Domestic airlines require common booking system

 

A Kenya Airways plane at the Jomo Kenyatta International Airport. PHOTO | FILE

ashery mkama

THE country aviation industry is expanding at a good pace but it faces number of challenges. The major one is lack of common distribution system on bookings.

Such bookings system is Global Distribution System (GDS) used by travel agents and travel related websites to book airline tickets, hotel rooms, rental cars, tour packages and associated products.

In the aviation sector, lack of GDS, means additional costs to airlines and travelers since tickets of one carrier cannot be used or transfer to another airline—simply the systems are not connected.

Internationally, according to the International Air Transport Association (IATA), every day about 100,000 flights bring people and goods to their destination.

These flights generates millions of air bookings. Thus, through IATA Clearing House (ICH), settles hundreds of bi-lateral, multi-currency transactions for passengers, cargo, baggages, catering, ground-handling and other services to one single payable or receivable amount.

For instance in 2014, a record of 57.8 billion US dollars in billing transactions was processed by ICH, almost 10 per cent increase from 2013, with settlement success rate of 100 per cent.

However, all transactions settlement through ICH is exclusive for members only which at the moment 500 participants are under the Simplified Interline Settlement (SIS), system.

Precision Air (PW), is the only member of IATA. The ICH provides a competitive, seamless and secure service providing efficient, on-time settling of interline accounts between the world’s airlines, airline-associated companies and travel partners. There are some 200 domestic takeoff flights a day but their bookings are not incorporated because Tanzania lacks common clearance system for airlines.

The problem is not exclusive for the country alone but also for the entire continent since Africa, unlike Europe and Asia, does not operates its own GDS. Eagle Travel Distribution System, Chief Executive Officer, Mr Renatus Kyakalaba said following the vacuum air ticketing agents cannot transfer a booking to another airline using the same fare money.

“This is a major problem facing aviation industry in Africa,” Mr Kyakalaba, “unlike Asia where they’re using Worldspan GDS and China using their own GDS.” Worldspan is a provider of travel technology and content and part of the Travelport GDS business, which is used by travel agents and travel related websites to book airline tickets, among other bookings.

This, according to the industry experts, leaves travelers with single option of buying new ticket since transferring of a booking from airline to another is impossible The problem is if an air traveler purchased PW ticket to Arusha and happened to have a tight schedule and want to fly late by Regional Air, ticketing agent cannot transfer the booking as there is no common clearing house.

The solution, Mr Kyakalaba said, ‘is on sight’ since Eagle System wants to introduce a pan- African GDS which will encompass the continent airlines—being international, regional or domestic.

“Talks are underway with Pan-African bank which will house the clearing system, thus way easing travelers’ cost-incurring argon,” Mr Kyakalaba, an aviation expert for over a decade, said.

According to IATA, PW, a stock listed firm, is the only member of international airline board and IOSA certified. Being IATA member, PW enjoys a number of benefits including; ticketing and international joint venture.

In the country there are three major carriers namely Precision Air, Air Tanzania and FastJet—a budget airline. These three operates over 40-seater aircraft. However, 90 per cent of airlines are operating less than 12-seater equipment. These airlines include ZanAir, Coastal Air, Regional Air, Tanzaair, Al-Salaam and Auric Air.

However, Safari Plus, Tropical Air and Flight Links operate between 12-seater and 50-seater aircrafts. Flight Links was reported to return its aircraft. On the other hand, IATA provides a room for non-IATA travel agents to buy and sell tickets without being affiliated with it.

These non-IATA travel agents have had a major impact on the travel business, and their numbers have constantly grown over the years, but for the country with a single airline IATA member their presence are worthless. The best solution is either more local airlines join IATA or creating local GDS, like China, to avert unnecessary costs to traveler and air firms.