Fit to burst
by This email address is being protected from spam bots, you need Javascript enabled to view it on Wednesday, 12 November 2008
Dubai Airports' management must have breathed a collective sigh of relief at the smooth opening of its new Terminal 3.
The ‘softly, softly' approach adopted by the airport's planners clearly paid off and the opening day appeared to pass by without a glitch.
The additional capacity provided to the region by Dubai Terminal 3 is certainly significant, but as the Middle East continues to see passenger traffic rapidly grow, the need for new airports should be considered.
The development of secondary airports was put under the spotlight earlier in the year by Adel Ali, CEO of Air Arabia. Ali said that currently, too many Middle East airports were underdeveloped or overly congested and that the industry needs to invest in the region's infrastructure.
In Europe, secondary airports, particularly those near to cities have experienced healthy growth. Where major airports failed to cater for smaller airlines, a low cost niche was identified in the market.
The success of secondary airports also relies on passenger attitudes towards low cost travel. Easyjet and Ryanair have flourished in the European market, and time will tell if the likes of FlyDubai can report the same outcome.
The Dubai-based low cost airline, FlyDubai, will certainly have the infrastructure in which to expand. It will begin its operations from T3 at Dubai International next year, but will migrate to Jebel Ali, once Al Maktoum International Airport is ready.
But secondary airports are not without financial risk. Due to the huge infrastructure investment required, a return on profit can take a long time to materialise.
But what the Middle East is currently experiencing places it in a significantly stronger position than Europe.
The Middle East region has huge financial support pouring into its airport, terminal and infrastructure development, from both the government and commercial entities.
If FlyDubai proves to be a financial success, more low-cost airlines will emerge, creating healthy competition and a demand for secondary airports.
Sarah Cowell is the editor of Airport Middle East.
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