The World's Top 100 Airlines in 2014 - 3 GCC Arab airlines in the top 10

[Arabian Stallion]

I think you're right. I've noticed that myself lately. Social media seems to be gradually replacing internet forums. One good thing about social networking services such as Twitter is that anything goes lol. You can be as rude and as upfront as you like.


I hope so too. Honestly, however, I'm not that optimistic when it comes to the new airport terminal lol. The Al-Kharafis are very corrupt and incompetent. They obviously coerced the pathetic government into approving their bid for constructing the new airport. The Kuwaiti-Turkish consortium that's going to build the new airport was actually disqualified by the ministry of public works more than a year ago. Kuwait has become a real joke, unfortunately.

The project for the new airport terminal should have gone to a Chinese consortium instead.

By the way, what's worse than all of this is the fact that Kuwait airport ranks poorly in security-related issues. Some airlines, such as British Airways, have already threatened to stop flying to Kuwait if the security standards don't improve by next year.

I think that social media by large has already replaced most internet forums. At least this is my experience. Well, that depends. Facebook does not allow such a thing. Of course the option is out there, lol, but you are not anonymous like on internet forums.

Sad to hear. However I am hopeful that Kuwait will bounce back and regardless Kuwait and the GCC are doing better than 99,9% of all Muslim countries on most fronts.

In a perfect world Arab firms should be the ones building infrastructure in the Arab world. That is why the existing and upcoming Arab firms in various sectors should aggressively target projects in the Arab world and likewise outside of it. I am sure that this will occur on a much greater scale very soon but the current situation is not where it should be considering the enormous potential. However I was pleasantly surprised when I read that Saudi Binladin Group won a $800 million contract to construct the passenger terminal building at the Maldives International Aiport.

http://www.reuters.com/article/maldives-airport-binladin-idUSL3N18N20F

Anyway given recent developments, especially in the past few years and given the nature and amount of deals signed with China and Chinese firms, watch out for the future Sino-Arab ties on this front.

 

[Arabian Stallion]

New domestic airline from June 22​

Jun 12, 2016

SaudiGulf will initially use four Airbus A320s before acquiring 16 Bombardier CS300s​

RIYADH — SaudiGulf airline will be licensed to start domestic flights in the Kingdom from June 22, Air Transport World quoted a statement issued by the General Authority of Civil Aviation (GACA) on Friday.

SaudiGulf airline is one of two new carriers that have been preparing to launch services in the Kingdom under the country’s stated intention to liberalize its domestic aviation scene.

This is currently dominated by flag carrier Saudia, which holds some 90% of the market, with hybrid carrier flynas making up the remainder.

SaudiGulf, which will initially use four Airbus A320s before acquiring 16 Bombardier CS300s, has been awaiting an air operator’s certificate (AOC) from GACA for more than 18 months, as has the second planned entrant to the Saudi market, Qatar Airways-backed Al Maha Airways.

The June 10 GACA statement announcing SaudiGulf’s service entry made no mention of progress with Al Maha’s application.

SaudiGulf will begin domestic flights from its base at King Fahad International Airport (KFIA) in Dammam.

In a statement, GACA said the AOC had been granted after SaudiGulf had met all the necessary regulations from both ICAO and Saudi Arabia’s national aviation. The license will be handed over at a ceremony on June 22.

http://saudigazette.com.sa/saudi-arabia/new-domestic-airline-june-22/

Sky’s the limit for GCC’s aviation sector​

Regional governments have shown no signs of slowing down, with aircraft order remaining robust and infrastructure investments pushing ahead.

The Gulf region’s aviation outlook received a major boost when plane maker Boeing raised the forecast for the number of aeroplanes required in the region over the next 20 years.​

The American aircraft manufacturer believes airlines in the region would need 3,180 new aeroplanes over the next 20 years, compared to 2,950 in its outlook for last year. As much as 70% of the demand will be driven by rapid fleet expansion in the GCC, requiring financing of nearly US$730 billion.

"Traffic growth in the Middle East continues to grow at a healthy rate and is expected to grow 6.2% annually during the next 20 years," said Randy Tinseth, vice president for marketing at Boeing Commercial Airplanes.

"About 80% of the world's population lives within an eight-hour flight of the Arabian Gulf. This geographic position, coupled with diverse business strategies and investment in infrastructure is allowing carriers in the Middle East to aggregate traffic at their hubs and offer one-stop service between many city pairs that would not otherwise enjoy such direct itineraries."

The Boeing forecast is more optimistic than rival Airbus’ global market prediction, which anticipates a more measured 2,361 new passenger aircraft deliveries by 2034.

Single-aisle planes would comprise the bulk or 44% of orders by regional players, while medium wide-body aircraft will comprise 28% of orders and large wide-body accounting for 9% over the next 20 years, Boeing forecast shows.

By contrast, large wide-body would comprise a mere 1% of the world’s aeroplane demand over the next two decades – suggesting the importance of the GCC market for planes such as Airbus 380 and Boeing 777. Indeed, the region’s large wide-body fleet would nearly triple to 300 in 2034, compared to its current inventory of 110.The Middle East is the only region in the world where the twin-aisle fleet is bigger than the single aisle.

The aircraft capacity has enabled soaring airline growth in the region in recent years.

Long-haul traffic has been crucial for the development of Middle Eastern carriers. Since 1995 the share of long haul traffic has increased from half to more than two thirds in 2014.

Data shows that the strategic focus on this segment of the market was a resounding success with long-haul traffic growing at 11% over the past 20 years, outperforming short haul by on average of five percentage points.”

Heavy investment

The region’s governments are in the midst of investing heavily in the aviation sector as they look to diversify their economies. Some countries such as Saudi Arabia are also privatising airports to generate revenues and secure foreign investment in the sector. Virtually all the major countries including Egypt, UAE, Qatar and Kuwait are expanding their aviation infrastructure.

The Middle East is expected to be among the fastest growing region in terms of passenger traffic, growing at 4.6% per year on average until at least 2034, according to industry body International Air Transport Association, or IATA.

The potential return of Iran into the global market, once Western sanctions are lifted, could generate more demand for aeroplanes as the country looks to replace its ageing fleet.

The recently concluded Dubai Airshow generated deals of nearly US$40 billion, despite the uncertainty surrounding the global economy – a testament to the region’s growth potential.

Middle East carriers have seen robust growth, with demand rising 9.9% in September – well above any other regions in the world.

“Major economies in the region, including Saudi Arabia and the United Arab Emirates, have experienced slowdowns in non-oil sectors, however rates of growth remain robust,” according to IATA.

Gulf carriers led by Emirates Airline, Etihad Airways and Qatar Airways are leading the charge, with new destinations planned across the world. They are also expected to add 2,352 seats to the US – their largest growth market this year; 1,954 to the UK, its second largest market; and 1,903 seats to India, their third largest market.

However, there are still regulatory obstacles that have restrained growth, such as the region's decentralised air traffic control systems, leaving operators to contend with a patchwork of rules, agencies and processes.

IATA notes that the region’s aviation growth has brought new challenges for the industry.

“The challenge is to look beyond merely national issues and focus on an even bigger picture – the strategic development of aviation across the entire Middle East,” said Tony Tyler, IATA’s director general and CEO.

© Zawya

https://globalconnections.hsbc.com/uae/en/articles/skys-limit-gccs-aviation-sector

 

[Arabian Stallion]

Abu Dhabi Airports announces rise in passenger traffic​

Posted 29 June 2016

Abu Dhabi Airports has announced that passenger traffic at Abu Dhabi International Airport has increased by 5.6% for May when compared to the previous year.

1,982,010 passengers travelled through the airport last month, exceeding May 2015’s amount of 1,877,440.

Many destinations noticed a rise in passenger traffic when compared to the previous year.

The number of passengers that had Abu Dhabi International Airport as their final destination increased by 4.6% to 355,457 travellers.

Aarrival and departure transfers increased by 7.5% and 7.7%, with the total number of transfer passengers increasing by 7.6% to 1,279,599.

The most popular routes were Bombay, Doha, London Heathrow, Manila and Jeddah respectively.

http://www.arabianaerospace.aero/abu-dhabi-airports-announces-rise-in-passenger-traffic.html

Emirates completes 33 aircraft makeovers in 12 months​

Posted 1 July 2016

The Emirates Aircraft Appearance Centre has completely stripped and repainted 33 aircraft last year, or 13% of its fleet.

During the year, Emirates gave a fresh coat of paint to three Airbus A380s and 22 Boeing 777s, in addition to eight aircraft that were retired as a part of the airline’s strategy to operate a young, modern, and efficient aircraft fleet.

Emirates’ state-of-the-art facility in Dubai also installed decals on 72 aircraft and executed over 105,000 painting jobs including cabin touch-ups across the world’s largest fleet of wide-body aircraft in 2015. Some of the eye-catching customized decals installed on the Emirates fleet during the course of the year include the Real Madrid A380, the Paris Saint-Germain A380, the Arsenal 777, the A.C. Milan A380, the Arsenal A380 and the United for Wildlife A380s.

http://www.arabianaerospace.aero/emirates-completes-33-aircraft-makeovers-in-12-months.html

Boeing said to court Emirates airline over revamped 777 ​

By Staff Writer
Thursday, 30 June 2016 1:48 PM

Emirates finalised an order for 150 777Xs, valued at $56 billion at list prices in 2014. Design of the 777X is underway and production is set to begin in 2017, with first delivery targeted for 2020.

Emirates is among a clutch of airlines being courted by Boeing over a new 777 model poised to rival Airbus’ struggling A380, it is believed.

The US aircraft manufacturer has been quietly working on a revamp of its trusted 777 model to create a 450-seater superjumbo named the Boeing 777-10x.

The new jet is expected to rival the Airbus A380, whose future is uncertain after Emirates – one of the biggest operators of the aircraft – said last year it refused to put in new orders until modifications are made.

Airbus last year insisted it would not commit to future redevelopments of the plane, but it is understood that more recently it has held discussions with a number of airlines about possible revised versions of the jet.
In the meantime, Boeing has been pushing forward research and development into the 777-10x and ramping up talks with prospective customers, Bloomberg reported this week.

It quoted Boeing spokesman Doug Alder as saying: “We are always evaluating technologies, airplane configurations and market needs.

“While no decisions have been made, we will continue to study 777X derivatives and seek customer input to develop products that provide the most value for customers.”

While Bloomberg reported that the Dubai-based carrier is yet to be sold on the concept, a spokesperson for the airline said: "We are in regular contact with both Boeing and Airbus about our current and future fleet requirements."

Boeing unsuccessfully pitched Emirates on its 747-8 jumbo two years ago as a potential A380 replacement.

Boeing’s proposed new model would seat around 450 passengers, Bloomberg said, while A380s seat between 489 and 517 passengers, according to Airbus’ website.

Meanwhile, Emirates announced on Thursday that the company’s Aircraft Appearance Centre, the world’s largest aircraft painting facility owned by an airline, stripped and repainted 33 aircraft last year, or 13 percent of Emirates’ fleet.

A fresh coat of paint was given to three Airbus A380s and 22 Boeing 777s, while eight aircraft were retired, the company said.

http://www.arabianbusiness.com/boei...ne-over-revamped-777-637159.html#.V3korFeYWLI

360° Cockpit tour of Emirates Airbus A380 | Emirates Airline

The great thing here is that the aviation sector in the GCC is largely unexplored outside of the UAE and Qatar which is amazing to think about given the fact that the GCC is already an aviation hub on a global scale due to its central location in the world. I cannot imagine the future potential in KSA alone. Hajj and Umrah, whose numbers will increase tenfold (if not more) in the near future, are potential goldmines. No wonder that the King Abdulaziz International Airport in Jeddah is ongoing an expansion that will enable the airport to have an yearly capacity of almost 100 million passengers. The Dubai International Airport on the other side of Arabia is already the most busy airport (passenger traffic) in the world.

https://en.wikipedia.org/wiki/King_Abdulaziz_International_Airport#Expansion_project

https://en.wikipedia.org/wiki/Dubai_International_Airport

What is better, the Arab world will be one of the most populous areas of the world in the not so distant future alongside nearby Africa and South Asia. Thus the current position is very unlikely to be threatened.

 

[Sargon of Akkad]

Airspace management is key to Arabian Gulf economy

GCC carriers are transporting at least 150 million passengers a year, more than three times the number from a decade ago. Zsolt Czegledi / EPA​

Ben Kiff
August 10, 2016 Updated: August 10, 2016 05:46 PM


With the contract award of phase 3 of the UAE Airspace Restructuring Project to an international firm roughly two months ago, the UAE has taken a critical step forward in supporting aviation’s growth both in the country and the wider region.

Airspace is the invisible pillar of every nation’s transport infrastructure and is a fundamental, if sometimes overlooked, building block for economies seeking growth and modernisation. For the UAE, which boasts one of the world’s highest aviation growth rates, investment in airspace management is of paramount importance. Dubai International Airport ed the world in the number of international passengers, with overall passenger traffic exceeding 78 million people in the same period.

The total economic impact of the aviation sector in Dubai alone was US$26.7 billion in 2013, the most recent year for which figures are available; this is equivalent to 8.1 per cent of Dubai’s total GDP and 416,500 jobs, or 21 per cent of total employment. By 2020 it is expected to be US$31.4bn,. This will support 449,500 jobs – 17.6 per cent of total employment.

Regionally, the number of passengers transported by GCC carriers has more than tripled in the past decade to 150 million and, according to Boeing, air traffic in the GCC is expected to grow by 6.2 per cent a year over the next 20 years.

The current vitality of the sector and the ability to attain these lofty – but reachable – goals must not be taken for granted. A report commissioned last year by Nats and produced by Oxford Economics showed that unless changes are implemented in airspace management, the region can expect a $16.3bn loss of economic growth caused by increased delays to flights resulting from insufficient air traffic capacity, management and staffing.

This loss can be avoided if the right measures are put in place early enough. Governments in the region should look to public-private partnerships to play a role in the collaborative development of the region’s airspace, alongside airlines, airports, governments and civil and military authorities.

A key area where these partnerships can help is in enabling the most efficient use of military airspace.

Half of the airspace in the GCC is exclusively for military use. Through partnerships with leading private firms, new technologies can be deployed to help the UAE and other GCC countries expand the flexible use of this airspace while still maintaining critical national security. Just last month, the company for which I work, Nats, announced an agreement with the Japan Air Navigation Service, paving the way for a joint approach to air traffic management in Japanese civil and military airspace above the 2020 Tokyo Olympic Games.

It will require crucial collaboration and cooperation between civil and military authorities, which will promote aviation-led economic development while ensuring national security in a complex and evolving geopolitical environment. It will also enable better use of the airspace, which will directly benefit all stakeholders, inbound and outbound travellers, and wider society.

The United Kingdom is an example of a country with a long history of successfully integrating civil and military operations, where air-traffic management companies work side-by-side with military controllers to manage the airspace optimally.

It is therefore encouraging to see that the UAE’s General Civil Aviation Authority has created this type of partnership to implement a road map to restructure the UAE’s airspace through phase 3 of the UAE Airspace Restructuring Project.

This is certainly a significant step in the right direction but it is also important that these partnerships tackle wider issues such as developing the skills of our local workforce; well-trained people remain at the heart of any sustainable strategy for the successful growth of aviation in the region. Nats, through strategic partnerships with local government entities, has helped to train nationals across the region, including the training and qualification of 115 Omani engineers.

With nationalisation rates as low as 20 per cent in some countries, it is crucial that any air traffic management strategy includes comprehensive training programmes for nationals to ensure that they are able to fill the positions that are key to their nation’s strategies for economic growth and diversification.

Ben Kiff is the Middle East director for Nats, an air-traffic management company.

business@thenational.ae

Follow The National’s Business section on Twitter

http://www.thenational.ae/business/aviation/airspace-management-is-key-to-arabian-gulf-economy

Very encouraging news.

@azzo @alarabi @Decisive Storm @Bubblegum Crisis @الأعرابي

 

[Saif al-Arab]

Saudi Wealth Fund to Get Airports in Privatization Push
​

by Deena Kamel
18. april 2017 07.27 CEST 18. April 2017 14.36 CEST

Saudi Arabia will transfer airports to its sovereign wealth fund by mid-2018, as part of a nationwide privatization drive spurred by low oil prices.

Airports will be turned into companies before being handed over to the Public Investment Fund, to help improve accountability, Faisal Al-Sugair, chairman of Saudi Civil Aviation Holding Co., said in a phone interview. The transfer will also boost oversight as the General Authority of Civil Authority will no longer be both an operator and regulator, he said.

The kingdom aims to win investment in airports as its seeks to revive an aviation industry that’s been dwarfed by competitors in nearby Dubai and Qatar. It’s also looking at privatizing seaports as depressed crude prices weigh on state spending plans.

The wealth fund will take over Saudi Civil Aviation Holding, which will act as an umbrella company for the airport operators, Al-Sugair said. The holding company will be worth “billions of dollars,” he said. The kingdom also has plans to transfer ownership of oil giant Saudi Arabian Oil Co. and proceeds from that company’s initial public offering to the fund.

Airport stakes will be sold off when the operating companies have become stabilized, which could be before they are handed over to the wealth fund, Al-Sugair said. A variety of privatization options are under consideration, including initial public offerings and private stake sales, he said. Different airports may be sold in different ways, and the government is yet to decide what stakes it will retain, he said. PricewaterhouseCoopers and Ernst & Young are advising on the sale process and on turning operators into companies.

The eventual sales may be hampered by “a very bearish market,” Al-Sugair said. “I wouldn’t be surprised if you get less interest -- if you don’t get very good bids because of the situation in the market,” he said. That could lead to sales being re-tendered or postponed, he said.

Al-Sugair declined to comment on the level of interest in current tenders, which include Qassim, Hail, Ahsa and Taif airports, as he’s not directly involved in them. Generally, most bidders for Saudi airports have been European and international airport operators in partnership with contractors and investors, he said.

The country intends to convert Dammam airport into a company by July 1, followed by smaller airports and the Saudi Academy of Civil Aviation, a training provider, in the fourth quarter, Al-Sugair said.

https://www.bloomberg.com/news/arti...-to-get-airports-in-step-toward-privatization

Great news.
​

United's public relations blunder shines a light on GCC airlines
Comment: Instead of attacking Gulf carriers for what is perceived to be unfair practices, US can learn from Emirates and Etihad

By Neil Halligan
Sunday, 16 April 2017 2:11 PM

When the news broke that Donald Trump’s administration was about to impose a ban on electronics being carried on board flights to the US, we knew it was going to be a story of some significance.

As more details slowly emerged, aviation gurus suggested an ulterior motive: Trump’s way of giving the US so-called ‘big three’ an opportunity to regain some of the international territory lost to the Gulf carriers, particularly after the UK and Australia both offered different, but non-disruptive solutions.

Whatever the reason for including the UAE and Qatar in the US ban, it was, for all intents and purposes, a crisis situation.

To ban the use of laptops and tablets on board its aircraft affected a core area of business for Gulf airlines — luxury and corporate travel. Their responses, while in varying degrees of effectiveness, was a lesson in crisis management.

It was calm and measured, issued through their trusted social media channels or through their websites.

The consistent message in the Gulf carriers’ communication for days following the sudden change in US policy was to highlight the many onboard activities of its aircraft that were unaffected by the ban, best summed up by Emirates’ reworking of the Jennifer Aniston ad — ‘Who needs tablets and laptops anyway?’

Airline CEOs and senior execs also played their part, issuing calm statements, assuring passengers that a solution was being worked on.

The premium customers in First and Business Class — corporate travel — is where the Gulf carriers were most concerned.

When the PC or tablet loaning service was rolled out, it was no surprise that it was for premium class only. In time, you could see Economy class being offered the same for a charge, but passengers also have been offered use of the device up until boarding, allaying concerns about losing them in baggage handling.

But the unfolding events over the period of a week underlined the importance of crisis management for any business, not just airlines.

The key elements: prepare in advance, deliver a calm message and find a viable solution were all evident when the Gulf carriers were thrown the US curve ball (albeit based on intelligence services belief of a possible threat to passengers and airlines).

Fast forward to last week and across the pond in the US to see an example of how not to handle a crisis situation.

United Airlines, one of three carriers in an ongoing row with the Gulf carriers over their growth into the US market, made costly errors in how it handled an incident that saw one of its passengers literally thrown off a flight in Chicago that was too full. Videos of the heavy-handed incident went viral online.

In his brand-damaging response, CEO Oscar Munoz initially apologised but, later, the airline called the passenger “disruptive” and “belligerent”.

The belittling comments saw the airline’s market price slump 3 percent and wipe $675m off United’s market cap, marking the biggest decline on a Bloomberg index of a US airline.

Maybe it is time they give a Gulf carrier a call.

http://www.arabianbusiness.com/unit...der-shines-light-on-gcc-airlines--670978.html