Tuesday, Nov 29, 2016

Dubai: The International Air Transport Association has called on the Middle East and North Africa (Mena) region to prioritise key areas, including infrastructure, taxes or charges, consumer protection and security in order to boost the aviation industry.

Passenger demand in the region is forecast to expand by 4.8 per cent each year on average over the next 20 years, to become a market of 400 million passengers in 2035.

Meeting the demand means that the number of aviation jobs in the region will grow from 2.4 million to 3.9 million over the same period. At the same time, the industry’s contribution to regional GDP is expected to increase from $157.2 billion to $359.5 billion.

Alexandre de Juniac, IATA’s director general and CEO, said that in order for the aviation industry to keep its competitive advantage, the region must, among others, ensure that “capital expenditure aligns industry growth, required service levels and acceptable costs.”

“Continuous consultation is needed,” said de Juniac during his opening remarks at the Arab Air Carriers Organisation (AACO) 49th Annual General Meeting in Casablanca, Morocco.

The IATA official also expressed caution on infrastructure privatisation and urged governments to effectively balance public and private interests.

“The desire to harness commercial discipline in managing airports is understandable. But despite many privatisations around the world, we have not seen any examples of airport privatisation that have truly met expectations, said de Juniac.

He also urged cooperation to reverse unprecedented rises in taxes and charges - about $700 million in extra costs in 2015 alone.

“Every dollar that a passenger spends in the region creates jobs and spreads prosperity. And every dollar collected in taxes or charges is an incentive for travelers to go elsewhere. A low cost structure is a key component of the region’s success—particularly in the Gulf,” said de Juniac.

Staff Report

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