According to the IATA report, the Middle East aviation sector carried even fewer passengers in April, which contributed to the further dip in numbers. The report also mentioned that the passenger traffic was down by 87.3 percent, compared to the numbers of 2019. Given the travel restrictions imposed by the government, the aviation sector still has a long way to go in terms of recovering international passenger travel.

According to experts, the Covid-19 vaccination programme was expected to have a positive impact on the aviation industry. As of June 8, around 2.2 billion people have been fully vaccinated, as reported by Our World in Data. In the UAE, 13.5 million doses of vaccine have been administered, reported the National Emergency Crisis and Disaster Management.

After incurring huge losses because of the pandemic, the air transport body is pushing to ease border restrictions and to restart travel. But, in the face of the resurgence of the Covid-19 cases all over the world, several countries have once again tightened their borders to fight the spread of the virus. The UAE announced that they will be suspending aircraft from three African countries after a spike of fresh Covid-19 cases was noticed.

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Boeing also forecasts passenger traffic to grow at an average rate of 4.3 percent each year for the Middle East for the next 20 years. The average growth rate for the region is higher compared to the global passenger traffic growth rate of 4 percent.

Darren Hulst, Boeing vice president of Commercial Marketing told the media, “In recent decades, several airlines in the Middle East have leveraged their geographical position to connect rapidly growing Asian economies and the more mature markets in Europe. At the historical crossroads connecting Europe, Africa and Asia, the Middle East and its airlines will remain a critical hub of sixth-freedom passenger flows and cargo throughout the 20-year outlook.”

Commercial aircraft owned by Middle Eastern airlines are expected to reach 3,500 by 2039, which is more than double of the current 1,510 aircraft. Boeing also forecasts demand for 1,280 new passenger airplanes during the same period.

Recently, the US Federal Aviation Administration approved Boeing’s 737 MAX aircraft to resume operation again. The aircraft was grounded for security concerns after two fatal crashes that claimed the lives of more than 300 people. American Airlines is set to relaunch the first commercial MAX, followed by United Airlines in the first quarter of 2021.

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The carrier is currently in talks with Boeing and Airbus to defer orders for several years.

Qatar Airways chief executive Akbar Al Baker told the media, “Well we are in negotiation with them, so I don’t want to talk about this, but yes it will be deferred for several years.”

So far, Qatar Airways have placed orders for around 200 Boeing and Airbus aircraft, however, it is not clear how many aircraft the airline was looking to defer or for exactly how long.

The carrier also announced that it will resume flights to some of the 165 destinations it served before the outbreak, aiming to fly to 80 destinations by the end of June.

“I am sure there will be demand,” Akbar Al Baker said. He forecasts the airline would be able to fill between 50 percent and 60 percent of seats. He further stressed that it will be not until 2024, that the aviation sector will return to normalcy.

The carrier is reportedly in talks with several banks as well to acquire a loan to help it survive the coronavirus crisis.

Average airfare in the Middle East could jump by 50 percent due to the social distancing measures adopted to curb the spread of the novel coronavirus, according to the International Air Transport Association(IATA).

IATA predicts airfare in the Middle East and African (MEA) region would increase significantly from an average of Dh664 to Dh950.5.

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With the impact of the coronavirus deteriorating in the Middle East, IATA has renewed its call for government intervention for the aviation industry.

The association predicts that the aviation industry in the Middle East and North African (MENA) region could lose revenue of around $24 billion due to the coronavirus pandemic. The figure is $5 billion higher than the revenue loss predicted by IATA during the start of this month.

IATA also revealed that Oman’s aviation industry could see 4.3 million fewer passengers in 2020. This could inversely result in 51,500 job losses in the sultanate’s aviation industry.

For the whole region, job losses in aviation and related industries could grow to 1.2 million. Around 400,000 of the cuts will be in the UAE’s aviation sector alone.

Muhammad al Bakri, IATA’s regional vice-president for Africa and the Middle East told the media, “Airlines in the Middle East continue to be battered by the impact of COVID-19. Passenger traffic has all but ground to a halt and revenue streams have evaporated. No amount of cost-cutting will save airlines from a liquidity crisis. The collapse of air transport will have devastating effects on countries’ economies and jobs. And in a region where aviation is a key pillar of many nations’ economies the effect will be much worse. Direct financial support is essential to maintain jobs and ensure airlines can remain viable businesses.”

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Employees of airlines, airport authorities, suppliers, or any business related to aviation could potentially lose their jobs, IATA said.

The job losses in the UAE’s aviation sector is also expected to be the highest when compared to other Gulf nations. Saudi Arabia could witness around 287,000 job losses in its aviation industry, according to the IATA report.

In the entire Middle Eastern region, the number of jobs at risk now stands at 1.2 million, up from approximately 900,000 from the previous estimates.

Muhammad Ali Albakri, IATA’s regional vice president for Africa and the Middle East told the media, “Airlines are burning through their cash reserves, which can only last up to two to three months. These airlines are really facing a crisis and they are struggling to survive. We are concerned that if these companies start falling if they run into a brick wall, countries will have difficulties rebuilding their economies.”

He also stressed on the importance of government intervention and relief packages for the aviation industry.

All airlines based in the Middle East have suspended operations as countries have sealed their borders to help curb the spread of the coronavirus.

In the month of March, IATA revealed that airlines in the UAE and other Middle East countries could face revenues losses worth $4.9 billion. However, the figure is expected to increase significantly. Currently, the Middle East aviation industry is expected to suffer revenue losses of around $24 billion.

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Air Arabia’s repatriation fights will fly from the Sharjah International Airport to Afghanistan, Oman, Kuwait, Bahrain, Sudan, Egypt, India and Nepal.

In  a statement, the airline said, “Air Arabia is committed to support requests to operate repatriation and cargo flights and remain working closely with UAE authorities in this regard.”

Earlier this month, media reports suggested that Air Arabia Abu Dhabi – a joint venture with Etihad Airways, which was scheduled to launch in June, will be delayed due to the coronavirus pandemic.

However, Air Arabia has revealed that such rumours are baseless and both the airlines are going forward with their plans to launch a low-cost Abu Dhabi-based carrier.

Air Arabia Chief Executive Adel Ali said in November that the airline would be operational in the second quarter of 2020. But due to the Covid-19 pandemic, which originated in the Chinese city of Wuhan last year, has pushed the world into a state of lockdown.

Most of the countries across the globe have sealed their borders and both international and domestic flights have been cancelled. This prompted many to speculate that the proposed launch of the low-cost carrier will be delayed.

Recently, flydubai also announced repatriation flights to 13 countries between April 14 and 22. Similarly, Etihad Airways also announced that it will fly to Brussels, Dublin, London, Zurich and Tokyo during the same period.

Etihad continues to operate special passenger flights from Abu Dhabi to several destinations including Amsterdam, Jakarta, Manila, Melbourne, Seoul Incheon, and Singapore.

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In a statement, Etihad revealed that it will fly to Brussels, Dublin, London, Zurich and Tokyo between April 14 and 22.

The special flights by Etihad are announced to help those wishing to leave the country who have been forced to stay put due to the global shutdown as a result of the coronavirus pandemic.

In addition to these newly announced destinations, Etihad continues to operate special passenger flights from Abu Dhabi to several destinations including Amsterdam, Jakarta, Manila, Melbourne, Seoul Incheon, and Singapore. Etihad started flying to these destinations earlier this month.

In a statement earlier, Etihad said, “Over the past week, Etihad has been operating special flights which have allowed stranded passengers to return home, and to support the ‘UAE Food Security Programme’ as part of previously announced plans to utilise the belly-hold capacity of passenger aircraft for cargo.”

To curb the spread of the coronavirus, Etihad grounded most of international as well as domestic flights. Reportedly, Etihad Airways’ staff have taken salary cuts up to 50 percent due to the pandemic.

Etihad did announce that its staff and employees will continue to receive housing allowances and education assistance during the period and in the future.

Etihad’s chief executive Tony Douglas pointed out that the situation is currently difficult for the airline.

In fact, airlines worldwide are estimated to lose $252 billion in revenue this year because of the pandemic, according to the International Air Transport Association.

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Besides buying a stake in RwandaAir, Qatar Airways is also planning to increase its interest in LATAM Airlines Group to 20 percent.

Buying stakes in RwandaAir makes sense for Qatar Airways as it would open the possibility for Qatari carriers to bypass some of the restrictions that have been imposed by some GCC members.

Akbar Al Baker told the media, “In Africa there is a big demand for air travel and today Africa is very poorly connected, so we always look at opportunities in our field to do investments similar to what we have done in the past. We are very tough negotiators and we will take our time to negotiate.”

He also added, “When the right opportunity comes and at the right price we will look at increasing our investment in LATAM.”

Qatar Airways has been banned by the UAE and Saudi Arabia from its airspace after a political dispute. Due to the ban, the carrier has been forced to take longer routes to avoid the UAE and Saudi Arabia airspace. However, once the deal to buy RwandaAir is completed, Qatar Airways can carry its passengers from Africa to Qatar through the African carrier’s jets.

Recently, the carrier also announced that it will soon start flying to Dubrovnik in Croatia. The carrier is also evaluating the possibilities of flying to Ljubljana in Slovenia and Prishtina in Kosovo.

Interestingly, Qatar Airways signed a codeshare agreement last month, but not with another carrier. It signed the agreement with Germany’s national rail operator, Deutsche Bahn. Now, Qatar Airways offers passengers eight more destinations throughout Germany.

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According to media reports, Etihad will sell 22 Airbus A330s and 16 Boeing 777-300Rs aircraft to investment firm KKR and leasing company Altavair AirFinance.

KKR revealed that the Boeing 777-300ERs will be leased back to Etihad once the deal is completed. However, the Airbus A330s aircraft will go to international clients.

With regard to the deal to sell 32 aircraft, Tony Douglas, chief executive at Etihad Group told the media, “We’ve made great strides in optimising our fleet structure over the past year, and this investment from KKR and Altavair AirFinance will allow us to take another step forward in this area. “

“This deal will ensure we stand by our strategic and financial sustainability targets by replacing aircraft with the most technologically-advanced and fuel-efficient fleet types. The structure of this transaction also provides us with significant flexibility, meaning we are well placed to respond to future growth requirements.”

Last year, the airline also cancelled the orders for new aircraft it placed earlier. This implies that the airline has given up on its ambition to become a global leader in aviation. The carrier currently is shifting its focus back to the local market.

Recently, Etihad Airways received its first Boeing 787 flagship ‘Greenliner’ jet. According to media reports, the Greenliner aircraft will be used by Etihad to test various aviation sustainability initiatives.

The aircraft, which is a modified version of the Boeing 787 Dreamliner aircraft, will help Etihad reduce carbon emission and make the aviation industry more sustainable.

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Penang will be Emirates’ second destination in Malaysia. The carrier flies three flights daily to, Kuala Lumpur, the capital city of Malaysia.

Emirates will fly its Boeing 777-300ER aircraft to Penang. The flight will include eight private suites in First Class, 42 lie-flat seats in Business Class and 304 spacious seats in Economy Class.

Adnan Kazim, Chief Commercial Officer at Emirates told the media, “Penang is a major centre for tourism, business travel, as well as medical tourism and the increased levels of inbound travel is consistent with the growth in numbers of visitors to the country. “

“The introduction of flights to Penang will help us meet growing demand from leisure and business travellers, both to and from Malaysia. We are also pleased that the fifth freedom flights between Penang and Singapore will connect two sister cities and increase connectivity for passengers in South East Asia.”

The new flight route also provides an opportunity for Malaysian businesses to increase their exports through Emirates SkyCargo.

Emirates has been flying to Malaysia since 1996.

On January 25, Emirates completed 20 years of service between Dubai and Bahrain. Reportedly, more than 6.7 million passengers from Bahrain have flown with Emirates on the route to Dubai during the period.

Last year, Emirates signed an agreement with Boeing to purchase 30 Boeing 787 Dreamliner for $8.8 billion. The aircraft will be the smaller variant of Boeing 787-9 Dreamliner.

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