The significant growth projected in the aviation business in the region will reflect positively on the $12 billion jet fuel supply industry, says market leader Shell.
The Dutch company says the Middle East consumes 8-10% of global demand for jet fuel.
It adds that the key differentiator between suppliers has become the quality of service and after-sales support.
Growth rates in the Middle East aviation industry are second only to those in the Far East.
Mike Lumley, Shell Aviation's general manager for the Middle East, Central and South Asia, says: "We see the Arab world as being one of the few regions where the revenue passenger kilometers (RPKs) are growing at a significantly higher rate than regional GDPs.
"This can only be good news to the industry and indicates significant ‘pent-up' demand which is not yet fully satisfied."
On average, the annual growth rate in RPKs in the Middle East between 1990 and 2000 was 6.2%, compared with 4.5% worldwide. Passenger growth rate in 2003, compared with 2002, is expected to be 7.5% and has rebounded solidly after the significant dip experienced during the ground war in Iraq.
Unique
Year on year growth in aviation fuel use in the region is also expected to hit the 4.5% mark in 2003, and will continue to achieve a steady climb of 4.5-5% annually, says Lumley. "In global terms this reflects a significant increase."
The $70 billion global jet fuel industry will see no overall growth in 2003 as a consequence of the SARS epidemic and the continued decline in long-haul transatlantic traffic.
Shell Aviation has a big presence at Dubai 2003 and is watching announcements in the civil aviation sector with great interest.
"We see new regional airlines developing interesting niche markets, and if they get their business model right the way Ryanair and easyJet did in Western Europe, they will find a unique place for themselves among the bigger players and have the potential to further stimulate market growth."
Source: Flight Daily News
