DUBAI AVIATION

Analysis of Dubai Aviation Model



Analysis of Dubai Aviation Model

Introduction

The aviation industry in Dubai is one of the successful areas through which economic benefits arise. The paper discusses the success factors and strength of the aviation industry in Dubai. The economic impact arising by the efficiency of the aviation industry is also mentioned.

Success Factors

The success factors in aviation industry derive from various strengths and opportunities which are the product of strategic decision that the aviation sector and the government of Dubai have taken in the past (Hazbun, 2008). The strengths and opportunities to the aviation sector were made possible largely due to the government initiatives in terms of investments and the partnerships. The government partnered with the international aviation companies to make the most of technology changes and innovation in aviation industry. Secondly, Dubai's success comes from the efficiency if emirates operations, it does not require government financing and is self operational. Emirates operate a modern and young fleet of aircraft this brings number of benefits for passengers and the airline through lower maintenance and fuel costs (Oxford, 2011).

Dubai's aviation sector has seen a tremendous growth in the past five years. The number of international passengers doubled from 24.8 million in 2005 to 47.2 million in 2010. The rank of Dubai international is fourth in the global aviation industry for the international passengers and cargo traffic. The number of Emirates' passengers increased six fold over a decade, thus making it the largest airline in the world in terms of international revenue passenger's kilometres. This success is viewed in suspicion for some critics seeing it as an evidence of government support and unfair competition. However, according to oxford economics, success comes from a consensus based approach to investment, a focus on growth, in competition, and lining the underserved markets with the operations and Dubai's favourable location at the intersection of Asia, Europe, and Africa within eight hours flight of the two third's world's population.

 

Benefits Created by Dubai's Aviation Sector to Dubai's Economy

Civil aviation sector recorded high economic growth rates in Dubai alone sector provides 250 thousand jobs, as well as economic activities worth more than $ 22 billion, according to the latest reports of the company, "Oxford Economics. By 2020, the sector is expected to provide 373 thousand jobs, or about 22% of the total number of employees in Dubai (John, 2010). Also, it is expected to reach the value of the economic activities of the sector 45.4 billion, or about 32% of the GDP of the emirate. In order to avoid blocking the growth of the domestic aviation sector put the finishing touches on the Dubai strategy for expanding energy over the next ten years. He said Paul Griffiths, "CEO of Dubai Airports to the restrictions imposed on air traffic the most dangerous threat to the growth of civil aviation sector and billions of dollars of economic activities expected to result from the expansion of the sector projects in the Middle East over the next ten years (John, ...