Budget carriers lift ME aviation |
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The Middle East and North Africa region is poised to circumvent the global airline downswing riding high on the low-cost carrier boom sweeping the region.
With skyrocketing fuel prices, some of the largest airlines in the world were shedding jobs, cutting routes and grounding aircraft. There have been 24 airline bankruptcies this year with the aviation industry facing losses to the tune of a staggering of $6 billion worldwide.
"But, the MENA region has appeared immune to this ongoing economic turbulence in the world's aviation market. The regional industry's growth appears even more pronounced, set against the general atmosphere of pessimism and caution that has afflicted the global industry. And regional low cost carriers have played a key role in increasing air traffic, creating their own markets, as well as migrating passengers from other companies," said Symon Rubens, Managing Director, Terrapinn Middle East, organisers of the forthcoming regional low-cost carriers, 'Low Cost Airlines World MENA' conference, to be held from November 3 to 5 at Al Ain, United Arab Emirates.
In 2007, Middle East carriers posted 18.8 per cent growth in passenger numbers - more than double the global average growth rate of 7.5 per cent. As much as $54 billion is to be invested in airport expansion within the Middle East, while the aircraft leasing market in the Middle East is expected to increase to $1 billion by 2010 from its current $800 million value. "It is becoming a well-known fact that the Middle East has eased its way into a leading position in the world aviation market, but what is even more interesting is the role that the low-cost airlines have played and will continue to play in the future growth of the regional industry," says Symon Rubens.
"Away from the glitz and glamour of massive airplane orders and designer aircrafts, the low cost aviation industry has shown solid performance and expansion and has been working under the radar to fill in the gaps left by the large downsizing carriers and bring a lot of benefit to the industry as a whole."
The Middle East has a growing number of local Low Cost Airlines, operating with great efficiency and success. The large expatriate population, impressive airport expansion, ideal geographic position, large pools of liquidity and regional liberalisation will provide the opportunity for many new market entrants over the coming years. "Low-cost carriers are expanding and connecting the dots in their route network through strategic partnerships, coping with the challenges of low cost operations," Rubens said.
"Regional carriers are looking to expand as quickly as they can in the hope of taking up the slack left by downsizing rivals and positioning the region as a global aviation crossroads." The emergence of the low-cost airline industry as a star industry in its own right, both globally and on the regional level in the Middle East and North Africa region, will be showcased at the conference.
The event, expected to assemble around 200 industry players, is organised by Terrapinn, which has staged some of the world's most highly acclaimed aviation events, including the region's own Aviation Outlook Summit which took place last February in Abu Dhabi. The "Low Cost Airlines World MENA" is sponsored by Abu Dhabi Airport and Al Ain Airport.
The conference will highlight the key topics facing the industry, showcase integral market intelligence for entering the market or growing market share, and discuss successful strategies and explore new opportunities besides bringing together the heads of several well-known low cost airlines and key figures from the aviation industry in the region.
By K.V.S. Madhav Senior Business Reporter
© Bahrain Tribune 2008
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