manner laid down in the
manuals. By 15th of each month when all the reports and returns of the
previous month have been dispatched to head office, the station accountant
prepares a statement of monthly reports and returns submitted to head office
giving the data of dispatch and forward the same to controller in charge of
station operations along with his comments and explanations where
necessary.

4.1.5 FINANCIAL REPORTING5

A report code “R” along with a number is used for representing these reports. These all
reports are revenue reports, which are as follows.

R-1, Direct PAX (Passengers) Sale

In this report the revenue record is maintained regarding direct PAX sales by
PIAC itself. The record of all tickets sold by PIAC is sent to finance department
for controlling and auditing purpose.

Department of Business Administration, Gomal University. 40

Chapter4 Departments of PIAC

The audit coupon of tickets is used as a basis of this report. The mode of payment
may be in the shape of:
 Cash
 Cheque
 TVs (Travel vouchers) for MNAs/MPAs.
 TAC (Travel authorization certificate) for defense forces. *
 APW (Air passage warrant) for defense forces. *
 Credit cards
 Personal credit by high officials
* For TAC, 50% concession is allowed
* For APW, 100% concession is available but one APW is valid for
one-way journey only.

R-2 Direct Cargo Sale

It includes the record of all cargo revenue booked by PIAC. Credit extended to the
followings.
 Ministry of foreign affairs; for diplomatic bags and for foreign office
mails.
 Defense Agencies, domestic/international airways bills are issued to
army, PAF and Navy for the transportation of defense goods.
 The Jung Group of Publications, for the newspaper mails.
R-3, Incoming Shipments
It contains the record of all incoming shipments. Pak Army, Navy and Air force
buy/ goods on
“TO PAY BASIS” OR “CHARGES COLLECT”
R-4 Misc. Receipts
The record of income other than PAX + Cargo sale is maintained in R-4. The
sources may be like,
 Catering sale
 Ground handing

Department of Business Administration, Gomal University. 41

Chapter4 Departments of PIAC

 Engineering earned revenue

 Rent of computer and binding to the agents
 Utility bills
 PF loan adjustment
 Family cards
 Validity of tickets extended
For credit transactions, the invoice record is maintained in R-4 when cash is
received, it is recorded in R-4 and R-5 is based on C-R.
R-5, Collection of Accounts receivable
It is invoice collection and adjustment report. When credit is made, invoices are
raised. These invoices are then fed in computer programme. As soon as the
cheque is received “CR” is also fed in computer.
At the end of month, the invoices against which the payments have been made are
deleted from records. At the end of month totals are reconciled. It includes the
following information,
 Invoice date/number
 Location & A/C No
 Customer No & amount received etc.

R-6, Cash Refund

It includes the record of all tickets refunded. The details are as following,
 If tickets refunded before 24 hrs of departure, full amount is paid.
 If ticket is refunded before 6 hours of departure, 25% deduction is made.
 If ticket is refunded less than 6 hours of departure, 50% of deduction is
made.
 For flight subject to weather conditions (northern areas), no deduction is
made.
 For international Tickets Cheque is issued instead of cash.
 Tickets loss refund is valid for international Tickets only.

Department of Business Administration, Gomal University. 42

Chapter4 Departments of PIAC

R-7
It is related to payments received against invoices raised by other stations.

It has two types.

a) Incoming R-7
b) Outgoing R-7
Incoming R-7
It includes the record of payments received by other station on behalf of our
station and invoices collection advice from other station.
Outgoing R-7
In this report our station sends intimation so other relevant stations about
payments received against invoice raised by other station. It also certain invoice
collection advice R-7.

R-8
It includes statements of reconciliation of A/R and adjustment. It contains the
following information,
 Balance at the end of previous month.
 Invoices rose during the month.
 Cash collected during the month against invoices.
 Outgoing and incoming R-7 and Dads.

R-9
It is monthly summary of collections. It contains summary of the collection of
revenue through R1, R2, R3, R5, R10 and R11 and details of report wise deposits.
It also shows cash collections under columns.
R-10
The tickets sold, mostly international through IATA and GSA agents’ known as
PAX sales report and is submitted to the head office called R-10.
R-11
The report showing cargo booking through cargo booking agent is known as R-
11.

Department of Business Administration, Gomal University. 43

Chapter4 Departments of PIAC

D-15
This is about the disbursement and internal and external expenses of the PIAC.

4.2 HUMAN RESOURCE DEPARTMENT IN PIA

4.2.1 INTRODUCTION
Every organization has to perform certain personnel functions in its own capacity.
Every organization must hire, train, pay, motivate, maintain and ultimately separate
employees. Every organization has its peculiar administrative structure, which suits the
function, objectives, strategies, rules and procedure of that organization. Administration is
the collective activity directed towards the attainment of a specific goal. Administration
and management are used interchangeably and have no distinction. In the strict sense,
Administration is execution of pre-determined policies; while management is the
determination, execution and evaluation of these policies. Thus administration is defined
as determination, execution and evaluation of policies. Administration/Human Resource
Management is one of the most complex and challenging fields of endeavor.
Human Resource (HR) manager for that matter must be greatly concerned with the
expectations of both employees and society in general. Society at large proclaimed its
human resources to have vital needs that move beyond a “work force” status. The
Pakistan international airlines corporation (PIAC) has an Administration department,
which involves the organization and management of man and material in order to
accomplish its goals. Administration Manager is the head of the Administration
department; where as the head of the overall Administration is GM HR of the region. The
HR Manager is directly under the control of GM of the respective region.

4.2.2 HUMAN RESOURCE DEPARTMENT AT PIA PESHAWAR

The HR section at Peshawar station is headed by the HR Manager. The HR
section comprises of an HR officer and three HR Supervisors. The activities of HR
department include the personnel and human relations, security arrangement,
transportation, stationary, filing and record keeping, discipline in the organization,
development and maintenance of support system for the successful operations and the
HR Manager
Peshawar, Lahore,
Rawalpindi, Islamabad,
Department of Business&
Administration, Gomal University. Manager 44
Sub-Division Admin.
Personnel Officer Policy &
Manager Procedure
ManagerStaff
Manager
Multan, Karachi
Quetta Remuneration
Industrial Planning
Development
Employment
Relations
Chapter4 Departments of PIAC

coordination of activities of various departments. The communication of various

decisions, policies, plans and strategies to the various departments is the responsibility of
the Administration department.6

(Chart No.3)
THE HR DEPARTMENT AT PIA PESHAWAR7

HR
MANAGER

OA PA

ADMIN OFFR

LEAVE LEGAL
INDUSTRIAL
& &
BUDGET MEDICAL RELATIONS
PASSAGE ATTENDANCE

4.2.3 FUNCTIONS OF THE ADMINISTRATION DEPARTMENT

The Administration/HR department in PIA is concerned with the following functions.

1. The structuring of individuals and functions in productive relationship is carried out by
the Administration department, in the form of organization of rules, procedures,
functions and human resources.

2. The Administration department of PIA manages the personnel and is concerned with
the direction of these individuals and functions to achieve ends previously determined.

Department of Business Administration, Gomal University. 45

Chapter4 Departments of PIAC

3. The techniques and process of working and the interrelationship of various functions
are determined by the Administration dept: in PIA.
4. The Administration Dept: in PIA provides the tools and material with the help of
which the operational work is carried out. This includes pens, ink, computers, papers,
files, cabin, furniture, air-conditioner etc.
5. The Administration dept: in PIA also carry out the investigations and inquiries of any
office employee violating the rules and regulations, indiscipline and misuse of his/her
authority etc.
6. The arrangements for infrastructure like offices support services and the
Administration department maintains physical facilities for the human resources. The
Administration of PIA through the maintenance of security staff ensures the security
of the office, building, furniture, fixture and supplies etc.
7. The uninterrupted communication and the maintenance of the means of
communication is the responsibility of the Administration department. It ensures the
proper co-ordination among the employees, management, rules, procedures and
functions of different departments.

4.2.4 PERSONNEL (HRM) FUNCTIONS OF THE

ADMINISTRATION DEPARTMENT
PIA being one of the largest organization of the country is also absorbs graduates
from different parts of the country. Both for its managerial and non-managerial positions,
posts are advertised with the requirements mentioned through newspapers and also
through it website. In response a bank of application is formed and after the initial
screening a test is given and the top scorers are interviewed for further refining of the
selection process. After physical examination and approval from the competent authority,
offer for appointment is given to the candidates. Those selected are given an orientation
and then their positions are confirmed.
Once selected, the employees are given different trainings from time to time by PTC
(PIA Training Center) to enhance their skills so that they better perform their existing
work and are prepared for future work. A complete employee record is maintained and
every employee is assigned a P-number.

Department of Business Administration, Gomal University. 46

Chapter4 Departments of PIAC

The benefits are in the form of salary and allowance, with medical facilities and
fixed free tickets. An ACR is maintained for the performance appraisal which also
provides basis for promotion. Discipline is maintained any for any violation show cause
notice and explanation are called. The age of retirement in PIAC is the completion of 25
years of service or attaining the age of sixty. The Administration Dept maintains the
record of each and every employee of its home station, which after the retirement of
employee is sealed and stored.

Department of Business Administration, Gomal University. 47

Chapter4 Departments of PIAC

4.3.1 MARKETING DEPARTMENT IN PIA

Today is the era of change and in this regard PIA cannot remain aloof from this
very trend prevailing in the market. There exists a tough competition in the travel
industry. Advancement in technology, change in economic conditions and relaxation in
government protection has exposed PIA to a number of challenges in the market.
Customers are also becoming better informed, thus demanding and expanding a better
quality services. Now-a-days success of any company depends on its efficiency in the
marketing activity. A wrong assessment of market causes serious doubts about the
success of any business concern especially when it has competitors and challenges in
front. Customers’ analysis, Customers’ needs and wants, Customers’ satisfaction, product
features, competitors’ advantages, cost factors, price assessment, different traveling
packages (summer package), award plus (concession to regular customers) and many
such like things which are related with the customers needs and wants, purchase of new
aircrafts and profit making; are handled by the marketing department of PIA. Therefore
they have to prepare an effective and efficient marketing mechanism so as to answer all
the questions favorably in the presence of social and economic forces, which are
presenting serious challenges to the business.8

4.3.2 ROLE OF MARKETING DEPARTMENT

The major role of marketing department in PIA is to earn sufficient revenue for
the airline both through the passengers and cargo sales. Both the passengers and cargo
sections are given monthly, quarterly, six months and yearly targets by the Head Office
Karachi throughout the financial year. These sections have to achieve targets set for them
after having evolved their marketing plans prepared for them by the marketing
department of PIAC. The practice in PIA is that the marketing strategy is determined on
the basis of prevailing business conditions and the previous year’s performance. In this
regard marketing department prepares district activity report for the whole of NWFP. The
report includes the last month and the current month performance. Both the passengers
and cargo sections initiate their activity reports separately for each month. The reports are
helpful to the head office as they provide them with full information regarding the

Department of Business Administration, Gomal University. 48

Chapter4 Departments of PIAC

business activities of the two sections independently hence highlighting their monthly
performance in regard to business9.

(Chart no 4)
Organizational set up of Marketing Dept. at PIA Head-Office10

SVP
Marketing

GM Passenger GM Cargo
(Sales) (Sales)

GM Gulf GM Europe

GM North GM USA &

Canada

GM UK
GM Marketing
Planning & Services

GM South GM Asia
(KSA) Pacific

Department of Business Administration, Gomal University. 49

Chapter4 Departments of PIAC

4.3.3 FUNCTIONS OF MARKETING DEPARTMENT

There are many functions performed by the marketing department, some of them are the
following:
 The main functions of marketing department are to earn revenue for the
corporation either through passengers or through cargo transactions.
 To earn revenue for the corporation; passenger and cargo section receives
targets from the head office, which are to be met in the current financial years.
 To achieve these targets, the marketing department converts them to monthly
basis, i.e. how much part of the specified targets to be achieved in a particular
month of the current year.
 Marketing department makes marketing plans both for passengers’ section
and cargo section; and determines their marketing strategies keeping in view
their previous year’s performance and current business environments.
 The marketing department both the passengers and cargo branches make its
District Activity Report about their previous months’ performances.
 These reports are then sent to the head office to inform higher authorities11.

4.3.4 MARKETING DEPARTMENT AT PIAC PESHAWAR

INTRODUCTION12
Marketing is an important business function. Customer is the center point of
marketing. Every decision in the enterprise is taken in the context of customer. Marketing
actually bridges the gap between production and consumption. Today marketing has
become the most significant function of business function. In this connection, marketing
plays a significant role in the economy of the country and raising the standard of living of
society. Philip Kotler defines marketing, “as a social and managerial process by which
individuals and groups obtain what they need and want through creating an exchanging
products and value with others.” Thus marketing aims at exchanging products or services
that satisfy human wants. The marketing department is one of the most important
departments among other department of PIAC. Marketing is the performance of those

Department of Business Administration, Gomal University. 50

Chapter4 Departments of PIAC

activities which seek to accomplish an organization’s objectives by anticipating customer

needs and directing the flow of goods and services from producer to consumer. The main
source of revenue generation is the Marketing department, because it deals with
commercial side of the organization. Marketing department at Peshawar station is directly
under the control of SVP Marketing and functionally responsible to the Managing
Director. Where as the Marketing department is administratively under the control of
D.M. NWFP because of its strategic nature in organization. The SVP Marketing at the
head office advises the M.D on the development of corporate plans and long-term
strategic gains from this very department. The Marketing department has unique nature
because of following reasons.
 The product is highly perishable.
 The quality of product is difficult to check before the final sale.
 The service cannot be inventoried.

4.3.5 MARKETING DEPARTMENT SETUP AT PIA PESHAWAR

At Peshawar station the marketing department can broadly be divided into two sections.13
A. PASSENGER SECTIONS.
B. CARGO SECTION.
We are concerned with Passenger Section of Marketing Department of PIA, Peshawar.

4.3.5.1 PASSENGER SECTION

The PAX (Passengers) of the marketing department are again divided into two parts:
A. Passenger Sales Section.
B. Passenger Service Section

4.3.5.1.1 PASSENGER SALES SECTION

The Passenger Sales Manager (PSM) who is assisted by four Sales Promotion
Officers (SPO) and one Assistant Passenger Sales Manager heads the PAX (Passenger)
Sales Section. The main function of this section is to promote PIA’s business by the sales
of revenue documents and earn more revenue for the corporation. As already mentioned
the Pax Sales Section receives body targets for the head office for every financial year,
with mutual concentration of high-level authorities of this section. These body targets are

Department of Business Administration, Gomal University. 51

 Chapter4 Departments of PIAC

given as 10% increase on the previous year’s target and are different for different sectors,
for instance for Peshawar-Dubai sector they are different from Peshawar-Karachi-Jeddah
sector.
(Chart no-5)

Organizational Structure of Passenger Sales Section at PIA, PEW15

PSM

Assistant PSM SPO SPO SPO SPO

HR/Admin Assistant Office Attendant Computer Operator

Department of Business Administration, Gomal University. 52

Chapter4 Departments of PIAC

In simple words it means that the head office authorities specify for Peshawar
station Pax Sales Section that it has to take a particular number of passengers to a
particular sectors in that financial year. To meet these body targets, the Pax Sales Section,
convert into revenue targets for each sector. These revenue targets are again divided on
monthly basis, i.e. specify parts of these revenue targets are set for a particular sector, to
be achieved in a particular month. For the achievement of these revenue targets, the Pax
Sales Section formulates “Marketing Plan” and determines the Marketing Strategy
considering the previous year’s performance. For its monthly performance, it makes a
monthly district activity sales report, which is sent to the head office for the information
of the concerned authorities. For the achievement of these revenue targets the Pax Sales
Section takes the help from various agencies (travel agents). There is also different
District Sales Managers (DSM) for different districts like Chitral, Swat, Abbottabad,
Bannu and D.I.Khan; who are assigned a part of these targets to be achieved.

Generally speaking PIA has three major types of commission travel agents, who
also help the Pax Sales Section in the achievement of these targets. These travel agents
are GSA, PSA and IATA

4.3.5.1 General Sales Agents (GSA)

The GSA is PIA approved travel agent. They only deal with PIA’s documents both
domestic and international and do not deal with any other airline. PIA pays 5%
commission to GSA on domestic tickets and 12% commission on international tickets.
4.3.5.2 Passenger Sales Agent (PSA)
The PSA are PIA’s approved agents for the sales of domestic as well as international
tickets. PIA pays 7% commission to PSA on domestic and 9% commission on
international tickets. Besides that if the PSA exceeds its sales more than two millions
(achieves its target) then 1.5% incentive is also given to PSA.
4.3.5.3 International Air Transport Association (IATA)
The IATA approved agents are those who deal with the sales of PIA as well as other
airline documents. The PIA pays 5% commission to IATA on domestic tickets and 9%
commission on international tickets. These kinds of agents do not have any obligation to

Department of Business Administration, Gomal University. 53

Chapter4 Departments of PIAC

sell any particular airline; rather they are free to sell any airline’s ticket, which they find
suitable both for the passengers and for themselves.

4.3.6 COMMUNICATION DEPARTMENT

Communication department is headed by a General Manager. This department plays
a very vital role in any organization because we know that without effective
communication system any organization cannot perform its operations properly.
Communication system in P.I.A is like oxygen. Minor mistake can cause huge loss.

4.3.7 RESERVATION AND TICKETING DEPARTMENT

INTRODUCTION
Reservation means the accommodation held by a passenger on a given flight and
the passenger is to be carried from boarding point. Reservation and ticketing section is
headed by TOM (Ticket Office Manager) who is directly responsible to Passenger Sales
Manager (PSM). Though there is acute competition seen among different airlines. So
ticketing and reservation plays a vital role in advertising their product and in the
promotion of good will of the corporation.

4.3.8 Reservation System at PIA, Booking Office, Peshawar

Ticketing is the LIFE BLOOD of PIAC, because most of the revenue is generated
through ticketing and reservations. Reservations are carried out both internally through
booking offices and externally through travel agents. Proper and sound reservation
system and plans are required to achieve the goals and objectives of any airline.

Reservation system at PIA booking office is kept to serve the customers at their best.
For better services the office has been divided into different categories in order to
carry out different functions. These categories are:

 International reservations counter.

 Domestic reservations counter.
 Northern areas reservations counter.

Department of Business Administration, Gomal University. 54

Chapter4 Departments of PIAC

 Flight Checks.
 1= PFC (pre flight check).
 2= PFA (post flight analysis).
 PTA (Pre paid ticketing Advice).
 Award plus.
 Advance Boarding Section
 Direct selling section
 Reservation on Telephone
 Central reservation Control
 Rate deske16.

4.3.9 AIRPORT SERVICES

TRAFFIC DEPARTMENT
The traffic people are in direct contact with the passengers and they handle different
stages occurred during a passenger's way from check-in lounge to the aircraft. As the
passenger enters the check-in lounge the duties of traffic people starts till the passenger
boards to the aircraft. As the traffic department relates to passenger services, the
passenger
Services comprises of the following units:
 Management
 Passenger Handling:
 Traffic Controller
 Officer In charge Counters
 Weight Balance Unit
 Departure Control Unit
 Special Handling Unit
 Protocol Handling Unit
 Flight Inquiries
 Post Flight Unit

Department of Business Administration, Gomal University. 55

Chapter4 Departments of PIAC

 Lost and Found Unit

 Lounges

References
1. Mehmood, Shahid (2007). Managerial structure of PIA. An internship Report on
PIAC, Peshawar. Unpublished internship report, Institute of Management Studies,
University of Peshawar
2. Ibid
3. Ibid
4. Ibid
5. Lecture delivered by Mr. Faysal, Incharge Cargo, credit control, Finance Department
6. Khan, Sohail (2006). HR Department. An internship Report on PIAC, Peshawar.
Unpublished internship report, Institute of Management Studies, University of
Peshawar

7. William B. Werther Jr (2001) Human Resources and Personnel Management, Fifth

Edition. New York (McGraw-Hill Inc.

8. Etzel-Walker-Stanton(2007). Importance of Marketing. Principles of Marketing 14th

Edition.
9. Khan, M. Adeel (2006). Role of Marketing department. An internship Report on PIAC,
Peshawar. Unpublished internship report, Institute of Management Studies, University
of Peshawar

10. Ibid

11. PIA monthly magazine. “VISION. Jan-Feb 2006”p. 22

12. Personal observation 3 weeks at Marketing department during internship

13. Ibid

14. Interview & discussion with the “HR/Admin Assistant” in the Passenger Sales
Section of PIA, Peshawar

15. Personal observation at counter, PIA Booking office.

Department of Business Administration, Gomal University. 56

Chapter4 Departments of PIAC

16. Personal observation during visit to Airport.

Department of Business Administration, Gomal University. 57