GCC a key global air travel hub

GCC a key global air travel hub (Staff Report) / 27 April 2013 There is perhaps no sector that reflects the UAE’s unprecedented boom better than the aviation industry.  A phenomenal surge in air connectivity by the world’s fastest growing carriers and the rapidly-expanding airports have turned Arabian Gulf states into the world’s newest travel hub. Dubai International Airport, a major hub in the region, is projected to become the world’s busiest air travel centre by 2015. — AFP According to a study published for the Airport Show — which will take place from May 6-8 in Dubai — GCC airports are expected to handle as much as 250 million passengers by 2020, while Dubai is set to become the world’s busiest airport by 2015. It is also estimated that Middle East will have the third-fastest passenger growth rate of 6.6 per cent by 2016. The study shows that by 2025, seven billion people will be within reach via a single flight, while the total aircraft movement in the Middle East region will reach 2.3 million in 2025. The International Civil Aviation Organisation, or Icao, expects air traffic in the region to grow 5.2 per cent annually until 2030. Gearing up to meet the rise in passenger traffic, Middle East airlines will increase their capacity by 12.8 per cent in 2013. In addition, they are investing heavily in new aircraft, holding one-third of the global orders for Boeing 777 and Airbus A380. As the study revealed, the aviation sector was fast to realise the potential that the GCC’s privileged location holds. With almost two billion people within a 2.5-hour reach by air, the region has a unique geographical advantage that can fuel not only the sector, but the local economies in general; the aviation industry is projected to create an additional 294,000 jobs over the next 15 years. The Middle East’s air transport industry contributed $129 billion to the region’s GDP, with the UAE alone accounting for Dh145 billion. According to Oxford Economics, the aviation industry’s direct contribution to GDP will increase by 6.3 per cent per annum in real terms over the next 20 years, creating an additional 294,000 jobs in the region. Tony Tyler, director-general and chief executive officer of the  International Air Transport Association, explains that aviation has taken centre stage in the economic development of the Gulf region. “Governments here understand the power of connectivity to drive economies, and with this understanding governments have created a business-friendly environment for air transport with low taxes and world-class infrastructure,” he said. The market study, entitled ‘The World Via Gulf’ and published by Nadd Al Shiba PR and Event Management, offers insights into the expansion and growth projections for the airports and airlines in the Arabian Gulf, which, despite the global economic upheavals since 2008, has remained the world’s most economically-resilient region and the most-happening place for the aviation industry. A free copy of the report is available for those registering online as show visitors at www.theairportshow.com before the start of the biggest B2B event in the Middle East and Indian Sub-continent on May 6, and the inaugural Global Airport Leaders Forum on May 7. The 72-page report is based on information and statistics from various airports, airlines and international organisations. Middle East-based airlines currently account for eight per cent of the global air transport industry. The Middle East is home to the youngest fleet in the world, with a total of more than 600 aircraft, and has the greatest number of aircraft on order anywhere in the world. Between now and 2020, the Middle East is forecast to lead world passenger traffic growth, with current travel demand up 18 per cent. Gulf carriers, including Emirates, Etihad and Qatar Airways, hold one-third of the global orders for Boeing 777 and Airbus A380. business@khaleejtimes.com Taylor Scott International