Growth in MENA outside the Gulf 'a real struggle': IATA CEO

IATA director general and CEO Alexandre de Juniac noted (29-Nov-2016) annual growth of 2.3% in the Middle East and North Africa (MENA) outside the Gulf over the last five years was well below the global average. Mr de Juniac said, "It's been a real struggle," highlighting terrorist challenges, political instability and issues with blocked funds in a growing number of countries, including Algeria, Egypt, Iran, Libya, Morocco, Sudan, Syria and Yemen. Gulf carriers grew at more than five times the non-Gulf rate, and Mr de Juniac said the challenge in the Gulf is to shore-up the competitive advantages of efficient hubs, positive government policies and geographic location. Mr de Juniac said the top issues in the region are:

• Infrastructure: Mr de Juniac said airport infrastructure in the region generally demonstrates government foresight, but continuous consultation is needed to maintain this competitive advantage and align capital expenditure with growth, required service levels and acceptable costs;
• Mr de Juniac expressed caution regarding infrastructure privatisation, stating, "we have not seen any examples of airport privatisation that have truly met expectations," adding: "It's important that MENA learns from the disappointing experiences elsewhere";
• Air traffic management modernisation: Mr de Juniac said: "More expensive technology is not the solution. Regional cooperation is. Without it, all the investment in world-class hubs will be compromised with gridlock";
• Rising costs: Mr de Juniac noted an "unprecedented" increase in taxes and charges across the region, with USD700 million in extra costs compared to 2015. said: "A low cost structure is a key component of the region's success...every dollar collected in taxes or charges is an incentive for travelers to go elsewhere";
• Consumer protection regulations: Mr de Juniac called for a reversal of the proliferation of disparate consumer protection regulations and stated, "I am deeply concerned about the deviations from ICAO's global standards and recommended practices";
• Security: Mr de Juniac said security may be the most challenging issue. Mr de Juniac said efficient airport checkpoints are important and the Smart Security programme is improving their effectiveness and convenience, but added, "that alone is not enough to stay a step ahead of those who would do us harm." [more - original PR] [more - original PR - 2]