Jetrader - November/December 2011 - 18

State of the Regions

Commercial
By Peter Negline, Head of Strategy & Market Research, BOC Aviation

in the Middle East

A
Inflows 1980 2.8 .. 1.0 0.6 1.4 4.1 0.7 0.4 0.3 India China Mexico Philippines Outflows United States Saudi Arabia Kuwait Oman Bahrain

viation

Success of Mideast carriers depends on forward vision
References in this article to the Middle East includes Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Palestine, Qatar, Saudi Arabia, Syria, United Arab Emirates and Yemen. The six Gulf Cooperation Council (GCC) countries are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Imperial Airways had built a range of connections through the region as staging posts to colonies in Asia. Flying boats were primarily deployed on these routes. After World War II, airline operations in the Mideast blossomed with Iranian Airways, Iraqi Airways, Kuwait Airways, Syrian Airlines, Saudi Arabian Airways and the predecessor of Gulf Air all beginning Table 1 – Remittance Income Flows (US$bn) 1990 2.4 0.2 3.1 1.5 11.9 11.2 0.8 0.9 0.3 2000 12.9 5.2 7.5 7.0 31.0 15.4 1.7 1.5 1.0 2010 53.1 51.3 22.0 21.4 48.3 26.0 9.9 5.3 1.4

Middle East has Always Been a Transit Point1
The history of the Middle East as a transit point dates back some 5,000 years when spices and other precious goods moved between Mesopotamia and the Indus Valley. While not as old, aviation traces its routes back to 1910—only seven years after the Wright Brothers first flight—when scenic flights operated over the pyramids in Egypt. At the end of World War I, aircraft reached the Middle East proper, but these were largely technical stops for flights from Europe onward to India and eventually Australia. By 1929, KLM started a regular service to Batavia (now Jakarta) operating a Fokker F.12 aircraft with four seats. From 1930, Imperial Airways operated routes through the Mideast, followed in 1937 by the launch of its first commercial service to Dubai. By the outbreak of World War II, Air France, KLM and

Source: World Bank

Table 2 – Air traffic capacity between GCC and India, pre & post liberalization Pre-liberalization (2003 – 04) Points of call Foreign carrier into India 6 4 5 7 5 4 Indian carrier rights 1 2 1 1 1 3 Seats/ wk 54,200 11,550 12,000 13,768 24,778 20,000 Post-liberalization (2008 -09) Points of call Foreign carrier into India 14 12 9 9 13 8 Indian carrier rights 1 2 1 1 1 3 Capacity Utilization Foreign carrier into India 99% 97% 76% 88% 79% 52% Indian carriers 46% 79% 33% 19% 20% 40%

Point in GCC Dubai Oman Kuwait Bahrain Qatar Saudi Arabia

Seats/wk 10,400 3,774 5,200 11,186 2,872 8,500

Source: Indian CAG report 18 The official publication of the International Society of Transport Aircraft Trading



http://www.naylornetwork.com/ist-nxt/

Jetrader - November/December 2011

Table of Contents for the Digital Edition of Jetrader - November/December 2011

A Message from the President
Calendar/News
Q&A: Ulrich Schulte-Strathaus
Best of Barcelona
Thank You Sponsors
State of the Regions: Middle East
Second Life for Aging Aircraft
Predictive Maintenance in Aging Aircraft Systems
FAA & Eurocontrol Policy Updates
Aircraft Appraisals
From the ISTAT Foundation
Aviation History
In Memory
Advertiser.com/ Advertiser Index
Jetrader - November/December 2011 - cover1
Jetrader - November/December 2011 - cover2
Jetrader - November/December 2011 - 3
Jetrader - November/December 2011 - 4
Jetrader - November/December 2011 - A Message from the President
Jetrader - November/December 2011 - 6
Jetrader - November/December 2011 - 7
Jetrader - November/December 2011 - 8
Jetrader - November/December 2011 - Calendar/News
Jetrader - November/December 2011 - Q&A: Ulrich Schulte-Strathaus
Jetrader - November/December 2011 - 11
Jetrader - November/December 2011 - Best of Barcelona
Jetrader - November/December 2011 - 13
Jetrader - November/December 2011 - 14
Jetrader - November/December 2011 - 15
Jetrader - November/December 2011 - 16
Jetrader - November/December 2011 - Thank You Sponsors
Jetrader - November/December 2011 - State of the Regions: Middle East
Jetrader - November/December 2011 - 19
Jetrader - November/December 2011 - 20
Jetrader - November/December 2011 - 21
Jetrader - November/December 2011 - Second Life for Aging Aircraft
Jetrader - November/December 2011 - 23
Jetrader - November/December 2011 - 24
Jetrader - November/December 2011 - 25
Jetrader - November/December 2011 - Predictive Maintenance in Aging Aircraft Systems
Jetrader - November/December 2011 - 27
Jetrader - November/December 2011 - 28
Jetrader - November/December 2011 - FAA & Eurocontrol Policy Updates
Jetrader - November/December 2011 - 30
Jetrader - November/December 2011 - Aircraft Appraisals
Jetrader - November/December 2011 - 32
Jetrader - November/December 2011 - 33
Jetrader - November/December 2011 - From the ISTAT Foundation
Jetrader - November/December 2011 - Aviation History
Jetrader - November/December 2011 - 36
Jetrader - November/December 2011 - In Memory
Jetrader - November/December 2011 - Advertiser.com/ Advertiser Index
Jetrader - November/December 2011 - cover3
Jetrader - November/December 2011 - cover4
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