Kuwait-15MAR051 2nd GCC BAR MEETING KWI – 15MAR05

Kuwait-15MAR052 APPROVAL OF MINUTES OF GCC/BAR 1 ST MTG AGENDA ITEMS: 1.AGENCY COMMISSION 2.FARE INCREASES 3.FUEL, INSURANCE AND DDL 4.YIELD IMPROVEMENT PANEL 5.CHARGES ON FICTITIOUS BOOKINGS MADE BY TRAVEL AGENTS AND NO-SHOW PAX 6.LOW COST AIRLINES 7.E-TICKETING 8.DATE AND VENUE OF NEXT GCC BAR MEETING

Kuwait-15MAR053 1.AGENCY COMMISSION At the last GCC/BAR meeting all carriers agreed on the reduction of agency commission to 5% The status currently in GCC Countries is as follows: U.A.E. –At present the commission is 7%., except intragulf which is 5% There is a proposal by BAR to reduce same to 5% effective 01MAR05. BAH –The commission is 5% effective NOV 04. QATAR –Currently the commission is 7% BAR has proposed to reduce same to 5% eff 01 APR 05 provided same is approved by local authorities. SAUDI –Currently it is 7% There is a proposal from BARSA to reduce same to 5% provided same is filed with the local authorities. OMAN –Currently it is 5% eff 01 JAN 05. KUWAIT – Currently it is 7%. BARIK already filed to reduce same to 5%. However KWI/DGCA not yet approved same. Action Plan: All BAR GCC should take necessary action to ensure implementation of 5% commission as early as possible

Kuwait-15MAR054 2.FARE INCREASES a) KU from the previous meeting gave an overview of the KWI market nature and it has been agreed that all GCC carriers will support implementing IATA fares from KWI to all GCC points with no discount and on the other hand support implementing IATA fares to M. East. b) KWI/DGCA have approved recently following fare increases: From KWI: a) Europe –3% b) TC1 (North/Mid/South Atlantic) –2% c) Gulf and within M. East points –3% The effective date is 10 MAR 05. Action Plan: To be decided by the meeting.

Kuwait-15MAR055 3.FUEL, INSURANCE AND DDL All GCC airlines agreed to have one level of Fuel & Insurance charges in all GCC countries. a)FUEL FROM KWI: To Gulf points and M. East: OW: KD RT: KD 9/- To all other destinations: OW: KD 9/- RT: KD 18/- Same is effective from 16MAR05. The code is QR FUEL SURCHARGE FROM OTHER GCC STATES: O/W R/T CODE AUHAED 100AED 200YQ BAHBHD 7 BHD 14YR DXBAED 100AED 200YQ DOHQAR 20QAR 40FC JEDSAR 19SAR 38YR DHAUSD 5USD 10YR MCTOMR 2OMR 4FS

Kuwait-15MAR056 b) INSURANCE: FROM KWI: USD 5/- per flight coupon Insurance in GCC countries as follows: AUHAED 120/- OWAED 240/- RT DXBAED 20/- OWAED 40/- RT DOHQAR 20/- OWQAR 40/- RT JEDUSD 5.00 per coupon BAHUSD 5.00 per coupon RUHSAR 38/- OWSAR 76/- RT DHAUSD 5.00 OWUSD RT MCTOMR 4/- OWOMR 8/- RT c) DDL ( DEVELOPMENT & DISTRIBUTION LEVY ) Discussion will focus on how we can implement these charges in all GCC countries. Charges in some GCC countries are as follows: AUHAED 50/- OWAED 100/- RT DXBAED 50/- OWAED 100/- RT DOHQAR 50/- OWQAR 100/- RT RUHSAR 19/- OWSAR 38/- RT BAHnot applicable

Kuwait-15MAR057 4.YIELD IMPROVEMENT PANEL It is acknowledged by all participants that such program should be supported due to the fact that yield is the most important element in the current environment. Action Plan: General Discussions

Kuwait-15MAR058 5.CHARGES ON a)FICTITIOUS BOOKINGS MADE BY TRAVEL AGENTS to improve seat factor and maximize utilization of seats availability b)NO-SHOW Continue discussions on this subject to reach if possible unified understanding. Action Plan: General Discussions

Kuwait-15MAR059 6.LOW COST AIRLINES It is a fact now that low cost airlines will expand its operation in the region which definitely will have an impact on the air travel market. It is important to address this issue to ensure a) maximum benefit to air travel market in the region. b) minimize any adverse effect to network airlines. Action Plan: General Discussions

Kuwait-15MAR PROGRESS OF E-TICKETING IN GCC COUNTRIES In accordance with IATA decision to implement E-ticketing effective 01 JAN We are aware that various markets in the region and GCC countries have already established various mechanism to implement E-ticketing partly as early as Action Plan: General Discussions

Kuwait-15MAR DATE AND VENUE OF NEXT GCC BAR MEETING Thank you.