The International Air Transport Association (IATA) said Middle East carriers will cut their losses to $300 million (Dh 1.10 billion) in 2010, down from $1.2 billion in 2009. IATA said in a statement “A strong long-haul connection business over Middle East hubs will provide some insulation against the impact of Dubai’s financial difficulties.” Many airlines in the Gulf are in growth mode and making huge investments in capacity expansion. The combined orderbook of UAE’s three airlines involves more than 375 aircraft and totals over $110 billion.
Middle East aviation officials believe revenue will increase further if the Middle East aviation market is integrated. Kuwait’s Jazeera Airways has proposed an aviation market for the GCC countries, allowing Gulf carriers to operate freely between cities with no commercial restrictions. Chairman of Jazeera Airways, Marwan Boodai, said customer’s choices are limited because GCC skies are governed by agreements that restrict the freedom of airlines.
