Middle East air passenger demand up in July

The Middle East-North America market has been affected by a combination of factors in 2017, including the recently lifted cabin ban on large portable electronic devices. (Reuters)
Updated 07 September 2017

Middle East air passenger demand up in July

DUBAI: Middle East carriers registered a 4.5 percent increase in passenger demand for July, the International Air Transport Association (IATA) said.
This was an acceleration from the 3.6 percent growth reported in June, but still way below the five-year average pace of 11.2 percent, the group said.
“The Middle East-North America market has been affected by a combination of factors in 2017, including the recently-lifted cabin ban on large portable electronic devices, as well as a wider impact from the proposed travel bans to the US,” IATA said.
“Traffic growth on the Middle East-US route was already slowing in early 2017, in line with a moderation in the pace of expansion of nonstop services by the largest Middle Eastern airlines.”
The US Department of Homeland Security earlier lifted restrictions on electronic items inside cabins of aircraft flying from Gulf, Middle East and North Africa airports after carries implemented measures to address concerns about terrorism.
“Traffic growth on the segment was already slowing in early-2017, in line with a moderation in the pace of growth of non-stop services flown by the largest Middle Eastern airlines,” IATA said.
On a global scale, international passenger demand expanded at a slower 6.2 percent in July, compared with 7.6 percent in June, while capacity climbed 5.5 percent and load factor went up 0.5 percentage points to 84.6 percent.
European carriers posted a 7.5 percent rise in traffic for July compared to a year ago, down from 8.8 percent annual growth in June. Passenger traffic for the Asia-Pacific airlines’ meanwhile deceleration to 5.9 percent in July, against 8.8 percent a month earlier.
North American airlines’ passenger traffic climbed 3.5 percent while Latin American carriers recorded the strongest growth among regions, posting a 10.5 percent demand rise compared to July 2016.
African airlines experienced a 6.5 percent increase in traffic compared to a year ago, down from 9.8 percent demand growth in June
“As is evidenced by the record high load factor in July, the appetite for air travel remains very strong. However, the stimulus effect of lower fares is softening in the face of rising cost inputs. This suggests a moderating in the supportive demand backdrop,” said Alexandre de Juniac, IATA’s Director General and CEO.


Dubai builder Arabtec to file application for insolvent liquidation

Updated 40 min 13 sec ago

Dubai builder Arabtec to file application for insolvent liquidation

  • Board conclude that it is no longer tenable for the company to continue operating outside of a formal insolvency process
  • The court application will also request a number of other companies in the group be placed into insolvent liquidation at the same time

DUBAI: UAE Builder Arabtec Holding confirmed at a general assembly meeting on Monday it will, at the earliest opportunity, file an application for its insolvent liquidation at the courts.

“In accordance with the resolution of the company’s shareholders at the general assembly meeting held on Sept. 30, 2020, the conclusion was reached following a two-month period of discussions with key stakeholders,” state news agency WAM reported.

“The Board has concluded that it is no longer tenable for the company to continue operating outside of a formal insolvency process and that it is in the best interests of the company’s stakeholders that the company be placed into an insolvent liquidation (subject to court approval) at the earliest opportunity,” the report added.

The court application will also request that Arabtec Construction LLC, Arabtec Constructions LLC, Austrian Arabian Readymix Concrete Co LLC and Arabtec Precast LLC (collectively the Impacted Companies) will also be placed into insolvent liquidation at the same time.

No application has been made with regards to other subsidiaries and the builder intends to continue to engage with stakeholders to explore options open to it, the report added.