Subscribe Free
in Air Transport / Airports / ATM & Regulatory

Middle East can benefit by up to $16.3bn through ATC enhancements

Posted 8 September 2015 · Add Comment

An estimated $16.3 billion in economic benefits can be achieved in the Middle East over the next 10 years by delivering enhancements to air traffic control systems, according to a new report commissioned by NATS.


Infographic courtesy of NATS (click to see in full)

The independent report – 'Economic Benefits of Improvements to Air Traffic Control' – was undertaken by Oxford Economics, the world leader in global forecasting and quantitative analysis for business and government. This is the first such report to have been undertaken into the impact of investment in regional air traffic control management.

With aircraft fleets across the Middle East forecast to grow at an annual rate of more than 10% over the forthcoming decade, skies above the region are becoming increasingly congested. According to the Oxford Economics report, $16.3 billion in economic benefits can be generated by avoiding a doubling in delays over the course of that period. The congestion also represents a significant threat to the two million jobs that depend on aviation and, more generally, to the $116 billion regional aviation economy. Of the $16.3 billion surplus potentially available, 44% (or $7.2 billion) would be realised by passengers and 56% ($9.1 billion) to airlines (through faster travel times).

Despite the huge growth in aviation, as governments invest in increasing trade and tourist flows, the region’s available airspace has not kept pace, according to the report. In addition to approximately half the airspace in the Middle East being reserved for military flights, the number of handovers that take place between different authorities in different divisions of airspace can lead to additional delays. Although the report notes that the challenges faced are clearly recognised throughout the region, it goes on to say that ‘the pace of progress often does not meet the pace of continued traffic growth’.

Using data from NATS and EUROCONTROL, Oxford Economics calculated that the average flight in the region was delayed by 36 minutes and that 82% of those delays were attributable to air traffic control capacity and staffing issues. By 2025, without further investment in air traffic control systems, a doubling of delay minutes to 59 minutes would cost the region $16.3 billion.

John Swift, Direct, NATS Middle East, said: “This report highlights a clear economic case for much greater institutional, operational and technological investment in air traffic control systems across the region. It reveals that there are huge economic benefits available for airports, airlines and travellers, but also significant risks for governments in an increasingly competitive marketplace.

“As the Middle East diversifies its economy and focuses increasingly on international trade, ensuring that aviation is up to world class standards is vital. The region has made huge strides in investing in aircraft and infrastructure – it is critical, though, that the ‘invisible infrastructure’ of airspace is not forgotten. Increased collaboration between civil aviation authorities and the private sector will go a long way to closing that gap.”

Kareen El Beyrouty, Senior Economist, Oxford Economics, said: “We have a strong and proud track record for independent and objective analysis and we are pleased to have had the opportunity to study air traffic management in the Gulf region. We are not aware that such a study has previously ever been conducted in the region, certainly not in as much detail, and the sheer scale of the findings has surprised us. We very much hope it will be welcomed by the aviation industry and aviation authorities and that it helps to guide forward thinking on this topic.”

The full report is available here

Image: Courtesy NASA

 

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Oman Air makes premium comfort amenities in time for Eid Al Adha

Oman Air makes premium comfort amenities available for all on selected flights in time for Eid Al Adha.

Bryan Thompson appointed CEO of Abu Dhabi Airports

Bryan Thompson has been appointed Chief Executive Officer (CEO) of Abu Dhabi Airports.

Etihad Airways and Al Nassr FC announce partnership

Etihad Airways has signed an agreement to be the official shirt and main sponsor and partner of the Riyadh-based, Saudi Stars League team, Al Nassr FC.

Cobalt Air signs multi-year agreement with Travelport

Travelport has signed a new multi-year content agreement with Cobalt Air, which includes the use of the companyís leading merchandising tool, Travelport Rich Content and Branding.

Turkish Airlines sees operating net profit in first half of 2018

Turkish Airlines posted a USD 258 million Operating Net Profit in the first half of 2018.

Mighty task for Hercules in Middle East

Nearly 200 C-130 Hercules aircraft have been operated by Middle East air forces since the first was delivered to Iran in 1962. Alan Warnes reports.

TAA SK0902311218
See us at
ASDubai BT1004091018MarrakechAirshow BT2507241018Istanbul Airshow BT22018MAPS18_BT1207131118GATM BT1004061118MEBAA BT1004121218Aviation Africa BT0607280219Cargo BT1004091018AIME19BTA3005120219BIAS BT271017161118