Air tickets: Online brokers make a killing

January 11, 2015

Air tickets

Jeddah, Jan 11: Auctioneering has traditionally been the realm of cars and antiques, but lately a new fad has emerged, involving electronic airline tickets.

One of the ploys used by airline carriers to lure brokers into dealing with overpriced tickets is to offer guarantees such as full refunds with commission if the travel date is not confirmed. Commissions can range between SR75 and SR200 per person for a one-way ticket, with an increased reward for a round trip. The commission can double depending on the number of passengers, since the decrease in the number of available seats raises the ticket price.

Abu Majed, a former airline employee who has been working in this field for four years, says he can find bookings for people under difficult circumstances and makes juicy profits with commissions.

According to Majed, competition for bookings among the brokers begins by making offers to customers for low-priced tickets, thus attracting the highest number of passengers. Brokers advertise the tickets on Internet sites, which are filled with phone numbers of people claiming they can provide confirmed bookings. Once the deal is sealed, the tickets can be sent to customers by e-mail.

A former employee at a booking center of an airline explained that in the past, tourist companies used to purchase a number of confirmed bookings from various airline companies, but now they arrange and purchase bookings online, with the possibility to update them any time they want.

Meanwhile, industry expert Khaled Al-Tuwayyan said that airline companies must receive their licenses from the Ministry of Labor so as to operate their online businesses. In order to guarantee customer rights, Al-Tuwayyan stressed they must also arrange their online trade according to the established regulations.

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News Network
April 24,2020

Dubai, Apr 24: The UAE reported 525 new COVID-19 cases on Friday. The Ministry of Health and Prevention said the total number of confirmed cases in the UAE is now 9,281.

MOHAP reported 8 deaths taking the total number of deaths in the country to 64. 123 recoveries have also been announced.

According to the Ministry of Health and Prevention, the latest cases were detected through its intensified investigation and examination procedures.

The ministry conducted over 32,000 additional COVID-19 tests among citizens and residents.

The ministry offered its sincere condolences to the families of the deceased. It also wished a speedy recovery to all patients and called upon the general public to strictly adhere to preventative measures out of concern for the health and safety of all.

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News Network
January 12,2020

Dubai, Jan 12: Saudi Arabian oil giant Aramco announced Sunday that its initial public offering raised a record $29.4 billion, a figure higher than previously announced, after the company used a so-called "greenshoe option" to sell millions more shares to meet investor demand.

The company said that the sale of an additional 450 million shares took place during the initial public offering process.

The oil and gas company, which is majority owned by the state, began publicly trading on the local Saudi Tadawul exchange on December 11. It hit hit upwards of $10 a share on the second day of trading. This gave Aramco a market capitalization of $2 trillion, making it comfortably the world's most valuable company.

Aramco's additional sales mean the company has publicly floated 1.7% of its shares. It's IPO, even before the added sales, was the world's largest ever.

The shares sold in the over-allotment option "had been allocated to investors during the book-building process and therefore, no additional shares are being offered into the market today," Aramco said.

Company shares traded down on Sunday, dipping to around 34.7 riyals, or $9.25 a share, amid heightened tensions in the Persian Gulf between Iran and the United States. Aramco was a target of rising tensions over the summer when a missile and drone attack, which Saudi Arabia and the US blame on Iran, temporarily halved its production.

Sunday's trading figures value Aramco at $1.85 trillion, still well ahead of Apple, the second largest company in the world after Aramco, but below the $2 trillion mark sought by Crown Prince Mohammed bin Salman.

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Agencies
August 8,2020

Beirut, Aug 7: A devastating explosion that destroyed much of Beirut might have been the result of a missile attack or bomb, Lebanese President Michel Aoun said, as the death toll from the blast rose to 154.

More than 2,700 tons of ammonium nitrate had been sitting in a port warehouse for six years, but there have been conflicting accounts about why Lebanese authorities decided to empty the shipment of explosive material. The vessel carrying the flammable cargo was heading from Georgia to Mozambique when it stopped in the Lebanese port to load up on iron, according to the ship’s captain.

By Friday, 19 suspects had been arrested and Lebanon’s former director general of customs Chafic Merhy had been questioned by military police.

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