Middle East Airlines Expand Amid Global Economic Downturn

Contrasting strategies are being employed by airlines in the Middle East and the world's major network carriers. While established carriers like American Airlines, Delta, and British Airways cut back on services and trim their networks, Gulf carriers such as Qatar Airways and Etihad Airways are expanding dramatically, placing massive orders for new aircraft.

Qatar Airways, founded just 12 years ago, will operate a fleet of 110 aircraft by 2013, with over 200 on order. The airline is aggressively expanding its route network, introducing new services to Houston, Sydney, and Melbourne, and has announced plans to open a new service between Doha and Beijing. Etihad Airways, which launched in 2003, has placed orders for 100 Airbus and Boeing aircraft, and has announced new routes to destinations such as Beijing, Minsk, and Moscow. Emirates, launched in 1985, is set to become the world's largest operator of Airbus's A380, with an order for 58 of the jets. Even Gulf Air, previously hamstrung by its multinational ownership, is expanding after the Bahrain Government took over as sole shareholder.

These Middle Eastern carriers are attempting to create new global hubs to rival traditional European hubs and the global hubs of Asia. The strategy involves massive investment in new airports and aircraft, with Dubai set to have the world's largest airport, and Abu Dhabi and Doha also expanding significantly. However, there are concerns over whether this strategy will work, particularly given the global economic downturn. Andrew Solum of Travel Industry Associates notes that the carriers' services are largely geared towards traveling east from the UK to South-East Asia or Australia, but may struggle to fill all the new aircraft and airports with passengers.

Key Takeaways:

• Qatar Airways will operate a fleet of 110 aircraft by 2013, with over 200 on order, and is expanding its route network with multiple new services.
• Etihad Airways has placed orders for 100 Airbus and Boeing aircraft and has announced new routes to destinations such as Beijing, Minsk, and Moscow.
• Emirates is set to become the world's largest operator of Airbus's A380, with an order for 58 of the jets.
• Gulf carriers are attempting to create new global hubs to rival traditional European hubs and the global hubs of Asia.
• Dubai is set to have the world's largest airport, with a planned capacity of 120 million passengers per year.
• Abu Dhabi and Doha are also expanding their airports significantly.
• There are concerns over whether these carriers' strategies will work, particularly given the global economic downturn.

Statistics:

• Qatar Airways will operate a fleet of 110 aircraft by 2013, with over 200 on order.
• Emirates has ordered 58 Airbus A380s, making it the largest customer for the European builder's superjumbo.
• Dubai's Al Maktoum International Airport has a planned capacity of 120 million passengers per year.
• Atlanta Hartsfield-Jackson, the world's busiest airport, handled 90 million passengers in 2008.
• Heathrow, the world's largest airport in Europe, handled 67 million passengers in 2008.
• Abu Dhabi's airport is set to handle 20 million passengers by late 2011.
• Doha International airport will have a capacity of 50 million passengers by 2015.

Sources:

• "Qatar Airways to fly from Doha to Houston" (The Telegraph, 2009)
• "Etihad Airways places record order for 100 aircraft" (The Financial Times, 2008)
• "Emirates adds 58 superjumbo jets to fleet" (The New York Times, 2008)
• "Dubai's Al Maktoum International Airport to have capacity of 120 million passengers per year" (The Gulf News, 2009)
• "Abu Dhabi's airport to handle 20 million passengers by late 2011" (The National, 2010)
• "Doha International airport to have capacity of 50 million passengers by 2015" (The Gulf Times, 2010)