Monday, 6 September 2010
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Middle East aviation dodges 2009 turbulence
Wednesday, 3 February 2010 at 08:20, Criselda E. Diala, Dubai
The Middle East’s aviation sector has proven to be immune to the lethal combination of global financial crisis and H1N1 flu pandemic that crippled the international travel industry last year.
In a recent report, the International Air Transport Association (Iata) confirmed that 2009 recorded the world’s worst air travel demand figures since World War II as it wiped off 2.5 years of growth in passenger traffic and 3.5 years of growth in the freight business.
Global passenger demand dwindled by 3.5 per cent with an average load factor of 75.6 per cent while freight activities slowed down by 10.1 per cent, posting an average load factor of 49.1 per cent, the association said.
Middle East carriers, however, offered a bit of respite from the sagging global statistics. Iata reported that regional airlines generated 11.2 per cent growth in passenger traffic for the entire 2009 as they take a greater market share of the long-haul connecting traffic over their hubs.
The substantial upturn in passenger demand appeared to be exclusive to the Middle East with Asia-Pacific registering a drop of 5.6 per cent, Europe crashed by 5 per cent and North America plummeted by 5.6 per cent. Latin America’s year-on-year growth was a measly 0.3 per cent while Africa posted the heaviest decline of 6.8 per cent.
The emirate’s air transport facility handled around 40.9 million passengers in 2009, a significant hike of 9.2 per cent from 2008.
Capa’s Airport Business Daily traffic monitor reports revealed that aside from Dubai, only three other airports in the top 50 list posted passenger traffic growth in 2009, the rest, which includes major airports in Europe and North America, recorded reduced demand. These facilities were Istanbul with 6.3 per cent, Kuala Lumpur with 4.6 per cent and Cairo with 1.5 per cent.
“Emirates airline is clearly an engine of growth at DIA, controlling more than 40 per cent of the capacity at the airport. But DIA's great strength is its increasing diversity of airline customers, with over 130 airlines now present. As such, the airport is far less reliant on its home airline than rivals Abu Dhabi (where Etihad controls 74 per cent of capacity) and Doha (where Qatar Airways controls 57per cent),” Capa mentioned.
The agency also attributed the increase in the emirate’s air transport activities to the mid-year launch of Dubai-based low-cost carrier, flydubai, which accounted for 3 per cent of DIA traffic.
“flydubai plans to operate to destinations within approximately 4.5 hours flight time of Dubai, giving it a potential catchment of 2 billion people,” Capa said.
Since its June 2009 launch, the budget carrier has expanded its network to include 11 destinations and its fleet from one to six Boeing B737-800 aircraft.
Cargo traffic in Dubai also inched up by 5.6 per cent in 2009 to reach 1.9 million tonnes as against 1.8 million tonnes in 2008.
“Despite the adverse global economic climate and the consolidation observed in the aviation industry during 2009, Abu Dhabi International has proven to be a resilient airport operation,” said Khalifa Al Mazrouei, Chairman of ADAC.
Cargo volumes rose by 7 per cent while total flights hit 102,118 or an increase of 9.6 per cent from 2008.
In an earlier interview with Alrroya.com, George Karamanos, Vice-President Corporate Marketing and Communications of Adac, said the capital seeks to offer a versatile gateway to the UAE.
“Our airports’ expansion plans are geared towards supporting the Abu Dhabi Vision 2030, which aims to develop Abu Dhabi as a world-class destination. The different developments happening in the capital, starting with the hosting of the Formula One, the construction of a Ferrari-themed park, as well as the Guggenheim and Louvre Museums, are all part of that programme,” Karamanos explained.
Adac currently operates five airports: Abu Dhabi International Airport, Al Ain International Airport, Al Bateen Executive Airport, and the Sir Bani Yas and Delma Island Airports. These facilities complement each other in servicing incoming and outgoing air travel requirements such as commercial passenger flights, cargo handling, private and corporate aviation, as well as tourism.
Nearly $54 billion will be spent on various projects related to the tourism sector in the next four years as Abu Dhabi prepares for an influx of regional and international tourists.
The agency believes that Dubai International, with its annual average passenger growth of 10 per cent, could “rapidly narrow the gap in terms of international passenger numbers to long-established hubs such as Frankfurt, Hong Kong and Amsterdam.”
The projection has been attributed to Emirates’ projected capacity hikes of 14 per cent for fiscal year 2009-2010, flydubai’s expansion and foreign airlines continued operation in the emirate.
For Iata, meanwhile, the global aviation industry is in for a challenging 2010. In a press statement, Giovanni Bisignani, Iata’s Director General and CEO, said “the worst is behind us, but it is not time to celebrate. Adjusting to 2.5-3.5 yers of lost growth means that airlines face another Spartan year focused on matching capacity carefully to demand and controlling costs.”|
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In a recent report, the International Air Transport Association (Iata) confirmed that 2009 recorded the world’s worst air travel demand figures since World War II as it wiped off 2.5 years of growth in passenger traffic and 3.5 years of growth in the freight business.
Global passenger demand dwindled by 3.5 per cent with an average load factor of 75.6 per cent while freight activities slowed down by 10.1 per cent, posting an average load factor of 49.1 per cent, the association said.
Middle East carriers, however, offered a bit of respite from the sagging global statistics. Iata reported that regional airlines generated 11.2 per cent growth in passenger traffic for the entire 2009 as they take a greater market share of the long-haul connecting traffic over their hubs.
The substantial upturn in passenger demand appeared to be exclusive to the Middle East with Asia-Pacific registering a drop of 5.6 per cent, Europe crashed by 5 per cent and North America plummeted by 5.6 per cent. Latin America’s year-on-year growth was a measly 0.3 per cent while Africa posted the heaviest decline of 6.8 per cent.
Dubai Airport soars as world’s busiest
Dubai International Airport (DIA) also took off last year with impressive records that placed it at the top ranking of the 50 busiest airports in the world, according to a report released in January by the Centre for Asia Pacific Aviation (Capa).The emirate’s air transport facility handled around 40.9 million passengers in 2009, a significant hike of 9.2 per cent from 2008.
Capa’s Airport Business Daily traffic monitor reports revealed that aside from Dubai, only three other airports in the top 50 list posted passenger traffic growth in 2009, the rest, which includes major airports in Europe and North America, recorded reduced demand. These facilities were Istanbul with 6.3 per cent, Kuala Lumpur with 4.6 per cent and Cairo with 1.5 per cent.
“Emirates airline is clearly an engine of growth at DIA, controlling more than 40 per cent of the capacity at the airport. But DIA's great strength is its increasing diversity of airline customers, with over 130 airlines now present. As such, the airport is far less reliant on its home airline than rivals Abu Dhabi (where Etihad controls 74 per cent of capacity) and Doha (where Qatar Airways controls 57per cent),” Capa mentioned.
The agency also attributed the increase in the emirate’s air transport activities to the mid-year launch of Dubai-based low-cost carrier, flydubai, which accounted for 3 per cent of DIA traffic.
“flydubai plans to operate to destinations within approximately 4.5 hours flight time of Dubai, giving it a potential catchment of 2 billion people,” Capa said.
Since its June 2009 launch, the budget carrier has expanded its network to include 11 destinations and its fleet from one to six Boeing B737-800 aircraft.
Cargo traffic in Dubai also inched up by 5.6 per cent in 2009 to reach 1.9 million tonnes as against 1.8 million tonnes in 2008.
Abu Dhabi airport also upbeat
The Abu Dhabi International Airport managed to avoid a slump in passenger demand. According to latest figures released by the Abu Dhabi Airports Company (Adac), passenger traffic in the capital’s international airport increased by 7.3 per cent to reach 9.7 million in 2009.“Despite the adverse global economic climate and the consolidation observed in the aviation industry during 2009, Abu Dhabi International has proven to be a resilient airport operation,” said Khalifa Al Mazrouei, Chairman of ADAC.
Cargo volumes rose by 7 per cent while total flights hit 102,118 or an increase of 9.6 per cent from 2008.
In an earlier interview with Alrroya.com, George Karamanos, Vice-President Corporate Marketing and Communications of Adac, said the capital seeks to offer a versatile gateway to the UAE.
“Our airports’ expansion plans are geared towards supporting the Abu Dhabi Vision 2030, which aims to develop Abu Dhabi as a world-class destination. The different developments happening in the capital, starting with the hosting of the Formula One, the construction of a Ferrari-themed park, as well as the Guggenheim and Louvre Museums, are all part of that programme,” Karamanos explained.
Adac currently operates five airports: Abu Dhabi International Airport, Al Ain International Airport, Al Bateen Executive Airport, and the Sir Bani Yas and Delma Island Airports. These facilities complement each other in servicing incoming and outgoing air travel requirements such as commercial passenger flights, cargo handling, private and corporate aviation, as well as tourism.
Nearly $54 billion will be spent on various projects related to the tourism sector in the next four years as Abu Dhabi prepares for an influx of regional and international tourists.
Outlook for the aviation industry
Capa hinted at the possibility of Dubai becoming the third busiest international hub after London Heathrow in the United Kingdom and Paris in France by end of 2011.The agency believes that Dubai International, with its annual average passenger growth of 10 per cent, could “rapidly narrow the gap in terms of international passenger numbers to long-established hubs such as Frankfurt, Hong Kong and Amsterdam.”
The projection has been attributed to Emirates’ projected capacity hikes of 14 per cent for fiscal year 2009-2010, flydubai’s expansion and foreign airlines continued operation in the emirate.
For Iata, meanwhile, the global aviation industry is in for a challenging 2010. In a press statement, Giovanni Bisignani, Iata’s Director General and CEO, said “the worst is behind us, but it is not time to celebrate. Adjusting to 2.5-3.5 yers of lost growth means that airlines face another Spartan year focused on matching capacity carefully to demand and controlling costs.”|
Consider also reading:
Iata revises loss forecast for Middle East aviationFujairah eyes slice of UAE business aviation market
Budget carriers buck the penny-pinching trend
Dubai Airshow flies high with 10pct overall growth
Boeing optimistic about aviation recovery in 2011
Lufthansa gives gloomy outlook for aviation sector
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