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More than 700 airlines are using the Middle East's 1,200 airports.In 2010 alone, 150 million passengers were handled in the region. By2020, the figure is expected to reach 400 million passengers. There may have been a slowdown in air travel resulting from the global downturn; however, Middle Eastern airports have proven resilient and are seeing a steady improvement. The latest ACI Passenger and Freight Flash Reports indicate a regional registered growth of 11.5% in passenger traffic in May 2012 compared to May 2011.
Meanwhile, air freight traffic also continues to grow
"The Middle East has eclipsed all other regions globally in terms of both freight traffic and the growth of freight capacity this year.For the year to October 2011, freight traffic in the region has risen 8%, while capacity is up 13.7%. Again, like passenger traffic, growth has ameliorated significantly from a few years ago, when it was running at 20-30%," notes CAPA, the Centre for Aviation. In order to face the increase in passenger traffic, the region's largest airlines--Emirates, Qatar Airways, Saudi Airlines and Etihad Airways--are expected to more than triple their current fleets by 2015. Over the next 20 years, 1,580 new aeroplanes valued at $260 billion will be delivered to the Middle East.
Addressing the overcapacity challenge
"The more successful carriers in the region are just as concerned with the challenges raised by their rapid growth as they are with anypotential overcapacity. Emirates and Etihad Airways have both commented recently that airport capacity and infrastructure at their home hubs present a real challenge, and they are not alone in experiencing growing pains," argues CAPA.
To tackle the issue of overcrowded airports and the surge in air-traveller numbers, airlines and local governments are investing huge amounts in the creation, expansion and modernisation of their airports.
Amongst the biggest projects currently under way or planned are Saudi Arabia's Airports ($10 billion), Al Maktoum International Airportin Dubai ($9 billion), Abu Dhabi Airport ($5 billion), Ajman Airport($3 billion) and Bahrain International Airport ($2 billion).
Saudi Arabia's megaprojects
In Saudi Arabia, two of the kingdom's largest airports are going through major expansion work. At Jeddah's King Abdulaziz InternationalAirport, passenger capacity is set to be increased to 80 million within 20 years at a cost of over $7 billion.
Operations at Jeddah's newly-modernised airport should start in 2014, when its capacity will have already been increased from 17 million to 30 million passengers annually. In Riyadh, expansion work at theKing Khaled International Airport is due to begin in November. SaudiArabia reportedly plans to invest $54 billion in its aviation sectorin the next five years. Not just dreams of grandeur but a real necessity, as religious tourism is on the rise in the kingdom: the Umrah (Islamic pilgrimage) sector is estimated to be growing at a rate of 35% a year, and Saudi Arabia already welcomes 7 million visitors annually.
The Middle East's Number I hub
Close by in the UAE, Dubai International is currently the Middle East's busiest airport, ranked fourth globally in terms of international passenger traffic.
The aviation sector generates a sizeable chunk of the emirate's economy: it contributes 28% of Dubai's gross domestic product, or $22 billion.
It is therefore key for the emirate to preserve its share of this very lucrative market. That is why, under Dubai Airports Strategic Plan 2020, the emirate plans to invest $7.8 billion to boost Dubai International's capacity from 60 million passengers to 90 million by 2018.
However, Dubai's new major airport project, the $34 billion Al Maktoum International Airport in Jebel Ali, will replace Dubai International as the Middle East's major aviation hub.
The new airport, which is scheduled to be the world's largest by the time it opens, is likely to begin full commercial passenger services from 2027, the CEO of Dubai Airports recently said.
It is estimated that by 2015, Dubai, Doha and Abu Dhabi airports will reach a combined annual capacity of 190 million passengers.
Not just for travelling
In a new study entitled Reinventing the Airport Ecosystem issued in May, Amadeus, a travel technology partner and transaction processorfor the global travel and tourism industry, says that the next two decades hold great potential for airports and all those involved in air travel.
"We expect a rapid pace of development as social change and new technology propel the airport from its current focus of serving passengers for air travel to encompass a far wider existence that provides agreater breadth of services," the report says.
In other words, rather than just a place to board a flight, airports in the future will be places people choose to go to for other reasons, such as shopping, attending conferences, restaurant and entertainment facilities, etc.
The Middle East's current and future airports are particularly well positioned to tap into the growth of such a trend. ACI (Airport Council International) notes that non-aeronautical revenues have grown from about 30% of total airport revenues in 1990 to 50% or more today.
In Dubai, the figure is reported to be as high as 60%. Not a surprise for those who have experienced the shopping facilities of Dubai'smain airport, which are akin to those of a large mall.
"Imagine an airport where the retail experience is so impressive you choose to shop there without even flying; or using an in-flight app to make purchases you can pick up once you have landed.
"It is an exciting future but airports, airlines and the whole eco-system need to make cooperative decisions to unlock this potential,"said Antoine Medawar, vice-president, Middle East and North Africa, at Amadeus.
Judging by the tens of billions of dollars pumped into the development of world-class air travel facilities in the Middle East, this dream will very soon turn into a reality.
Copyright 2012 Gale Group, Inc.All Rights ReservedASAP LNWPCopyright 2012 IC Publications Ltd.
