MIDDLE EAST
ANALYSIS
A LOW PROFILE blockade of Qatar by the Gulf
It has been a tough time for Asia in the
wake of the COVID-19 virus – but what
about neighbouring Middle East? An
update from Alwyn Brice.
that for 2019, carriers in general
seemed to be more discerning
about their routes and fleets,
with more paying attention to
the bottom line and reducing
and redeploying capacity. Her
operation encompasses many
markets, hence the broad
commentary.
“The 2019 merger of
DSV and Panalpina and the
subsequent restructuring and
rationalisation stressed some
longstanding relationships, and
released some very able talent to
the market,” she notes.
“TIACA’s agreement with
Messe Munchen over the Air
Cargo Forum has allowed it to
focus again on doing what it
can do best: developing a broad
coalition, advocating effectively
and championing the industry.
I think that the sound relations
between TIACA and IATA,
their respective leadership and
teams, are a force for good in
the industry and I am excited to
see a new era of increasing cooperation
and innovation.”
She adds that the ongoing
If obtaining comment on the past 12 months has proved difficult,
at least the current situation can be expanded on, thanks to IATA’s
updates. Passenger traffic, because of the coronavirus, is expected
to take a huge hit over the coming months – but what about freight?
IATA’s data reveals that Middle Eastern airlines’ cargo volumes
decreased by a factor of 1.4% in January 2020 compared to January
2019. That said, capacity actually increased by 2.9%. Given the
Middle East’s geographical status as a staging post in trade between
China and the rest of the world, the region’s cargo airlines have
significant exposure to the impact of COVID-19 in the period ahead.
Asia-Pacific and Europe suffered the worst statistics during the
review period, with notable decreases in volumes registered, the
former recording a 5.9% dip and the latter a decline of 3.7%. The
Middle East’s shortfall was largely on a par with that of the US, but it
should be borne in mind that the US in January was not concerned
about the coronavirus. Certainly, the propinquity of the Middle East
to the source of infection has had an effect on its trade – and on this
basis, one assumes that figures for February and March will reflect
the strides of the virus as it crosses Europe, and beyond.
Focus on the bottom line
Coyne Airways was one carrier that did follow up the magazine’s
request for an update and the carrier’s Director, Liana Coyne, says
Co-operation Council continues
to affect regional flows, even if
it has become the new norm.
“There is no public indication as
to when the political situation
might be resolved, but Qatar
Airways continues to increase its
minority investments in other
airlines who operate to the Gulf
Co-operation Council.”
She also mentions that
uncertainty has remained
over Amazon’s ambitions to
insource its logistics functions,
compounded by the failure
of some of its partners to
meet expectations and service
standards.
View from the platform
The cargo market in general
might have been in the
doldrums but e-commerce has
certainly helped keep it afloat.
Patrick John Andrew Murray is
Head of Calogi, dnata.
“Calogi, our Dubai-based
air cargo trading platform, has
had another excellent year, with
a 16% growth in transactions
28 April 2020 www.airlogisticsinternational.com
/www.airlogisticsinternational.com