Flydubai CEO Calls for More Competition in Aviation Industry to Tackle Aircraft Shortages

The global aviation industry urgently needs a third, or even a fourth, major aircraft manufacturer to alleviate aircraft shortages and challenge the dominance of Airbus and Boeing, according to Ghaith Al Ghaith, CEO of Dubai-based airline flydubai

The global aviation industry urgently needs a third, or even a fourth, major aircraft manufacturer to alleviate aircraft shortages and challenge the dominance of Airbus and Boeing, according to Ghaith Al Ghaith, CEO of Dubai-based airline flydubai.

Speaking at the inaugural Aviation Future Week, which commenced on Tuesday, Al Ghaith emphasized the need for increased competition to address significant bottlenecks and extensive delays in aircraft delivery schedules.

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During a panel discussion titled “Optimising Traffic Demand in a Constrained Environment,” Al Ghaith said, “Having another aircraft manufacturer is something very important to create competition and address the bottleneck and extensive delays in aircraft delivery schedules.”

He pointed out that the lack of diversity in aircraft manufacturing options has put considerable strain on airlines, making it difficult for them to secure timely deliveries and manage growth plans effectively.

Al Ghaith welcomed the entry of China’s Comac C919 into the market, which aims to break the long-standing duopoly of Airbus and Boeing.

“Having more competition is very good for our industry,” he remarked, highlighting that an additional player in the market would promote healthy competition, potentially leading to better pricing, more innovation, and a more stable supply chain for commercial aircraft.

Flydubai has been grappling with significant challenges due to delays in aircraft deliveries. The airline, which operates an extensive network covering numerous destinations, announced in July that it was re-evaluating its “route development plans and potential frequency revision across the network due to a lack of new aircraft deliveries over the next few months.”

The carrier cited the unpredictability of Boeing’s delivery schedules over recent years as a major factor disrupting its growth projections and operational planning.

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The airline industry has faced considerable challenges in recent times, with supply chain disruptions affecting aircraft manufacturing and subsequent delivery timelines.

Airbus and Boeing, the two dominant players, have struggled to meet demand, resulting in airlines being forced to postpone growth plans, reduce flight frequencies, or even suspend routes.

These challenges have been exacerbated by ongoing workforce issues at Boeing, including a month-long strike that has led the company to announce plans to cut 17,000 jobs globally.

China’s Comac, the state-owned aircraft manufacturer, has been attempting to penetrate the international passenger jet market with its C919, which received certification from Chinese regulators in 2022.

While still a newcomer in the highly competitive market, Comac’s ambition to compete with established giants like Airbus and Boeing could signal a shift in the industry landscape.

The C919 is being marketed as a more affordable alternative, potentially appealing to budget carriers and emerging markets.

Aviation experts at the event noted that the introduction of additional major manufacturers would be beneficial for the industry.

Not only would it address current aircraft shortages, but it could also help improve supply chain resilience and ensure more consistent growth for airlines worldwide.

As the aviation sector continues its recovery post-pandemic, having multiple suppliers could prevent future disruptions and allow for more agile responses to changes in market demand.

Al Ghaith’s call for increased competition comes at a time when the aviation industry is reevaluating its strategies to meet evolving passenger demands while navigating the complexities of the global supply chain.

 

Tariq Saeed

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