- 09
- Oct.
- 2024
Lebanon remains connected to the world as travelers continue to depart from the country and return to it seamlessly, thanks to Middle East Airlines (MEA), the national carrier and sole operator at Beirut Rafic Hariri International Airport (BRHIA). However, ticket prices have skyrocketed, and travel agents attribute this increase to the elevated costs associated with services during wartime.
Lebanese authorities are resolute in their commitment to maintaining the “intact” reputation of BRHIA, ensuring stringent security measures, order and adherence to the law.
Furthermore, caretaker Minister of Interior and Municipalities Bassam Mawlawi and caretaker Minister of Transport and Public Works Ali Hamiye emphasized on Monday that any landing aircraft requires authorization from the Lebanese Army. They also highlighted that inspection operations are carried out rigorously to eliminate any risk of security breaches.
Ongoing Israeli airstrikes in several regions throughout the country, particularly in the southern suburbs near the airport, contribute to rising ticket prices, among other factors. However, Mohamad el-Hout, the CEO of MEA, refuted on Monday claims of exaggerated fare increases. He also presented the press with a list of the maximum prices charged by the airline since the beginning of summer.
Yield Management and Allocations
However, Hout’s advisor, Mohamad Aziz, explained that given the current circumstances in the country, customers may encounter rising ticket prices due to optimal commercial management practices, commonly known as yield management.
This commercial practice is a pricing and capacity management technique primarily used in the airline and hospitality industries, which operate with limited capacity and aim to maximize revenue while minimizing costs.
In other words, due to the high demand for MEA tickets, the airline will continue to set prices at the upper end of the range.
Similarly, travel agents are also taking measures. Many have adopted the practice of allotments, which involves advance reservations or pre-sales based on a quota of bookings allocated to them. This strategy allows them to resell tickets at inflated prices, capitalizing on high demand and the urgency of customer requests.
MEA Is Not Flush With Cash
“What is certain is that MEA is not generating profits in the current economic climate,” notes Mazen Sammak, President of the Association of Private Pilots in Lebanon, in an interview with This is Beirut.
He highlights the exorbitant operational costs faced by the national carrier, particularly due to soaring insurance premiums related to war risks, which are reassessed daily, along with the challenge of unbalanced flight operations. This phenomenon, known as flow imbalance, occurs when an aircraft departs Lebanon at full capacity but returns nearly empty.
Since mid-September, the number of passengers departing from BRHIA has increased by over 60%, with total arrivals and departures reaching 166,534, including 100,958 departures.
In this context, Mazen Sammak recalls that the costs of jet fuel and insurance premiums—reportedly increasing tenfold since the end of September—account for approximately 40% of the direct costs of flights. “All these factors prevent MEA from lowering its ticket prices, especially as the airline is operating at only half of its capacity,” he states.
Additional Costs
For over a year, MEA has been financing the staff responsible for managing airport infrastructure and their maintenance costs.
Mazen Sammak commended the performance of air traffic controllers, who are essential to ensuring the safety and efficiency of flight operations. “The air traffic controllers, responsible for maintaining horizontal and vertical separations, must demonstrate exceptional precision and vigilance, especially when bombings occur just 1 km from the runways at BRHIA.”
Comments