Panama Jack
30th Nov 2004, 23:25
Gulf Air taking global aviation crisis in its stride
Published: 30 November 2004
GULF Air is leading the way in the Middle East, despite global aviation problems, president and chief executive James Hogan declared yesterday.
The airline has the strongest regional network in the Middle East, connecting 50 cities in 33 countries, he told the conference.
Revenue per passenger kilometre from January to August this year was up by more than 40 per cent this year, against 14.5pc during the same time last year, said Mr Hogan, in his keynote address at the opening of the two-day event.
"Passenger revenue in total was up 32pc during the first eight months of this year, against 15.5pc during the corresponding period last year," he noted.
"Cargo revenue was up 23.6pc this year, against 18.7pc last year.
"Gulf Air's Frequent Flyer Programme membership increased this year by 189pc, against 25pc last year."
Globalisation, economic turbulence, cutbacks, lay-offs and downsizing, regional conflicts, ever changing market dynamics, and fuel prices and surcharges are among the global challenges facing the airline industry, said Mr Hogan.
He said the Middle East was full of challenges such as government ownership and subsidisation, mix of well established, young and start-up airlines and the entry of low-cost airlines.
Other challenges include the lack of global alliance membership, no staff cut-backs, heavy recruitment of cabin crew and pilots, large aircraft orders, development of Middle East as a leisure destination and implementation of fuel surcharges.
Gulf Air is entering into codeshare agreements with several regional and international airlines, said Mr Hogan.
"The idea is, getting you there when you need to be there," he added.
"Some of the airlines with which Gulf Air has reached the codeshare agreements include American Airlines, British Midland, Saudi Arabian Airlines, Indian Airlines, Oman Air, Qantas, Cyprus Airways, Royal Jordanian, Egypt Air, and Royal Air Maroc."
Gulf Air's recovery plan Project Falcon, launched in December 2002, has been successful despite severe competition, said Mr Hogan.
"The core of our strategy is profitability, which we hope to achieve through 10 vital factors, consistent communication, motivated people, service delivery, marketing mix, cost control, safety, schedule integrity, strategic alliances, improved network and yield improvement," he added.
Mr Hogan said the GCC airports were between them spending $5.45 billion (just over BD2bn) to expand.
"As aircraft increase in size and range capability and as carriers in the Middle East expand their fleets, the comfort, security, and processing of passengers at airports will take on increasing importance," he noted.
Aviation passenger traffic through the Gulf is the fastest growing in the world, rising by 10pc each year and creating new challenges for the region's civil aviation authorities, said MEED editorial director and conference chairman Edmund O'Sullivan.
"Rapid expansion plans of regionally-based international carriers such as Gulf Air, Emirates Airlines, Etihad Airways and Qatar Airways, combined with the upcoming introduction of Airbus A380 super jumbo jets with 500-passenger capacities, may increase pressure on Gulf airports," he added.
"The demand for improved airport infrastructure facilities and services is a massive challenge for the whole industry, but especially for civil aviation authorities.
"Authorities in many Gulf states have already initiated plans to expand their infrastructure ahead of this predicted rise."
Dubai International Airport is currently adding a third terminal to manage the introduction of the Airbus A380 super jumbo jets Emirates Airlines and others will by flying in the not too distant future and passenger numbers in Dubai are expected to hit 100 million by 2020, said Mr O'Sullivan.
Airport development is also planned for Abu Dhabi, Kuwait and Jeddah and a $2bn (BD756m) airport is being built in Doha.
"It is an exciting time for the entire aviation industry in the Middle East, with both airlines and airports experiencing rapid growth," said Mr O'Sullivan.
"We have brought together regional and international decision-makers to discuss the future of the region's airport industry."
Published: 30 November 2004
GULF Air is leading the way in the Middle East, despite global aviation problems, president and chief executive James Hogan declared yesterday.
The airline has the strongest regional network in the Middle East, connecting 50 cities in 33 countries, he told the conference.
Revenue per passenger kilometre from January to August this year was up by more than 40 per cent this year, against 14.5pc during the same time last year, said Mr Hogan, in his keynote address at the opening of the two-day event.
"Passenger revenue in total was up 32pc during the first eight months of this year, against 15.5pc during the corresponding period last year," he noted.
"Cargo revenue was up 23.6pc this year, against 18.7pc last year.
"Gulf Air's Frequent Flyer Programme membership increased this year by 189pc, against 25pc last year."
Globalisation, economic turbulence, cutbacks, lay-offs and downsizing, regional conflicts, ever changing market dynamics, and fuel prices and surcharges are among the global challenges facing the airline industry, said Mr Hogan.
He said the Middle East was full of challenges such as government ownership and subsidisation, mix of well established, young and start-up airlines and the entry of low-cost airlines.
Other challenges include the lack of global alliance membership, no staff cut-backs, heavy recruitment of cabin crew and pilots, large aircraft orders, development of Middle East as a leisure destination and implementation of fuel surcharges.
Gulf Air is entering into codeshare agreements with several regional and international airlines, said Mr Hogan.
"The idea is, getting you there when you need to be there," he added.
"Some of the airlines with which Gulf Air has reached the codeshare agreements include American Airlines, British Midland, Saudi Arabian Airlines, Indian Airlines, Oman Air, Qantas, Cyprus Airways, Royal Jordanian, Egypt Air, and Royal Air Maroc."
Gulf Air's recovery plan Project Falcon, launched in December 2002, has been successful despite severe competition, said Mr Hogan.
"The core of our strategy is profitability, which we hope to achieve through 10 vital factors, consistent communication, motivated people, service delivery, marketing mix, cost control, safety, schedule integrity, strategic alliances, improved network and yield improvement," he added.
Mr Hogan said the GCC airports were between them spending $5.45 billion (just over BD2bn) to expand.
"As aircraft increase in size and range capability and as carriers in the Middle East expand their fleets, the comfort, security, and processing of passengers at airports will take on increasing importance," he noted.
Aviation passenger traffic through the Gulf is the fastest growing in the world, rising by 10pc each year and creating new challenges for the region's civil aviation authorities, said MEED editorial director and conference chairman Edmund O'Sullivan.
"Rapid expansion plans of regionally-based international carriers such as Gulf Air, Emirates Airlines, Etihad Airways and Qatar Airways, combined with the upcoming introduction of Airbus A380 super jumbo jets with 500-passenger capacities, may increase pressure on Gulf airports," he added.
"The demand for improved airport infrastructure facilities and services is a massive challenge for the whole industry, but especially for civil aviation authorities.
"Authorities in many Gulf states have already initiated plans to expand their infrastructure ahead of this predicted rise."
Dubai International Airport is currently adding a third terminal to manage the introduction of the Airbus A380 super jumbo jets Emirates Airlines and others will by flying in the not too distant future and passenger numbers in Dubai are expected to hit 100 million by 2020, said Mr O'Sullivan.
Airport development is also planned for Abu Dhabi, Kuwait and Jeddah and a $2bn (BD756m) airport is being built in Doha.
"It is an exciting time for the entire aviation industry in the Middle East, with both airlines and airports experiencing rapid growth," said Mr O'Sullivan.
"We have brought together regional and international decision-makers to discuss the future of the region's airport industry."