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Overview: The impact of the electronics ban on GCC Airlines

Overview: The impact of the electronics ban on GCC Airlines
laptop

Cairo - Decypha: Following the US ban on any electronic devices larger than mobile phones, which was imposed mainly on direct flight to the US from eight majority Muslim countries, several airlines have been trying to figure work around solutions.

The ban includes ten airports throughout the UAE, Qatar, Egypt, Saudi Arabia and Kuwait. Gulf airlines such as Emirates Airlines, Etihad Airways, and Qatar Airways, are now trying to soften the blow dealt by this latest ban.

Emirates Airlines

Emirates Airlines are contemplating offering government approved loaner laptops that “can be used in-flight to help people do what they need to do in the absence of devices that are in hold,” said Tim Clark, President of Emirates Airline.

Emirates currently offers 18 flights a day to the US. US routes may be impacted if customer demand diminishes.

 Qatar Airways

Qatar Airways will offer loaner laptops for all the passengers on their US flights to allow "uninterrupted productivity and service" throughout the journey. The ban will impact approximately 393 scheduled passengers flight per week to the UK from affected airports.

Laptops will be available to Business Class passengers travelling on all US-bound flight, to be collected from the boarding gate.

The Doha-based airline will collect all electronic items prohibited, safely package and tag it, and load it as checked-in baggage. The passenger shall than pick it up upon arrival to the US.

One hour of free Wi-Fi for all passengers will be provide and $5 Wi-Fi package to stay connected for the duration of the flight.

Etihad Airways

Free Wi-Fi and iPads will be offered to first and business class passengers on all US-bound flights form Abu Dhabi starting April second.

Financial Impact on the Gulf Carriers

The ban certainly has a financial impact with Gulf airlines requiring at least 10 extra ground handling staff per affected flight, one more screening machine at an average cost of $20,000 and one or two ‘sweetener’ measures to enhance in-flight entertainment, such as laptops for hire, according to Mark Martin, founder and CEO of Martin Consulting.

Increased paperwork and lengthier check-in times and consequently airport delays and disruptions will further increase costs, said Saj Ahmad, Chief Analyst at StrategicAero Research.

“Airlines will go to any length to extract money from passengers if they can get away with it. In terms of exact cost, it’s hard to pin down, but given the relatively small number of GCC airlines that service the US direct, the cost could feasibly be in the low (single digit) millions per annum,” said Ahmad.

“The real pacing item of such costs will be how long the US wants to keep this rule in place – or whether it chooses to expand it. Beyond that, it is likely that US airfares may get more expensive, to offset the logistical inconvenience of this rather odd ‘security’ policy,” Ahmad added.

The ban will negatively impact more than 700 flights per week between the UK and US and countries in the Middle East, Turkey and North Africa, according to Aviation industry body the International Air Transport Association (IATA), who spoke to Arabian Business. Airline revenues will decline following the ban, said IATA CEO Alexandre de Juniac.

According to US authorities, the electronic ban was supposedly in response to a “substantiated” terror threat to the West several weeks ago. The UK followed suit with a similar ban from six countries from the Middle East, North Africa, and Turkey.

By Decypha Editorial Team