Airlines in the country are slashing ticket prices and rolling out holiday packages to shore up passenger numbers and lure back recession-wary customers.
UAE-based Emirates airline, Etihad Airways and Air Arabia have all announced reduced-rate packages in recent weeks, as has the Kuwait-based Jazeera Airways (see box).
Aviation analysts maintain that the sweetened deals are a consequence of fierce competition that the region’s skies are facing as a result of the launch of a number of low-cost carriers, as well as the slump in demand owing to the financial crisis and fears of a swine flu pandemic.
“Middle East airlines’ current price-cutting policies are a direct result of a more competitive and aggressive market, more specifically on the low-cost segment,” Karim Hijazi, Managing Director of Air Synapsis, told Emirates Business.
“This fierce competition is driven by the increasing number of low cost/regional operators and the typical lack of customers’ loyalty of this particular segment while the current economic climate is definitely pushing customers into more cost-conscious behaviours,” he said.
October and November this year are typically low-key, falling between the summer holidays and year-end break period.
Most airlines are therefore aiming for a larger share of the shrinking pie.
“All airlines have special promotional fares throughout the year to incentivise travel during quieter periods of demand,” said an Etihad Airways spokesman.
“The months of October and November – sandwiched between Eid and the run up to the Christmas and New Year – fall into this category. Like most other airlines, Etihad Airways uses tactical promotions in these times to stimulate the market and drive sales,” he said.
On the other hand, Emirates, the region’s largest airline, is offering customers who book their flight online the option to pay for their ticket in instalments at zero per cent interest rate.
Hijazi said: “The other major issue is the key role played by these regional/low cost operators as feeders for major/intercontinental airlines since feeders significantly contribute to increasing their seat load factor.
“Existing alliances between low-cost and long-haul airlines can be an essential driver of this competition.”
A spokesman of Air Arabia said: “The latest campaign is launched after the summer season and aims to offer more great travel deals across our network. This campaign is another initiative to encourage passengers to benefit from more value-for-money fares.”
CUT IN FARES AND MUCH MORE
Air Arabia is offering low fares during the winter season to passengers on all its services.
Etihad Holidays’ World Deals are on offer and there are different seasonal prices for various locations.
Emirates airline customers, who book their Emirates flight online, will now have access to even more choices, with the launch of the innovative Emirates Advantage payment system. Selected credit card holders can select the option of paying for their ticket at zero per cent interest, over three monthly instalments, allowing them to travel now and pay later.
Flydubai is launching many new flights this month.
Flydubai’s website says the airline offers low fares to only charging customers for the extras they choose.
Jazeera Airways has also slashed its airfare and, according to its website, it is free of taxes and surcharges.
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