Leading Travel Agency Says Airlines Struggle to Meet E-Ticket Deadline
By Steve Creedy, The Australian | May 09, 2008
Leading travel agency Flight Centre has warned that the international push to get rid of paper airline tickets by the beginning of next month could cause problems for travellers.
According to Flight Centre, international airlines are struggling to meet a deadline imposed by the International Air Transport Association (IATA) for 100 per cent e-ticketing by June 1.
Although it claims 90 per cent of travellers will not be affected, it warns that issues remain for people travelling with infants and on some fares for which more than one airline is used.
Some airlines will not be able to process e-tickets on some routes.
Flight Centre managing director Graham Turner said there would be some mixed carriage tickets that would no longer be available.
"Particularly in China, there is quite a bit of concern with the Olympics," Mr Turner said.
"If people want to travel on through China, apparently there will be some issues with that. They won't be able to buy their tickets, perhaps, until they get there."
Mr Turner said Flight Centre supported the move to e-ticketing but believed the deadline should be reviewed.
He suggested IATA could aim for 90 per cent compliance by June 1, and reach 100 per cent in 12 months.
He said it was clear airlines in general were not ready to make the switch, despite pressure from IATA to do so.
"They are just not ready for it yet and they're trying to force it through," Mr Turner said.
"It's mainly a cost-saving exercise for IATA, I believe."
IATA originally planned to axe the paper tickets by the end of 2007 but extended the deadline to May 31 when it became clear some airlines, particularly in less developed countries, needed more time to adapt.
Airlines save about US$9 a fare when they opt for e-ticketing instead of paper tickets and IATA estimates the switch will save the industry about US$3 billion a year.
The industry has made significant strides in e-ticketing, moving from 69 airlines with 56 per cent of ticket volumes in 2004 to 269 airlines with 99.7 per cent of ticket volumes last year.
Even IATA concedes that some problem areas remain, and some airlines opted to resign from the airline umbrella group rather than be forced to accept e-tickets.
IATA director-general Giovanni Bisginani said in February that, with 100 days to go to the deadline, e-ticketing penetration in Africa was only 83 per cent and 84 per cent in Middle East.
He said the real concern was in Russia and the Commonwealth of Independent States, which was at 54 per cent because of a late start as a result of the government changing legislation to allow e-tickets.
But he said these regions represented just 8 per cent of total traffic volume.
Mr Turner agreed that much progress had been made but said significant issues had not been resolved.
He said Flight Centre had already withdrawn some fares because they could not be offered on an e-ticket.
"For example, with the deadline rapidly approaching, it is still unclear exactly which international locations do not have the systems in place to accept e-tickets," he said.
"It is also unclear how long customers will have to physically wait to receive their tickets in cases where travel agents cannot issue them after May 31."
Generally, airlines are not equipped to deal effectively with this additional ticketing workload.
"Another concern is that travellers needing after-hours tickets to some locations may find there are fewer options in emergency situations as most airlines do not provide ticketing services around the clock, particularly outside their home country," he said.
Mr Turner said Flight Centre had voiced its concerns to IATA through the Australian Federation of Travel Agents, but IATA had, so far, dismissed the concerns.