UAE Minister calls for open skies policy

Red tape and protectionism are hampering the growth of the intra-regional airline industry, according to Her Excellency Sheikha Lubna Al Qasimi, the UAE Minister of Economy.

In a keynote address to the Middle East Business Aviation (MEBA) conference in Dubai, She said that technological developments have created opportunities for dramatic expansion and diversification of the airline market, but that out of date regulatory practices need to be brushed aside.

"Just as in a number of other industries, it's the regulatory side of the equation that has not been able to keep pace with the technological innovation, which is why countries are still negotiating air service agreements, why landing rights are still an issue hindering industry growth and why lower cost airlines are not yet serving every market," she said.

In Europe and the United States, burgeoning airline operators are being demonised for their increasing contribution to global warming, but in the Middle East, the industry is seen as a positive contributor to economic growth in the region.

"Just as there is an economic impact in the traffic increases boosted by new aviation services in a liberalised market, there are jobs that must be developed to meet that demand. And this touches every layer of the job market - from the pilots that fly those new routes to the staff that serve on those flights to the catering, interiors and other myriad elements of business aviation.

"It's been estimated that a $30 million jet would result in AED 10 million ($2.72 million) of annual expenses, including salaries, airport parking, insurance, maintenance and permits, and clearly there are a number of job creation opportunities associated with that upkeep.

"So, if civil aviation authorities around the region can collaborate to foster a more efficient and streamlined, unified approach to managing business aviation regulations, we all stand to benefit," said Sheikha Lubna.

The MEBA conference was a two-day event with an associated exhibition featuring 90 companies from 20 countries and 31 business jets on display.

The on-site declared order book for the show reached some US $832 million on the second day with Airbus saying it has won orders worth US $580 for two VIP A340 widebodied and two A318 corporate aircraft from undisclosed clients and two A320s ordered by the Royal Air Force of Oman.

"The Middle East is an important market for Airbus on the corporate jet level," said Airbus spokesman David Velupillai. "We have had interest from a number of dignitaries that include heads of Middle East and Indian carriers, senior officials of Gulf states, the heads of European corporations and others."

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