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Minutes of meeting |
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MINUTES OF BARSA MEETING #222
HELD AT JEDDAH HILTON HOTEL
ON 03 OCTOBER 2005 (29 SHA'BAN 1426H)
On behalf of BARSA Chairman Dr
Omar Jefri who was indisposed to attend the meeting due to other unforeseen
commitments, BARSA General Secretary Dr Ayed Al-Amri opened the meeting,
introduced the new members from EK, ET, GF, IY and WY, welcomed the participants
and touched upon the major agenda items for discussion.
The
following deliberations took place:
|
1. |
FUEL SURCHARGE
This subject was
recognized as a very important element impacting contemporary airline
business. QR suggested all airlines to increase and apply fuel
surcharge at USD 30-40 level and requested BARSA, as a forum with full
coverage of airlines operating in KSA, to make a general
recommendation. GF suggested that region-wise fuel surcharge should be
introduced and monitored for making timely changes. RJ stated that they
are charging USD 25 per ticket and not based on region/destination, and
recommended to have a subcommittee to study this subject and come up
with a joint proposal. EK opined that this subject is apt to be
discussed under the purview of the YIC for uniform implementation and
was accepted as the modus operandi for dealing with this matter will be
discussed in the next YIC meeting scheduled after Ramadan.AF queried
about the status of fuel surcharge for cargo and Mr Saud Arab of SV
responded that the matter was discussed by the YIC and a recent increase
of SAR 0.20 was made to reach the level SAR 0.65 in total. He observed
that unfortunately no uniform application is observed in the market. |
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2. |
AIRPORT FACILITY FOR UMRAH
& HAJJ
QR, observing that the new
extension at the South Terminal eased the pressure for SV, asked whether
there is a similar plan for North Terminal used by the other airlines as
it is being suffocated during Ramadan and Hajj due to congestion of
traffic. Prompted by Dr Ayed, the AOC Chairman responded on this issue.
The new master plan for KAIA with one combined terminal for SV and other
airlines will take into account the recommendations for facilities
improvement made by BARSA/AOC in the joint meeting with the
authorities(copy of minutes distributed to the participants). In the
meantime, the Airport Authority has agreed to open all the 8 bays for
Umrah passengers. Bus shortage will be relieved by introducing 5 new
buses. Another batch of 10 buses will be deployed within 90 days for
helping the Hajj movement. He advised each airline to preplan for
projected requirement through the respective handling agent for the use
of remote areas.
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3. |
KAIA EXPANSION PROJECT
COMMITTEE
Dr Ayed stated that a
BARSA team was formed, based on PCA request, to participate in the
planning stage of KAIA expansion project and it was agreed to make a
presentation on this subject in the next meeting.
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4. |
CARGO SECURITY PROCESS
Mr Saud Arab of SV thanked
the airline representatives for raising this issue which is a crucial
problem faced at the airport. He explained that the volume of business
necessitates extra screening work to screen all cargo without exception
as per airport security regulations. He added that the meeting
envisaged to discuss this problem with the authorities could not
materialize.
SQ stated that this
problem is already a few months old. The two options given were to
screen all cargo or keep for 24 hours, with no facility or resource for
implementation of these procedures.
EK said that the problem
is acute because there is only one screening machine and asked whether
all the airlines should join together to provide the extra screening
machines. Dr Ayed responded that the airlines are not expected to
provide screening machines for passengers or cargo and it is the
responsibility of the Civil Aviation Authorities to whom SV has already
written and their reply is awaited.
QR observed that SV Cargo
Handling is keeping post-screened cargo also in the open and commented
that as SV has the monopoly on cargo handling, SV should take the
initiative for having more screening machines as in the case of handling
agents who provide them at the Hajj Terminal. QR pointed out the live
stock shipments also cause problems. SV responded that cargo on airside
is open but in secure area. SV added that the options of keeping cargo
for 24 hours or airlines jointly purchasing screening machines will be
taken up again with the authorities for their acceptance.
JED AOC Chairman Mr Ahmed
Sheriff highlighted some complaints and requirements from 23 carriers'
Station Managers about SV cargo handling standards and facilities which
SV noted and promised to strive for viable solutions.
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5. |
AOC FEEDBACK
RUH AOC Chairman reported
good coordination with the authorities for problem-solving, facing no
serious setbacks. JED AOC Chairman reported of raising 11 items (copied
to BARSA) and their being quickly actioned within a week due to good
rapport with the new Airport Director and his follow-up.
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6. |
PCA PRESENTATION ON HAJJ
1426H (2005/2006G)
Dr Ayed welcomed the PCA
delegation, introduced the participants and invited them to make the
presentation on the new system for Hajj flights clearance effective Hajj
l426H (2005/2006G) season. The PCA delegation thanked BARSA for
providing this opportunity and made a detailed presentation on their new
web-enabled HCPS (Hajj Clearance Proceeding System) laying down
step-by-step procedure for obtaining clearance for Hajj flights. The new
system has the main objective of reducing the time taken for Hajj
flights approvals while ascertaining compliance with the relevant rules
and regulations on a first-come first-served basis. The deadline for
application is 22 October 2005 (19 Ramadan 1426H) for Hajj 1426H.
Following the presentation, clarifications were made on participants'
queries on the new system (a copy of the presentation will be put on the
BARSA website).
Mr Ahmed Hantoush from PCA
stressed the importance of bank guarantee for clearance of Hajj flights.
The airline representatives brought up their experience of levying fines
for flight-delays caused by the lack of facilities available for
handling huge traffic flow and no fault of theirs. Mr Hantoush said
that specific cases could be appealed for review. |
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7. |
SUBSCRIPTION DUES
The BARSA Treasurer Mr
Abdo Abi Allam requested all defaulting member airlines to promptly pay
their subscription dues in order to facilitate BARSA activities for
common good. |
MINUTES OF BARSA MEETING # 221
HELD AT JEDDAH HILTON HOTEL
ON 03 APRIL 2005(24 SAFAR 1426H)
On behalf of BARSA Chairman Dr
Omar Jefri who could not attend the meeting due to unforeseen circumstances,
BARSA General Secretary Dr Ayed Al-Amri opened the meeting, welcomed the
participants and introduced the major agenda items for discussion.
The following discussions took
place:
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1. |
FEEDBACK ON GCC
BAR CHAIRMEN'S MEETINGS |
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Mr Mohammed H. Sharif and Dr Ayed Al-Amri gave feedback on
the 1st (held in Jeddah) and 2nd (held in Kuwait)
GCC BAR Chairmen's meetings which proved to be a very useful window for
improving communication. Yield improvement, pricing, IATA Agent's
commission, avenues for regional cooperation etc were discussed. Oman
and Bahrain are the only two GCC countries applying 5% IATA Agents'
commission and hence there is a long way to go in this direction. It was
recommended that all should go to 5% by December 2005. AACO plans to
have 0% by 2010. AF has already implemented 0% by 01 April 2005.
Unification of taxes by the Tariffs Committee was recommended. The next
meeting will be held in Bahrain in September 2005.
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2. |
BSP LINK IN KSA
Mr Akram Farhat of SV gave a detailed presentation on the
status of this subject (copy attached as well as put on the BARSA
Website under Circulars' link). BARSA encourages all airlines and their
agents to join BSP for their benefit as well as that of the airline
community as a whole.
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3. |
E-TICKETING
Mr Farhat also briefed the attendees on the importance of
e-ticketing which will be implemented in BSP by December 2005. As such,
the airlines should be ready with their internal infrastructural
modifications for migrating to e-ticketing. Mr Farhat also answered
queries on training and the role of CRSs in e-ticketing. Dr Al-Amri
stated that BARSA could be a forum for exchanging experience on
e-ticketing procedure and evaluating its impact and effectiveness.
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4. |
IMPLEMENTATION OF CASS IN KSA
Mr Saud Arab of SV gave a brief on the status of
implementation of CASS (Cargo Accounts Settlement System) in Saudi
Arabia. Full implementation was accomplished by 16 March 2005 with only
10 airlines participating at present. Many presentations were made for
airlines as well as IATA and non-IATA agents for creating awareness.
CASS benefits the airlines through improved cash-flow by
prompt payments. Valuable reports are generated with a lot of relevant
information. CASS also accomplishes unification of policies, forms and
procedures. BARSA encouraged all airlines to join CASS to reap benefits
individually and collectively.
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5. |
AOC FEEDBACK |
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Mr Ahmed Sheriff (JED AOC Chairman) and Mr Ahmed M.
Alzahrani (RUH AOC Chairman) briefed the gathering on problems,
activities and outcomes in various facets of airport operation, answered
queries from participants and took note of comments and suggestions for
betterment.
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6. |
YIC FEEDBACK
Mr Mohammed Ali Assiri of SV briefed the attendees on the
status of YIC activities and announced that YIC meetings will be held in
April in Jeddah, Riyadh and Dammam for addressing all concerned issues
and requested attendance.
WY suggested that discussions should lead to constructive
decisions that will make a positive impact in the market. QR said that
the national carrier should lead the YIC initiative and pointed out that
yields have gone down by nearly half from 1999 to 2005, and playing
around with baggage allowance is a significant malpractice. AF suggested
every airline should follow the IATA rules on baggage allowance and was
supported by EK. GF announced their plan to follow IATA free baggage
allowance regulations i.e. 40 Kg for First, 30 Kg for Business and 20 Kg
for Economy classes effective 15 May 2005 to all destinations operated
by GF and requested all airlines to follow suit.
Dr Al-Amri pointed out that short term solutions adopted by
the YIC might have caused problems in the long term and suggested
comprehensive discussion in the YIC meetings to close all gaps.
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7. |
BARSA FEEBACK QUESTIONNAIRE RESULTS
Dr Ayed Al-Amri gave a presentation on the results of the
feedback questionnaire distributed earlier in 2004. It was observed
that many of the suggestions for improvement like the joint GCC BAR
Chairmen's meeting have already been implemented. This feature of
evaluation of the effectiveness of BARSA and its continuous improvement
through feedback will be maintained through periodic questionnaires to
the participants.
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8. |
BARSA SUBSCRIPTION DUES
Only 15 member airlines have hitherto paid their
subscriptions. All the others were requested to expedite payment for
supporting the BARSA activities.
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9. |
NEXT MEETING
The next meeting will be held in the first week of June
2005. |
The meeting was held in a very congenial atmosphere and was closed with a
prayer/lunch break.
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FIRST MEETING OF CHAIRMEN
OF GCC BOARD OF AIRLINES REPRESENTATIVES
The first meeting of the
Chairmen of the Gulf Cooperation Council Boards of Airlines Representatives was
held at the Jeddah Hilton on 05 Shaban 1425 (19 September 2004).
In attendance were :
| Dr Omar Jefri |
Chairman of BARSA in KSA |
| Mr Dawoud Al-Dawoud |
Chairman of BAR in KWI |
| Mr Mahroos Al-Harthy |
Chairman of BAR in BAH |
| Mr Hamad Al-Obaidallah |
Chairman of BAR in DXB |
| Mr Khalifa Alrayes |
Chairman of BAR in AUH |
| Mr Jaffar Joma |
Chairman of BAR in OMAN |
| Mr Baudemont Stevenson |
BAR Representative in
Qatar |
| Mr Hamza Sharif |
Vice Chairman BARSA in
KSA |
| Dr Ayed Al-Amri |
General Secretary BARSA
in KSA |
| Mr Muteb Al-Ajami |
Sr Mgr Kuwait Airways in
KSA |
| Mr Mohammed Al-Falasi |
Regional Mgr Emirates in
KSA |
| Mr Saud Irqsous |
Sr Mgr Pricing & Tariffs
(Pax) Saudia Airlines |
| Mr Fahad Al-Sabhani |
Asst General Secretary
BARSA in KSA |
Dr Jefri
welcomed the distinguished participants and wished them a pleasant stay in Saudi
Arabia.
Dr Jefri declared the goals of this meeting as mutual benefit and exchange of
common experience for arriving at a unified standard for the airlines operating
in the GCC. After introductions and greetings the discussion of the topics
suggested by the chairmen followed.
The following recommendations were adopted :
-
Reduction of IATA Agents
Commission:
The participants agreed to reduce the Commission
to 5% within the GCC following the global industry trend. Bahrain's initiative
to reduce the commission to 5% effective 15 October 2004 was supported by the
Chairmen and suggested Oman, UAE and Qatar to follow suit. Likewise it was
suggested to study the possibility of following this lead for passengers from
KSA to GCC countries.
-
Yield Improvement Committee:
The participants agreed on the following :
i) To study and implement the mechanism for yield improvement in the GCC market
and make recommendations for progress including the problems of variable
baggage allowance and focussing on some small carriers causing disturbance of
fares in the market, in the next meeting.
ii) The suggestion of SV to adopt common minimum fares for different sectors
under approval from the GCC Civil Aviation Departments so that no airline will
go below this level, especially the small carriers, to protect safety and
service level from deterioration. This step also would help yield improvement.
-
Low Fare on Low Cost Carriers
(LCC):
As some of the LCCs are national carriers, they
cannot be stopped from operation and hence the participants agreed to study the
steps to be adopted to prevent their negative impact and make the best
procedure to deal with them.
-
Passive Segments Bookings and
Noshows:
The participants appreciated the initiatives
already taken by BARSA for dealing with passive segments booking abuse by the
agents which has resulted in positive improvement of yield and the SV
experience in dealing with noshows for decreasing its level helping more
passengers gain seats for travel. However, other carriers need to study the SV
initiative and adopt similar measures.
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Insurance and Fuel Surcharge:
The participants agreed to make uniform policy
for such surcharges to be applied within the GCC and discuss in the next
meeting.
-
IATA Published Fare:
KU suggestion to make the IATA Published Fare as
the official fare was agreed upon by the participants, as this procedure is
adopted already by some countries within the GCC.
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Next Meeting:
KU welcomed the next meeting to be held and
hosted by them in Kuwait in the last week of February 2005, to which the
participants agreed.
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MINUTES OF BARSA MEETING #
219
HELD AT SAUDIA CLUB, KHALIDIYYAH, JEDDAH
ON 19 MAY 2004 (30 R. AWAL 1425)
BARSA Vice Chairman Mr Hamza
Mohammed Sharif opened the meeting on behalf of BARSA Chairman Dr Jefri who was
indisposed due to unforeseen commitments and welcomed the participants (list
appended). He accorded a special welcome of induction to the new
representatives from AI, BA, B8, ET, GF, QR and SQ.
Discussions on the agenda items followed :
FUEL SURCHARGE
PK informed that they are applying fuel
surcharge in the USD 3.00 – 10.00 range depending upon destination. RJ applies
uniform rate for all destinations. BA applies USD 4.00 per sector. KU is not
applying currently, but will follow suit. GF will commence application
effective 01 June 2004.
WY commented that this subject should be thoroughly discussed on the floor to
evolve consensus for uniform application by all airlines. SV also supports
uniform implementation. BARSA Vice Chairman Mr Sharif said that 5% jet fuel
cost increase effective October 2003 justifies the uniform application of fuel
surcharge by all airlines.
RJ queried whether a directive from BARSA will follow specifying the criteria
for application to which Mr Sharif responded that the BARSA Chairman will be
consulted on this matter.
NOSHOW PENALTY
PK applies SAR 50 for low season and SAR 200 for
high season. SV started applying effective 01 May 2004 on the travel agencies
rather than individual passengers and is showing positive impact as reported by
the Yield Management Department. PK added that they are applying to the
passengers and agencies depending upon who is responsible for the event of
generating noshows. PK suggested that noshow penalty could be filed with the
PCA for the legality of application. AI is not currently applying the noshow
penalty. AF feels that as SV has the highest market share of passengers
KSA-wide and the resultant better experience, SV should take the lead as the
national carrier.
Dr Al-Amri invited comments from the floor as to whether the matter should be
left to the individual airlines or be tackled by BARSA. AF prefers a general
resolution with room for flexibility as leaving to the individual airlines
would result in unfair competition. PK feels that the matter should be left to
the individual airlines as a matter of flexible application, as even the extent
of noshows experienced by different airlines are different.
STATUS OF REDUCTION OF IATA
COMMISSION
Dr Al-Amri acknowledged that the industry trend
is to reduce the commission from 7-5%, but SV as the national carrier of KSA is
barred from application of any further reduction from 7% until further notice
from the concerned government agency. The travel agencies' resentment triggered
by the earlier reduction from 9-7% and their collective representation to the
government has imposed this constraint on SV. As such, the matter has to be
left to the individual airlines and will be under observation.
PK plans to implement 5% from 01 July 2004. AF said that the French market will
go for the reduction soon and would like to apply to all AF markets and hence
suggests a workshop or subcommittee to study the issue as it cannot be
implemented in isolation. BA informed that their Bahrain experience is
supportive of moving to 5% but for GF's inability to apply the same within the
GCC. MS is supportive of reduction in general, but the 7-5 reduction is not yet
applied in Egypt. RJ has been applying 5% in Jordan for over a year.
The consensus was that communication and mutual understanding between airlines
and travel agencies should precede to generate a conducive atmosphere for
further reduction, as about 65% of the traffic is still generated by the travel
agencies. The airlines do not have enough margin to sustain the higher
commission payment to the travel agencies and at the same time, the agencies'
revenues will not be significantly affected by the reduction, as most of the
commission is passed on to the passengers for competitive edge.
PASSIVE SEGMENTS BOOKING
Mr Abdo Abi Allam (AF) Chairman of the
subcommittee stated that the increase in GDS costs makes passive segments
booking a critical financial issue for airlines. After the awareness seminars
conducted in JED, RUH and DMM, it was decided as the next step that each
airline will monitor the agency activities in order to reduce the costs related
to passive segments booking.
SQ, MH, GA, GF and AI are charging the agents based on the results of
monitoring by the Head Offices. PK stated that they are not facing this problem
as they pulled out from GDSs on account of this problem and hoped that they
would be able to revert to GDSs once the clean-up is effective.
GF stated that GDSs are not willing to waive payments in lieu of passive
segments booking; rather they are encouraging agents to increase passive
segments booking through incentives. MH urged that all airlines should take up
this issue with their agents; otherwise the silent ones will be left to bear
the brunt of enhanced abuse by travel agents.
AF will take the lead in charting follow-up actions through the subcommittee
which will meet soon for this purpose.
YIC ACTIVITIES
Mr Saud Irgsous (SV) gave a briefing on the YIC
activities and meetings held after the last BARSA meeting and announced the
schedule of forthcoming YIC meetings.
BARSA Vice Chairman urged the participation of higher level management like
Sales Managers and Country Managers rather than other staff without
decision-making authority.
SAUDIZATION OF TRAVEL MARKET
IN KSA
GF brought up the topic of Saudization of travel
market by 35% as a government requirement and elaborated that the Chamber of
Commerce will provide the number of trainees required in various categories
with 75% payment by the government and 25% by the airline/travel agency for one
year of training after which the company has the flexibility to absorb as
regular staff or reject if unsuitable.
QR added that performance and attendance are monitored during the training
period and replacement is possible if unsatisfactory. QR's experience is
positive in this regard. AF stated that they used a lot of resources for
training including abroad, but faced turnover before paying
back the money spent on training and as such contracts should be made for
continued service for at least 3 years after training. AF has positive
experience with native employees with travel agency experience; however, salary
discrimination is necessary to keep Saudi employees which is creating a
problem.
GF alerted that the Saudization process started 9 years before and the policy
will be strictly enforced now.
JOINT BAR MEETINGS WITHIN THE
GCC
GF suggested to have joint BAR meetings in
different GCC locations in rotation every six months. Dr Al-Amri thanked GF for
this suggestion which was well accepted by the gathering as a means to promote
sharing of knowledge, ideas and experiences.
JED AOC CHAIRMAN'S FEEDBACK
Mr Ahmed Sheriff (GF), the new JED AOC Chairman,
informed that the current priority is to work on improvements in services and
safety. The Airport Authority has approved the renovation of the North Terminal
based on the experience of inconvenience to passengers in general and during
Hajj operation in particular. Mr Sheriff solicited cooperation and support of
all airlines by paying all the outstanding bills in order to facilitate
financing of the improvements. He informed that an updated directory of airport
managers will be published soon, answered queries from airline representatives
and took note of their comments and suggestions for improvement.
A commemorative memento was presented to the outgoing JED AOC Chairman Mr Ahmed
AlIdrissi, currently Area Manager of QR, in appreciation of his excellent
performance during his tenure.
BARSA SUBSCRIPTION FEE
BARSA Treasurer Mr Abi Allam read out the names
of the 18 airlines which have paid the BARSA subscription fees for 2004 and
urged all the others to make prompt payment.
BARSA FEEDBACK QUESTIONNAIRE
In order to evaluate the performance of BARSA
and invite suggestions for further improvements, a questionnaire was
distributed to each participant for completion and return.
The meeting was held in a
very cordial and conducive atmosphere with frank and free exchange of views and
was closed with a prayer/lunch break.
OFFICIALS
|
Mr Hamza
M. Sharif (GF) |
Vice
Chairman |
|
Dr Ayed T.
Al-Amri (SV) |
General
Secretary |
|
Mr Abdo
Abi Allam (AF) |
Treasurer |
|
Mr Fahad
Al-Sabhani (SV) |
Assistant
General Secretary |
AIRLINE REPRESENTATIVES
|
AF |
Mr Frank
Martin |
General
Manager |
|
AH |
Mr A.
Yahiaovi |
Area
Manager |
|
AI |
Mr P.
Ashok Kumar
Mr Saadat
A. Khan |
Manager
Western Saudi Arabia
Sales
Manager Western Saudi Arabia |
|
AT |
Mr Hamdy
Yousuf |
Assistant
General Manager |
|
AZ |
Mr Iqbal
Miyajiwala |
Manager
for Kuwait, KSA & Yemen |
|
BA |
Mr Richard
Hirsch |
Country
Manager |
|
BI |
Mr Y.A.
Javeed |
Country
Manager KSA |
|
B8 |
Mr Tewolde
Gabriel |
General
Manager Saudi Arabia |
|
CY |
Mr George
Kapello |
Country
Manager |
|
D3 |
Mr Ibrahim
J. Ahmed |
Area
Manager |
|
EK |
Mr Amer
Akhtar |
Sales
Manager (WP) |
|
ET |
Mr Mussa
Yusuf |
Manager
Airport Services |
|
GF |
Mr Ahmed
Sheriff |
JED AOC
Chairman |
|
IR |
Mr Jalil
Ammarlou |
Area
Manager |
|
IY |
Mr
Abdullah Aldailami |
Sales
Manager |
|
KL |
Mr Noman
Syed |
District-in-Charge |
|
KU |
Mr Muteb
Alajmi
Mr Muneer
Ahmed |
Senior
Manager
District
Sales Manager |
|
LH |
Mr Peter
Daniel |
Regional
Manager |
|
LX |
Mr Rolf
Koller
Mr Manuel
Staerkle |
General
Manager
Area Manager |
|
ME |
Mr Ayman
Omairi |
Sales
Devpt. Manager |
|
MH |
Mr
Shahrunnawi |
Sales
Manager |
|
MS |
Mr Youssef
Gool |
Sales
Manager |
|
PK |
Mr Salim
Nisar
Mr Asim
Baber |
General
Manager Saudi Arabia
Asst.
Manager Saudi Arabia |
|
QR |
Mr Ahmed
Al-Idrissi |
Area
Manager KSA |
|
RB |
Mr Nassib
Samadi
Mr Syed
Usmanal |
Regional
Manager
Sales
Manager |
|
RJ |
Mr Samiran
Bose |
Manager
Marketing & Sales |
|
SA |
Mr Thabit
M. Refae
Mr Kamal
A. Bari |
Chief
Adviser Middle East
Station
Manager |
|
SD |
Mr
A/Rahman Elfadul |
Station
Manager |
|
SQ |
Mr Sher
Khan |
General
Manager Middle East |
|
SV |
Mr Saud
Irgsous
Mr Syed
Aboobacker P. Thangal |
Chairman
YIC
Sr.
Spclst. Bil. & Cml. Agrmts |
|
TK |
Mr Ismail
Turan |
Country
Manager |
|
UL |
Mr
Chinthaka Bandara |
Sales
Executive (WP) |
|
WY |
Mr Saleh
Issa Alkindy |
Country
Manager KSA |
Top |
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