MANAMA: In the wake of a power struggle between regional carriers and continually growing airspace congestion, operational changes encouraging efficiency as an essential, according to Gulf air Acting CEO.
“Despite this competition, there is plenty of opportunity for the reinvigorated Gulf Air. Bahrain is strategically located at an approximately eight-hour flight distance from the majority of the world, allowing it to be one of the primary hubs linking East and West,” Maher Salman Al Musallam, Gulf Air’s Acting Chief Executive Officer told the OBG.
Oxford Business Group talked to Maher Salman Al Musallam, Acting CEO, Gulf Air. A new report on Bahrain will take a look at the impact of rapid expansion in the airline sector across the Middle East, with particular emphasis on how this growth will play out in Bahrain.
Al Musallam discussed the impact that regional airline sector growth is having on the Bahraini aviation sector. In an interview to be published in The Report: Bahrain 2014 Al Musallam speaks of the challenges presented by the break-neck competition in the region’s aviation sector.
This 10th anniversary edition of the group’s Bahrain reporting will feature interviews with Shaikh Ahmed bin Mohammed Al Khalifa, Minister of Finance and Minister in Charge of Oil and Gas Affairs and Kamal bin Ahmed, Acting Chief Executive of the Economic Development Board, among others.
Whilst the publication contains coverage on all sectors of the Kingdom’s economy from the perspective of the foreign investor, transport and related infrastructure are a central focus of The Report: Bahrain 2014.
However, with GCC airports forecast to be handling 250m passengers by 2020 and overall passenger growth expected to go up by 5.2% in the Middle East, according to a study conducted by the International Air Transport Association (IATA), there is likely to be increased rivalry for market share in the region.
“Upgrades at Bahrain International Airport will underpin the sector’s central role in the kingdom’s economy. In anticipation of the increase in Gulf air traffic, Bahrain Airport Company has announced the expansion of Bahrain International Airport (BIA), scheduled to kick-off later in 2014. “The expansion will cater to 13.5m passengers, which is double the current capacity” he went on to explain. “Additionally, the national carrier is currently engaged in negotiations with its original equipment manufacturers to ensure Gulf Air’s future fleet and network requirements match its order book.”
“The Kingdom is placing itself in a strong position to take advantage of the rise in passenger traffic and grow specific niche areas, rather than looking to compete directly with other local airlines,” OBG’s Regional Director, Jana Treeck, said.
Al Mussallam’s interview also covers the role traditional airline alliances and code sharing will play in the future, as well as the opportunities the aviation sector’s growth provides for young Bahrainis.
The Report: Bahrain 2014 will examine the key economic drivers within the Kingdom’s economy, including finance, transport, energy, real estate and many core sectors, assessing macro-economic trends and developments. With over 200 pages of original research compiled on the ground, The Report will benefit from Oxford Business Group’s 10 years of experience in this market.