Saudia trims flights amid weaker labour traffic
Sunday, 19 April 2009
A Z M Anas
Leading Arab carrier Saudia curtailed its services to Dhaka last month, hurt mainly by weaker labour traffic, industry insiders say, the evidence of an unfolding storm in the local aviation sector.
The Jeddah-based national airliner of Saudi Arabia, which overwhelmingly relies on Bangladeshi migrant workers and pilgrims, trimmed weekly flights by nearly one-fourth to 10 in March as the number of passengers fell amid suspension of new hiring by the oil-rich Kingdom of Saudi Arabia.
A Dhaka-based Saudia official, who is not an authorised spokesperson, said his airline was forced to reduce flights from 13 to 10 a week having found "the labour traffic extremely low."
"The cutback in one-fourth capacity by a major airline is a proof of bad times facing the air travel industry," said AKM Bari, general secretary of Association of Travel Agents of Bangladesh (ATAB), the trade group.
"A tough trading environment has prevailed in the Bangladesh-Saudi Arabia route for months. The weaker workers' movement is the main reason why Saudia cut its capacity. More importantly, the passengers, growth has stagnated for long," he added.
The Saudia official claimed still the airline is operating flights to major cities of Saudi Arabia with 80 per cent load factor, the proportion of seats sold per flight.
He insisted that the Arab carrier might even increase flights during the coming 'Umrah' season.
Saudia's decision to reduce capacity provides a glimpse into the rough weather faced by the country's travel industry, with Singapore Airlines axing its daily flights and British Airways folding its services in late March.
In 2005, the Saudi government-owned airliner carried a total of 282,146 passengers flying between Dhaka and the major cities of the Kingdom. By the end of 2006 that number rose to 328,524. In 2007, the number of passengers flying by the carrier jumped to 402,346, boosted by a record employment.
In 2007, more than 200,000 Bangladeshis found jobs in the Kingdom, destination for an estimated 2.0 million Bangladeshi workers, making it one of major destinations for overseas job-seekers.
Despite freezing new recruitment, Saudi Arabia became the second largest employer of Bangladeshi workers last year after the United Arab Emirates.
Travel traders say suspension of manpower hiring spawned a negative impact on inbound and outbound passengers' movement in the carrier' services to Zia International Airport, the country's biggest air facility.
Leading Arab carrier Saudia curtailed its services to Dhaka last month, hurt mainly by weaker labour traffic, industry insiders say, the evidence of an unfolding storm in the local aviation sector.
The Jeddah-based national airliner of Saudi Arabia, which overwhelmingly relies on Bangladeshi migrant workers and pilgrims, trimmed weekly flights by nearly one-fourth to 10 in March as the number of passengers fell amid suspension of new hiring by the oil-rich Kingdom of Saudi Arabia.
A Dhaka-based Saudia official, who is not an authorised spokesperson, said his airline was forced to reduce flights from 13 to 10 a week having found "the labour traffic extremely low."
"The cutback in one-fourth capacity by a major airline is a proof of bad times facing the air travel industry," said AKM Bari, general secretary of Association of Travel Agents of Bangladesh (ATAB), the trade group.
"A tough trading environment has prevailed in the Bangladesh-Saudi Arabia route for months. The weaker workers' movement is the main reason why Saudia cut its capacity. More importantly, the passengers, growth has stagnated for long," he added.
The Saudia official claimed still the airline is operating flights to major cities of Saudi Arabia with 80 per cent load factor, the proportion of seats sold per flight.
He insisted that the Arab carrier might even increase flights during the coming 'Umrah' season.
Saudia's decision to reduce capacity provides a glimpse into the rough weather faced by the country's travel industry, with Singapore Airlines axing its daily flights and British Airways folding its services in late March.
In 2005, the Saudi government-owned airliner carried a total of 282,146 passengers flying between Dhaka and the major cities of the Kingdom. By the end of 2006 that number rose to 328,524. In 2007, the number of passengers flying by the carrier jumped to 402,346, boosted by a record employment.
In 2007, more than 200,000 Bangladeshis found jobs in the Kingdom, destination for an estimated 2.0 million Bangladeshi workers, making it one of major destinations for overseas job-seekers.
Despite freezing new recruitment, Saudi Arabia became the second largest employer of Bangladeshi workers last year after the United Arab Emirates.
Travel traders say suspension of manpower hiring spawned a negative impact on inbound and outbound passengers' movement in the carrier' services to Zia International Airport, the country's biggest air facility.