Middle Eastern airlines should avoid postponing aircraft purchases despite rising costs from the Iran war, as such delays would prove financially damaging over time, according to a senior airline industry executive.
Kamil Al-Awadhi, who serves as regional vice president for Africa and the Middle East at the airline trade organization IATA, stated Saturday that he anticipates the conflict and increased expenses will not impact aircraft purchasing decisions by carriers in the region. Airlines throughout the Middle East represent significant customers for aircraft manufacturers Boeing and Airbus.
Postponing orders would be “not wise because that deferral will cost you,” Al-Awadhi explained, pointing to extended aircraft delivery schedules. His comments came during the International Air Transport Association’s yearly conference taking place this weekend in Rio de Janeiro.
Considering the extended delivery periods for Airbus’s newest single-aisle aircraft models, airlines would face years-long waits to receive their planes, Al-Awadhi noted.
“The plan is to continue where we’re going … even though this is a hiccup,” he stated.
Airlines worldwide are reducing flight schedules and increasing ticket prices and additional charges to compensate for higher operating costs, while airports across the Middle East have faced air strike attacks connected to the Iran war.
Al-Awadhi expressed concern about an Iranian assault that claimed one life at a Kuwait airport this week, causing damage to a terminal utilized by international airlines operating in the country. He estimated repairs to the terminal would require a minimum of one year.
“My personal guess, looking at the damage from the videos and pictures that were sent to me, it’s going to take ages,” he explained. “So my concern is, will the other carriers be able to go into Kuwait?”
He indicated Kuwait would need to either accelerate construction of portions of a new airport terminal or permit international airlines to use terminals currently designated for domestic carriers like Kuwait Airways.
“It will take some tough decisions and logistics to get that sorted,” he concluded.
