Investment in the sector is taking off, with huge expansion plans from practically every carrier. Oman recently increased the operating capital of its national airline, Oman Air, six-fold, from $130m to $777m. Low-cost carrier Air Arabia, coasting on net profits of $123m in both 2008 and 2009, has placed an order for 44 new craft and invested $50m in a new hub in Casablanca. Qatar Airways has ordered a staggering $40bn worth of new aircraft. And RAK Airways has invested more than Dh100m ($27.22m) in infrastructure projects and plans to invest at least Dh550m ($149.74m) upgrading and expanding RAK Airport. But investment is not necessarily translating into profits: of the four carriers just mentioned, Air Arabia is the only one to turn a profit in the last two years.

The major upgrades across the board mean that interested parties are competing for slices of what is still a very small pie. According to the International Air Transit Authority (IATA), only about 10% of the world’s air traffic passes through the Middle East. While all estimates predict strong growth in the region – Boeing figures estimate revenue passenger km (RPKs) will increase at a compound annual growth rate of 6.6% between 2008 and 2028, and a report from the Kuwait Financial Centre (Markaz) predicts passenger traffic will more than double by 2014 to 280m from 126m in 2008 – the level of investment in the sector is well out of proportion to the region’s short-term revenue potential.

Even if the impressive passenger and freight growth of the last few months (16.5% and 21.4%, respectively, according to the IATA) continues, prices will have to increase exponentially for investors to see a return on the estimated $45bn that is being poured into the sector over the next four years.

This disproportionate spending is understandable in this fast-developing area, where cash-rich governments, who are often the principle investors in the region’s airlines, can afford to swallow short-term losses in order to capture long-term market share. Growing populations, and clout on the world economic stage, mean that the percentage of air traffic passing through the Middle East will almost certainly soar beyond the current 10%. But with so much competition, it will be hard for all the current players in the industry to ride the rising tide.

RAK’s plans for its aviation sector reflect an understanding of just how tricky it will be to gain market share while competing with more well-funded and longer-established neighbours. Rather than pursuing the high-end market – where it would compete with the well-known Emirates, Etihad, Qatar Airways, and Gulf Air, and rising contender Oman Air – RAK has chosen to carve its niche in the low-cost, freight and maintenance, repair and operation (MRO) services subsectors.

Included in the emirate’s business plan is a commitment to position RAK International Airport as “a low-cost airport with very competitive tariffs directly contributing to airlines’ bottom line”. This appears wise: low-cost carriers have been the brightest spot in the Middle East’s aviation industry throughout the recession, raking in profits even as the regional airline industry lost $1.2bn in 2009.

In addition, RAK Airport’s central location – close to key ports and industrial zones, far enough from Dubai to have clear air space – makes it an enticing base for freight consolidation. Worldwide freight traffic shot up 28.3% in January 2010 compared to the same time last year, while passenger demand grew a more modest 6.4%. Location is also key for RAK’s MRO ambitions: RAK lies within easy reach of the Middle East, North Africa, and the Indian subcontinent, areas which are all currently underserved by existing MRO facilities.

There is, undoubtedly, much room for growth in the aviation sector throughout the Middle East. Governments are right to invest in crucial infrastructure for future growth. However, it is important to avoid duplicating the same infrastructure too many times within the region. RAK’s decision to pursue niche markets seems well placed to not only take flight, but also soar.

Ras Al Khaimah www.rasalkhaimah.eu

Advanced radar technology has been introduced to the UAE with the commissioning of the Raytheon dual-channel Series 300 S Monopulse Secondary Surveillance Radar (MSSR) system at Ras Al Khaimah International Airport.

With the introduction of the new new Air Traffic Control (ATC) radar system, RAK Airport now has the most advanced and capable civilian radar in the UAE region.

The system, which transmits both Mode S and conventional MSSR data simultaneously, provides ATCs at RAK International Airport with air surveillance data for local use. The radar data will also be supplied to the new Sheikh Zayed Air Traffic Control Center in Abu Dhabi for assistance in the provision of en route air traffic services within the UAE and neighboring regions.

RAK Airport’s new MSSR was commissioned on March 11, 2009 and received GCAA approval to use it operationally on June 3, 2009 once the new RDS and recorders at the ATC tower receives GCAA approval.

Mode S MSSR, where `S’ stands for Selective, has now become the benchmark standard to which Air Navigation Service Providers (ANSPs) worldwide aspire to. The significance of MSSR data is that it enables ATCs to identify and maintain contact with aircraft and provides 3D positional information.

MSSR Mode S transmissions are transmitted to each individual aircraft. This is because the availability of over 16 million addresses worldwide allows every aircraft to have its own unique address and each Mode S ground interrogator has an address.

This eliminates any risk of messages being corrupted by interference from any another message, one of the problems with conventional MSSR. It also means that once all ATC agencies are appropriately equipped, aircraft will be able to retain a single code, usually their flight number, for the whole duration of a flight, rather than having to change their code as they transfer from one ATC agency sector to another during the course of that flight.

Enhanced Mode S enables much longer response messages to be transmitted from air-to-ground and these extended messages contain invaluable data from the aircraft that can be used by ATC. This data, which is automatically extracted from the aircraft’s avionics system, includes the heading of the aircraft, its true airspeed, ground speed, 25- feet height accuracy, rate of climb or descent, rate of turn and also the height selected by the flight crew on the flight management system and all the elementary Mode S MSSR data.

This data is a major advance to ATC’s since it can be selected on the radar display screens thus reducing the need for radio exchanges to check this information. It allows ATCs more time to concentrate on their primary function of maintaining a safe, orderly and expeditious air traffic flow.

During MSSR’s Flight Trials it proved to have better than 99.92% probability of detection of responders within its 256 Nautical Miles radius. The radar is an invaluable tool for ATCs to ensure a safe airspace and to optimize the usage of the airspace under RAK Airport’s control.

Source: RAK Department of Civil Aviation – November 2009

“We are pleased to announce that Ras Al Khaimah International Airport has been issued with an Aerodrome License. Through the course of the programme, the Ras Al Khaimah Airport, complied with regulations and expressed total dedication in raising the performance of its aviation operation facilities, equipment, training systems, procedures and manuals,” said Saif Mohammed Al Suwaidi, Director General of GCAA.

The commercial success of local airlines and the strong influx of investment and tourism from around the world have caused the UAE’s international airports to grow from airfields to top quality aviation hubs. This unprecedented growth has created a need for aviation professionals across the UAE to regularly update their aviation systems and enhance their safety programmes to stay a step ahead of their fast growing aviation operations. With seven civil international airports operating within the UAE, and more in the pipeline, the GCAA has been at the forefront of regional aviation development through constant auditing, training and monitoring of the country’s aerodrome operators.

Aimed at all facets of air operations, the GCAA invested heavily in the six month programme by providing aviation specialists and conducting numerous inspections and audits to ensure that the highest level of safety and security standards is maintained. The GCAA is also working closely with the International Civil Aviation Organization (ICAO) and regional aviation authorities to advance existing air systems and operations, adopt international aviation safety and security standards and programmes and focus on safety and security measures to prevent and reduce incidents and accidents.
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The General Civil Aviation Authority (GCAA) is a federal, autonomous body set up to oversee all aviation-related activities in the United Arab Emirates.

The General Civil Aviation Authority (GCAA) website: www.gcaa.ae
Ras Al Khaimah International Airport websitr www.rakairport.com

RAK Airport asked businesses from within RAK industrial and free zones to assist in complete this research. This will ensure that the services at RAK Airport meet the needs of RAK industry and bring maximum value to all parties involved.

Secondary market research is took place between 12 and 28 August 2009 to identify the potential cargo volume throughput associated with Ras Al Khaimah. The research will assist RAK Airport in catering to business needs and developing the airport as a valuable and reliable link in the air freight supply chain.

RAK Airport www.rakairport.com