Support for Aviation's Growth
Located at the crossroads between Asia, Africa, and Europe, airlines in the Middle East are well positioned to compete for traffic connecting these regions. About 80 percent of the world's population lives within an eight-hour flight of the Gulf, allowing carriers in the Middle East to aggregate traffic at their hubs and offer one-stop service between many city pairs that would not otherwise enjoy such direct itineraries.
Partnerships of various kinds also feed Middle East hubs, and between organic growth with selective code sharing, equity stakes in a range of out-of-region carriers, and traditional alliance membership, no single strategy has emerged as dominant. Each of these strategies creates opportunities to coordinate schedules across national boundaries, further enhancing the appeal of services connecting the Middle East.
The region's low-cost carriers have also been innovative, reducing short-haul fares, setting up cross-border subsidiaries, and developing mobile booking portals to improve access to air services. The business model is evolving as carriers broaden offerings to include business-class seating and as they expand networks into previously underserved areas, such as the Commonwealth of Independent States.