Airlines to Establish Ticket Fares, Add-ons in US dollars Due to Swerving Rupee Value

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Airlines to Establish Ticket Fares, Add-ons in US dollars Due to Swerving Rupee Value

Post by Abbas Ali » Sat Aug 03, 2019 11:10 pm

All airlines to establish ticket fares, add-ons in US dollars

MUHAMMAD ALI

AUG 3RD, 2019

KARACHI
All foreign and local airlines, operating from Pakistan on international routes will establish ticket fares and add-ons in US dollars from August 12, 2019, due to swerving rupee devaluation. According to details, the International Air Transport Association (IATA) has made the said decision on the request of foreign and local airlines, operating from Pakistan on international routes, due to unstable PKR.

The airlines, filing passengers fare for sales from Pakistan will establish in USD from August 12, 2019 and IATA consolidated Exchange Rate (ICER) will be considered to convert the USD fare amount to the PKR equivalent on regular basis. Talking to Business Recorder, representatives of foreign airlines said that all foreign and local airlines, operating from Pakistan on international routes, had requested the IATA for said decision, due to unstable PKR. Replying to a question, they said that prior to this decision, they used to quote passengers fares for summer and winter seasons to the head offices in PKR and the same then was converted in USD by the head offices but when it was remitted, it cost the airline, due to rupee depreciation.

"For instance, an airline quotes Rs. 110000 as passenger fare for economy class for the Karachi-New York flight for summer season to its head office at the exchange rate of Rs. 140, which is equivalent to almost USD 800 but when it remits the exchange rate rose to Rs. 160 so the airline incurred the loss of USD 100 on each ticket," they apprised.

Keeping the said in view, the airlines have requested the IATA to allow establishing ticket fares and add-ons in US dollars in order to avoid such unexpected losses, they maintained. Answer to another question, they said that from August 12, 2019, airlines would establish ticket fares and add-ons not in PKR but in US dollars on the basis of current exchange rate; adding that that this development would have no impact on billing and settlement plan (BSP), Pakistan remittance procedures and airlines would continue to pay BSP billing in PKR.

Source: brecorder.com
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Re: Airlines to Establish Ticket Fares, Add-ons in US dollars Due to Swerving Rupee Value

Post by Abbas Ali » Fri Aug 09, 2019 9:54 pm

In August 9 edition of Urdu daily City 42.

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PIA to charge fares in US dollars from August 12

Post by inducedrag » Sun Aug 11, 2019 7:35 pm

PIA to charge fares in US dollars from August 12
Muzaffar Rizvi/Dubai
Filed on August 11, 2019 | Last updated on August 11, 2019 at 08.45 am
pia, pakistan, us dollars, pia fares, pia fare, pia tickets
(Alamy)
Passengers booking tickets in Pakistan will pay more due to weak rupee.
Pakistan International Airlines (PIA) has decided to fix its airfares in US dollars from August 12 as advised by the International Air Transport Association (Iata), Khaleej Times has learnt.

According to the PIA's directive to travel agents and sales outlets, the airline has approved the 'filing of fares in the US dollar' of all ex-Pakistan domestic flights, as well as international current fares, penalties and charges; these will be converted from the Pakistani rupee to the US currency with effect from August 12.

Other airlines in the private sector will also follow the Iata directive and will charge airfares in US dollar or in Pakistani rupee equivalent to the US currency at the time of booking.

"All ex-Pakistan fares will be approved and filed in the US dollar, but will be reflected on the ticket in local currency by converting at system exchange rate. Whenever there's any fluctuation in the currency, the fares in Pakistan rupee will automatically be updated," the statement said.

When contacted, PIA's manager for public affairs Athar Hasan confirmed the news and said the decision is taken following a recent Iata directive to ensure best international practices in the airline industry.

To a question about how exchange rate will be calculated, he said the Iata-consolidated exchange rate will be considered to convert the US dollar fare amount to the rupee equivalent.

"The new fare structure will be effective from August 12 and passengers will be able to check prices in the US dollar and Pakistan rupee on the airline's website," Hasan said.

Travel agents said the latest move will increase airfares on Pakistani routes due to a weak rupee as it is evident with the approximately 50 per cent devaluation since December 2017. However, passengers who book tickets outside will get the advantage of competitive rates.

Saj Ahmad, an analyst at London-based StrategicAero Research, says this is an interesting move by PIA, especially when you consider the weakness of the rupee, which has continued to lose value against the greenback and the British pound.
"At one end, the costs for those passengers flying to Pakistan from places like the US and Europe, fares may actually prove to be competitive and not see escalation," he said.

On the flip side, he said passengers buying tickets in Pakistan will almost certainly see higher fares; the rupee has fallen so dramatically, so you get fewer dollars in exchange.

"Now unless PIA takes the drastic measure to refine its fare structure to offset the weaker home currency, demand from within Pakistan will take a hit and in a big way. Let's face it, there is far better-quality airline service to be had flying out of Pakistan by using Emirates, Etihad Airways and now even British Airways as well as Serene Air for domestic services," Ahmad said.

- muzaffarrizvi@khaleejtimes.com

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Re: Airlines to Establish Ticket Fares, Add-ons in US dollars Due to Swerving Rupee Value

Post by Abbas Ali » Wed Aug 14, 2019 5:40 pm

Note fares in USD instead of PKR in this Emirates advertisement in August 14 newspaper:

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*Terms and conditions apply. Our special fares include all taxes and surcharges and are subject to point of origin, availability and currency fluctuations. Date and flight restrictions apply.

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