Can the Expansion of Kuwait's T2 Terminal Attract Back International Airlines?

Can the Expansion of Kuwait's T2 Terminal Attract Back International Airlines?

Kuwait's brand-spanking-new Terminal 2 (T2) at Kuwait International Airport, slated to open soon, has raised some eyebrows. Is this shiny, state-of-the-art terminal going to be a game-changer, reeling in global airlines back to Kuwait? Well, hold onto your horses, because there's more to the story than meets the eye.

The past few months have seen some major European players, like British Airways, Lufthansa, and KLM, pull out of Kuwait. This isn't just about suspicions over infrastructure; it's mostly about economics, according to Al-Rai daily.

Eng. Duaij Al-Otaibi, the Acting Director General of the Directorate General of Civil Aviation (DGCA), offered some insight on this matter during a recent interview on Kuwait TV's "Kuwait Nights." He's optimistic about the possibility of some international airlines returning, but he stresses that these airline decisions aren't primarily driven by conditions within Kuwait, but rather by commercial viability.

"These companies operate based on profit motives," Al-Otaibi explained. "In the past, regional carriers dominated passenger transport from Kuwait, reducing the incentive for major international players. But if conditions improve, there's no reason they won't return." He added that the DGCA has been in talks with various countries and airlines in an attempt to address the issue. However, he acknowledges that the government can't force airlines to operate in Kuwait.

However, industry experts like Sami Al-Nisf, former chairman of Kuwait Airways, urge a more practical perspective. Al-Nisf argues that expecting a flurry of international carriers after the T2 launch is unreasonable. So, what does it take to lure these elusive international airlines back?

Al-Nisf advocates for broader reforms, particularly in revitalizing Kuwait's commercial and tourism sectors. He emphasizes the need for stronger regional integration with Gulf countries, which have been steadily attracting airlines with their booming economies and open travel policies.

Al-Nisf also criticizes current fee structures at Kuwait Airport, cautioning that it's not only about raking in revenue through higher fees. "If airlines pull out due to high costs, we'll end up with an empty terminal—a case of the operation succeeding but the patient dying," he warned.

Thamer Arab, former chairman of Wataniya Airways, echoed this sentiment, adding that international airlines are profit-driven. "Unless profitability can be assured, airlines won't return," he said. High operating costs and fierce competition from Gulf and Turkish carriers further erode Kuwait's attractiveness.

Arab also pointed out that an airline typically needs a flight occupancy rate of at least 65% to sustain operations. If the rate falls below that threshold, routes become financially untenable.

Mohammed Al-Mutairi, Chairman of the Federation of Travel Agencies, chimes in, asserting that T2 itself isn't the root of the problem. "The real issue is that Kuwait has not been a commercially attractive route," he said. With a global shortage of aircraft, airlines are dominating more profitable destinations.

Al-Mutairi concludes that a mix of targeted incentives, economic reforms, and enhanced competitiveness is needed to draw international airlines back to Kuwait. In other words, it's going to take more than a posh terminal to reverse the trend.

In this ever-competitive aviation landscape, addressing these commercial fundamentals—high operating costs, global aircraft delivery delays, regional competition dynamics, regulatory and administrative efficiency, and ancillary infrastructure support—is going to be crucial for Kuwait to regain its appeal as a transit and destination hub.

1. Despite the upcoming opening of Kuwait's Terminal 2 (T2), some European carriers like British Airways, Lufthansa, and KLM have recently withdrawn from Kuwait, primarily due to economic factors.
2. Eng. Duaij Al-Otaibi, the Acting Director General of the Directorate General of Civil Aviation (DGCA), mentioned that international airlines' decisions aren't primarily driven by conditions within Kuwait, but rather by commercial viability.
3. Sami Al-Nisf, former chairman of Kuwait Airways, proposes broader reforms, particularly in revitalizing Kuwait's commercial and tourism sectors, as well as stronger regional integration with Gulf countries to lure international airlines back.
4. Thamer Arab, former chairman of Wataniya Airways, emphasizes that international airlines' return to Kuwait depends on ensuring profitability, as high operating costs and fierce competition from Gulf and Turkish carriers currently erode Kuwait's attractiveness.

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