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The study argues that the Middle East economies are growing at such an impressive rate that they are in danger of leaving behind their regional aviation systems. And although some parts of the region such as Dubai have begun to reform their aviation markets through deregulation and increased commercialisation, more can still be done, they argue.
"Airports in the Middle East do not fully exploit the economic potential of the non aeronautical business. For example, Middle Eastern airports average revenues per passenger as well as non-aeronautical revenues per passenger are still significantly below European benchmarks," said senior vice president in Booz Allen Hamilton's Dusseldorf office, Jurgen Ringbeck.
The problems are not insurmountable, but the need for a solution is as important as ever. Tourism to the Middle East has nearly tripled since 1995, with 35 million arrivals in 2005. The necessity for local aviation services that adequately give customers service that is at the level of European and Asian markets, is central to continued growth of the region as a whole.
Many Middle East countries have met increased travel demand with enormous investments in airport expansion. And many Middle East governments have invested heavily in physical ground capacity, with the UAE leading the way. These considerable investments in airport expansion are designed to meet a planned capacity of the region in 2012 of nearly 320 million passengers.
"However, the region will likely fall short of such growth," said vice president of Booz Allen Hamilton's Beirut office, Fadi Majdalani "Even if it meets its expected growth rate of about seven per cent a year, this is simply too high of a number to meet."
Several suggestions are put forward to combat these deficiencies and create an aviation system infrastructure that can serve a rapidly growing base of customers.
"Middle Eastern nations need a strategic perspective for a sustainable, innovative, deregulated and regionally coordinated Middle East aviation system," said project manager in Booz Allen Hamilton's Dubai office, Ahmed Galal Ismail. "We believe that aviation reform is the correct path to take, but the slow rate of liberalisation is a hurdle to sustainable reform, at least in the short term."
The framework laid down to radically improve air transport services and capabilities includes developing strong local private airline carriers; improving service quality; lowering customer prices; expanding service offerings; improving safety and security and reducing subsidies and public investments.
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