Homework Question on Middle East Aviation
- http://www.strategyand.pwc.com/media/file/MiddleEast-Aviation-System.pdf
- Follow the link and read the article. Review the article and give your thoughts in the paper.
- Make sure to answer these questions in your review:
- With the Middle East having the highest growth rate for traffic in aviation, do you believe the region will be able to support the growth? Why or why not?
- With all the civil unrest and political issues in the area how do you thing this will affect the potential to support the aviation growth?
- As the Middle East is the bridge between Europe and Asia do you believe these areas should help support the infrastructure needed to maintain the traffic and growth?
Homework Answer on Middle East Aviation
Question 1
The current state of Middle East aviation system is that the sector has not been able to cope with the demand for air transportation. This is because the quality and efficiency of these aviation systems are below the standards expected. Several factors have been linked to the inefficiency experienced in air transportation sector, limiting the expansion of the transportation lines. It means, therefore, that the Middle East aviation systems will be able to support the growth only by injecting corrective measures where they are required.
While regulations are necessary to control the flow of aircraft and maintain the business values, strict measures are likely to put off investors. The regulations by the government on airline ownership might condemn willing and capable investors to bring efficiency and availability of airplane transportations at cheaper costs (Goetz, Andrew and Lucy 78). This behavior increases the risk of increased demand relative to the aircraft operations on board.
Additionally, monopolistic activities by the government airports might incline passengers to opt for other forms of transportation. To support the increasing demand in the aviation industry, the government must remove heavy regulation to accommodate new business models (Goetz, Andrew and Lucy 86).The Middle East aviation projects should not be concentrated in one zone if they want to deal with overlapping passengers, demand in the future.