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Business Forum Russia – GCC day 2: Russia and GCC countries have huge potential to strengthen ties in aviation

United Arab Emirates: Tuesday, December 18 - 2012 @ 15:26

The session, moderated by Dr. Igor Egorov, Chairman of Russian Business Council, discussed the problems and tasks of freight building and logistics between Russia and the GCC, as well as the current situation and prospects of direct air traffic between the cities of Russia and the GCC.

Speaking at the session were Mr. Peter Richards, Group Managing Director, Gulftainer, UAE, Mr. Alistair Arthur, Logistics Director, Momentum Logistics, UAE, and Mr. Saleh Al Aroud, Chairman, Al Aroud Group, UAE.

In his speech, Al Aroud focussed on the aviation industry in Russia and highlighted the investment opportunities available. “Aviation is one of the biggest and the most important industries of Russian Federation: the total revenue of 248 enterprises amounted to more than $19.5bn in 2011; more than 400 thousand high-skilled jobs involved in the aviation industry make a significant contribution to the country’s GDP,” said Al Aroud.

“Starting from 2013 to 2025, Russia is planning to invest $38.5bn into aircraft industry to meet new technological advances in aircraft production,” added Al Aroud. “The industry will need a total of $54.6bn. However, the rest of the money will be raised through off-budget funding. According to figures from the Ministry of Transport, Russian government has pledged to invest approximately $5.7bn over the next three years in airports’ infrastructure and ground handling development.”

Al Aroud stressed on the importance of strategic partnerships between Russia and the GCC countries. “Russia and countries forming GCC have much to gain from close cooperation and have a huge potential for strengthening ties in aviation which would generate substantial benefits for both sides,” he said. “Flying is a regional, continental and global business. If we join together in a common air space, both GCC and Russian aviation will gain in global competitiveness.”

In his speech, Al Aroud highlighted that the international aviation industry and market are undergoing rapid change. He also mentioned the continuous growth that the same can be applied to Russian Airlines which are experiencing the continuous growth in passenger turnover. Following the results of last year the turnover reached a record-breaking quantity and made 64 million of passengers showing the growth by 12.6% compared to the previous year.

The growth of passenger turnover for the period of January-July, 2012 shows even more the impressive figures of 40.3 million passengers transported by Russian Airlines which gives the increase by 16% or 5.5 million passengers in comparison with the similar period of 2011. It is expected that in 2012 passenger traffic will grow by 15% to more than 70 million people.

According to the data of the statistical department of the Ministry of Transport, the total volume of air cargo transported in 2011 increased by 5.9% and made 981 thousand tons compared to 2010. The positive dynamics in the increase of air cargo transportation can be observed in the first quarter of 2012 as well.

The session topics also highlighted transport means produced by Russia manufactures, consulting and marketing services, and goods in demand for trade between Russia and GCC countries, the Project of Moscow Government: Moscow agglomeration, and Intellectual transport systems.

Running until the 19th of December, the Business Forum Russia-GCC is an initiative to strengthen economic and trade ties between Russia and GCC countries, and will bring together decision-makers and business leaders to boost trade and investment. The event includes a three-day conference, supporting exhibition, and a VIP reception hosted for Business Forum participants by the Russian Business Council on the 18th of December.

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Tuesday, December 18- 2012 @ 15:26 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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