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Leader of the pack

by Ron Kuhlman on Wednesday, 26 September 2007

Question: Some analysts believe the Middle East's aviation industry is the world's fastest developing. Do you agree and if so, why?

Expert: Ron Kuhlman
Vice president of transportation, Unisys.

People who say the Middle East aviation industry is the world's fastest growing are correct. Along with India and China, the region forms the largest growth market in the world. The difference between the Middle East and the other two regions is that the rising Arab carriers are not primarily dealing with a growth in travel among their own population but are engaged in two quite different activities.

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First, they are feeding a brand new tourist and business environment that is attracting many more visitors. Secondly, they are taking advantage of their location. They are trying to capture a significant segment of the current long-distance travel market by providing connections between points that previously required different travel patterns, such as Sao Paulo to South Asia.

The Middle East aviation industry's recent growth can be attributed to solid resources and a clear strategy. The planned and measured development taking place in Dubai is unrivaled elsewhere and the finances are available to achieve the goals. The airlines, for the most part (Gulf Air is an exception) also have financial resources and a defined marketing plan. Money coupled with opportunity works.

In terms of security in this region, the passenger processes in place are in line with global standards - if such a thing exists. The nations that exhibit the greatest growth, the emirates, seem to be secure and stable locations, making them appealing. If you take the larger Middle East/South Asia region, and include Iraq, Iran, Lebanon, North Africa, Pakistan... the stability and security question becomes much different. However, those nations are not the ones referenced when spectacular growth is discussed.

Airport security and its application around the world exhibits enormous variation. Duty free liquids may be brought into Europe but are then banned from connecting flights. The likelihood is that hubs are complying in ways that make sense for the operators and operations in that region, while still applying regulations that are required by other nations. If you look at hand baggage restrictions, the UK allows one item of luggage. The EU has yet another standard, while in the US it can change for any given flight on any given day. Other than banning guns, knives, bombs and mineral water, there is great leeway across the globe. Much of this confusion surrounding restrictions comes from doing security not by logic but rather by regulatory fiat, generally in response to some singular event.

Security in general is as big an issue in Israel but not Dubai, where most passengers probably don't feel any special concern.

It's generally a major concern in places where it is made to be so. Passengers have learned to do what is asked wherever they travel and to not make comparisons across the globe. The inconsistencies may be maddening but they are what they are and are accepted as part of the price of travel.

Ron Kuhlman

Unisys is a broad based solutions company that has been involved in air transport for more than 20 years. It originally supplied carriers with some of the first legacy reservations platforms. The company's operation has since expanded to AirCore, a new-generation passenger service suite.

With 30 years of industry experience, Kuhlman is considered an expert on most aviation-related issues including legacy airlines, next generation carriers and challenges that airports face today. His experience includes airport operations, sales, reservations and ticketing. Kuhlman has also carried out market analysis and route profitability studies during his career. He regularly talks about financial and operational issues and cultural shifts that are driving change within the aviation industry.

Kuhlman often provides thought leadership and commentary through a monthly publication. He also regularly deals with the media, carries out several speaking engagements and writes for magazines.

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