GENEVA // Gulf airlines are being held back in their bid to become dominant players in global aviation by increasingly crowded airspace.
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The limited corridors in which civilian planes are permitted to fly is one of the biggest challenges facing the industry as it expands, the head of the International Air Transport Association (Iata) said.
The observation comes as UAE aviation authorities study the redesign of UAE airspace to accommodate more flights and strike a flurry of open-skies deals with their counterparts in a bid to boost air traffic capacity.
This year alone, the UAE General Civil Aviation Authority (GCAA) has signed some 29 initial agreements and 21 air navigation agreements with other countries. That is more than double the number of such agreements signed last year.
"Airspace is a problem," said Tony Tyler, the director general and chief executive of Iata. "Only 40 per cent of the airspace in the Gulf region is available for civilian operations. There's a lot that's closed off for military and other purposes. Iata's working with the authorities to see what we can do to make the space that we can use more efficient to use and of course also to free up more space."
UAE airlines are expanding rapidly as more international travellers use Dubai and Abu Dhabi to change planes on long-haul routes, while carriers such as Etihad and Emirates spend billions of dollars to expand their fleets and add destinations.
Air traffic movements expanded by more than 7 per cent in October to 61,705 - or 1,990 per day, compared to a year earlier, according to GCAA data.
Dubai this year announced a US$7.8 billion (Dh28.65bn) expansion plan for Dubai International Airport, which would increase its annual capacity from 60 million passengers to 90 million by 2018, while Abu Dhabi is investing up to Dh27bn in a redevelopment and expansion programme for its international airport.
"What's happening as well is traditionally traffic has flown north-south in that region, but now we're starting to see a lot more east-west traffic as well, which of course complicates airspace management and makes it more difficult to use the space that is available," said Mr Tyler.
There would have to be cooperation between the Gulf states to manage the issue.
"Cooperation in a coherent regional approach is needed to manage the growth safely and efficiently," he said.
Iata has outlined three priorities to handle the challenge of limited airspace: more route options, the harmonisation of technology and operations, and "flexible use of airspace in cooperation with the military".
Iata is forecasting 8.5 per cent growth a year in passenger demand in the UAE to 2015.
"The available airspace in the Gulf is a concern," said Saj Ahmad, an analyst at FBE Aerospace in London. "It doesn't necessarily translate into a safety issue if the flight traffic management systems in place can cope with congestion."
He said that as new airports come on stream and with the growth of existing airports, governments would have to address the airspace issue.
Iata said it was supporting the Civil Air Navigation Services Organisation's Middle East Regional Airspace Review to provide air traffic management solutions in the near and long term.
"And under the acronym MEAUSE, for Middle East Airspace Users and Stakeholder Engagement, we are working to link governments, suppliers, ANSPs [air navigation service providers], the military, airlines and airports to ensure alignment of air navigation and airport investment plans with the needs of the airspace user - both civil and military," Mr Tyler said last week at the Arab Air Carriers Organization annual general meeting in Abu Dhabi.
"We all have high expectations that this innovative regional approach will clear bottlenecks and ensure that airspace capabilities keep pace with the region's growth."
Iata also highlighted that European governments could learn from the Gulf region's approach to the aviation sector.
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"The enormous growth we've seen in the Gulf shows that if governments have policies that are supportive and helpful to aviation it can very much help to drive economic growth," said Mr Tyler.
"If governments can provide the infrastructure and policies of support for aviation rather than just taxation of aviation, governments will reap the growth through economic growth in their own countries."
rbundhun@thenational.ae
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Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
Getting there
Flydubai flies direct from Dubai to Tbilisi from Dh1,025 return including taxes
Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
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Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
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Artist: Coldplay
Label: Parlophone/Atlantic
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Investors: Core42
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Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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Each player begins with one of the great empires of history, from Julius Caesar's Rome to Ramses of Egypt, spread over Europe and the Middle East.
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Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
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UAE currency: the story behind the money in your pockets
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Director: Goran Hugo Olsson
Rating: 5/5
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WHY%20AAYAN%20IS%20'PERFECT%20EXAMPLE'
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Starring: Ranveer Singh, Deepika Padukone, Shahid Kapoor, Jim Sarbh
3.5/5
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In 2016, the Shaded Dome was awarded with the 'De Vernufteling' people's choice award, an annual prize by the Dutch Association of Consulting Engineers and the Royal Netherlands Society of Engineers for the most innovative project by a Dutch engineering firm.
It was assigned by the Dutch Ministry of Defence to modify the Shaded Dome to make it suitable for ballistic protection. Royal HaskoningDHV, one of the companies which designed the dome, is an independent international engineering and project management consultancy, leading the way in sustainable development and innovation.
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The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
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Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers