Aviation Africa: Dubai Airport boss explains secrets of success

Gatwick has gone to about 38 million, but Dubai has more than double that now.

 

On his first day in the job he was told one simple rule: to never constrain the growth of aviation in Dubai.

 

He added that it was essential to make investment in infrastructure a top priority (particularly the transport infrastructure) as this becomes “the bedrock of growth.”

 

He added that this, “Creates GDP growth of a nation, but few understand this.”

 

The transformation of DXB has been “absolutely dramatic” with the emergence of Emirates creating a platform for that growth.

 

“How did we go from being a very small regional airport to the largest in the world by passenger numbers? Sheikh Saeed has the vision that if you take care of infrastructure the growth would take care of itself,” he said.

 

Other key factors are political and economic stability; an extensive foreign trade network; state-of-the-art telecoms; plus world-class business and tourist infrastructure.

 

Controversial at the moment, of course, is the fact that Dubai has always subscribed to open skies with as few restrictions as possible.

 

“This has long been a fundamental tenet of Dubai’s infrastructure. Operating 24/7 allows us to be highly competitive – it costs 10 times as much to land a 777 at Heathrow,” said Griffiths.

 

The geography of Dubai is a major asset too – two thirds of the world’s population lives within eight hours flying time, and one third within four hours.

International passenger traffic in 2000 was 10 million and now it is over 70 million, and in cargo it has gone from 17^th in 2000 to number three last year.

 

Meanwhile even DWC (the new Al Maktoum Airport at Jebel Ali) will soon feature in the world’s top 20 in cargo airports, only five years after opening.

 

There are now more than 150 airlines serving Dubai’s airports, operating to 280 destinations, he said.

 

“The connectivity to Africa is a major part of our business and is growing rapidly: 13 airlines, 29 destinations and 651 flights a week. That equates to 6.5 m passengers a year.”

 

Looking at the route map for connections to Africa from Dubai, he said that Dubai had long featured as “a major hub for Africa” – even back in the 90s. Rising incomes is now a major phenomenon driving growth in Africa “although the numbers are starting from a fairly modest base,” he said.

 

Demand for air travel in Africa is set to double over the next 20 years – 4.7% annual growth is projected, 2014-2034. He noted that this would be “mutual behavior” with the Middle East, which was expected to grow at a similar rate.

 

“Through the financial crisis Dubai still managed to grow, creating “a very effective $7.8 billion expansion programme and we are now putting the finishing touches – a brand new home for non-Dubai airlines will open later this year, Concourse D.” he said.

 

The airport was aiming for 100m passengers by 2020 but with traffic projections now 126 million by 2020, “growth is outstripping supply.”

 

That’s why a new plan for DWC expansion has recently been launched, to go from a seven to a 26 million passenger terminal capacity by 2017.

 

The new airport will be “the world’s most ambitious aviation project” – with a later phase three enabling Dubai to go to 240 million, said Griffiths.

 

“But we don’t want world’s longest walks etc – we are thinking hard about making it easy for passengers to use. It will be quite dependent on hub traffic, particularly from Africa and our goal is no more than 400m between the central point and the aircraft; it will have a complex underground transport network akin to the London underground in complexity.

 

“We will interact with passengers in a very different way,” he added.

 

In 2013, 27% of Dubai’s GDP originated from the travel and tourism sector and 21% of the working population will be employed in the sector.

 

By 2030 it will be 44.7% and 35.1% respectively. So investing in aviation infrastructure is central, and lots of other countries are interested in knowing more, said Griffiths.

 

He’s been involved in some way or another all his working life with the debate over London airports.

 

“In Dubai we’ve not been talking about it we’ve just been getting on and actually delivering it. If you want a successful and vibrant economy it starts with a vibrant transport sector.”

 

Asked about airport cities he said they are “an absolutely inevitability and will be major sources of development and trade.”

 

In answer for another question Griffiths said the important thing for a hub to be successful was to create more efficient ways for people to transfer – “You need geographical position and the ability to create networks, and you don’t necessarily have anything to fear from the proximity of other hubs.”

 

He added that a liberal approach to traffic rights was more important than having a strong national carrier.

 

“Canada and Australia are at opposite ends of the spectrum – Canada is very protective of Air Canada meaning higher air fares and few visitors. In Australia they said we don't care how they come, so long as they come. As a result tourism to Australia is a major contributor to their economy, while Qantas is also benefitting.”

 

He concluded: “I think in Africa if you’ve got the infrastructure with the liberalized market to encourage growth, these are the most important factors.”