The International Air Transport Association (IATA) called on all players in the Gulf aviation industry to work together on issues critical to aviation's ability to serve as a catalyst for economic growth. At the two-day Global Aerospace Summit in Abu Dhabi that started Monday, IATA's Director General and CEO, said "aviation's ability to play a leading role in GDP growth is not guaranteed. It depends on having the right conditions in place to support competitive sustainable businesses. Many of these are beyond the direct control of airlines, and most require industry and government to work together with a common vision and purpose." Aviation has been at the center of the economic transformation in the Gulf region over the past 25 years. A study by Oxford Economics shows aviation in the Middle East supports 2.7 million jobs and $129 billion in GDP. Aviation's role is set to grow rapidly as international passenger numbers rise from 77.1 million in 2010 to 220 million in 2030. Tyler identified a 4-point agenda for the region based on safety, security, infrastructure and the environment. Moreover, Tyler warned Middle East carriers could post financial losses over the coming 12 months, despite appearing to have weathered the worst of the Arab Spring unrest. According to a forecast published by the industry body in March, the region's aviation sector will bank a profit of $500 million in 2012, a significant increase compared to its December estimate of $300 million. For the whole of 2011, the Middle East's air travel industry recorded a profit of just $100 million, with the Arab Spring unrest in the region a major factor in this performance. “But these are not strong results when measured against the size of the region's aviation sector. The entire industry remains extremely vulnerable to new shocks which could push it into losses,” he said. “If the oil price goes a lot higher than it is now then all bets are off. It wouldn't take much to plunge the whole industry into losses,” he added.
