Qatar Airways predicts planes powered by natural gas and electricity

The airline industry in the Middle East will experience tremendous growth over the next decade, but it will also encounter new challenges as the industry continues to evolve, according to Ali Al Rais, General Manager Commercial for Qatar Airways.

Speaking at the inaugural Business Travel Show Dubai, Al Rais said that in terms of air travel, the Middle East is the 'centre of the world.' Travellers from the region can fly non-stop to any corner of the globe, as aircraft are now capable of flying 16 hours at a stretch, or approximately 8,000 miles.

The Gulf's central location and ambitious tourism and development initiatives are increasing the number of regional business travellers that are taking to the skies. Companies in the region will spend $63bn on air travel in 2007, and that figure is expected to more than double to $124bn by 2017, Al Rais said.

Air travel will also get a boost by the mega projects that are underway to expand the region's airports. About $23bn is being spent on airport infrastructure in the region, Al Rais noted.

Another trend that will be a boost for Middle East carriers is the fact that the number of people worldwide taking seven or more long haul flights per year will increase from six per cent at present to 14 per cent in 2015. The region will benefit from this upswing as it is a key hub for long overseas travel.

Airline challenges

Al Rais cautioned that the industry still faces challenges during this period of tremendous growth. He said it is a common misconception that all regional carriers are subsidized by their governments. In fact, capital costs for regional carriers are on par with their competitors throughout the world.

As such, carriers in the Gulf, along with the rest of the world, must contend with rising oil prices, which will reach $100 a barrel by the end of the year, Al Rais predicted. Spending on security also remains high as newer and more sophisticated measures are being developed.

Airlines are also finding themselves spending more on technology to help cope with fuller planes, longer queues, and busier airports. Advances in technology offer may benefits for customers, but finding and training people who can use the new technology is one of the industry's biggest challenges, Al Rais said.

Regional carriers also face increasing challenges from the growth of personal jets and long haul, low cost carriers. He noted that Silverjet, a low cost business-class only airline will soon be flying from London to Dubai. Regional carriers will also face increasing competition from low cost carriers Air Asia and Oasis Hong Kong.

At the same time, Carriers are being forced to spend more to provide greater luxury as customers are becoming more demanding and selective. Passengers expect larger bathrooms, wider TV screens, and more comfortable beds.

Future trends

The environment is becoming an increasing concern and Qatar Airways is taking the lead in this area, Al Rais said. The carrier is working with Shell and Qatar Gas to develop an aircraft that will use natural gas as fuel rather than gasoline. However, any change in fuel will require the engines to be redesigned, and he gave no further details about the project, other than to say an announcement will be made soon.

Other developments that we are likely to see in the near future are air taxis and air limousine services shuttling customers across cities. He said it also won't be too long before we see electric planes.

On the business front, as competition between regional airlines intensifies, we may also see some of them forming alliances, Al Rais said. Right now, the region's airline industry is not mature, but it has expanded greatly in the past few years, making such alliances a greater possibility down the road.

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