Jetrader - Winter 2014 - 26
State of the Regions:
Middle East
Smaller than you might think, but still the fastest growing
By Mamoun Kuzbari, Executive Vice President, Novus Aviation Capital
Market Outlook
One could easily be forgiven for thinking that the Middle East
region was one of the world's largest for air transport given the
high profile media attention constantly focused on the "Big
Three" airlines (Emirates, Qatar and Etihad) domiciled in countries within the Gulf Cooperation Council (GCC). Hardly a day goes
by without speculation as to when Dubai International Airport
(DXB) will overtake London Heathrow (LHR) as the world's largest
international hub, or how long it will take for Emirates to become
the biggest operator of yet another aircraft type alongside the
777-300ER and A380-800.
The rather harsher reality, of course, is that there are two
sub-regions within the Middle East that are experiencing rather
differing political and economic fortunes, and the one containing
the GCC airlines is in a totally different operating environment to
the other one that includes the troubled lands located between
Iran and the Mediterranean. Even though the relative population
sizes of Qatar and the United Arab Emirates are small, the very
large expatriate communities in these countries and the "one-stop
anywhere" connectivity strategy through the home hub airports
of the Big Three has fuelled sustained growth in aircraft numbers
and traffic over many years.
The latest IATA statistics show that growth for the Middle East
region as a whole is surging far above the world average. In July
2014, available seat kilometers (ASK) passenger capacity rose
by 8.1 percent versus July 2013, and the available freight tonne
kilometer (AFTK) output was 7.8 percent higher. These figures
compare favorably with the world average of 5.3 percent and
2.9 percent, respectively. More importantly, demand exceeded
the additional capacity introduced in both passenger and freight
classes, facilitating a boost to passenger (78.2 percent) and cargo
(43.4 percent) load factors. As it turns out, July 2014 was a relatively quiet month for travel in the Middle East, probably due to
the timing of Ramadan, as year-to-date figures show a stronger
revenue passenger kilometers (RPK) performance of 12.3 percent
and FTKs up by 9.8 percent against the average of 5.8 percent
and 4.4 percent.
Despite impressive traffic and capacity figures, the airlines
of the Middle East region only appear to be generating modest
returns, according to IATA's latest financial forecast, although
this is spread over a relatively small number of airlines. In fact,
the US$1 billion in net profit achieved in both 2012 and 2013 can,
arguably, be attributed to just one carrier. According to Emirates'
Source: IATA
26 The official publication of the International Society of Transport Aircraft Trading
Jetrader - Winter 2014
Table of Contents for the Digital Edition of Jetrader - Winter 2014
A Message from the President
Calendar/News
Q&A: Robert T. Convey, Aeronautical Engineers, Inc.
ISTAT in Istanbul
Thank You to the ISTAT Europe 2014 Sponsors
State of the Regions: Middle East
Information is the ‘Lifeblood for Appraisers’
Aviation & Medical Technology
Generation Battle
ISTAT Foundation Supports Youth Aviation Experience
Is it Time for a Tune-Up?
Aviation History
Aircraft Appraisals
ISTAT Foundation
Advertiser.com
Advertiser Index
Jetrader - Winter 2014 - cover1
Jetrader - Winter 2014 - cover2
Jetrader - Winter 2014 - 3
Jetrader - Winter 2014 - 4
Jetrader - Winter 2014 - A Message from the President
Jetrader - Winter 2014 - 6
Jetrader - Winter 2014 - 7
Jetrader - Winter 2014 - Calendar/News
Jetrader - Winter 2014 - 9
Jetrader - Winter 2014 - Q&A: Robert T. Convey, Aeronautical Engineers, Inc.
Jetrader - Winter 2014 - 11
Jetrader - Winter 2014 - ISTAT in Istanbul
Jetrader - Winter 2014 - 13
Jetrader - Winter 2014 - 14
Jetrader - Winter 2014 - 15
Jetrader - Winter 2014 - 16
Jetrader - Winter 2014 - 17
Jetrader - Winter 2014 - 18
Jetrader - Winter 2014 - 19
Jetrader - Winter 2014 - 20
Jetrader - Winter 2014 - 21
Jetrader - Winter 2014 - 22
Jetrader - Winter 2014 - 23
Jetrader - Winter 2014 - Thank You to the ISTAT Europe 2014 Sponsors
Jetrader - Winter 2014 - 25
Jetrader - Winter 2014 - State of the Regions: Middle East
Jetrader - Winter 2014 - 27
Jetrader - Winter 2014 - 28
Jetrader - Winter 2014 - 29
Jetrader - Winter 2014 - Information is the ‘Lifeblood for Appraisers’
Jetrader - Winter 2014 - 31
Jetrader - Winter 2014 - 32
Jetrader - Winter 2014 - Aviation & Medical Technology
Jetrader - Winter 2014 - 34
Jetrader - Winter 2014 - 35
Jetrader - Winter 2014 - Generation Battle
Jetrader - Winter 2014 - 37
Jetrader - Winter 2014 - 38
Jetrader - Winter 2014 - 39
Jetrader - Winter 2014 - ISTAT Foundation Supports Youth Aviation Experience
Jetrader - Winter 2014 - 41
Jetrader - Winter 2014 - Is it Time for a Tune-Up?
Jetrader - Winter 2014 - 43
Jetrader - Winter 2014 - Aviation History
Jetrader - Winter 2014 - 45
Jetrader - Winter 2014 - 46
Jetrader - Winter 2014 - 47
Jetrader - Winter 2014 - 48
Jetrader - Winter 2014 - Aircraft Appraisals
Jetrader - Winter 2014 - 50
Jetrader - Winter 2014 - ISTAT Foundation
Jetrader - Winter 2014 - 52
Jetrader - Winter 2014 - 53
Jetrader - Winter 2014 - Advertiser Index
Jetrader - Winter 2014 - cover3
Jetrader - Winter 2014 - cover4
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