The Gulf is going through a period of great economic turbulence and the region’s airlines have been at the center of it all. The International Air Transport Association (IATA) announced that the Middle Eastern airline industry is expected to suffer financial losses of $800 to $900 million in 2009. Regional airlines have cut international passenger capacity by nearly 5 percent. Despite this downturn, Gulf airlines are continuing to expand and, in total, are expecting to add 114 new aircraft to their fleet in 2009, 8 percent of global deliveries. This year’s launch of two new airlines, Fly Dubai and Wataniya Airways, has been an integral part of the continued growth in the region’s airline sector. Whether the region is capable of soaking up all this extra capacity during these tough times, only time will tell. But what these ventures are certainly illustrating is the strong economic fundamentals of the region,
