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As the United Arab Emirates celebrates its 40th anniversary, Aviation Business takes a special look at the country’s sky high ambitions to become the global aviation superhub of tomorrow.
2010s and beyond: A Bright Future
A year later than expected, Al Maktoum International Airport opened for cargo operations in June 2010 with the passenger side expected to commence in 2012. The scale for the US$33 billion airport is mind-blowing. Once fully completed, the development will comprise of five runways, four passenger terminals with a potential capacity to accommodate a 160 million arrivals a year, and 18 cargo terminals.
As the last year in the UAE’s 40 year aviation journey, 2011 has continued to impress and inspire. IATA (International Air Transport Association) has predicted that the UAE will be the second fastest growth market for international passenger traffic from 2009 to 2014 (just behind China). In fact the country has never been better placed to cope with this expected continued growth. Emirates Airline has already posted a record US$1.6 billion profit. In a further sign of huge market confidence, last month the carrier placed the largest dollar order in Boeing’s 95-year history, valued at a staggering US$26 billion. Its nearest rival, Etihad also reported an increase in revenue of 39% to US$1.1 billion in the third quarter of this year, its highest quarterly result ever with passenger numbers rising 18% to 2.25 million. On track to breakeven in 2011, the carrier is confident of making a profit next year and has added six more aircraft to its fleet in the past year.
Airport developments also hold strong for the future. Earlier this year, Dubai Airport announced a US$7.8 billion expansion plan to increase its annual passenger capacity from 60 to 90 million passengers by 2018. As part of this, the airport’s dedicated A380 facility, Concourse 3 is set to open in 2012 at the same time as giant Dubai World Central-Al Maktoum international commences its passenger services. Abu Dhabi Airport continues to implement its expansion plans, aimed at increasing passenger capacity from 20 to 40 million passengers by 2030. Work on the huge Midfield Terminal Building is promised to start shortly. Once opened in 2017, this 700,000 metre building will be home to Etihad Airways. Other emirates are also gunning up their airports. Savvy enough to appreciate that competing for passenger and cargo traffic with Dubai and Abu Dhabi, Fujairah airport boasts an executive terminal and growing share in the UAE’s business jet market. Rather than compete for passenger and cargo revenue, Fujairah has been investing heavily in infrastructure development to become the UAE’s centre for aircraft dismantling. RAK Airport too has been experiencing steady growth in both passenger and cargo movements, with a 3769m long runway, two passenger terminal buildings and a cargo terminal facility.
Over these past four decades, the UAE has carved an impressive platform for itself on the global aviation arena. Alongside the enormous airport and airline expansions, the region has seen knock-on success in associated aviation niches such as the MRO industry, aviation training providers and cargo operators. Nevertheless, the region’s fast-paced and seemingly relentless growth has not been without its critics. Earlier this year, three European airlines (Air France, British Airways and Lufthansa) were involved in a public battle of exchanges with the ‘big 3’ Gulf carriers (namely Emirates, Etihad and Qatar Airways). and this politically-charged debate for ‘a level playing field’ looks set to continue. However, the future still bodes well for the industry as it approaches its next decade with a cool head and a plan for consolidation and further growth.
CLICK HERE FOR THE PREVIOUS DECADE: 2000s: Overcoming Challenges
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