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Airlines rush to beat e-ticket deadline GUARDIAN
12 Apr 2008: WOLE SHADARE

The International Air Transport Association (IATA) expected e-ticketing levels to reach 92 per cent by the original December 2007 deadline. IATA had voted to extend the timetable to the end of May 2008 after it became clear some carriers would not meet the target. There is a growing concern that many airlines will be caught flat-footed, despite the extension, writes WOLE SHADARE.

AS the May 31, 2008 deadline for global airlines to adopt the much talked about electronic ticketing gets nearer, airlines, particularly those from Nigeria, are in a frenzy to beat the cut-off date.

It is obvious that firms in less developed countries would need more time.

In some markets, the technology infrastructure is poor and the ticket volumes weak and the money is not there to build e-ticketing platforms.

But majority of the world's top airlines are almost complied, therefore the impact of the deadline slipping should be minimal.

It is in smaller carriers' commercial interest to make swift progress, to avoid larger global players severing joint ticketing arrangements.

The continent's often long-suffering air passengers are all too aware that none of these things are yet much in evidence. Online e-ticketing would be another shot-in-the-arm for internet growth.

Almost all other continents have been rolling out e-ticketing in line with IATA requirements. Even airlines in developing countries elsewhere have realised the importance of installing e-ticketing systems to meet passenger needs and compete effectively.

To help the process along in Africa, IATA had launched an e-ticketing programme with a small African airline. This acted as a service demonstration programme for other small and medium-sized airlines.

With the full support of IATA and African Airlines Association (AFRAA), the smallest African airlines were fitted with up-to-date e-ticketing services last spring as part of a experiment to look at ways of speeding up implementation in the African region.

A survey of African airlines carried out by GBCS - Air Transport Consulting showed that very few African airline are currently using e-ticketing.

However, airline chief executives interviewed expected to implement e-ticketing by the deadline but there is little sign of any project implementation in many airlines. Sales and Marketing personnel interviewed were particularly keen on being able to offer their customers airline ticket sales using the internet.

A sample of those who have either implemented or announced implementation gives some idea of current progress.

Air Seychelles launched a trial of internet ticket sales in 2004 on its Mahe-Praslin route that it later expanded to all routes. Air Ivoire had announced the implementation of online ticketing in December 2006.

Aero Contractors of Nigeria moved to providing online ticket sales more than a year ago. Using the e-Tranzact platform and the Aero debit card, customers can buy tickets online, select a seat of their choice and then print out a boarding pass.

South African Airways had long offered e-ticketing but it will add the use of its own credit card, in association with Net Bank Ltd.

Kenya Airways, another successful early adopter is still increasing its passenger capacity for Internet sales.

Ethiopian Airlines in April 2007 implemented e-ticketing and announced publicly its objective of moving more and more ticket sales to the new platform.

In the light of the above, it would seem to be a good time for e-ticketing applications providers (with the usual strong support from IATA) to have more substantive conversations with African airlines about implementing e-ticketing.

The Director-General, International Air Transport Association (IATA), Mr. Giovanni Bisignani's comment that there would be no further extension for all airlines to migrate to the electronic ticketing system, was heart warming.

According to Bisignani who was in Nigeria to give support to the project said, "the deadline has to be met in order to move the business forward", adding that Africa is behind others in meeting the deadline.

He said: "The deadline is now May 31; there will not be any form of extension, we have given an extension already and Virgin Nigeria is in a good shape. Africa is behind others. It dropped to 84 per cent, while the total average is up to 93 per cent, but we are here to help our members."

Bisignani said that he was in the country to aid airlines in meeting the deadline and to help create safer air transport system in the country.

He said: "We are looking at all the areas as regards safety, from the airport infrastructure and air traffic control, developing all kinds of relationship we have with airlines in Nigeria . We have two member airlines, Virgin Nigeria and Bellview, and we are also working with other non-IATA airlines because safety is our number one priority and we have to provide the same kind of activities in support of our members.

"We are looking at training, training programmes for groups of the airlines, and in many cases, we put some infrastructure of IATA in the airline in order to be more precise and put them on the road to development."

With the adoption of e-ticketing, airlines would benefit immensely as airlines globally would save over $3 billion yearly as they migrate to the new and efficient system, save cost, with air travelers enjoying the immense benefits accruing from it.

The new deadline set by IATA for member airlines to reach 100 per cent Electronic Ticketing (ET) is an extension of five months. The well known and communicated deadline was originally December 31, 2007.

But as the progress had not been exactly as planned earlier, the global airline clearing house decided to add a "one-off" additional five months for airlines to comply with the requirement.

IATA had laid down the roadmap to completely switch to ET and to eliminate paper tickets from the world by the end of 2007. This left three and a half years for the airlines to comply with such a request, while some of the airlines at the time were already very well advanced in ET usage, but many of the members had not yet started their ET projects back then.

The end of 2007 deadline was promoted by IATA, but it is very well known and accepted that the world's leading and big airlines wanted to have IATA in front of them when pushing the smaller aviation companies to introduce ET. Why would they do it? Simply because the big savings from ET come when you have totally got away with paper tickets (no need to lease/buy and maintain the expensive printers, no need to buy expensive blank ticket stocks.

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