Raising costs for airlines and the growth in infrastructure in the GCC countries are being discussed at the Middle East Airport Projects Conference, opening today in the Kingdom of Bahrain.
The conference organised by MEED and held under the patronage of the Ministry of Transportation, Civil Aviation Department, opened with a welcoming speech from His Excellency Captain Abdulrahaman Moh’d Algaoud, undersecretary for Civil Aviation who welcomed the delegates to Bahrain, one of the main players in the growth of the aviation industry in the GCC.
Following H.E. Captain Algaoud, was James Hogan, President and Chief Executive of Gulf Air. Hogan presented a challenging environment for the aviation industry quoting high fuel costs and increased security costs as the main challenges.
He quoted Giovanni Bisignani, Director General and CEO of IATA saying in May 2005 that “the high price of fuel is destroying our profitability”.
If indeed Hogan shares the serious outlook on the industry - “fuel is now USD 6 billion higher than 2004 and security costs have risen to USD 5.6 billion since 9.11” – he also sees the Middle East as perfectly positioned to spearhead the renewed growth of this industry.
“The Middle East is perfectly positioned to be the hub of the world as anywhere from here is only one flight away.” He continues: “With the first class infrastructure that is growing around us and the fact that we can assure the highest level of service, this region is going to soon emerge as a world leader.”
Leadership is already being established in first and business class growth experienced by Gulf Air in the past year. The premium revenue has risen by 26% from USD 150 million in 2004 to USD 200 in 2005 despite the 2% reduction in seats.
The Middle East Airport Projects Conference is being held at the Diplomat SAS Radisson Hotel Manama, in the Kingdom of Bahrain, on December 11 and 12. Sponsors are Bahrain International Airport; the Supervision Committee for the Development of Abu Dhabi International Airport (SCADIA) and TAV.
A full agenda and additional information can be found on www.meed.com/airports
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