Gulf airlines’ spending spree looks a bold gamble


Fuel prices up, passenger numbers down, says airline industry association. Here’s hoping someone got it right at Emirates, Etihad and Qatar Airways.


Sep 4th, 2008

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So, you’re the person who decided to sign off $X billion on a fleet of shiny new Airbus and Boeings. And now the International Air Transport Association has come out with a report saying the airline industry will lose $5.bn this year and $4.1bn next. I hope you have a well prepared argument to give to colleagues as to why this round of record-breaking purchases makes sense.
Good luck next year.
 
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One Response »

  1. Delwyn on September 7th, 2008 at 10:57 am:

    Well, i would believe losses to hold true for developed economies more but not so much for marktes like UAE, Qatar. Why? Its pretty simple. Both UAE & Qatar markets have govt owned airlines which are invariably driven by business that comes from 2 distinct streams :-

    1) The growing number of expats travelling here on work/holiday AND
    2) The huge business that these airlines get from the “corporate” sector who provide their employees paid-for annual tickets.

    As long as these countries GDP & net arrivals keep growing, so will their airlines & their trillion dollar aircraft purchases.

    Voila!!!!

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