·
Emirates,
Etihad, SAUDIA, Qatar Airways continue to drive investment
· Aviation sector expected 6% CAGR over next five years
The Middle East’s aviation industry is expected to expand at a compound annual growth rate (CAGR) of more than 6 percent during the period 2022-27, according to data from research firm Mordor Intelligence. The news comes as the global travel and tourism community prepares to gather in Dubai for Arabian Travel Market (ATM) 2022, which will take place at Dubai World Trade Centre (DWTC) from Monday 9 to Thursday 12 May.
Although the recovery estimated
for international passenger traffic is gradual, Mordor Intelligence shows that
the Middle East’s private and domestic aviation segments remained resilient
during the pandemic and are continuing to display signs of growth.
Danielle Curtis, Exhibition Director ME –
Arabian Travel Market, said: “The latest market analysis suggests that budget
carriers such as Air Arabia Abu Dhabi and Wizz Air Abu Dhabi will drive demand
for new narrow-body aircraft during the coming years.
“The Middle East’s aviation sector has also witnessed high demand for private travel during recent years, thanks to corporations and high-net-worth individuals (HNWIs) opting for business jet and helicopter journeys during the pandemic,” she added.
“As such, the Middle East’s
aviation sector will represent a major focus at ATM 2022, thanks to a dedicated
session on the ATM Global Stage, plus a number of related events and forums
throughout the event. We also look forward to exploring long-term opportunities
related to the future of transport,” she added.
On the second day of ATM
2022, ‘Airlines
Evolving for the Future: Hear From the Industry Leaders’ will
address pandemic-related challenges faced by the industry. Moderated by John
Strickland, Director of JLS Consulting, speakers including Tony Douglas, Group
Chief Executive Officer of Etihad Aviation Group and Adel Abdullah Al Ali,
Board Member and Group Chief Executive Officer of Air Arabia, will also share
insights into opportunities and likely structural change within the aviation
sector as its recovery continues.
Later the same day, ‘The
Future of Transport’ session, held in conjunction with the Global Travel &
Tourism Resilience Council, will explore new and emerging modes of
transport – such as hyperloop systems, driverless vehicles, next-generation
aircraft and space travel – with the potential to revolutionise how we move
from A to B. Moderated by Sarah Hedley Hymers, Editorial Director in the Middle
East for Connecting Travel, speakers will include Kuljit Ghata-Aura, President
– Middle East, Turkey & Africa at Boeing; Kata Cserep, Vice President and
Global Managing Director – Aviation at ICF; and Karime Makhlouf, Chief
Commercial Officer at Royal Jordanian.
“Market leaders such as
Emirates, Etihad, SAUDIA, Qatar Airways and others also reflect a positive
longer-term trajectory for the sector,” added Curtis.
In October 2021, Etihad
announced it had raised $1.2 billion as part of the first regional
sustainability-linked loan (SSL) to include environmental, social and
governance (ESG) metrics. The deal’s terms were tied to targets to reduce CO2
emissions, increase corporate governance and promote female participation.
In November
2021, Emirates announced a major retrofit programme which will see 52 of its
existing A380 aircraft fitted with Premium Economy cabins and other
enhancements, signalling its optimism for industry recovery
and the return of travel demand. The following month, Emirates received
delivery of its 123rd Airbus A380 superjumbo jet, despite the
outbreak of the Omicron variant.
More recently in January 2022,
Boeing revealed that it had won a major order from Qatar Airways worth $34
billion at list prices. The order includes the purchase of 25 Boeing 737 Max 10
jets along with options to buy 25 more. Qatar’s national airline also signed an
order for 34 Boeing 777X models, with options to buy 16 more.
Meanwhile, in the kingdom,
Saudi Arabian Airlines (SAUDIA) is reported to be mulling an order of more than
100 aircraft from either Airbus or Boeing, according to Mordor Intelligence.
The carrier aims to grow its fleet to 250 aircraft by 2030.
Now in its 29th year and
working in collaboration with the Dubai World Trade Centre (DWTC) and Dubai’s
Department of Economy and Tourism (DET) – formerly the Department of Tourism
and Commerce Marketing (DTCM), this year’s edition of ATM will commence on
Monday 9 May, following the UAE government’s forward-thinking transition to the
Monday-to-Friday workweek,
If you are planning to
attend ATM in person, please feel free to post using the hashtags #ATMDubai and #IamgoingtoATM.
To register for ATM 2022, go to https://www.wtm.com/atm/en-gb/enquire.html.
For more news about ATM, you can visit https://hub.wtm.com/category/press/atm-press-releases/.
For general information on
this year’s show, please visit wtm.com/atm/en-gb.html.
