MINUTES OF BARSA MEETING
HELD AT JEDDAH MERIDIEN HOTEL
ON 7 MARCH 2010G
(21/3/1431H)

The Board of Airlines Representatives in Sadui Arabia (BARSA) held its meeting on 7 March 2010 at Jeddah Meridian Hotel, chaired by Mr. Ayman Omairi– Vice Chairman of the Board on behalf of Mr. Abdulaziz Alhazmi – Chairman of the Board – who was unable to attend the meeting due to urgent unforeseen commitment. Dr. Ayed Al-Amri, Secretary General of the Board later chaired the meeting due to urgent commitment of Mr. Omairi.
Mr. Aymen Omari opened the meeting by thanking the attendees and welcoming the representatives of Dammam Airport, IATA and the airlines who newly joined the Board. After a minor alteration in the order of the agenda items, the following deliberations took place. 

1. GACA NEW INSTRUCTIONS REGARDING AIRLINES SPONSORSHIP:
   The meeting discussed the regulations recently circulated by GACA regarding the issue of sponsorship in Saudi Arabia, affecting commercial registration and the commercial titles of operating airlines specially those operating under GSA, following the recent developments after which GSA's now come under the purview of the Higher Commission for Tourism while airlines are still supervised by GACA.. The issue has been listed in the agenda items upon the request of GACA which has proposed the subject to be formally addressed at this BARSA meeting, requesting all airlines operating in the Kingdom to abide by the regulations and take necessary actions accordingly through the Chamber of Commerce. Inspectors form the Authority will make field visits to ensure that the regulations are properly implemented by all airlines, and GACA expressed its readiness to offer any clarifications or assistance needed by the airlines for implementing the new instructions.

2. PPMDC CONTRACT AT KAIA:
   The Chairman of the meeting gave a brief highlight on the status of the contract between PPMDC and the airlines operating at KAIA, stating that several meetings were held with PPMDC, some of which in the presence of representatives from GACA, in which the company was advised of the reservations on the proposed contract, as reflected in the feedback received from airlines head offices. While PPMD asserted that the rates mentioned in the contract are fixed and are not subject to change, the AOC informed PPMD that there are other points of dispute in various aspects of the contract such as the bank guarantee and the conditions of payments. Airlines were particularly concerned with the clause requiring payments to be settled as received in the invoices, then objections may be raised later, contrary to the previous normal procedure which enables airlines to object within 15 days and then settle the adjusted invoice accordingly. Another point of concern conveyed to the Company regarding the payments of fines imposed due to delays, as airlines should not be liable to payments resulting from delays for which the airline is not responsible, therefore, a report should be jointly signed indicating the reason of the delay. BARSA will follow up the matter with PPMDC, under advice to GACA, in order to finalize the contract as soon as possible. Airlines representatives raised some other points to be discussed with PPMD, including double charging, parking fees and considering acknowledgements date rather than invoice date for the invoices received by couriers. All these pending points will be discussed with PPMD in the coming meetings, under the supervision of GACA, in order to settle them as soon as possible and avoid further delay in finalizing the contract.

3. LATEST DEVELOPMENTS OF StB W/G AND PRESENTATION ON CUSS ACTIVIATION:
   Upon request from the meeting chairman, Dr. Ayed Al-Amri presented a brief review of the StB initiative launched by IATA two years ago with the aim of realizing simple and fast travel at lower cost for airlines, showing that airlines have already started to reap the benefits of the projects so far implemented, particularly the e-ticking project which was successfully implemented, saving the airlines a lot of cost. With the cooperation of IATA and GACA, BARSA has formed a W/G to follow up the project and speed up its implementation. Dr. Al-Amri stated the positive experience of Saudi Airlines in implementing the (Self Service Machines) project in the Kingdom and its positive results both for the passenger and the airlines. Other parts of the project are now under implementation including the Bar Code Boarding Passes (BCBP), E-freight, Radio Frequency ID, which require full cooperation from all parties involved to enjoy the benefits of these projects. He extended thanks to IATA for their assistance and also to GACA which is keen to achieve successful implementation of the project.
   Eng. Abdulmohsen Alshaikh, Director of Operations at KFIA was invited to address the attendees on the progress of implementation of the CUSS project at KFIA which was selected as a pilot airport for the project. He went through the stages of implementing the project at the airport and the steps so far made, calling for operating airlines to extend maximum cooperation. Also a presentation was made by Mr. Su Chun Yang, Director of Operations Improvement at KAIA, in which he highlighted the traffic growth witnessed by the airport and the number and distribution of the CUSS machines at the airport, referring to the operational considerations of the project which is operated using SITA platform. He stressed the need for airlines cooperation to further push the project on areas such as back-up counters and visa verifications, in addition to educating and encouraging the passengers to use the CUSS.
   Dr. Ayed Al-Amri thanked Eng. Alshaikh and Mr. Yang for their valuable illustration of KFIA experience, emphasizing the need for airline representatives to contact their head offices to obtain support for the project which should be viewed as a real investment and not a cost, stating that the airlines which join earlier will get more benefits in terms of location , publicity, etc. He invited all airlines representatives to share their knowledge and experiences and participate in enriching the field and upgrade the level of performance. He also suggested that representatives from RUH and JED airports to be invited to learn about the status of the project and evaluate its benefits.

4. HIGHLIGHT OF IATA EXPERT PRESENTATION ON BAGGAGE IMPROVEMENT PROGRAM:
   Dr. Ayed Al-Amri briefed the attendees on the progress of this important project launched by IATA within the StB initiative, referring to the visit made by IATA expert to the three airports in RUH/JED/DMM and resulting reports. He thanked Mr. Naser Alsati, IATA Country Manager KSA/Yemen and invited him to address the audience on the subject. Mr. Alsati started by emphasizing the role of the StB project which in fact has been originally approved and launched by the airlines themselves as represented in the IATA AGM and Board of Governors which are comprised of airlines. He gave detailed description of the joint cooperation between IATA and the StB W/G of BARSA in regard to fast travel project . Mr. Alsati made a visual presentation on the Baggage Improvement Program currently implemented by IATA , stating that KSA airports were fortunate to be among 200 international airports selected for a field visit by an expert from IATA to diagnose the exiting problems and offer solutions. He reviewed the salient features of the expert's report and the solution toolkit he provided which comprised of 66 solutions leading to considerable reduction in baggage mishandling, stating that hopefully most of the problems will disappear by the end of this year. The results of the report can be made available for airlines which are needed to offer maximum support and cooperation to the project and provide required data to reduce baggage mishandling and save a lot of cost. Also GACA should be aware of the report findings.
   Mr. Naser Alsati concluded his presentation by asserting that airlines should review the targets of the projects of StB for the year 2010 and exert maximum effort to push for successful implementation.

5. 1430H Haj Season Feedback by JED AOC Chairman:
   Mr. Shuja Pasha (AF) Chairman of the JED AOC, presented a detailed report on the outcomes of the last 1430H Haj season operations. The report listed the major problems still faced in the last season on top of which comes the shortage of bays which were drastically reduced to (18) bays only, creating a real problem to operating airlines in terms of number and distribution. The report also referred to the need to improve the professional attitude of PPMDC staff who have demonstrated lower level of efficiency compared to the situation when GACA staff were handling operation. A third drawback listed in the report was concerning restrictions of entry and exit faced by airlines staff at the gates due to shortage of security personnel. The report also referred to other problems faced in the Hajj season such shortages of buses, porters, delays due to unavailability of security staff, lack of coordination between agencies, etc. Mr. Pasha concluded that, though some improvement have been seen in the new terminal in certain aspects, however a lot of work needs to be done, particularly in the field of increasing the number of bays and aprons. He called for cooperation between all parties involved to improve the situation in future..
   Dr. Ayed Al-Amri commented on the AOC report stating that serious points are mentioned in the report that really raise concern. He emphasized the fact that serving Hajjees represents the prime and noble mission of the Kingdom of Saudi Arabia to which the country deploys all its resources. He stressed that all these concerns will be communicated to the concerned parties for necessary solution, and that for this purposes a special committee will be formed within BARSA to tackle such issues.
   The presentation of the AOC report was followed by in depth discussion on the experiences of airlines during the last Hajj season operation. The points of concern raised by representatives of airlines included the following issues:
     - Pax stranded at Makka and AL-Madina and refused to be released due to the flight not shown on the system.
     - Crew traveling from Madinah are required by Passport Authorities to be accompanied by one of the staff.
     - Unavailability of medical lifts due to monopoly by the contractor.
     - Location and functioning of fuel pumps at the airport.
     - Need to issue clear instructions regarding handling of visit visas during Hajj season well before the season.
   JED AOC Chairman responded that all the points raised will be studies and discussed with the concerned authorities for quick resolution.
   Dr. Ayed Al-Amri raised the point of the importance of encouraging GACA to develop certain KPI's (Key Performance Indicators) as a tool of measuring PPMDC performance and enabling accountability. He also mentioned the need to solicit the Hajjee feedback, through a survey, and let his voice be heard to help tackling the problems faced.

6. PROPOSED NEW POLICIES AND Procedure FOR BARSA:
   Dr. Ayed Al-Amri informed the attendees about the efforts taken to improve the level of performance at BARSA and make it more active in discharging its role and objectives. Several meetings were held in this respect which materialized in the proposal of formulating the following two subcommittees in BARSA.:
    1. Subcommittee for GACA-BARSA Affairs: which will be responsible for handling all the affairs pertaining to the relationship with GACA as our main partner of BARSA. The Subcommittee will undertake necessary arrangements to conduct regular meetings with GACA to discuss and settle issues of mutual interest.
    2. Hajj and Umrah Subcommittee: which will be responsible for handling all the affairs pertaining to the Hajj and Umrah operations with the aim of serving the interests of member airlines and solving operational problems faced. The subcommittee will be responsible for arranging the annual meetings of Hajj operation and also the annual meetings of Umrah which are planned to be initiated in the near future. The formation of this subcommittee is expected to help in solving the operational problems mentioned in the AOC report.
   The two subcommittees will be open for voluntary contribution of all BARSA, and airlines will be represented in accordance with level and type of operation. The objectives, tasks and mode operand of the subcommittees will be governed by the Charters to be developed.
   Another aspect of development in BARSA concerns the activation of joint work in the field of cargo which has been somewhat neglected so far. Also BARSA plans to enhance the social side through arranging social events and invite concerned government authorities to attend, distribute awards and souvenirs, arrange social welcoming and farewell ceremonies for members, etc. Also the Secretariat of the Board will launch a campaign to develop and upgrade the website of BARSA. Finally, BARSA Secretariat presents the idea of organizing a periodical professional tour by members to selected international facilities of related nature with the aim to exchange experiences, enhance networking and increase awareness of world industry standards and benchmarking . A proposal in this regard will be shortly distributed to members for their feedback, comment and approval.

7. ANNUAL MEMBERSHIP FEES:
   Mr. Ahmad Aledresi – BARSA Treasurer – pointed out that some airlines still did not pay their dues of the annual membership fees and encourage them to expedite payment to allow BARSA undertake its duties and responsibilities. He also requested airlines to deposit their membership fees to BARSA account directly,
   BARSA members inquired about the annual budget of BARSA and Mr. Aledresi replied that the final accounts for the year 2009 have been finalized and will be distributed to members.
   Responding to a query from LH, Dr. Ayed Al-Amri stated that the minutes of BARSA meeting are usually sent to the attendees via email, and also uploaded in BARSA website. The Board Secretariat will review and update members' email addresses to ensure that all members receive the minutes.
   The next meeting will be called for in due time to be held within the next two months, prior to the coming Summer season preparations.

The meeting was concluded at 13.00 PM.

Reviewed By:
______________
Dr. Ayed Al-Amri
BARSA General Secretary

Approved By:
_______________
Mr. Ayman Omairi
BARSA Vice Chairman

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: 

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: 

The meeting was held in a very congenial atmosphere and was closed with a prayer/lunch break.

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 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 :

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

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 :

1. 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.
    

2. 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.
    

3. 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.
    

4. 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.
    

5. 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.
    

6. 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.
    

7. 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.
    

8. 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.
    

9. 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.
    

10. 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

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