Analysis of Air cargo

market in GCC
Group 7
Han Vu
Nihar Kumthekar

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Agenda
Regulatory Authorities
Airports and Airlines
Aircraft
Associated Infrastructure
Volumes
Revenues
Products
Reasons the Boom
Pros Vs Cons

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Regulatory Authorities
ICAO- International Civil Aviation Organization.
IATA- International Air Transport Authority.
AACO-Arab Air Carrier Organization.
Civil Aviation Authorities
Bahrain- Civil Aviation Authorities
Kuwait- Directorate General of Civil Aviation
Oman - Directorate General of Civil Aviation
Qatar – Civil Aviation Authority
Saudi Arabia - General authority of Civil Aviation
UAE – General Civil Aviation Authority

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Saudi Arabia

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 Bahrain
Bahrain International Airport
Expansion plan start on 2010
18000 m2 Cargo Terminal
DHL Headquarter in Middle
East with 17 aircrafts
Cargo airline FEDEX,
TNT,GLOBAL LOGISTIC SERVICES
Cargo volume 358670 tons
(2006)

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 Kuwait
Kuwait International Airport
 It is the hub of Jazeera Airways, Kuwait
Airways, United Aviation, and Wataniya
Airways.
KUWAIT AIRPORT
250,000

200,000

150,000 Freight (in metric

tonnes)

100,000

50,000

0
2005 2006 2007 2008 2009

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OMAN
Muscat International Airport
is the main airport in
Muscat, Oman. It is the
hub for the national carrier
Oman Air. 120,000
MUSCAT INTERNATIONAL AIRPORT

Expand to 12 million- 100,000

passenger capacity 80,000

completed by 2014 60,000 Freight (in metric

tonnes)

40,000

20,000

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Qatar
Doha International Airport
Main hub of Qatar
airways.

DOHA
400,000
300,000
200,000 Freight (in
metric tonnes)
100,000
0
98 02 04 0 6
1 9 2 0 2 0 2 0

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 UAE-Dubai
Dubai International Airport
Major aviation hub in the Middle East
 7th busiest cargo airport in world,
handling 1.927 million tonnes of cargo
in 2009
Dubai World Central-600000 tons
DUBAI AIRPORT
Air Carrier and Forwarder Information 2,500,000
Total Number of Air Carriers Serving
Airport - 102 2,000,000

Number of All-Cargo Carriers Serving 1,500,000 Freight (in metric

tonnes)
Airport - 57
1,000,000
Number of Non Scheduled Charter
Cargo Carriers - 140 500,000

Number Freight Forwarders / Cargo

0
Agent operating at or near airport - 151 2004 2005 2006 2007 2008 2009
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 UAE-Abu Dhabi
ABU DHABI INTERNATIONAL ABU DHABI AIRPORT
AIRPORT 450,000
400,000
Air Carrier and Forwarder 350,000

Information 300,000
Freight (in metric
250,000 tonnes)
 Total Number of Air Carriers 200,000
150,000
Serving Airport - 32 100,000

 Number of All-Cargo Carriers 50,000

0
Serving Airport - 4 2001 2002 2006 2007 2008

 Number of Non Scheduled

Charter Cargo Carriers - 3
 Number Freight Forwarders /
Cargo Agent operating at or
near airport - 28
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UAE-Sharjah
SHARJAH INTERNATIONAL AIRPORT
SHARJAH AIRPORT
Air Carrier and Forwarder 600,000

Information 580,000
560,000
Total Number of Air Carriers
540,000 Freight (in metric
Serving Airport - 170 520,000
tonnes)

Number of All-Cargo Carriers 500,000

480,000
Serving Airport - 110 460,000
Number of Non Scheduled 440,000
2004 2005 2006 2007 2008
Charter Cargo Carriers - 64
Number Freight Forwarders /
Cargo Agent operating at or near
airport - 48

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 HUB Dubai International Airport

Source- Wikipedia
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Aircraft

Airbus A-300

Boeing- 747, 737, 777, 767,C-17

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Antonov- An 225, 124 Illyushin – IL76
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Associated Infrastructure
 24 Hour operational Cargo Terminal
export cargo sales
trans-shipment
inter airport trucking
 customs clearance
Break-bulk, bonded warehousing
 freezers
chillers
 cold store storage,
dangerous goods
 livestock
radioactive material
valuable and diplomatic cargo and mail facilities.

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Volumes
Air Freight Routes and Direction
International Freight Volume Growth by Route Area (Source: IATA ODS statistics)
 
Route Area Africa - Middle East Europe - Middle East Within Middle East Middle East - Far East
% Growth in Freight Tonnes, year-on-year

10-Jan 13.40% 19.70% 7.40% 31.70%

10-Feb 19.30% 20.70% 11.50% 32.80%
10-Mar 9.90% 19.20% 8.40% 30.30%
10-Apr 10.70% 3.70% 10.50% 26.70%
10-May 24.30% 26.50% 10.20% 37.10%

10-Jun 16.30% 19.10% 3.70% 25.60%

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Revenues
Origin Region-Middle East Origin Region-Middle East
Inbound CASS Market Revenues Outbound CASS Market Revenues
US $m Q1 2010 283.3 US $m Q1 2010 101.6
rowth in Air Freight Revenues, year-on-year

Q1 2009 -12.3

rowth in Air Freight Revenues, year-on-year

Q1 2009 49.4
Q2 2009 -16.3 Q2 2009 19.4
Q3 2009 -13.3 Q3 2009 -1.5
Q4 2009 10.1 Q4 2009 26.7
Q1 2010 15.2 Q1 2010 4.3

Q2 2010 18.1 Q2 2010 89.1

CASS-Cargo Accounts Settlement System (Source: IATA ODS statistics)

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Products
S-N trade- Fruits, Vegetables
N-S trade- Unavailable Commodities
E-W- Computers, Electronics, Fruits, Vegetables, Apparel
etc
W-E- e.g Dubai 3.62 million foreign nationals.-Personal
Goods

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Reasons- the Boom
Geographic Advantage
Aggressive GCC Airlines
Sponsor
Long Haul Aircraft
New Market
Increase in E-W trade
Liberalization- N.S
Trans-shipment

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Pros Vs Cons
Advantages
Central Location + Long Haul=Better Reach
Higher capacity => Cheaper
Higher Frequency => Lower Cargo Sitting
Infrastructure
Disadvantages
Threat from Terrorist Organizations in the region- Flight
from major to minor players (TAPA -Technology Asset
Protection Association)
Old Aircraft existing in the region

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 Thank You

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