UAE 'should refrain from building overcapacity'

: Latest News; Wednesday, 18 August 2010

Dubai Chamber of Commerce and Industry has warned that the UAE needs to rationalise development to ensure the ongoing profitability and growth of the UAE's aviation industry.

Policy makers should refrain from building overcapacity, it said.

"Building excess capacity beyond the underlying demand for aviation service will lead to declining yields as airlines will find it economically feasible to lower prices to fill extra seats rather than the economics of allowing seats to go empty," the Chamber said in the study, "UAE: The region's aviation hub."

The country already has eight international airports and they are undergoing continuous upgrades and renovations, the study said.

The study also noted the effect - on European and north American competitors - of the UAE strategy of making its airports global airline hubs.

UAE 'should refrain from building overcapacity'

Latest News

Wednesday, 18 August 2010

Dubai Chamber of Commerce and Industry has warned that the UAE needs to rationalise development to ensure the ongoing profitability and growth of the UAE's aviation industry.

Policy makers should refrain from building overcapacity, it said.

The country already has eight international airports and they are undergoing continuous upgrades and renovations, the study said.

The study also noted the effect - on European and north American competitors - of the UAE strategy of making its airports global airline hubs.