Boosting Kuwait's T2 Terminal to Attract Global Carriers: Can It Succeed?
Rewritten Article
In the face of major international carriers halting their flights to Kuwait, and the nearing completion of the swanky Terminal 2 (T2) at the Kuwait International Airport, a burning question surfaces: Will a sleek terminal all by itself be enough to lure global airlines back? Or are there buried commercial issues that need to be tackled to boost Kuwait's allure and stimulate international air traffic?
The past few months have seen European heavyweights like British Airways, Lufthansa, and KLM pulling the plug on their operations in Kuwait. This trend signifies a broader issue - airlines aren't abandoning the country solely due to infrastructure snags, but rather economic hassles, asserts Al-Rai daily.
Eng. Duaij Al-Otaibi, the Acting Director General of the Directorate General of Civil Aviation (DGCA), recently spoke on Kuwait TV's "Kuwait Nights." He sounded optimistic about the potential return of some international airlines. He underscored that the flight suspensions were more about airlines' economic decisions than Kuwait-specific concerns.
"The muscle behind their decisions lies in commercial viability," Al-Otaibi explained. "Back in the day, regional carriers enjoyed a dominant role in passenger transport from Kuwait, disincentivizing major international players. But if conditions improve, there's no stopping them." He emphasized that DGCA has been dialoguing with various countries and airlines to address the matter, despite acknowledging the government can't compel airlines to operate in Kuwait.
Al-Otaibi predicts a surge in demand once T2 opens, stating, "They'll be knocking at the door. The demand will be there." However, industry experts Cry Havoc to such an upbeat outlook.
Sami Al-Nisf, former chairman of Kuwait Airways, deemed the expectation of a flood of international carriers post-T2 launch unrealistic. "The new terminal is merely the initial step," he said. "Reviving international airlines necessitates deeper reforms, particularly in reviving Kuwait's commercial and tourism sectors."
Al-Nisf underlined the need for increased regional integration, particularly with Gulf countries that continue thriving due to vibrant economies and open travel policies. He cautioned that without ramping up passenger demand and ameliorating the investment climate, the benefits of a new terminal could dwindle.
He also blasted the current fee structures at Kuwait Airport, asserting that they may not align with airlines' operational realities. "It's not merely about reaping revenue via higher fees," he warned. "If airlines scram, we'll be left with an empty terminal-a case of a successful operation causing a fatal patient crash."
Thamer Arab, former chairman of Wataniya Airways, echoed these sentiments. He pointed out that international airlines aim for profits, and Kuwait currently lacks the pull of a regional transit hub. "Unless profitability can be safeguarded, airlines won't return," he said. High operational costs and stiff competition from Gulf and Turkish carriers further thin Kuwait's competitiveness. Arab also highlighted that an airline typically requires a flight occupancy rate of 65% to sustain operations; below this threshold, routes become financially untenable.
Mohammed Al-Mutairi, Chairman of the Federation of Travel Agencies, chimed in, stating that infrastructure upgrades alone won't alter airline behavior. "The terminal itself isn't the issue," he said. "The real problem is that Kuwait hasn't been commercially inviting." With a global shortage of aircraft, airlines prioritize more profitable destinations.
Al-Mutairi closed by asserting that a medley of targeted incentives, economic reforms, and improved competition would be necessary to reinstate international airlines in Kuwait. Without tackling these commercial fundamentals, even if T2, despite its modernity or tech-savviness, might not be able to reverse the trend.
In a nutshell, to draw global airlines back to Kuwait International Airport, several commercial challenges necessitate attention: infrastructure expansion, regulatory improvements, fleet access assistance, economic incentives, a defined aviation sector strategy, targeted marketing, competition differentiation, and regional integration. By addressing these issues, Kuwait can up its game and lure international airlines back to its airport.
- Al-Nisf suggests that the opening of T2 is just the first step towards reviving international airlines; he emphasizes the need for deeper reforms in Kuwait's commercial and tourism sectors for a sustainable increase in passenger demand.
- Mohammed Al-Mutairi asserts that infrastructure upgrades alone won't change airline behavior in Kuwait; he believes a combination of targeted incentives, economic reforms, improved competition, and regional integration is necessary to reinstate international airlines in Kuwait, making the airport more commercially inviting.
