IATA's decision to extend the e-ticketing deadline by five months to May 31, 2008, will buy the region's airlines time to secure more interline agreements, industry professionals have claimed.
"The deadline will make a difference to us because there are some carriers on our interline wish list that we won't be able to secure by the end of the year," said Gulf Air's head of distribution & e-commerce, Lars Denlew.
He explained how airlines' top 20 interline providers represented around 80% of their interline revenue and these were therefore top priority in securing ET-enabled interline agreements.
However, three key interline partners on Gulf Air's top 20 list - Lufthansa, Air France and Scandinavian Airlines - have not reciprocated as their top 20s do not include Gulf Air.
"But we are on their list for next year, so hopefully we'll at least sort out an interline with Air France before the deadline," he added.
The Bahrain-based carrier has currently secured 18 interline partners, will have 30 in place by the end of the year, and more than 50 by the May deadline, said Denlew.
"With some of the airlines you interline with, you can live without if you use them maybe once or twice a year -Lan Chile, for example. If an interline is not in place and agents want to book, it's quite simple, they will just have to issue two tickets," he said.
Denlew said Gulf Air was now waiting for Saudia and Kuwait Airways to roll out e-ticketing so that interlines with both could be arranged before the end of the year.
IATA has extended the ET deadline for many reasons: to enable system enhancements to be put in place; to overcome regional differences in rolling out e-ticketing and regulatory limitations in certain countries; to enable airlines to add more interlines; and to avoid year-end system provider bottlenecks.
"ET is an industry success story. In three years we went from 16% [e-ticketing penetration] to more than 80% and we'll be at more than 90% at year-end, said IATA director general and CEO, Giovanni Bisignani.
"And after a slow start, airlines in the Middle East have hit their stride in implementing ET, going from 23% at the end of last year to 48%. The battle is won. We will be paperless in 2008."
AACO general secretary, Abdul Wahab Teffaha, said he was confident its member carriers would have met the original December 31 deadline.
The only exceptions, he said, were Iraqi Airways and Palestinian Air, which due to the exceptional circumstances in their countries, could not implement e-ticketing and would continue to issue paper tickets.
"In this situation we will have to go 30 years back where airlines provided agents with a stock of paper tickets and they processed them manually," he said.
Teffaha acknowledged interline issues were a problem, considering that most airlines deal with 160 to 200 interline partners and will therefore be left with a long list of interline agreements not secured by the deadline.
This primarily causes problems for those who rely on other airlines to feed traffic through their hubs.
To rectify the issue, most Middle Eastern carriers have been busy securing alternative interline agreements to ensure they don't lose vital interline revenue, Teffaha told ATN.
"As far as the Arab airlines are concerned, we will continue to manage our business. In terms of interline business, up until now, there has been no cost, but there would have been if the Arab airlines stood still," he said.
"The cost would have been around $300 million in terms of interline revenue."
CLICK HERE TO POST A COMMENT
| 3 stories | 3 stories | 3 stories | 3 stories | 3 stories
There's something very fetching about the over-the-top opulence of Abu Dhabi's Emirates Palace Hotel.
It's less loud and proud than its UAE neighbour but Oman possesses a quiet, unique charm of its own.
Hopes for Kuwait as a meetings and incentives powerhouse rest on a 20-year tourism master plan.
Donald Trump and Nakheel CEO Chris O'Donnell talk up the credentials of the Trump tower on the Palm.
Turkey's Rixos Hotels chief Fettah Tamince on why all guests who stay at his properties are considered celebs.
Dubai Heritage Vision GM Johan Viljoen explains why Jumana Secret of the Desert is a pioneer.
SURVEYS & REPORTS
Print this page
Email this to a friend
Discuss this article (0 Comments)
zoom
Mobile
