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HONG
KONG—Global airlines, struggling with surging fuel
costs, stopped offering paper tickets on most flights
Sunday, completing a switch to all-electronic bookings
that are 90-percent cheaper to handle.
The
International Air Transport Association (IATA), the main
clearing-house connecting airlines and travel agents,
will no longer supply paper tickets from June 1,
spokesman Steve Lott said last week. The group, which
used to handle 340 million paper tickets a year, will
now track all bookings online. Passengers will just get
a printout.
Electronic tickets already account for about 95 percent
of bookings, driven by the rise of Internet sales and
airlines seeking to cut $3 billion a year in global
processing costs. Virtual tickets allow online check-in,
simplify reservation changes and can’t be lost.
“There’s
no headache digging into my bag for tickets in the rush
before boarding,” said Shanghai-based journalist Tiffany
Wu, who flies at least twice a month. “It’s also very
easy to change a booking simply by making a phone call.”
Electronic tickets cost about $1 each to process,
according to the IATA. Paper ones are 10 times more
expensive to handle, as they need to be physically moved
between the travel agency, airport and airline.
“Getting
rid of the paper makes everything more efficient,”
Washington-based IATA spokesman Lott said.
The
switch, the culmination of a four-year program, will
also save about 50,000 trees a year, according to the
IATA, whose approximately 240 airline members account
for about 94 percent of scheduled international airline
traffic.
The
savings from electronic tickets have helped airlines as
jet-fuel costs have almost doubled in the past year.
Global airline profits will likely fall 20 percent this
year because of fuel, according to the IATA.
Carriers
worldwide include AMR Corp.’s American Airlines Inc.,
the world’s largest, Qantas Airways Ltd. and Korean Air
Lines Co. have also announced plans to cut routes
because of surging oil prices.
As of
the end of April, most regions of the world were issuing
electronic tickets for at least 85 percent of bookings,
according to the IATA. The former Soviet states were the
main laggards because of laws requiring paper tickets.
Paper
tickets issued before today’s deadline are still valid
for travel. Carriers can also continue offering paper
tickets through channels other than the IATA.
(Bloomberg) |