JEDDAH: The formation of alliances and mergers were the buzzwords at the Arab Air Carriers Organization conference, which concluded in Jeddah on Sunday.
The meeting discussed the impact of the ongoing global economic crisis on air transport and ways to tackle it. “After a trying period of six years, the air transport industry entered a period of prosperity in 2007.
“But in 2008, the sharp rise in the price of fuel deprived the industry from building a protective reserve to counter the current crisis,” Abdul Wahab Tofaha, secretary-general of the Arab Air Carriers Organization, told Arab News. He added that airline companies in the Arab world have, in general, achieved better growth compared to companies elsewhere.
On a question on the relation between the price of fuel and ticket pricing, Tofaha said, “Although the link is direct, the Arab organization does not interfere in the pricing, as it is a commercial matter that is determined by a company’s policy.”
He added that a joint program undertaken by the organization to buy fuel saved between $50 million and SR60 million annually.
