Industry experts have claimed that investors are enthusiastic about the idea of the increasing number of opportunities in the worldwide aviation sector.
According to the ‘Aviation Industry Report’, which was released by KPMG, the improvement in the worldwide economy over the course of the last 10 years has seen an increase in airline profitability.
Airlines have also matured with the employment of superior cost control and capacity management and have seen many benefits from the massive increase in passenger air travel demand.
In regard to the prevailing environment for investment in the United Arab Emirates, which has one of the world’s largest aviation industries, the country is keen to attract outside investors to the sector. This is according to the director general of the General Authority of Civil Aviation (GCAA), Mohammed Al Suwaidi.
Al Suwaidi says that the UAE welcomes any investor who wishes to have their business established in national airports and carriers.
Many investors have started new businesses within the aviation sector in the UAE, which is worth more than $1tn.
Free zones and airports in the UAE have fewer restrictions in regard to foreign capital, and they welcome foreign investors starting new businesses that contribute to the sector’s advancement, Al Suwaidi adds.
An exclusive platform has been created for maintenance and aerospace activities at the Dubai South platform, according to Dubai South’s vice president of aviation Tahnoon Saif.
Clients are regularly being met with GCAA support, and the business is expanding at the Mohammed Bin Rashid Aerospace Hub, Saif adds.
Saif also says that the company is optimistic about the possibilities for further growth by next year.
The KPMG report has given investor confidence a further boost with the revelation that over $100bn in projects are in the planning stages or in some cases already under construction throughout the Gulf and elsewhere.
John Strickland, an international industry consultant and aviation expert, says that even with some problems, Emirates and other regional carriers are enjoying an enormous geographic advantage.
This provides access to important growth markets with up-to-the-minute hub capacity and fleets.
There are a long list of such projects in the region, including the $1bn expansion programme at Bahrain International Airport and a new runway and new terminal at Kuwait International Airport.
There are also more local expansion projects in airports in Dubai, Abu Dhabi and Sharjah.
Four major growth areas have been identified as emerging sector trends by experts:
- Aviation in Europe has outperformed expected growth, a trend that looks set to continue.
- There is likely to be a boost in the air freight industry because of the growing popularity of same-day or next-day delivery with online customers.
- Asian countries, particularly the ASEAN nations, China and Pakistan, are expected to make massive strides in terms of growth in the next 12 months.
- The ‘premium economy’ model looks set to undergo a boom, with American Airlines and Emirates also recently introducing the options.
Anyone who is looking to travel in or out of the UAE will need to take out travel insurance.
Travel insurance compensates for the financial losses that may be incurred due to cancelled flights, lost or stolen personal items, and other unforeseen events that can occur during trips.