Showing posts with label The Gulf. Show all posts
Showing posts with label The Gulf. Show all posts

Wednesday 1 October 2014

DWC: Air travel reinvented


Full article in PDF format

Thinking big has never been a problem for the rulers of Dubai. Back in 2005, when fewer than 24 million passengers used Dubai International Airport (DXB), the emirate unveiled plans for a six-runway hub at Jebel Ali, southwest of the city, that could handle up to 120 million people each year. A sprawling complex called Dubai World Central (DWC) was to be developed around the airport, creating “the world’s first purpose-built aerotropolis”.

At the time, DXB did not even rank among the top ten busiest international gateways on the planet. Dubai’s vision of becoming the centrepiece of global aviation was ridiculed in some corners as a delusion fuelled by free-flowing cash and unbridled Gulf egos. For years to come, discussions about the project were tainted with accusations of building a “white elephant” in the desert.

Today, however, with DXB on the cusp of overtaking London Heathrow Airport as the largest international gateway anywhere in the world, the sceptics have fallen silent...

Monday 1 September 2014

Airspace anxiety


Full article in JPG format:
page 18/19 & page 20/21

The downing of Malaysia Airlines Flight 17 (MH17) over eastern Ukraine in July gave an international dimension to what had hitherto been a bilateral conflict between Moscow and Kiev. Unlike in February, when the West quietly stood by as Russia annexed Crimea, the murder of 298 mostly Dutch passengers by Moscow-backed rebels forced the European Union (EU) to act, imposing harsh economic sanctions on Russia.

How the conflict will play out under these new dynamics remains to be seen, with NATO estimating that 20,000 Russian troops have amassed at Ukraine’s border ahead of what many fear will be a full-blown invasion. Hopes that Russian president Vladimir Putin might have been chastened by the catastrophe were quickly dashed. Within days of the loss of MH17, two more Ukrainian military jets were shot down. The death toll on both sides has surpassed 2,000 and is rising daily.

But as well as dragging East-West relations to their lowest ebb since the Cold War, MH17 is stoking fears about wider vulnerabilities in the world’s increasingly crowded skies...

Friday 1 August 2014

Libyan aviation up in flames


Full article in JPG format:
page 29 & page 30/31

Less than three years after its fleet was all but destroyed by the Libyan revolution, Afriqiyah Airways, the North African country’s second flag carrier, suffered another depressing blow to its fortunes last month. A mortar assault on Tripoli International Airport damaged most of its 11 aircraft on 13 July, as well as knocking out the air traffic control tower and hitting planes owned by fellow flag carrier Libyan Airlines and privately-owned Buraq Air.

Even by Libya’s pitiful security standards, the audacity of bombarding the country’s main international gateway left travellers, local residents and officials dumbstruck. One government spokesman epitomised the sense of helplessness by suggesting that “international forces” should provide security in Tripoli. As he spoke, the UN began hastily withdrawing its remaining staffers...

Tuesday 1 July 2014

Interview: Maher Al Musallam, Gulf Air Acting CEO


Full article in JPG format:
page 32/33 & page 34

If asked to describe Gulf Air’s prospects back in 2012, many observers would have responded with one word: “bleak”. The Arab Spring had decimated tourism to Bahrain, as well as forcing its flag carrier to withdraw from two key markets: Iran and Iraq. Operating losses reached 183.8 million dinar, and parliament slammed the brakes on a financial bailout amid calls for the airline to be dissolved.

All the more impressive, then, that the beleaguered company now appears to be turning a corner. When its 2013 results were published in May – three months later than originally scheduled – the figures spoke for themselves...

Europe & the Gulf: Old foes reunited


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In June, delegates arriving at the AGM of the International Air Transport Association (IATA), the airline industry's biggest annual bash, were among the first passengers to experience Doha's new Hamad International Airport.

The glistening new gateway was not quite completed – screens had to be erected in lieu of a few finishing touches – but Qatar Airways nonetheless moved its entire operation to the hub on 27 May, five days before the world's airline bosses descended on the dusty, oil-rich Gulf state.

As one of three so-called Gulf super-connectors, Qatar Airways' selection to host the event was a symbolic reminder of the new dynamics sweeping across the industry...

Sunday 1 June 2014

Trouble Down Under for Emirates?


Full article in JPG format:
page 24/25 & page 26

Holding your cards close to your chest is a wise strategy when negotiating commercial partnerships. So it should come as no surprise that Shaikh Ahmed bin Saeed Al Maktoum, chairman of Emirates Airline, appears to have rebuffed Andrew Robb, Australia’s Minister for Trade and Investment, during his recent visit to Dubai.

Robb had met with Shaikh Ahmed, begging bowl in hand, after declaring to Al Arabiya News that he “will explicitly mention” the subject of an equity investment in Qantas. The Australian flag carrier has had an entrenched commercial partnership with Emirates, Dubai’s flag carrier, since last year. The statement was a bold move by the minister, especially given the repeated asseverations by Emirates’ senior management team – also including president Tim Clark – that Dubai has absolutely no intention of pumping cash into its Australian affiliate...

Thursday 1 May 2014

Egypt's new aviation hope


Full article in JPG format:
page 24/25 & page 26

There is no denying that the past three years have been a torrid time for Egyptian tourism. Hopes of a quick recovery after the 2011 Arab Spring were dashed by last year’s military coup against the Muslim Brotherhood. The bombing of a tourist bus in Sinai this February further unnerved visitors, although militants have predominantly directed their wrath at security forces.

Tourism revenue fell 43% year-on-year in the first quarter of 2014 to just $1.3 billion, accelerating the downturn triggered by last July’s overthrow of Islamist President Mohamed Morsi. Full-year revenue had already fallen 41% in 2013, when just 9.5 million tourists visited the country compared with 14.7 million back in 2010...

Tuesday 1 April 2014

Quality and quantity in Qatar


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There was little debate about who stole the show at the ITB International Tourism Fair in Berlin this March, with Qatar Airways using the trade event to unveil the First Class cabin on its soon-to-be-delivered Airbus A380s.

Each cabin contains eight seats with a 90-inch pitch and lie-flat design that the airline claims is the widest in the industry. In-flight entertainment is provided on a 26-inch personal television screen, while the layout also encompasses a “dining for two” concept that allows passengers to face each other during meals.

The luxurious seats understandably attracted the lion’s share of publicity among ITB delegates, but the airline’s premium offering is just one facet of its ambitious expansion plan...

Saturday 1 March 2014

Queue jumping, Etihad style


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With little prospect of supersonic air travel making a comeback any time soon, flying between the Gulf and the USA is likely to remain a testing experience for most passengers. Direct flights from the UAE to America’s East Coast take about 15 hours, and are typically followed by lengthy queues at US Customs and Border Protection (CBP).

Efforts to develop a successor to Concorde – the supersonic jet that halved transatlantic journey times until its retirement in 2003 – have to date been confounded by a mixture of economic, environmental and technological challenges. Mindful of this, Etihad Airways, Abu Dhabi's flag carrier, is instead tackling the secondary issue of customs delays on the ground. On 24 January, Abu Dhabi became the 16th location in the world to offer pre-clearance of US customs on foreign soil...

Saturday 1 February 2014

RAK down but not out


Full article in JPG format:
page 24/25 & page 26

It is virtually a foregone conclusion that 2014 will be another bumper year for civil aviation in the United Arab Emirates (UAE). Dubai’s Emirates Airline and Abu Dhabi’s Etihad Airways are on-track for yet more double-digit traffic growth, while Sharjah’s Air Arabia and FlyDubai continue adding new short-haul markets to their respective hubs.

In the northern emirate of Ras Al Khaimah, however, the New Year heralded an altogether less favourable development. On 1 January 2014, for the second time in its eight-year history, flag carrier RAK Airways announced that it was suspending operations indefinitely. Management promised to “re-evaluate the best options” for the government-owned airline, but they stopped short of making a firm commitment that flights would resume...

Wednesday 1 January 2014

Saudi Arabia's accelerated aims


Full article in JPG format:
page 20/21 & page 22

Efforts to boost competition in Saudi Arabia’s duopolistic civil aviation sector are at long last gaining momentum, with both of the kingdom’s upcoming airlines promising to launch services in 2014. But silence by civil aviation authority GACA on the issue of regulatory reform leaves lingering questions about the sector’s long-term prospects.

GACA had originally opened up its skies in December 2006, granting two new carriers – Nas Air and Sama – the right to operate domestic services alongside flag carrier Saudia...

Sunday 1 December 2013

In the driving seat


Full article in JPG format:
page 20/21 & page 22

As if any proof were needed that the Gulf’s airlines have become the driving force behind global civil aviation, last month’s Dubai Air Show reaffirmed their dominance in spectacular fashion. Collectively, Dubai’s Emirates Airline, Abu Dhabi’s Etihad Airways and Qatar Airways placed orders for $150 billion of aircraft. Emirates was the biggest spender, splashing out on 150 next-generation Boeing 777Xs – due to enter service around the end of the decade – as well as another 50 double-decker Airbus A380s.

In fairness, many of the aircraft will eventually be deployed as replacement units, allowing older, less fuel-efficient models to be withdrawn from service. The 777X promises to burn 20% less fuel than the current-generation 777, notching up a major cost saving for its operators. But the continuance of year-on-year mega orders in the Gulf underscores how Dubai, Abu Dhabi and Doha are slowly becoming the centrepiece of global aviation...

Friday 1 November 2013

Jetihad: Family fortunes


Full article in JPG format:
page 25 & page 26/27

In October, after six months of wrangling, Abu Dhabi’s Etihad Airways secured the approval of India’s cabinet to acquire 24% of Mumbai-based Jet Airways. The $379 million deal was made possible by a decision to relax foreign ownership restrictions last year, but the country’s regulatory bodies put up fierce resistance before giving the final go-ahead. India’s second largest carrier now joins the growing family of airlines part-owned – and indisputably part-controlled – by Abu Dhabi’s flag carrier.

The partnership should be exceptionally lucrative for both sides. Once fully consummated, it will see Etihad’s reach in India expand from nine to 26 cities. That will give the Gulf carrier a foothold in one of the world’s fastest growing aviation markets, which already handles 150 million passengers a year...

Tuesday 1 October 2013

A fresh approach in Kuwait


Full article in JPG format:
page 43 & page 44/45

The contrasting fortunes of Kuwait’s two airlines could hardly be starker. Jazeera Airways, a privately owned low-cost carrier founded in 2005, has been profitable in all but two years. Kuwait Airways, the state-owned flag carrier, has not posted a profit once in the last decade. In the past five years alone, it racked up losses of KD462 million ($1.6 billion).

Despite this, Jazeera chairman Marwan Boodai believes there are “green shoots” in Kuwait’s inefficient flag carrier. He says liberalisation of the domestic market eight years ago proved that the private sector is best placed to run airlines – and he is willing to put his money where his mouth is...

Sunday 1 September 2013

Emirates' love affair with London


Full article in JPG format:
page 25 & page 26/27

When Emirates Airline, the flag carrier of Dubai, launched its new flight simulator attraction in the British capital this summer, airline president Tim Clark and London Mayor Boris Johnson stood shoulder to shoulder in praising the £4 million ($6.2 million) investment.

Clark said the Emirates Aviation Experience, which includes two Airbus A380 and two Boeing 777 simulators, should go "some way in demonstrating just how dedicated we are to this captivating city". Boris, deploying his trademark patter, called the east London attraction a "veritable Aladdin's cave of technological wizardry and gizmos that will give … a real insight into the wonders of flying".

The two men had every reason to be cordial – Emirates gains brand exposure with the facility, while London gains another world-class attraction – but it was not long before Clark broached more contentious issues. Unlike Boris, he supports expansion of London's capacity-constrained Heathrow Airport, and he was happy to explain his stance to the assembled journalists...

Thursday 1 August 2013

Interview: Basma Majali, Royal Jordanian Airlines Acting VP Commercial


Full article in JPG format:
page 20/21 & page 22

Few companies were worse affected by the Arab Spring that those in the region's tourism and travel sector. Although protests on the streets of Amman reached neither the scale nor the ferocity seen in neighbouring countries, Royal Jordanian Airlines plunged to a record annual loss of 57.9 million dinar ($82 million) in 2011. The alarming result prompted former chief executive Hussein Dabbas to call for downsizing and even a strategic merger.

The airline's subsequent move into the black in 2012 – albeit on a razor-thin margin of 0.14 per cent – raised expectations that it was emerging from the difficulties. But with civil war across the border in Syria now in its third year, the flag carrier is coming to terms with the uncomfortable reality that tourists could stay away for many years to come...

Monday 1 July 2013

Interview: François Bouteiller, Nas Air CEO


Full article in JPG format:
page 22/23 & page 24

Fran̤ois Bouteiller, the chief executive of Saudi Arabia's Nas Air, announced his resignation last month after just 17 months in the job. He follows in the footsteps of predecessor Simon Stewart Рwhose tenure lasted barely a few months longer Рand will now be succeeded by Raja Azmi, the former chief financial officer of Air Asia.

Although Azmi doubtless hopes to retain the top job for a lengthier period, he can expect to face the same challenges which confounded his forbearers at the low-cost carrier. Saudi Arabia's duopolistic air transport market continues to be characterised by excessive fuel charges, a commercially disruptive domestic fare cap, and a cultural landscape that does little to advance much-needed reform...

Saturday 1 June 2013

Iraqi Airways back into the fold


Full article in JPG format:
page 24/25 & page 26/27

News that April was the bloodiest month in Iraq for almost five years has lent credibility to recent warnings that the country may be slipping back into civil war, fuelled by the Sunni Islamist insurgency across its north-western border with Syria. Some 595 civilians were killed violently in Iraq this April, the UN says, doubling the previous month's figure.

But that statistic, grim as it is, remains a world away from the nightmarish scenes at the height of the war in July 2006, when more than 3,200 deaths were recorded in a single month. The deterioration also comes as Iraq pushes through its 2013 budget, earmarking 138 trillion Iraqi dinar ($118.5 billion) of public spending. Though Kurdish lawmakers boycotted the session, Iraq's immense oil wealth is beginning to trickle down to ordinary citizens.

Amid the dichotomy of growing prosperity and deepening violence, flag carrier Iraqi Airways – which was grounded by sanctions throughout the 1990s – is doing its bit to bring Iraq back to the international fold...

The UAE and Canada re-engage


Full article in JPG format

Abu Dhabi-based Etihad Airways and Air Canada recently signed a Memorandum of Understanding to begin selling tickets on each other's flights from the third quarter of this year. Etihad has more than 40 such codeshare agreements in place around the world, but its latest partnership – which follows a thawing of relations between the United Arab Emirates (UAE) and Canada – could be a milestone in the long-running battle between the Gulf carriers and their legacy counterparts, particularly those in the Star Alliance grouping of airlines.

Under the terms of the agreement, Etihad will place its code on Air Canada-operated flights between Toronto and unspecified destinations in North America. In return, Air Canada will put its code on Etihad's bilaterally constrained Abu Dhabi-Toronto trunk route, as well as its Abu Dhabi-London Heathrow service...

Wednesday 1 May 2013

Pragmatism at DWC


Full article in JPG format

Al Maktoum International Airport in Dubai will open its doors to passengers in October, when Saudi Arabia's Nas Air and eastern Europe-based Wizz Air begin low-cost operations. The gateway began accepting cargo flights back in June 2010, but the commencement of passenger services marks the most significant milestone to date on its path to becoming the world's largest airport.

The emirate's existing hub, Dubai International Airport (DXB), is undergoing a $7.8 billion expansion project of its own, lifting annual passenger capacity from 75 million today to 90 million by 2018. But Al Maktoum Airport, also known as Dubai World Central (DWC), will eventually dwarf its forbearer with capacity of 160 million passengers...