Can the newly constructed T2 terminal in Kuwait successfully lure back international airlines?
Headline: Kuwait's Struggle to Get International Airlines Back: Can a Modern Terminal Make a Difference?
Introduction:As new Terminal 2 (T2) at Kuwait International Airport nears completion, the question remains: Will this glossy new terminal be the key to luring back international airlines that have left the region? Or are there deeper economic challenges that need to be tackled first to revive Kuwait's air traffic?
Recent months have seen major European carriers like British Airways, Lufthansa, and KLM abandon flights to Kuwait. This exodus highlights a broader issue: airlines aren't departing due to infrastructure concerns alone but rather due to economic pressures, as reported by Al-Rai daily.
The Acting Director General's OptimismIn a recent interview on Kuwait TV's "Kuwait Nights," Eng. Duaij Al-Otaibi, the Acting Director General of the Directorate General of Civil Aviation (DGCA), expressed optimism about the potential return of some international airlines. Al-Otaibi emphasized that the flight suspensions were driven by economic factors specific to each airline, rather than conditions within Kuwait.
"These companies operate based on commercial viability," Al-Otaibi explained. "Historically, regional carriers dominated passenger transport from Kuwait, which reduced the incentive for major international players. However, if conditions improve, there's no reason they won't return."
Al-Otaibi clarified that DGCA has engaged with various countries and airlines to address the issue, though acknowledged that the government has no power to force airlines to operate in Kuwait.
Experts' Cautious OutlookIndustry experts, such as Sami Al-Nisf, former chairman of Kuwait Airways, advocate for a more realistic perspective. Al-Nisf argued that expecting a deluge of international carriers following the T2 launch is unrealistic.
He stated that attracting international airlines requires more extensive reformation, particularly in boosting Kuwait's commercial and tourism sectors. Al-Nisf underscored the need for an integrated approach to regional travel, stating Kuwait's appeal is hindered by a lack of economic draw and open travel policies compared to other Gulf countries.
Criticism of Current Fee StructuresAl-Nisf also expressed concern over the alignment of current fees with airline operational realities. "It's not just about revenue generation from higher fees," he cautioned. "If airlines pull out due to high costs, we will have an empty terminal—a case of the operation succeeding, but the patient dying."
Global Competition and Profitability ConcernsThamer Arab, former chairman of Wataniya Airways, echoed this sentiment. He pointed out that international airlines are primarily profit-driven, and Kuwait currently lacks the allure of a regional transit hub. "Unless profitability can be ensured, airlines won't return," he stated emphatically.
Competition from Gulf and Turkish carriers and high operating costs further diminish Kuwait's competitive edge. To maintain financial viability, an airline typically needs a flight occupancy rate of at least 65%. Below this threshold, routes become unsustainable.
Infrastructure Upgrades Alone Aren't EnoughMohammed Al-Mutairi, Chairman of the Federation of Travel Agencies, further clarified that infrastructure upgrades alone won't alter airline behavior. "The terminal itself is not the issue," he said. "The real problem is that Kuwait has not been a commercially attractive route." With a global aircraft shortage, airlines are focusing on more profitable destinations.
Closing ThoughtsWhile the launch of T2 promises modern facilities, it may not be sufficient to change airline behavior unless Kuwait addresses its broader commercial challenges. Comprehensive reforms, including enhanced governance, investments in airport infrastructure, and targeted incentives, will be required to lure international airlines back to Kuwait.
The Acting Director General of the Directorate General of Civil Aviation, Eng. Duaij Al-Otaibi, believes that the potential return of some international airlines is not solely dependent on the newer Terminal 2 (T2) but also on the improvement of economic conditions within Kuwait.
Sami Al-Nisf, a former chairman of Kuwait Airways, disagrees, stating that a more extensive reformation is necessary to attract international airlines, including boosting Kuwait's commercial and tourism sectors, and fostering an integrated approach to regional travel.
