RIYADH: The Arab aviation industry will need to spend a whopping $1 trillion over the next decade to fill the gaping chasm left by the universal pandemic and grow the business further.
Speaking on the sidelines of the Future Aviation Forum, the Secretary-General of Arab Air Carriers Organization Abdul Wahab Teffaha said that the COVID-19 pandemic had resulted in an 80-90 percent downturn in the business.
He further called on all member states to ensure adequate investment to ensure the sector’s sustainable growth.
“If we look at the strategic plans for the region’s airlines, we are talking about a trillion dollars of investments in airports, equipment, and so on — every year to be invested in this sector over the next decade,” Teffaha told Arab News.
While achieving a $1 trillion investment may be overambitious, reaching even 50-60 percent of the target will keep the Arab aviation industry in good stead.
“The biggest challenge now for the aviation sector is sustainability in terms of climate change. If the Gulf aviation sector wants to meet its climate change targets, it needs to invest in better technology.
“You have to invest in infrastructure. I’m not talking only about airports but aerospace as well. We need to allow this industry to grow and make it sustainable in terms of its environmental effects,” said Teffaha.
However, not everything is gloomy for AACO. What goes in favor of the consortium is a nifty fleet of aircraft built in with the latest technologies.
“The collective AACO fleet is the youngest globally, with an average aircraft age of 7.4 years — compared to other regions where the average is 10-15 years.”
“So, in terms of our fleet and our airports, we are state-of-the-art, but you need to maintain that level.”
Moreover, the prospects of the aviation industry seem brighter now. According to Teffaha, the aviation industry has witnessed a rapid surge in passenger traffic, and it looks forward to achieving pre-pandemic levels of business by mid-2023.
“We are now back to about 60-plus percent of pre-COVID levels, and the eagerness of people to travel is a way of life now. It’s no longer a luxury,” Teffaha said.
“Secondly, governments are learning lessons from what they did during the COVID pandemic and applying risk-based measures rather than just based on estimation,” added Teffaha on a positive note.
