Boeing's global chief said yesterday that the business model of the Arabian Gulf airlines will be sustainable for "many decades".
Speaking at an innovation summit in Abu Dhabi, James McNerney, the chairman and chief executive of Boeing, said: “The business model is obviously successful today. The Emirates has essentially become the Hong Kong of this century.
“I think that this model is sustainable for many, many decades.”
The growth of Emirates Airline, Etihad Airways and Qatar Airways is shifting the centre of air travel to the Middle East and away from the US and Europe. Thanks to their strategic location, cities like Abu Dhabi, Dubai and Doha are becoming hubs for world travel, as more passengers are switching planes there.
Separately, Jeff Johnson, Boeing president for the Middle East, highlighted the advantages of Boeing's 777X for Gulf Carriers such as Emirates, which scrapped a US$16 billion order for 70 Airbus A350 widebody aircraft in June. The Emirates president Tim Clark has also been urging Airbus to improve fuel consumption on the Airbus A380 by 10 to 12 per cent.
Mr Johnson said that the 777X serves Emirates better with its lighter weight and more efficient engine.
"Both Emirates and Etihad were part of the airlines that helped Boeing decide what the 777 would be," said Mr Johnson. "The 777s are the ones that are making money on the long haul. The 777 is the most efficient, giving the most profitability."
In a report yesterday on the rise of Middle East carrier, Capa (Centre for Aviation) said that US airlines’ attacks on the Gulf airlines contain “more rhetoric than consistency” but nonetheless “it makes for good politics”.
Mr Johnson said that this week’s electoral successes by the US Republican party need not translate into tougher policies against the Gulf carriers’ moves into the US market.
“I think that you are going to see a more moderate congress. We are hopeful that going forward we will see a slightly better environment,” he said.
selgazzar@thenational.ae
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