JEDDAH, 12 June 2008 — Surging fuel prices are creating new revenue worries for international airlines. Aviation experts forecast huge quarterly losses for major carriers this summer, typically the busiest and strongest period for them.
“The ever rising oil price is poised to undermine our efforts to stay on course,” Abdul Aziz Mangera, Lufthansa-SWISS regional manager for Western Province, said at their joint annual agents award function at Movenpick Hotel on Tuesday night.
“We have witnessed 61 percent increase in oil price this year alone and the average rise in ticket price has been merely five to six percent,” he said, adding that the oil price is continuing its upward trend and that is worrying most of the carriers.
“However, we look ahead positively and feel confident of achieving our goals against all odds,” Mangera said.
The joint award function was marked by presentation of crystal awards to their 15 top agents including Attar, Kanoo, Mirage, ACE, T&TS, Transad, Al-Tayyar, Portfolio, Elaf, Zahid, Intercontinental, STTB, Mosaid, Al-Huda and Alzouman. German Consul Ludwig Schopfel and Swiss Consul Daniel Blatter were the guests of honor.
Lufthansa and SWISS together have seven flights a week from Jeddah. “This puts us clearly as the leading carrier serving daily flights from the Kingdom,” Mangera said.
While Lufthansa has beds in its business class, SWISS will follow suit shortly. “Lufthansa has joined SWISS with individual entertainment screens with impressive features in its economy class, starting with the winter schedule,” he added. About the switch to e-ticketing, Mangera said: “We have been able to overcome the initial hurdles during this transition with the support of the agents. There are still minor problems remaining, but we are progressing rapidly with interlining.
E-ticketing is an advantage for both the travel industry and travelers. He listed elimination of preliminary boarding passes for fist and business classes as among the benefits of e-ticketing.
“Urgent, emergency PTAs (prepaid ticket authorization) can no longer create a panic situation for the agents, especially over the weekends when the airline offices are closed. Also, a major advantage for the passengers is that they can check in up to 23 hours ahead of time and pre-select their desired seats through the Lufthansa-SWISS’ Web check-in.
“Above all, passengers will also not have to worry about lost tickets and payment for these,” Mangera said.
Lufthansa has its own check-in system at King Abdul Aziz International Airport, “thereby offering a through check-in service and providing boarding passes for the passengers’ complete outbound journey,” he added.
It takes two working days for processing a visa for Switzerland, the Swiss Consul said.
Switzerland, which has already ratified the decision to join the Schenghen group, is expected to become a full-fledged member of the European association, which provides for a common visa policy.
The German consul said German visas would continue to be issued in Riyadh. “The visa facility will be provided in Jeddah when the consulate is able to undertake the construction of its building. That may take a year or two.”