Fri, Oct 20, 2006
Tons Of Money Going Into Planes And Airports
Commercial aviation in
the middle-east is booming, experts just aren’t sure the
demand will be there to support it.
There are now four major airlines supporting the Gulf along with
a few low-cost regionals, and they’re all investing heavily
in more planes and airport improvements.
Industry analysts say flights to and from the region this year
increased 15-percent from last year. That increase is higher than
any other region in the world. Despite that,some industry observers
have doubts.
Experts say an increase on a small number to begin with doesn't
add up to much. They are questioning whether competition between
the four majors in the region might prove destructive for all.
Emirates CEO Sheikh Ahmed al Maktoum told CNN, "When Emirates
flies to any airport we are competing with all the airlines who
operate there. So there will always be competition. I believe that
all four airlines can survive."
Less than a million people live in Qatar, and it’s
building an airport capable of supporting 50 million passengers
annually. In the United Arab Emirates, Dubai and Abu Dhabi are also
pouring money into airport expansion projects, $9 billion at Dubai
alone.
What’s confusing to analysts is the three airports are
within 200 miles of each other, and all have hopes of becoming the
region’s major hub.
Airport expansion in the area is in direct support of new
aircraft purchases. Emirates ordered $30 billion dollars of new
planes last year. Qatar Airlines bought ten new Airbus’s.
Etihad now has a fleet of 52, three years after its first passenger
flight.
Obviously, airlines and airports are confident in their growth
estimates. After all, they’re backing that confidence with
enormous amounts of money.
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