Airline business picking up – survey

For almost two months travel agents in the city are recording an improvement in the sale of airline tickets, according to a mini-survey done by The Business Times. Operators say that the situation is improving compared to ticket sales made at the beginning of the year in which they recorded exceptionally low sales. They generally attribute the boost to the annual season referred to as “peak summer season.” “Our sales are up because it is the right time when most people travel especially to Europe and U.S.A. We are selling 40 tickets on average per day,” said an official at the International Travel Agency located on Union Trade Centre Building. “This is very high compared to low season when we were selling only 5 tickets,” she said. Bharat Tolani, Sales and Marketing Manager at Ethiopian Airlines Office on Centenary House also said that business is picking up as his airline is recording more ticket sales to the USA, Dubai and Europe. However, some operators say business is still slow as their customers have been affected by the global recession. “Our customers especially from the business community tell us that the financial crisis has made them run out of business. Most of the people who are travelling now are going to attend meetings and conferences and these are sponsored by their Institutions,” said officials at Kenya Airways.Another agency, Afab Safaris and Travel Agency and Satguru Travel and Tours Agency (Kigali) on Avenue la Paix officials said that business is still slow compared to their last year’s ticket sales during the peak season. Most global markets which are frequent travel destinations for traders have been forced to close due to the global crisis forcing traders to travel less frequently. To maximize profit during the peak season, some airlines are also offering special discounts to boost ticket sales. For instance, Kenya Airways is offering a special discount to passengers traveling from Kigali to London. A return ticket to London from 31 August for a travel period of three months will be at $750 excluding tax charges. Other airlines are administering additional flights to take advantage of the peak summer season. Such Airlines include Brussels Airlines (SN Brussels) which announced an extra flight to Kigali earlier this year beginning June 7 to September 27, 2009. Rwandair, the national carrier, this week introduced a 0700 hrs additional flight for its Kigali - Nairobi route. With the high season reaching its peak, Rwandair is also planning to introduce a fifth frequency to Johannesburg, South Africa every Monday beginning August 2009.Data from the industry’s lobby group, International Air Transport Association (IATA), shows that international passengers demand is lower. “But both of the past two months have been slightly stronger than the 11.1 percent decline reached in March, even after adjusting for the distortions caused by the timing of Easter,” an IATA statement said. Although the impact of the recession appears to be stabilizing, strong headwinds from debt and low asset prices are expected to weaken and delay any significant recovery. Ends

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Airline business picking up – survey