Middle East region set to dominate global aviation

Abu Dhabi: The Middle East region is poised to redefine global aviation, as local carriers and airports undergo massive capacity expansion and foreign airlines establish in the region, according to the executive chairman of the Centre for Asia Pacific Aviation (CAPA), Peter Harbison.

"Next-generation aviation is an amalgam of airline, airport and coordinated policy leadership which makes possible the rapid growth of air services and passenger travel through the Middle East at long-term rates previously believed to be achievable only over short periods,'' he told a recent aviation conference in Abu Dhabi.

Harbison pointed out that over $50 billion is being spent on Middle East airport infrastructure and a handful of Gulf airlines over the last year have racked up order books of over $50 billion in aircraft orders alone, most of them for twin-aisle, long-haul equipment.

The Middle East region is also ideally placed geographically to derive the greatest value from a new generation of extra-long range aircraft, making one-stop travel possible between any two points on earth via this region.

"What we are witnessing is a change of seismic proportions, not merely an evolution that can be tracked by traditional measures. For we will see not only the rapid growth of locally-based airlines, we will also see major foreign airlines establish in the Middle East, in order to use it as a springboard for their future development. Under the emerging regulatory regimes, this will be possible, where it was not before," said Harbison.

Overall, this combination of developments creates an "irresistible force for change", Harbison said. "It is good for the consumer, good for national economies, good for business - and, importantly, has unique environmental advantages, as new aircraft fly through uncongested hubs and offer fuel-saving one-stop service, where previously two-stops or more would have been necessary."

According to Etihad Airways' chief executive James Hogan, the Middle East and North Africa were the fastest growing regions for air passenger and cargo traffic in 2006 and this growth is set to continue at seven per cent each year between now and 2011. This is the highest of any region in the world.

He added that progressive deregulation and liberalisation is also opening up further opportunities for traffic growth.

Hogan also pointed out that year-on-year gross domestic product growth in the Middle East, of between five and six per cent, would lead to the emergence of an economic powerhouse akin to India and China.

"The global aviation order is changing and the roots of growth and development that will make the Middle East the centre of global aviation can now be seen,'' he said.