Airline Industry Essay

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Attractiveness of the airline market in UAE and Dubai  Middle East it is placed at the middle of a market with four billion people: China, India, south-east Asia, the Russian Federation, Europe.  UAE was one of the world's wealthiest countries, with a GDP of $71 billion in 2002 (GDP per capita $18,906), a sizable annual trade surplus and a stable currency - the dirham - pegged to the dollar.  Dubai's corporate tax and personal income tax rates were zero  Population of the UAE expanded from 2.4 million in 1995 to 3.8 million in 2002 with 90% of its population foreign-born. Expatriates spoke more than 150 languages within its borders, making Dubai one of the world's most cosmopolitan cities.  Dubai's airport was forecast to handle approximately 60 million passengers by 2015, only three million fewer passengers than London Heathrow in 2003, the busiest airport in Europe.  In the fiscal year 2003 (ending 31 March 2004), Emirates carried 10.4 million passengers, an increase of almost two million passengers over the preceding fiscal year. Key competitors  In October 2003, the first low-cost carrier in the Middle East, Air Arabia started to operate from Sharjah, UAE.  One month later, Etihad Airways, an airline created by a UAE government decree signed by Sheikh Khalifa bid Zayed, Crown Prince of Abu Dhabi and deputy commander of the UAE armed forces, started to offer flights from Abu Dhabi, only some 60 miles from Dubai.  In July 2004, Etihad signed a memorandum of understanding with Airbus for 24-wide body aircraft with options on a further 12, in a deal valued at $7 billion at list prices  Etihad had aggressive growth targets planning to be operating 50 aircraft to 65 destinations by the end of 2009. One analyst noted "the carrier from Abu Dhabi was oblivious to any notions of learning to walk before it tries to run"  Qatar Airways more than

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