Middle East's Aviation Sector on a Growth Trajectory

Dubai, May 24 -- The Middle East aviation sector is poised to continue flying high, as key industry heavy-weights, who attended the Airport Show-2012 in Dubai, expressed keen interest in the region where an estimated US $400 billion is expected to be invested in the airlines and airports in the near future.

The three-day (May 22 -24) Airport Show concluded at the Dubai International Convention & Exhibition Center on Thursday with over 210 exhibitors from 32 countries participating successfully. The Airport Show, once again, provided the global aviation industry the opportunity to tap the vast growth potential in the Middle East region in general and GCC states in particular as massive investments are in the pipeline in terms of airports expansions, said Mr.Mohamad Bader-Eddin, Show Director at Reed Exhibitions Middle East, organizers of Airport Show. "There is more positive hope and huge prospects for long-term growth for the global aviation industry in this region and this year's show reflected the enthusiasm and interest among the buyers and suppliers of technology and services from across the world," he added. Mr. Dieter A. Heinz, President of German Airport Technology & Equipment (GATE) and a long-term supporter and exhibitor at the Airport Show, feels the present climate is more convivial to growth than ever before. He pointed out that in the long-term, given today's geo-political environment, there will be a great deal of stress when traveling flying, not necessarily in terms of flying, but in relation to airports in general, where security regulations, congestion and time-consuming operations will lead to a feeling of anxiety among passengers. "Eventually the airports that manage to ensure the quality of passenger handling cater to his or her overall ease of traveling, ensuring a stress-free travel experience, will be the ones that manage to attract passengers. At a time when so many airlines offer so many different travel deals, it is no longer money spent to get the best of resources that will matter. What will make the difference is making sure the passenger relaxes and has a pleasant airport transit experience," he pointed out. Mr. Hans Christian Ettengruber, Managing Director, Unitechnik-ICM Middle East, who has also been representing his company at the Dubai Airport Show for several years now, felt that the region's growth momentum and the sheer synergy between the different economic players have brought to fruition the vision of the leaders. "Dubai's strategic geographical position stands in good stead when it comes to attracting profitability and growth. What's more, compared to South America, China and other growth areas, here you get a sense of urgency to get it done. For instance, when parking spaces were a problem for Emirates Airlines, owing to their ever-increasing fleet (it is amazing that Emirates acquires two aircraft a month!), they simply moved cargo operations away from the terminal to Jebel Ali. While this may increase their operational costs, it needed to be done to continue with its growth plans. Such decisions can only send the right signals out to the industry," Ettengruber said. Echoing these sentiments about the ease and flexibility of implementing new developments in Dubai and the region, Michael H. Lampen, Chief Executive Officer, Siemens SD (Middle East) Infrastructure Logistics, noted that the event had definitely grown in the last two years, defying recession worries in Europe and elsewhere. He was happy that the concept of green and efficient airports had gathered steam at this year's event, with ever-increasing participation by companies dealing with environment-friendly technologies. He said the event was a great networking opportunity for aviation professionals to up their ante, and adopt state-of-the-art technologies in daily operations. Siemens is involved with providing operator and maintenance support at the Dubai World Central DWC in Jebel Ali and the Abu Dhabi Terminal as well. Mr. Khizar Edroos, Chairman of Excel Industry Co. LLC, Ajman, pointed out that the Middle East and Asia were rapidly growing markets, as clearly seen by the ambitious airport expansion plans in Saudi Arabia, Qatar and Oman among other places. He cited the US$6 billion expansion plans announced for Kuwait International Airport as another case in point. He noted that his own company in 2009, in the wake of the global financial crisis, had witnessed a 40 per cent drop in sales, which in 2011 had seen a climb of up to 30 per cent. He expected to the business to back in full bloom in 2015, adding that the region constantly witnessed highs and lows, as did every other important business hub in the world. Mr. Frank Erb, Aviation Director of the UK-based Serco, which deals with aviation industry and has been servicing the region since the 1940s, opined that the company had started prioritizing the Middle East region over the last two years, with its two centres of excellence located in Dubai and Abu Dhabi. The company also had ensured that 10 per cent of its workforce in the region was Emirati, in keeping with the government's Emiratisation programme. Mr.Frank added that Serco's presence at the exhibition was to express support to the government and region as it continued to grow, and to interact with existing customers here. Dr. Joachim Dohner, Director, Airport Logistics, Grenzebach Automation GmbH, said that the Middle East airports were currently in an enviable situation, as most of the development and infrastructure expansion was happening right now. Which meant state-of-the-art technology could be implemented and the pace of growth sustained for a long-term.