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Phoenix rising

by This email address is being protected from spam bots, you need Javascript enabled to view it  on Thursday, 03 April 2008

With the purchase of these additional aircraft there will be an impetus on the US side to move on the certification," he goes on to say.

As well as reassuring foreign governments and potential investors, the US$6billion investment by Iraqi Airways into new aircraft to satisfy growing passenger demand, could prompt other airlines to grab a piece of the action.

It’s a massive business opportunity. There is still room for a few more airlines to get in there and make a good amount of profit.

Burhan believes there is every chance that Iraqi Airways could soon see some competition from international carriers, and that those that do take the chance, will take advantage of a lucrative business opportunity - particularly given the current lack of competition in the market.

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"It's a massive business opportunity for airlines because they can make a good profit. At the moment it's a very closed market though once more airlines get involved in it they will open up that market so competition will increase and prices will drop.

"Now though there is still room for a few more airlines to get in there and make a good amount of profit.

Mills says he too predicts that international airlines will follow suit.

"Right now I would say that as you see Iraqi Airways flights between the UK and Iraq fill up there will be a tendency on the part of others in the market to make applications to fly to Iraq."

One European airline that has strong confidence in the Iraqi market is Austrian Airlines, which from this month resumes its flights between Vienna and Erbil in Northern Iraq, having stopped the flights because of security concerns in August 2007.

Austrian Airlines spokeswoman Pia Stradiot, said: "We will be operating three flights a week to Iraq from the second of April onwards and four flights a week from June.

"Iraq is an important location for us. We suspended the Erbil service in August 2007 after re-evaluating the security situation. But before that the route was very well booked on every flight.

Rumours are even circulating that Virgin could launch a direct London to Iraq route.

According to Mills the airline has in the past expressed strong interest in flying to Basra.

"I would expect Virgin to make applications to fly to Basra not to Baghdad.

"There were discussions with the Ministry of Transportation in 2004 about Virgin flying to Basra. There is much more British presence in Basra and there are currently no direct commerical services between Basra and any of the commercial hubs in Europe.

Burhan adds: "Virgin expressed an interest to start flying London to Iraq routes. We didn't speak to them but I know they made a request to fly.

"That was when it was a lot more peaceful (in Iraq).

A Virgin spokesman denied however that the company was considering such a move.

Experts agree that Iraq has several major obstacles to overcome before it can attract the likes of Virgin and in order to ease the nerves of Western travellers.

According to Glassey several major companies still have travel bans on their employees flying into Iraq - preferring instead to do business there through Iraqi partners on the ground.

"Many international companies have major contracts in Iraq and they use local Iraqi partners on the ground.

"There are a number of major companies that still have a travel ban on their own staff flying to the country," he says.

Burhan claims that Baghdad International Airport is "one of the safest airports in the world" because it is in such a heavy militarized zone.

"It's very ironic. One of the issues Iraqi airways is facing is that a lot of foreign governments are afraid to allow flights directly to Iraq," he says.

"But it is very safe. You have to pass through numerous military checkpoints as you leave and enter the airport.

"Once you land there it's a modern system and you won't really encounter anything different there from in any other modern airport.

The British Foreign Office warns on its website however that it is "increasingly concerned" about the "decreasing standard of security on the civilian side of Baghdad International Airport".

Burhan acknowledges that landing there poses a safety challenge because of the risk of surface to air missiles hitting aircraft - although the last time a commercial aircraft was targetted on its way into Baghdad International Airport was in 2003 when a DHL aircraft was shot at by militants.

"The area around the perimeter of Baghdad Airport is a secured zone which is controlled by the US military."


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