Abu Dhabi: Dubai International Airport is currently the second busiest airport in the world and by 2015 it will overtake Heathrow Airport of London, Willie Walsh, CEO of International Airlines Group, said.
Speaking at the World Travel and Tourism Council (WTTC) in Abu Dhabi on Wednesday, Walsh added that what makes the GCC region, particularly the UAE, the centre of the aviation industry boom, is the tax-free system.
He pointed out that Gulf airlines are the most progressive worldwide. “Gulf airlines are the most progressive at the international level: Etihad, Emirates and Qatar Airways as they benefit from the tax free systems to improve their performance and to expand further,” remarked Walsh.
“Taxes in the UK inhibit the ability to use our revenues to achieve progress in our aviation industry,” complained Walsh. He added that the taxes paid to the UK government do not actually go into travel industry or towards environmental solutions.
Walsh added that in the near future tourists will be coming from Asia to other regions in the world. “No surprises that tourism will come from Asia to other parts of the world,” benefitting from visa exemptions or measures as the waiting time for Chinese to get a visa to the USA has been reduced from 6 months to 2-3 days only, said Walsh.
Walsh stressed that there will be a new aviation market in the near future, resulting from the tough competition worldwide and the increase demand on aviation.
“In five years, a new type of aviation market will be introduced and it will be different from what we know now. And in 20 years from now, it will be unrecognisable,” Walsh said.
Alliances not a strong option
He said that alliances are not a very strong substitute for consolidation of companies. “Alliances are a poor substitute and alternative for consolidation of companies,” Walsh pointed out. He said that “mergers will not be bound by the current ties but will occur across today’s alliance structures”.
Walsh reiterated that “the industry has seen a lot of poor consolidations” and that any move “must create a better, stronger airline”.
