Air Arabia CEO: Middle East aviation market poised for sustained growth

27 Jun 2007

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Mumbai: The aviation market in the Middle East is poised for significant, sustained growth, according to Adel Ali, chief executive officer, Air Arabia, the first and largest low-cost carrier (LCC) in the Middle East and North Africa region.

According to Ali, the Middle East will lead world passenger traffic growth, with current travel demand up 18 per cent. The projected increase in the Middle East's share of global tourism was at 4.4 per cent by 2020, he said. Ali was speaking at the recently concluded fourth annual India and Middle East Low-Cost Carrier Symposium in Mumbai.

"With three major emerging markets - including China, India and the CIS countries - located right in our backyard, the Middle East is perfectly placed to meet the needs of travelers across this wider region," Ali said. "Each of these areas is currently experiencing sustained increases in passenger traffic, and the Middle East can become the hub for this vast swath of the globe."

According to Ali, 'The growth opportunities for the Middle East aviation market are not only linked to geography, however; the sector's expansion is also being driven by deregulation and liberalisation, by economic diversification and sustained growth, and by the region's demographics, including the very large expatriate populations in the Gulf states. All of these factors contribute to the incredible success story taking place here, which has also made the Middle East, one of the fastest-growing region in the world in terms of tourism arrivals."

Talking about the low-cost carrier segment in particular, Ali said, "While demand is increasing across the sector, the outlook for LCCs is especially bright. Consider that, in North America, LCCs market penetration rate account for roughly 25 per cent of market share; here in the Middle East, LCCs make up just 0.1 per cent of the market. Air Arabia has been able to successfully introduce the LCC model to the region and customise it to meet the needs of travelers here. As a result, regional perceptions of LCCs are changing fast."

Looking at future tends for LCCs in the region, Ali said, 'Looking at our geographic advantage, the strength of the region's economies and the demographic trends - today, it is clear that the LCC segment here is poised for takeoff. By meeting the unique needs of customers in the region, Middle East-based low-cost carriers can make a huge contribution to both the travel industry and the growth of the region as a whole.'

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