Arabtek, TAV Insaat and Consolidated Contractors secured AED4 billion (USD1.09 billion) in financing for the terminal construction project at Abu Dhabi International Airport (Trade Arabia/Arabian Business, 01-Oct-2012). As previously reported by CAPA, the financing was initially secured in Aug-2012 but details were not announced at the time. The joint mandated lead arrangers for the Islamic syndicated contracting facility were Mashreq, Al Hilal Bank, First Gulf Bank and Union National Bank.
Consortium secures USD1.1bn for Abu Dhabi Airport terminal construction
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Brexit follow-up Part 3: Gulf airlines, Turkish lose UK ally in M/E talks as protectionism spreads
The Brexit referendum produced a vote for the United Kingdom to leave the EU, although this process has not yet been formally invoked. In the scope of aviation, one outcome is the potential loss of the UK in shaping air service agreement negotiations. The UK has been a liberalising voice, one that often counterbalanced more protectionist views from France and Germany. The UK is often able to galvanise the smaller EU states too.
The EU now has mandates to negotiate open skies with states, including the UAE, Qatar, Turkey and the ASEAN bloc. The UAE and Qatar, home to the three Gulf network airlines, are expected to produce the most contentious negotiations. France and Germany will surely takes cues from Air France and Lufthansa to impede Gulf growth. In this light there are questions about whether the talks are genuinely motivated, or merely designed to draw out the discussion and thereby not produce any additional traffic rights while under negotiation.
What Air France and Lufthansa need is a real, lasting solution, rather than persevering Canute-like with stonewalling. Although a partnership seems logical, they may have waited too long. The Gulf airlines have found that they can succeed on their own.
Onur Air: Turkey's number two LCC goes into reverse after German expansion stalls
Turkey's fifth largest airline by seat capacity, LCC Onur Air, has thrown its operation into reverse. After growing scheduled seat numbers at an average rate of 11% pa for four years, including growth at around 20% for most of 2016, it will cut capacity by 20% this winter.
A series of geopolitical events has weighed heavily on demand for air travel in Turkey, particularly in international travel. Weak trading conditions have also prompted the market leaders – national airline Turkish Airlines and LCC Pegasus – to halt their own rapid growth. Onur Air is bigger in the domestic market than it is in the international market, but much of its 2016 expansion was driven by international growth, particularly to Germany.
Onur's network faces strong competition on almost every route, particularly on international routes, and this has clearly posed a severe challenge in the face of falling demand.