Saturday, October 30, 2010

State of the MENA Industry (Aviation)

On 19 October 2010 the Arab Air Carriers Organisation (AACO) held its 43rd AGM in Cairo. Mr Giovanni Basigniani DG/CEO of  IATA addressed the AACO AGM on 20 October 2010 (Click to read the full remarks). Over the last decade MENA went from 5% to 11% of the global passenger traffic. The MENA region has more than $200 billions in aircraft orders. This is an admirable performance and a great challenge to sustain these successes.

I will touch upon three (3) of the topics that Mr. Basignani talked about; Safety, Environment and Government Involvement.

In 2009 the hull loss rate of western built aircraft was 0.71 accidents per every million flights a 36% improvement over the last decade. MENA had no hull losses in 2006 but the rate jumped to 3.32 accidents per million flights in 2009, 4.6 times the world average (click here for the 2009 Aviation Safety Performance). MENA airlines have so far this year eight (8) accidents of which half of them were in Iran.
The growth of aviation in MENA should be accompanied with improved Safety. Global standards such as IOSA (IATA Operational Safety Audit) are important but the region must pay more attention to safety standards. AACO should play a greater role in bringing up safety standards by working closer with affected carriers.

Qatar Airways has been a pioneer in the region in alternative fuels. The region is committed to the reduction of carbon emissions with an average fleet age of 11 years compared to a global 13 years average, it is contributing to improved fuel efficiency. Implementation of performance based navigation at six airports in the region and improving en-route airspace in the gulf is saving thousands of tons in carbon emissions.
In the last ICAO General Assembly, Aviation as a sector managed to ensure that market distortions are removed and that emissions are accounted for once. How would that reflect on EU-ETS (European - Emission Trading Scheme) no one is sure. However, 120 countries have formally registered their opposition to EU-ETS.

Government Involvement
The airline industry should be allowed to operate like a normal business. Government interference with the bilateral system produces very low profit margins in good years and massive losses in bad ones. Import fuel taxes and unilateral runaway charges by airports should be curbed. The airlines should not become cash cows to governments and airport concessionaires, a balanced consultative approach should be the means to meeting end user needs. This is not endemic to MENA only but is also seen in Europe. Open skies agreements with Europe and the USA and continuing restrictions within the region, has meant that long and ultra long range traffic developed faster than intra regional traffic. Airlines should have the commercial freedom to fly where business is.

No comments:

Post a Comment


1 Goal 2010 2012 2013 9/11 AA Abu Dhabi ADAC Air Arabia Air Canada Air India Airberlin aircraft airlines airports ambitions American Airlines Amman aviation AVOD AWST B707-300C B767 B777 B787 BA Bahrain Bahrain Air BangaloreAviation Boeing branding British Airways Business Aviation Cabin Crew Canada change chapter 11 CO Commercials communication community compliance contingency continuity Continuous Improvement cost effective creativity Culture curricula Customer Service Delta Detroit Metro DFW Doha DTW Dubai Dubai Air Show DWC efficiency emergency Emergency Response Emirates employees environment ET409 Etihad ETS EU FA FAA family Flight Attendants flight(s) Flightglobal flydubai GACA Galaxy Tablet GAMCO GCC globalisation GOL Greece Green Gulf Air Hala Hamburg happy health home Hopenhagen Human Resources IFE India Iran Iraq Iraqi Airways Jaffa Jazeera Airways Jet Airways Jordan Just Culture Kuwait Airways LA LCC leadership low cost maintenance management manpower MEA MEBAA MENA Michigan motivation MRO MROAM Oneworld Palestine passengers passion people Philadelphia planet earth Privatization professional QAIA Qantas Qatar Qatar Airways Quality Quick Service Restaurant Radio Repair Stations Risk road roots ROTANAJET Royal Jordanian Safety Sanctions. Sao Jose Dos campos SAT Saudi Arabia Saudi Arabian Airlines Security Sharjah Airport SimliFlying Simplicity SKYTEAM SMS social media Southern California Southwest Airlines Star Alliance Sudan Airways support target teachers Technology terrorism tolerance Toulouse tourism traffic Training transition travel TSA Turkey Twitter UA UAE UBM US Airways VIA Rail Violin Vision volcanic ash Wataniya Airways
Top Blogs
Powered By Invesp