JEDDAH: A number of airline companies have cut their ticket fares by 10 to 20 percent in the wake of a decline in fuel prices. Saudi Arabian Airlines said it was reducing ticket charges on its international flights by 10 to 15 percent.
Saudi airlines had increased fare charges in June on international flights by $90, adding fuel tax, when oil prices reached a record $147 per barrel.
Egypt Air said it would cut ticket fare for its flights between Riyadh and Egypt by more than SR200 per ticket. "Our airline cut the fare soon after fuel prices went down," said Saeed Fikr, manager of the airline.
Budget airlines were the biggest beneficiaries of oil price decline. Faisal Al-Daheem, marketing manager of Sama airlines, said the fall in fuel prices removed one of the major obstacles facing budget airlines.
"The fall in fuel prices will have a big positive impact on the performance of our airline," he said. Sama's international flight fares start from SR199, he added.
An official source at NAS, another budget airline in the Kingdom, said early reservation of tickets would help passengers get better offers from his airline. He said NAS has special offers throughout the year.
An Air India official said the airline would cut ticket fare on its domestic flights by up to 40 percent, depending on the sectors. The airline has, however, no plan to cut ticket charges for international flights.
Mohaideb Al-Mohaideb, general manager of Sarh Travel & Tourism, said he expected all airlines to reduce their charges from January to April. Prices of tickets to European countries will be in the range between SR1,400 and SR1,800.
The General Authority of Civil Aviation (GACA) predicted an eight percent increase in air travel traffic in the Kingdom despite the global economic depression. It attributed the growth to the increasing number of Umrah and Haj pilgrims and the strength of Saudi economy.
The government has allocated SR20 billion to expand infrastructure facilities at the Kingdom's airports and intends to establish five new airports.
By P.K. Abdul Ghafour
© Arab News 2009
