- Innovation
- Infrastructure
The Middle East’s rising role in global aviation: what Europe must do to compete
25/09/24With record-breaking passenger numbers and the global aviation industry shifting eastward, the Middle East is emerging as a dominant player. For Europe to remain competitive as a global aviation hub, a strategic focus on airport infrastructure investment and technological innovation is critical.
In 2024, airlines in the Asia-Pacific region recorded a staggering 38.5% year-over-year increase in demand—far outpacing European carriers (14.6%). European airlines, constrained by the lingering effects of the pandemic, have reduced routes to Asia, effectively ceding ground to Middle Eastern carriers offering more competitive fares. This shift has relocated the aviation “center of gravity” eastwards, with hubs like Dubai and Doha now leading global travel between East and West, leaving traditional European hubs like London and Amsterdam trailing behind.
The Middle East’s Success Formula
Middle Eastern airlines, notably Qatar Airways and Emirates, have capitalized on this shift by aggressively expanding their networks and enhancing their product offerings. Government support—through investment in infrastructure and favorable aviation policies—has played a crucial role in this growth. This backing, part of broader economic diversification strategies and an increased focus on tourism, is a level of support rarely seen in Europe, where market-driven approaches dominate. The lack of comparable government investment in Europe places the region at a competitive disadvantage.
Technology is another area where the Middle East is leading. Airports across the region are embracing digitalization to enhance both customer experience and operational efficiency. Examples include automated baggage systems and e-gates, which streamline airport processes. Notably, Zayed International Airport’s biometric Smart Travel project uses existing traveler data to automatically authenticate passengers, improving both efficiency and satisfaction.
Among the region’s ‘big three’ airports—Dubai, Doha, and Abu Dhabi—Dubai World Central (DWC) stands out as a key aviation hub. According to CAPA, DWC has attracted USD $32.3 billion in investment to date, the largest of any airport in the region. The approval of phase two of its expansion this year further cements its role as a critical player in global aviation.
The Middle East is also strategically positioned to serve as a hub for the East-West corridor, facilitating exports from Asia to Europe and driving the flow of goods to Africa. This geographic advantage, coupled with its substantial investments in aviation infrastructure, positions the region to sustain its competitive edge for the foreseeable future.
Europe’s Path Forward
For Europe to compete with the Middle East, the region’s aviation sector must adopt a long-term strategic vision. This starts with securing more robust government backing for airport infrastructure and technological advancements. European airports must also focus on capitalizing on the growing low-cost traveler market, which remains larger in Europe than in the Middle East.
Additionally, Europe’s fragmented aviation landscape needs consolidation. Creating a handful of major hubs, similar to those in the Middle East, would improve operational efficiencies and help Europe reclaim a dominant position in global aviation. Without decisive action, Europe risks falling further behind in a rapidly evolving industry.