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Arab Air Carriers Organization Conference Considers Alliances, Mergers

ImageThe Arab Air Carriers Organization Conference concluded in Jeddah on Sunday, and the main buzzwords for the event were formation of alliances and mergers.  The impact of the global economic crisis, and how to deal with it, were discussed at the conference.  Abdul Wahab Tofaha, Secretary General of the conference explained that after a difficult six year period the air transport industry began a prosperous period in 2007. 

However, in 2008, “the sharp rise in the price of fuel deprived the industry from building a protective reserve to counter the current crisis.”  Mr. Tofaha said airline companies in the Arab world have generally had better growth compared to companies in other parts of the world.  He said ticket pricing is directly linked to the rising price of fuel, but the Arab organization does not interfere in this commercial matter determined by a company’s policy.

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