Arab aviation lacks open sky policies that would exploit full potential
2012 05 09
- Details
THE "lack of a true 'open skies policy' in the Arab world is restricting the aviation industry from realising its full potential", said Air Arabia CEO Ali told delegates attending Arab Aviation and Media Summit 2012 in Sharjah, UAE.
Agreeing, Arab Air Carriers Organisation (AACO) secretary general Abdul Wahab Teffaha said: "Unfortunately, many Arab countries still nurture the notion that they should have a flag carrier irrespective of the losses their airlines accumulate."
Said Airbus Middle East president Foud Attar: "Today, many Arab governments are caught in a dilemma, to liberalise or not to liberalise. That is the reason they vacillate on implementing the open skies policy."
Despite such drawbacks and a challenging geopolitical environment as well as rising jet fuel prices, Arab aviation is robust with improved airline interconnectivity, contributing significantly to the gross domestic product of the countries, reported the Kuwait Times.
UAE General Civil Aviation Authority deputy chief Omar Bin Ghalib said: "An increased mobility in the region has remarkably boosted tourism, trade, logistics, technology and most importantly resulted in massive manpower development and job creation."
Mr Bin Ghalib said the UAE's aviation industry enjoyed robust growth after it implemented an open skies policy and liberalised the industry. "We expect reciprocal treatment form all the countries in the region," he said.
"Liberalisation of aviation sector in these countries has dramatically altered the horizons of their aviation industry," he said.
The Arab Spring has impacted on the Arab aviation industry with massive plunge in passenger numbers though the sector has rebounded quickly. "The crisis has affected Egypt, Tunisia and Yemen, which registered a 50 per cent drop in tourists," said IATA regional vice president Maidi Sabri.
But Mr Teffaha said: "The long-term impact of the Arab Spring is extremely positive. It not only presented challenges but offered enormous opportunities to the industry to grow."
The report did not elaborate on the point, but Mr Teffaha said that the aviation sector currently supports 2.7 million jobs and accounts for $129 billion in GDP in the Middle East. Middle East international passenger numbers are expected to reach some 220 million by 2030 compared to 77 million in 2010.
He also pointed out that IATA has raised its 2012 profit forecast for Middle East airlines from $300 million to $500 million. The revision was fuelled by strong growth in regional traffic.
The 21-nation Arab League plans to spend nearly $200 billion on the purchase of new aircraft in the next 15 years. The Middle East is home to 65 airlines with 1,029 aircraft in service, operating from 70 commercial airports.
The region has 13 air navigation service providers. The combined value of the Arab aircraft fleet is expected to rise to nearly $200 billion in the next 15 years, said the report.
Source Shipping Gazette - Daily Shipping News
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