Arab carriers defend government support amid significant growth
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Arab carriers defend government support amid significant growth
Source: ATW Daily News. Food for thought. What will happen next?
Arab Air Carriers Organization Secretary General Abdul Wahab Teffaha refuted the mounting calls to curb the expansion of some Arab carriers in the EU because they are subsidized by their governments. "We find these calls unbalanced, as they overlook the forms of indirect support awarded to some airlines in the EU, and in other regions, especially in the area of slots, priority terminals in airports, and sometimes limiting ground services providers in those terminals," he said in his state of the industry speech at the organization's AGM in Kuwait. "We deem it necessary that in the event the issue of government support is brought to the table, then it must include all forms of direct or indirect support, and that it would be balanced and at the same level for all airlines in the world, including those protected under the bankruptcy laws, in order to look into all the issues that lead to unbalanced competitive opportunities."
Teffaha said AACO members will transport 75 million passengers in 2006, an increase of 7.1% over 2005. RPKs on Arab airlines are expected to grow 12% year-over-year compared to overall industry growth of 7.2%. He called that rise "a pressing element on the economies of operations, slightly lowering load factors on Arab airlines." Cargo traffic, expressed in RTKs, on AACO member carriers is expected to increase 13.5% this year against 5.3% worldwide. "This growth ascertains the ability of the industry in the Arab world to adapt to adjust to the unstable environment," he noted.
Arab Air Carriers Organization Secretary General Abdul Wahab Teffaha refuted the mounting calls to curb the expansion of some Arab carriers in the EU because they are subsidized by their governments. "We find these calls unbalanced, as they overlook the forms of indirect support awarded to some airlines in the EU, and in other regions, especially in the area of slots, priority terminals in airports, and sometimes limiting ground services providers in those terminals," he said in his state of the industry speech at the organization's AGM in Kuwait. "We deem it necessary that in the event the issue of government support is brought to the table, then it must include all forms of direct or indirect support, and that it would be balanced and at the same level for all airlines in the world, including those protected under the bankruptcy laws, in order to look into all the issues that lead to unbalanced competitive opportunities."
Teffaha said AACO members will transport 75 million passengers in 2006, an increase of 7.1% over 2005. RPKs on Arab airlines are expected to grow 12% year-over-year compared to overall industry growth of 7.2%. He called that rise "a pressing element on the economies of operations, slightly lowering load factors on Arab airlines." Cargo traffic, expressed in RTKs, on AACO member carriers is expected to increase 13.5% this year against 5.3% worldwide. "This growth ascertains the ability of the industry in the Arab world to adapt to adjust to the unstable environment," he noted.
