2nd GCC BAR MEETING KWI 15MAR05

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2nd GCC BAR MEETINGKWI 15MAR05
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• APPROVAL OF MINUTES OF GCC/BAR 1ST MTG
• AGENDA ITEMS
• AGENCY COMMISSION
• FARE INCREASES
• FUEL, INSURANCE AND DDL
• YIELD IMPROVEMENT PANEL
• CHARGES ON FICTITIOUS BOOKINGS
• MADE BY TRAVEL AGENTS AND NO-SHOW PAX
• LOW COST AIRLINES
• E-TICKETING

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• AGENCY COMMISSION
• At the last GCC/BAR meeting all carriers agreed
  on the reduction of agency commission to 5
• The status currently in GCC Countries is as
  follows
• U.A.E. At present the commission is 7.,
  except intragulf which is 5
• There is a proposal by BAR to reduce same to 5
  effective 01MAR05.
• BAH The commission is 5 effective NOV 04.
• QATAR Currently the commission is 7
• BAR has proposed to reduce same to 5 eff 01
  APR 05
• provided same is approved by local authorities.
• SAUDI Currently it is 7
• There is a proposal from BARSA to reduce same
  to 5
• provided same is filed with the local
  authorities.

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• FARE INCREASES
• a) KU from the previous meeting gave an overview
  of the KWI market nature and it has been agreed
  that all GCC carriers will support implementing
  IATA fares from KWI to all GCC points with no
  discount and on the other hand support
  implementing IATA fares to M. East.
• b) KWI/DGCA have approved recently following
  fare increases
• From KWI
• a) Europe 3
• b) TC1 (North/Mid/South Atlantic) 2
• c) Gulf and within M. East points 3
• The effective date is 10 MAR 05.
• Action Plan
• To be decided by the meeting.

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• FUEL, INSURANCE AND DDL
• All GCC airlines agreed to have one level of
  Fuel Insurance
• charges in all GCC countries.
• FUEL FROM KWI
• To Gulf points and M. East
• OW KD 4.500
• RT KD 9/-
• To all other destinations
• OW KD 9/-
• RT KD 18/-
• Same is effective from 16MAR05. The code is QR

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b) INSURANCE FROM KWI USD 5/- per flight
coupon Insurance in GCC countries as
follows AUH AED 120/- OW AED 240/- RT DXB AED
20/- OW AED 40/- RT DOH QAR 20/- OW QAR 40/-
RT JED USD 5.00 per coupon BAH USD 5.00 per
coupon RUH SAR 38/- OW SAR 76/- RT DHA USD
5.00 OW USD 10.00 RT MCT OMR 4/- OW OMR 8/-
RT c) DDL ( DEVELOPMENT DISTRIBUTION LEVY
) Discussion will focus on how we can implement
these charges in all GCC countries. Charges in
some GCC countries are as follows AUH AED 50/-
OW AED 100/- RT DXB AED 50/- OW AED 100/-
RT DOH QAR 50/- OW QAR 100/- RT RUH SAR 19/-
OW SAR 38/- RT BAH not applicable
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• YIELD IMPROVEMENT PANEL
• It is acknowledged by all participants that such
  program should be supported due to the fact that
  yield is the most important element in the
  current environment.
• Action Plan
• General Discussions

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• CHARGES ON
• FICTITIOUS BOOKINGS MADE BY TRAVEL AGENTS
• to improve seat factor and maximize utilization
  of seats availability
• NO-SHOW
• Continue discussions on this subject to reach if
  possible unified understanding.
• Action Plan
• General Discussions

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• LOW COST AIRLINES
• It is a fact now that low cost airlines will
  expand its operation in the region which
  definitely will have an impact on the air travel
  market. It is important to address this issue to
  ensure
• a) maximum benefit to air travel market in the
  region.
• b) minimize any adverse effect to network
  airlines.
• Action Plan
• General Discussions

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• PROGRESS OF E-TICKETING IN GCC COUNTRIES
• In accordance with IATA decision to implement
  E-ticketing effective 01 JAN 2007.
• We are aware that various markets in the region
  and GCC countries have already established
  various mechanism to implement E-ticketing partly
  as early as 2005.
• Action Plan
• General Discussions

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• DATE AND VENUE OF NEXT GCC BAR MEETING
• Thank you.