The recent traffic report reflected a growth in cargo performance, with loads increasing by 20.3 per cent and aircraft movements increasing by 11.9 per cent for the first six months of 2010, compared to the same period last year.

A statement from ADAC said the increase in activity at Abu Dhabi International Airport was also a result of Etihad Airways’ increased frequencies and new destinations.

The top routes from Abu Dhabi in the first half of this year were London, Bangkok, Doha, Manila and Bahrain, accounting for 20 per cent of the total passenger traffic at the airport during this period.

The traffic report for the first half of this year identified the top developing regions to and from Abu Dhabi were North America, the South West Pacific (Australia) and Europe, demonstrating a 108 per cent increase, a 22 per cent increase and a 19 per cent increase respectively. 

James Bennett, ADAC chief executive officer, said: “The positive performance of Abu Dhabi International Airport for the first half of this year, the continuous growth of our airlines and the expansion of our network reflect the potential of the Abu Dhabi market. Our airport is currently growing twice as fast as the average total world passenger traffic. As the capital is becoming increasingly attractive to business and leisure visitors, we continue to work closely with our airline-partners to identify opportunities that would generate more traffic for our airport.”

Etihad Airways also reported today its strongest first half performance, with revenues up by 59 per cent and passenger numbers increasing to almost 3.3 million. The airline also recorded a 21.6 per cent increase in cargo.

The number of passengers who passed through Abu Dhabi International Airport in May reached 830,000, compared to 740,000 in May 2009.

Cargo movements also showed strong growth in May, up 19.4 per cent on May 2009.

Ahmed Al Haddabi, ADAC senior vice president of airport operations, said: “We continue to see double digit growth affected mainly by the increase of traffic to major regions. We do expect such growth to continue as we continue to add new routes and airlines to Abu Dhabi international.”

Last month, Dubai Airports reported a 13.6 per cent increase in passenger traffic for May compared to the same period last year.

The number of passengers who passed through Dubai International Airport in May increased 13.6 per cent to 3,654,717, compared to 3,217,089 in May 2009.

Griffiths said to put the industry on a more “sound financial footing”, airlines, airports, retailers and IT providers must “break down the silo walls” and work together on technology solutions that centre on passenger needs.

“The current travel experience at the airport is characterised by cumbersome and time-consuming airport processes,” said Griffiths. “And ultimately that poor coordination boils down to a fundamental lack of trust. We need to change the mindset and the industry model.”

But Griffiths added: “Many airlines and airports cringe at the investment that is required to make this step change. However, the cost of not changing is far more significant. Almost 50 per cent of dwell time is absorbed by non-commercial processes at an opportunity cost as high as US$35bn per annum. That money could help address the current imbalance seen across the aviation value chain that has led to US$50 billion in losses for airlines over the past decade.”

Griffiths has suggested a future where the customer’s online booking, purchase, seat selection, advance passenger information and biometric data are recorded well in advance. He said: “Baggage is checked in advance away from the airport, biometric data is used to confirm passenger identification and is linked to check-in and boarding pass confirmation, and security scanning occurs simultaneously and unobtrusively. All of this occurs in minutes freeing up time for the customer to relax, dine or shop.”

Earlier this week, Dubai Airports announced that its Al Maktoum International Airport is set to open for cargo operations on Sunday after it conducted its first live flight and passed a series of tests.

EXCLUSIVE: Abu Dhabi Airports Company chairman HE Khalifa al Mazrouei tells Ryan Harrison how he used the recession to gain ground on the capital’s flying growth.

In the 1950s, Abu Dhabi’s airport had a squat stone hut for a terminal and a dusty runway. The landing strip was marked by discarded oil drums.

Oil workers hopped back and forth from offshore rigs using the gritty airstrip located just south of Abu Dhabi; it had been strategically scratched into the desert by the British Royal Air Force a few years earlier.

In 1968, the emirate’s first international airport – then called Al Bateen – opened in the city centre.

Today, the Abu Dhabi International Airport sits 30km out of town. More than 10 million people will fly to 80 cities on 50 international airlines this year alone.

Last year, passenger traffic grew by 7.3 per cent, meanwhile the global average fell by three per cent.

Abu Dhabi’s aviation growth story has been built on the back of its credentials as an economic hub for energy projects and infrastructure.

This powerful 50-year mega-cycle has spawned among other things the world’s number one airline, UAE flag carrier Etihad Airways. We’re now on the brink of another mega-cycle, says the Abu Dhabi Airports Company (ADAC) chairman HE Khalifa Mohamed Al Mazrouei.

And as part of this colossal economic churn, the odd global financial meltdown here or there is to be expected, he says.

“Financial crises and slow-down periods are a part of the life-cycle of any business. It enables organisations, in general, to think more efficiently. Normally during an upturn or a boom period people tend to go after growth in an excessive way; slowdown periods give you a chance to shape-up and streamline business practices.

“It’s also an opportunity to develop your business for the next coming booming cycle, especially in major infrastructure projects, where their life goes for maybe a 50 year period,” he says.

Al Mazrouei, chairman at ADAC since September 2006, has turned up the heat on cost-cutting recently within the airport operator.
“Efficiency means re-thinking your overall strategy. What areas can we do better in?”

A refurb at Abu Dhabi’s Terminal 1 recently saved him 30 per cent on running costs.

He’s also looking to trim ADAC’s $6.8bn budget for a redevelopment and expansion plan, whose centrepiece is the Midfield Terminal, a huge development that when open in 2015 could initially serve more than 20 million passengers a year, or roughly triple the capacity at the airport’s existing three terminals.

Al Mazrouei is hoping to strike a more favourable deal for ADAC, which involves negotiating with suppliers to reflect the reduced raw materials costs thanks to the downturn.

“There is a major review of the Midfield Terminal $6.8bn budget. With the current market prices I think we have an opportunity to reduce the capital budget, so I think it will be less than what it was, certainly,” he says.

Drop in construction costs prompts ADAC to revise its budget for a new Abu Dhabi airport terminal.

The Abu Dhabi Airports Company (ADAC) is reviewing the budget for the $6.8bn expansion of its Midfield Terminal to capitalise on reduced raw material prices and construction costs.

In an exclusive interview published in .Commerce in March, ADAC chairman HE Khalifa Mohamed Al Mazrouei, says project costs are being examined as part of an efficiency drive at the airport operator.

The Midfield Terminal, a huge development to open in 2015, could initially serve more than 20 million passengers a year, or roughly triple the capacity at the airport’s existing three terminals.

Al Mazrouei is hoping to strike a more favourable deal for ADAC, which involves negotiating with suppliers to reflect the reduced raw materials costs thanks to the downturn.

“There is a major review of the Midfield Terminal $6.8bn budget. With the current market prices I think we have an opportunity to reduce the capital budget, so I think it will be less than what it was, certainly,” he says.

“The review will consider the market conditions at the moment and the construction prices, which have gone down so I’m assuming we’ll benefit from the current stage of the economic cycle.”

ADAC recently invited contractors to bid for Midfield and is in the process of compiling a shortlist.

The new terminal has run into controversy after its opening date was pushed back a year. According to UAE daily The National, officials said plans were delayed due to the time needed to bring together all of the stakeholders, from immigration, customs, police and the transport departments, and because Etihad Airways’s new fleet orders meant changes to the design.

“The Midfield Terminal will be there to serve us in the next coming 30 years. This piece needs to be well developed on all aspects, be it operational, maintainability or just catering for the duty free and hotels,” says Al Mazrouei.

He adds a refurb at Abu Dhabi’s Terminal 1 has recently been completed, saving him 30% on running costs.

“Financial crises and slow-down periods are a part of the life-cycle of any business. It enables organisations, in general, to think more efficiently. Normally during an upturn or a boom period people tend to go after growth in an excessive way; slowdown periods give you a chance to shape-up and streamline business practices.”

Read the full interview with HE Khalifa Mohamed Al Mazrouei in the next edition of .Commerce, published March 1.

With airlines slashing fares for short-haul flights, Middle East and Asia travel has never been more popular.

UAE residents are snapping up cheap short-haul flights to tourist hotspots in the Middle East and Asia like never before, with Sri Lanka the latest destination to register a spike in travel.

Arrivals into Sri Lanka’s capital Colombo from the UAE jumped 164 per cent in January compared to the same period last year, according to figures from the Middle East office of the Sri Lanka Tourism Promotion Board (SLTPB).

“Judging by these early results, destination Sri Lanka is on track to surpass figures attained last year where tourist arrivals saw a double-digit growth,” said Heba Al Ghais Al Mansoori, Middle East Director of SLTPB based in Dubai.

Overall, Middle East tourist arrivals to Sri Lanka surged 50 per cent in January, with Saudi Arabia (up by 127 per cent), Qatar (171 per cent and Kuwait (up by 135 per cent) also reporting high growth rates.

Underpinning this trend is the rise of the UAE low-cost carriers, which has seen Flydubai and Air Arabia offer fares to cities within a four-hour flight for a few hundred dirhams return.

Sri Lanka’s increasing popularity is also down to the recent end to the country’s civil war, which stifled tourism for decades.

Air Arabia is offering fares to Colombo starting at Dh405.

Flydubai has a sale offering customers a 40 per cent discount on flights to or from Dubai between 1 March and 31 May if they book before 21 February. It does not fly to Colombo.

Anecdotal evidence suggests that more UAE residents, especially expats, are now flying smart rather than far, capitalising on the UAE’s location to take a weekend break on a budget.

For example, the cost of a return flight to Beirut could come up to the price of an evening meal at a restaurant for two in Dubai.