The Middle East Airline Sector Challenged By Arab Spring and Sectarian Violence
When everyone was cheering on the Egyptian Arab Spring, I easily foresaw the challenges ahead.
For instance, a large part of the GDP of Egypt comes from tourism and travel.
Most people would like to see the pyramids before they die, especially here at home in America, but after all the civil unrest, I am sure that a good many people have taken that off their bucket list and will be glad to just look at high definition TV and high-resolution pictures on the Internet of all of the pyramids.
There was a rather troubling article in the Arabian Aerospace News "Bahrain Air files for voluntary liquidation," on February 13, 2013 which stated; "CEO Richard Nuttall, it said it had never been compensated by the Bahraini authorities after being ordered to cease flights to several of its most profitable destinations during the inter-community unrest in the island state in 2011.
It had to stop flying to Iran, Iraq and Lebanon after Shi'ite supporters in those nations openly supported the Shia population's demonstrations against the Sunni-based Bahraini government.
" This is really terrible to see an airline having trouble in that region even when there were plenty of passengers wishing to partake in the services.
What many people don't understand is that economic stability is important for businesses, and this continued sectarian violence is probably the single largest issue preventing these economies from stability and greatness.
The aviation sector is only one sector with these problems, but the entire tourist and travel industry throughout the Middle East continues to be plagued by these issues.
Restaurants, hotels, cruise lines, airlines, and so many other high profitable business sectors may not be seen as worthy investments because you never know when chaos will arrived, or when a government will choose to clamp down on freedom of travel to prevent escalation.
It's extremely difficult to get any decent return on investment with those sorts of challenges looming over your head.
Will things change anytime soon? It doesn't appear they will, and the Iranians also have quite a bit of influence in the area, and they are also very big instigators.
Just as Egypt has completely destroyed its tourism and hospitality sector, and it will take years to rebuild it all, the same types of challenges even if only on a limited scale still plague most Middle East.
It also makes that country look bad, and it makes its government look bad, not to mention the fact that it will hurt a resurgence of the airline industry for the next company which wishes to make an investment stake in that sector based in that country.
Please consider all this and think on it.
For instance, a large part of the GDP of Egypt comes from tourism and travel.
Most people would like to see the pyramids before they die, especially here at home in America, but after all the civil unrest, I am sure that a good many people have taken that off their bucket list and will be glad to just look at high definition TV and high-resolution pictures on the Internet of all of the pyramids.
There was a rather troubling article in the Arabian Aerospace News "Bahrain Air files for voluntary liquidation," on February 13, 2013 which stated; "CEO Richard Nuttall, it said it had never been compensated by the Bahraini authorities after being ordered to cease flights to several of its most profitable destinations during the inter-community unrest in the island state in 2011.
It had to stop flying to Iran, Iraq and Lebanon after Shi'ite supporters in those nations openly supported the Shia population's demonstrations against the Sunni-based Bahraini government.
" This is really terrible to see an airline having trouble in that region even when there were plenty of passengers wishing to partake in the services.
What many people don't understand is that economic stability is important for businesses, and this continued sectarian violence is probably the single largest issue preventing these economies from stability and greatness.
The aviation sector is only one sector with these problems, but the entire tourist and travel industry throughout the Middle East continues to be plagued by these issues.
Restaurants, hotels, cruise lines, airlines, and so many other high profitable business sectors may not be seen as worthy investments because you never know when chaos will arrived, or when a government will choose to clamp down on freedom of travel to prevent escalation.
It's extremely difficult to get any decent return on investment with those sorts of challenges looming over your head.
Will things change anytime soon? It doesn't appear they will, and the Iranians also have quite a bit of influence in the area, and they are also very big instigators.
Just as Egypt has completely destroyed its tourism and hospitality sector, and it will take years to rebuild it all, the same types of challenges even if only on a limited scale still plague most Middle East.
It also makes that country look bad, and it makes its government look bad, not to mention the fact that it will hurt a resurgence of the airline industry for the next company which wishes to make an investment stake in that sector based in that country.
Please consider all this and think on it.
Source...