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Airport Expansion and Order Backlogs Drive Growth in Middle East Ground Handling and Maintenance Companies Notes Frost & Sullivan - Aircraft fleets are slated to increase in the Middle East because of airport expansion plans as well as order backlogs of commercial aircraft and business jets
Airport Expansion and Order Backlogs Drive Growth in Middle East Ground Handling and Maintenance Companies Notes Frost & Sullivan

 

PRZOOM - /newswire/ - Dubai, UAE, United Arab Emirates, 2010/01/05 - Aircraft fleets are slated to increase in the Middle East because of airport expansion plans as well as order backlogs of commercial aircraft and business jets.

   
 
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However, the market for airside services across airports in the Middle East is predominantly monopolistic with challenges relating to imbalances in future demand and supply. Large-scale market consolidation and sub-contracting will shape the industry and drive overall revenues.

New analysis from Frost & Sullivan (aerospace.frost.com), Middle East Airport Airside Services Market Assessment, finds that the market earned revenues of $1.92 billion in 2008 and estimates this to reach $2.83 billion in 2015. Revenues from commercial aircraft are expected to constitute a major share as a result of a growing fleet size and greater average cost of handling and maintenance.

If you are interested in more information on this study, send an email to Tanu Chopra / Nimisha Iyer, Corporate Communications, at tanu.chopra[.]frost.com / niyer[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

"The Middle East market for airside services comprising ground handling and maintenance is expected to experience robust growth because of the order backlogs in the Middle East coupled with the minimal impact of the economic slowdown on the regions passenger and air traffic," says Y. S. Shashidhar, Vice President & Country Director, South Asia-Middle East & North Africa, Frost & Sullivan. "The region is projected to have 1206 aircraft and 708 business jets that will result in the traffic growing by about 10 per cent within the Middle East."

The cumulative effect of these factors reflects in the market growth. The aircraft movement across the region's airports is anticipated to grow at a compound annual growth rate (CAGR) of 4.8 per cent between 2008 and 2015.

The market for ground handling and maintenance is correlated to the aircraft movement, spurred by the rise in passenger traffic. The increase in aircraft movement directly translates to revenues for ground handling and maintenance companies. The focus for many companies wanting to enter the market will be on enhancing their capabilities to cater to business jets that have a greater average cost of ground handling and maintenance.

However, a major challenge lies in maintaining the service quality while adhering to environmental policies.

"It is vital for existing service providers to understand that a large number of deliveries are anticipated to increase aircraft movement in the region," explains Shashidhar. "Therefore, if sub-contracting is not adopted or private participation not encouraged, then the future is likely to witness an imbalance between the demand and supply of services at airports."

Large-scale liberalization and private participation in ground handling and maintenance at airports will ensure that the airside service market functions smoothly and grows amidst competition.
"Civil aviation authorities and airport operators should boost private participation to enable airlines to choose from a larger number of service providers in addition to permitting specialised service offerings by individual service providers," concludes Shashidhar.

Middle East Airport Airside Services Market Assessment is part of the Aerospace Growth Partnership Services programme, which also includes research in the following markets: Asia Pacific VLJ Market Assessment, Global Commercial Aviation Power Systems and Infrastructure Assessment, Strategic Analysis of the Indian Commercial Aviation Suppliers Market, Global Engine MRO Market, Opportunities in the Indian Airports Infrastructure Modernization and Development Market, and Middle East Airports Infrastructure Market Assessment. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

Middle East Airport Airside Services Market Assessment / M435.

 
 
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Airport Expansion and Order Backlogs Drive Growth in Middle East Ground Handling and Maintenance Companies Notes Frost & Sullivan

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Contact: Tanu Chopra / Nimisha Iyer 
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