Hogan, who was speaking at the Arabian Hotel Investment Conference, predicted that airlines would come together to "take some of the costs out of the industry" and improve the bottom line, as seen in Europe and America.
He said: "There are too many public utility airlines in the Middle East, and at some time the airlines need to get back into shape, especially as there is more pressure as the airline industry becomes global.
"The best way for the sector to move forward is through consolidating some of the back-room costs like engineering, training and IT development. This will help take some of the costs out of the industry, but will not affect the brands, much as in the hotel industry."
Hogan stated that global carriers were unlikely to be part of the rationalisation - "they have a distinct global strategy" - but would help struggling regional carriers to share costs.
"Low-cost airlines do not exist in the region, as seen in Europe, and will not do so until they open up new markets. At present, they are just sitting on top of the current schedules and keep the yields down."
A curtain raiser to the Arabian Travel Market, the Arabian Hotel Investment Conference at Madinat Jumeirah conference centre in Dubai is organised by CB Richard Ellis Hotels, the largest commercial real estate firm in the world, and MEED Conferences. Details of AHIC can be found on www.arabianconference.com.
Platinum sponsors are: IFA Hotels and Resorts; Nakheel Company LLC; Kingdom Hotel Investments and Rezidor SAS Hospitality.
Gold sponsors are: Arabian Travel Market; Deloitte; Dubai Festival City; Emirates; Fairmont Hotels & Resorts; Gullivers Travel Associates; HVS International; Interval International; Jones Lang LaSalle; Jumeirah International; InterContinental Hotels Group; Le Méridien Hotels & Resorts; Marriott International; Port Ghalib; Movenpick Hotels & Resorts; RCI Middle East; Octopus Travel; RSP Group; Starwood Hotels & Resorts and Strategic Solutions.
Media sponsors are: AME Info, CNBC Arabia, CNBC Europe, Global Hospitality Resources, HOTELS, Sleeper and TTN.
Supporters are: Dubai Convention Bureau, Emirates Academy of Hospitality; International Business Leaders Forum; International Hotel & Restaurant Association; TNS, Villeroy & Boch; Virtual World Internet ; the World Travel & Tourism Council and WOW Travels.
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Gulf Air chief predicts regional airline rationalisation in near future
- United Arab Emirates: Monday, May 02 - 2005 at 17:02
- PRESS RELEASE
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Rationalisation of Middle East airlines is a reality, according to James Hogan, president and CEO of Gulf Air, who predicted that many carriers would move to share back-room costs within the next five to 10 years.
James Hogan, President and CEO of Gulf Air
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Posted by Lara Lynn Golden, News EditorMonday, May 02 - 2005 at 17:02 UAE local time (GMT+4)
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Notes and Media Contacts »
Media information:
Kirstie Hepburn / Fiona Swaffield
Strategic Solutions for Arabian Hotel Investment Conference
Tel: 971-4 391 5390,
fax: +971 4 36918486
About the Organisers:
CB Richard Ellis Hotels
CB Richard Ellis is the largest commercial real estate firm in the world, with 250 offices in 48 countries. CB Richard Ellis Hotels focuses exclusively on the hospitality industry providing consultancy services for the sale, valuation, financing, development and asset management of hotels. CB Richard Ellis Hotels has been involved in several of the largest transactions in Europe, specialising in investment opportunities and sale and leasebacks that have typified the changing times. Jonathan Worsley of CB Richard Ellis Hotels has taken a lead in developing networking events for the industry by organising the International Hotel Investment Forum in Berlin, the European Hotel Design Awards in London and now the Arabian Hotel Investment Conference in Dubai. Jonathan also sits as an advisor to the World Travel & Tourism Council.
MEED
MEED (Middle East Economic Digest) is internationally recognised as providing essential information for anyone doing business in, or with, the Middle East and North Africa. MEED now attracts over 70,000 individual readers each week, across 70 countries worldwide.
MEED Conferences is part of the leading information brand in the Middle East working to provide delegates with the very latest business sensitive information. Over the past 10 years, MEED Conferences has organised events attended by senior government officials and thousands of international business people. The conference series is aimed at companies active or seeking business in the markets of the Middle East. MEED is well established as the source of strategic and accurate regional information placing it in a unique position to bring together high-calibre speakers.
About the Arabian Travel Market
The Arabian Travel Market, which follows on from the Arabian Hotel Investment Conference, is now in its 12th year and organised by Reed Travel Exhibitions (RTE) the largest travel trade exhibitions organiser. RTE also organises World Travel Market, EIBTM, Mediterranean Travel Fair, CIS Travel Market, British Travel Trade Fair, International Golf Travel Market, AIME (Asia Pacific Incentives and Meetings Expo), LACIME, La Cumbre, ILTM (International Luxury Travel Market), Top Resa, and the ICCA Exhibition in Association with the ICCA Congress. The show is held under the patronage of the Department of Tourism and Commerce Marketing, the Government of Dubai.
Kirstie Hepburn / Fiona Swaffield
Strategic Solutions for Arabian Hotel Investment Conference
Tel: 971-4 391 5390,
fax: +971 4 36918486
About the Organisers:
CB Richard Ellis Hotels
CB Richard Ellis is the largest commercial real estate firm in the world, with 250 offices in 48 countries. CB Richard Ellis Hotels focuses exclusively on the hospitality industry providing consultancy services for the sale, valuation, financing, development and asset management of hotels. CB Richard Ellis Hotels has been involved in several of the largest transactions in Europe, specialising in investment opportunities and sale and leasebacks that have typified the changing times. Jonathan Worsley of CB Richard Ellis Hotels has taken a lead in developing networking events for the industry by organising the International Hotel Investment Forum in Berlin, the European Hotel Design Awards in London and now the Arabian Hotel Investment Conference in Dubai. Jonathan also sits as an advisor to the World Travel & Tourism Council.
MEED
MEED (Middle East Economic Digest) is internationally recognised as providing essential information for anyone doing business in, or with, the Middle East and North Africa. MEED now attracts over 70,000 individual readers each week, across 70 countries worldwide.
MEED Conferences is part of the leading information brand in the Middle East working to provide delegates with the very latest business sensitive information. Over the past 10 years, MEED Conferences has organised events attended by senior government officials and thousands of international business people. The conference series is aimed at companies active or seeking business in the markets of the Middle East. MEED is well established as the source of strategic and accurate regional information placing it in a unique position to bring together high-calibre speakers.
About the Arabian Travel Market
The Arabian Travel Market, which follows on from the Arabian Hotel Investment Conference, is now in its 12th year and organised by Reed Travel Exhibitions (RTE) the largest travel trade exhibitions organiser. RTE also organises World Travel Market, EIBTM, Mediterranean Travel Fair, CIS Travel Market, British Travel Trade Fair, International Golf Travel Market, AIME (Asia Pacific Incentives and Meetings Expo), LACIME, La Cumbre, ILTM (International Luxury Travel Market), Top Resa, and the ICCA Exhibition in Association with the ICCA Congress. The show is held under the patronage of the Department of Tourism and Commerce Marketing, the Government of Dubai.
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