Thursday, February 14, 2008

Ticketless air travel in Middle East

Arab Airlines’ provides the lowest prices for air tickets in Middle East. Based on a low cost model of per single flight, customers can conveniently book tickets online, getting the lowest price even during peak season.
“Every airline controls their airfare and not the taxes,” said David Jones, CEO, Arab Airlines explaining on how this model works, “As demand increases, so does the price.” Prices can increase from 10-40% depending on the season.
Arab Airlines can maintain low prices by being totally ticketless. Tickets have printing and distribution costs, along with manpower for maintenance. “With today’s technology, you don’t need that,” adds David, “When you book a ticket, you get a code number. That’s all you need.”
They are educating customers to book online through collaterals, including in-flight magazines. Ticket sales online have grown to 23%, from 2% when they started two years.
Reflecting on the Middle East airlines industry, David said, “It was a profitable year. We are particularly chuffed with 2005 and did better than we had forecast.” Presently, they operate to some basic airports, but the concept is working and results are encouraging. Arab Airlines has set themselves bullish targets and are looking to outdo their business in 2006.

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