Gulf carriers’ business model sustainable for decades: Boeing
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The Gulf carriers’ business model of operating long-haul flights through a single hub will be sustainable for ‘many decades’ as its eats further into European and American market share, Boeing Co’s chief executive, Jim McNerney, was quoted in Gulf News.
The Gulf airlines, predominantly Emirates, Etihad Airways and Qatar Airways have played off their geographical location to establish themselves as some of the most influential airlines in the world.
“The business model is obviously successful today; the UAE have essentially become the Hong Kong of this century,” McNerney said in Abu Dhabi.
Hong Kong, utilising its location in Asia, established itself as a major logistics hub in the 20th century.
McNerney, who was speaking at ‘What’s Next? Navigating Global Challenges with the Innovation Generation’ summit, said the hub business model is likely to drive further growth among Gulf carriers.
“Given the technology I see available, which is the size and range of the airplanes, I think that this business model will be sustainable,” he said.
The region’s three major airlines have developed their own strategies tied into the long-haul single hub model. Qatar Airways is a member of oneworld airline alliance, and Etihad Airways is buying up stakes in a number of foreign carriers to give them reach into new markets and drive traffic into its Abu Dhabi hub. Emirates, meanwhile, has focused on building its growth organically, apart from a shared revenue tie up with Australia’s Qantas. “Until there is a huge step [up in] function range or capacity beyond what I can see today, I think this purpose will continue to be very, very competitive here,” McNerney said on the Gulf’s aviation hub strategy.
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