JEDDAH, 7 January 2003— Airlines operating to Western destinations from Jeddah said yesterday that the ensuing low season for travel would warrant a reduction in fares but how low they could go was being determined.
While British Airways (BA) has announced an offer of a Jeddah-London ‘world traveler’ (economy class) return ticket for SR1,200 against its lowest normal season fare of SR3,300, its European competitors maintained that they were keeping a wait-and-watch attitude. “We want to see what others are doing before we do something,” was a comment from an executive of a leading Western airline who requested not to be quoted.
British Airways (BA) calls its new special fares as a ‘winter windfall offer.’ “We fly you in economy class to London from Jeddah at SR1,200, rest of the UK at SR1,400 and other European destinations at SR1,600,” a BA executive told Arab News yesterday. “We’re offering special fares in our ‘club world’ (business class) cabin too. A return ticket to London from Jeddah in club world costs SR3,500 against a normal fare of SR10,904. However, outbound travel must be between Jan. 23 and Feb. 13 and return travel must be completed by Feb. 28 this year. What’s more, bookings must be made and tickets purchased before Jan. 9,” BA Country Commercial Manager Chris Phipps said. “I’m hopeful that BA’s excellent value for money offer will attract many travelers,” he added.
“There is nothing unusual if a fare war breaks out now. Such things have happened in the past. The period after winter holidays is generally lean from the travel point of view and so airlines will be vying with each other to attract passengers to Western destinations,” a top executive of a leading travel agency who requested anonymity, said. A leading travel agent said that last time, around this time of the pre-Haj period, BA had offered a similar economy class low fare of SR1,180. “However, we travel agents in general are not happy because such ‘gimmicks’ eat into our revenue. Moreover, passengers or corporate clients to whom we have already sold BA tickets are now asking for the difference to be paid back,” he added.
“Where is the need for initiating such low fares. Those who want to travel will travel whatever the existing fares. Maybe airlines that indulge in a fare war will gain a little and get a little mileage. Certainly, there will be no incremental business for airlines. Those who have just returned or are returning from their Christmas and New Year vacation will not travel again just because fares are low. In fact, those who had planned their journey around this time will travel whatever the prevailing fares,” a travel agent said. “Maybe, a few non-European vacationers heading for home will choose to take advantage of such low fares and visit Europe,” he added.
Sources close to Lufthansa and Swissair said they were not interested in entering into a fare war. “We’ve a price for our airline travel and so we don’t like to follow suit,” one of them said.
