“Aviation Needs Better Management”
In the August 18, 2010 issue of The Financial Times, Booz & Company Partner Fadi Majdalani and Principal Alessandro Borgogna (both Middle East) wrote as the Middle East plays an increasingly crucial role in global business, its aviation must do more to keep up. “Airlines and regulators need to define the priorities that will allow it to do so,” they added in a bylined piece that proposed a detailed strategy designed to restore an industry in which rapid growth masks significant challenges. On the surface, “Middle East aviation appears to be a picture of economic health,” write the Booz & Company authors, citing passenger growth, which is up 13 percent, compared with four percent worldwide. “Yet looks can be deceiving … While the Middle East’s airline industry appears strong, it could be far stronger.” As such, airlines should sharpen their focus in five areas, they said—creating a point-to-point strategy; exploring multi-hub operations; tailoring their services to customer needs; removing unnecessary costs; and considering merger and acquisition opportunities.