Latest news with #PaoloCarlomagno
Arab News
02-05-2025
- Business
- Arab News
Saudi Arabia's flynas Middle East's fastest-growing airline from 2019-2024: report
RIYADH: Saudi low-cost carrier flynas's capacity increased by 63 percent from 2019 to 2024, making it the fastest-growing airline in the Middle East region, according to an analysis. In its latest report, UK-headquartered global travel data provider OAG said that flynas was closely followed by the UAE's flydubai, which witnessed a capacity rise of 55 percent from 2019 to 2024. The analysis revealed that both carriers operated nearly 14.4 million departing seats each during the period, with flynas edging ahead by 25,000 travelers. The strong capacity growth of flynas aligns with Saudi Arabia's national goal to establish itself as a global tourist and business destination. The Kingdom aims to attract over 150 million visitors by the end of this decade. 'The Middle East region's strategic position as a global hub, coupled with the dynamic expansion of both low-cost and network carriers, is driving unprecedented opportunities. This vibrant market is setting the stage for future advancements in aviation technology and passenger experience,' said Filip Filipov, chief operating officer of OAG. Although flydubai and flynas' networks are similar, the latter benefits from a large domestic market within Saudi Arabia, allowing it to operate a more diverse route network, OAG added. In February, flynas announced that it expects to receive more than 100 Airbus aircraft over the next five years, part of its broader deal for 280 Airbus jets. The airline aims to operate over 160 aircraft by 2030, with its 280-plane order worth more than SR161 billion ($43 billion), making it the largest holder of single-aisle aircraft purchase orders in the Middle East. Commenting on the growth of flynas in recent years, Paolo Carlomagno, partner at Arthur D. Little, said that competitive pricing and top-notch quality have played a crucial role in the airlines' rising popularity among travelers. 'In the past five years, flynas has delivered stellar growth thanks to several factors — endogenous and exogenous. A well-planned and executed network strategy and efficient seat capacity increases, primarily driven by fleet expansion with the Airbus A320Neo, which offers lower operating costs,' said Carlomagno. He added: 'Flynas has also expertly managed the difficult trade-off between pricing and quality of service and delivered strong operational performance over the past five years.' The Arthur D. Little official added that the growth of flynas as a leading air carrier globally could help Saudi Arabia achieve its national tourism goals as outlined in the Vision 2030 initiative. He further highlighted that flynas has a significant opportunity to expand, as the market penetration of low-cost carriers in the Kingdom is comparatively low compared to other leading markets. 'LCC market penetration in Saudi Arabia is still significantly lower than some other major aviation markets such as South East Asia and so there is still enormous potential for them to grow further. The 'democratization' air travel trend and the connectivity with 'secondary' routes will continue to boost demand in the Kingdom,' said Carlomagno. Middle East aviation market's outlook In its latest report, OAG stated that the Middle East's aviation market has grown by 5 percent since 2019, making it the world's second-fastest-growing region after South Asia, which saw a 12 percent increase over the same period. The analysis further said that this increase was fueled by a robust combination of low-cost carrier growth and legacy carrier capacity. 'In recent years, the Middle East has established a leading position in developing new markets and connecting the region to the rest of the world with non-stop services to all continents and key cities,' said OAG. It added: 'The region has a highly competitive environment with best-in-class airlines operating in all segments, alongside ambitious plans for new aircraft and routes. This makes the Middle East a real hot spot in the aviation industry.' The report highlighted that the Middle East is the sixth-largest region in the world based on available capacity, with 270 million one-way seats in 2024, placing the area ahead of Eastern Europe and behind South Asia. According to OAG, airlines operating in the Middle East region witnessed an international travel capacity expansion of 8.9 percent by the end of 2024 compared to 2019, the second-strongest pandemic recovery, only next to South Asia, whose capacity grew by 11 percent during the same period. Affirming the growth of the aviation sector in the region, a recent report by the International Air Transport Association revealed that airlines operating in the Middle East witnessed a 3.3 percent increase in passenger demand growth in February compared to the same month in 2024. IATA added that the total capacity of Middle Eastern flights also rose by 1.3 percent year on year in February. In March, another report by Oliver Wyman also highlighted the growth of the aviation sector in the region. It underscored that the fleet of commercial airlines in the Middle East is expected to grow at a compound annual growth rate of 5.1 percent from 2025 to 2035 to reach 2,557 aircraft. The consultant management firm added that this significant growth in the region is almost double the annual global growth rate, which is projected at 2.8 percent during the same period. According to the latest OAG report, low-cost carriers accounted for 29 percent of the capacity in the Middle East region in 2024, having more than doubled in the last decade from just 13 percent of capacity in 2014. Globally, low-cost carriers operated 34 percent of the capacity last year. Competition intensifies in Middle East market According to OAG, two Middle Eastern carriers have gained prominence worldwide. Emirates and Qatar Airways are the only regional airlines to feature in 2024's Top 20 Global Airlines for Capacity and the Top 10 Global Airlines by available seat kilometers — a measure of an airline's passenger carrying capacity. The report revealed that Emirates is now the 14th largest carrier globally by seat capacity and ranks 4th in terms of available seat kilometers. On the other hand, Qatar Airways has experienced dramatic growth over the last decade, as it developed Doha into a global connecting point and moved from being the 36th largest airline globally 10 years ago to the 19th in 2024. Regarding available seat kilometers, Qatar Airways also advanced from 17th in 2019 to the sixth largest globally in 2024. The capacity of Qatar Airways increased by 18 percent between 2019 and 2024. The capacity of Emirates dropped by 7 percent in 2024 compared to 2019, while Saudia's capacity declined by 11 percent during the same period. 'Competition across the region's leading airlines is increasing, with as much investment in product as network expansion,' said OAG. The study further stated that the Middle East market is likely to experience significant disruptions in the future as additional airline capacity is added through various airline business models and the creation of new airlines in the region. 'The launch of Riyadh Air is likely to be one of the most interesting disruptions in the Middle East market in the coming years, alongside the planned growth of rival Saudi airline Saudia and its move to a new base at Jeddah,' said OAG. It added: 'Although neither of these airlines is likely to challenge Emirates' traffic in the short term, they will create a new competitive landscape as Saudi carriers vie for both transfer traffic and inbound tourism.' According to OAG, the key feature of the aviation sector in the Middle East, and particularly the bigger markets of the UAE, Qatar, and Saudi Arabia, is the depth of network that they offer to travelers. The report added that non-stop flights from the region's major hub airports reach every continent, with only a handful of international markets remaining unserved directly. Markets in South America, including Lima and Santiago, fall just outside the operational reach of the Middle East region. OAG further said that Doha to Auckland is currently the longest non-stop route operated from the Middle East by Qatar Airways, followed by Emirates' Dubai to Auckland route. 'In time, with ever-increasing aircraft ranges, it is likely these destinations will provide new markets for the network carriers to increase their revenues further,' the report added. It concluded: 'For the traveler, a seemingly ever-expanding choice of destinations to reach, along with increased competition, is likely to result in airfares remaining competitive throughout the region.'
Trade Arabia
16-04-2025
- Business
- Trade Arabia
Saudi Arabia to lead $8bn regional feeder shipping boom
Saudi Arabia is expected be a future powerhouse in feeder shipping, a high-potential segment of maritime trade set to grow to $451 billion globally by 2030, a new report has said. The Middle East, East Africa, Turkey (MEEAT), and South Asia region alone is forecast to account for $8 billion of that total, making it one of the most strategically valuable feeder markets in the world, said the report from Arthur D Little (ADL). At the heart of this regional surge is Saudi Arabia. According to ADL's latest Viewpoint, Unlocking Opportunities in the Feeder Shipping Sector Saudi ports are poised to capture up to 45 percent of Red Sea feeder trade and 35 percent of Gulf trade, driven by infrastructure investment, geographic advantage, and Vision 2030's logistics transformation agenda. Red Sea throughput alone is projected to nearly double from 12 million TEUs in 2021 to 23 million by 2030, positioning the Kingdom as a linchpin for intra-regional and East–West container movement. Feeder shipping, the practice of transporting containers between smaller regional ports and major global hubs, is attracting growing interest from operators and investors due to returns on assets of 17 to 23 percent. This performance significantly outpaces returns in other freight and logistics segments such as rail, trucking, and traditional maritime transport. While historically overlooked, the sector has become an increasingly vital part of the global shipping ecosystem. 'Saudi Arabia sits at the intersection of macroeconomic shifts in global trade, regional port infrastructure growth, and heightened investor appetite for logistics assets that deliver strong, stable returns,' said Paolo Carlomagno, Partner at Arthur D. Little 'Its ability to combine geographic proximity to high-growth corridors with government-backed investment strategies creates a uniquely scalable feeder shipping environment that few markets globally can match.' ADL's analysis outlines a phased strategy for capturing this opportunity. New entrants to the Saudi market are encouraged to adopt asset-light models, chartering vessels and building lean, responsive operations before scaling through asset ownership and deeper integration with major liners, freight forwarders, and regional exporters. This approach helps reduce capital risk while allowing operators to adapt quickly to demand and align with specific Saudi trade flows in the Red Sea, Gulf, and Arabian Sea. 'Saudi Arabia offers a rare combination of volume potential, policy alignment, and port readiness that makes it a natural launchpad for feeder shipping operations,' said Alexandre Sawaya, Principal at Arthur D Little, Middle East. 'The Kingdom is no longer a peripheral player in maritime trade. It is fast becoming a focal point for regional connectivity and a strategic base for operators seeking scale and resilience.' The report also highlights feeder shipping's compatibility with Saudi Arabia's environmental priorities. Feeder vessels, being smaller and more agile, are easier to retrofit for clean fuels such as methanol, biodiesel hybrids, or hybrid-electric propulsion. This flexibility supports the kingdom's goals to reduce carbon emissions by 25 percent by 2030 and reach net-zero by 2060.
Arab News
16-04-2025
- Business
- Arab News
Saudi Arabia Set to Dominate $8 Billion Feeder Shipping Market by 2030
RIYADH: Saudi Arabia is on track to become a dominant force in the $8 billion feeder shipping market across the Middle East, Eastern Africa, Turkiye, and South Asia by 2030, according to new research. The global feeder shipping industry is expected to reach a staggering $451 billion by the end of the decade, with the Kingdom emerging as a key regional and international player in maritime trade. Feeder vessels—smaller ships that transfer cargo between regional ports and large mainline vessels—play a critical role in streamlining supply chains. These ships are adept at navigating smaller or less accessible ports, where they consolidate cargo before transferring it to larger vessels for long-distance transport. This method reduces the number of port calls required by mainline ships, easing congestion and enhancing overall logistics efficiency at major terminals. A new report by global consulting firm Arthur D. Little, titled 'Unlocking Opportunities in the Feeder Shipping Sector,' reveals that Saudi Arabia could capture up to 45 percent of feeder shipping trade in the Red Sea and 35 percent in the Gulf. This expected growth is fueled by the Kingdom's ongoing investments in port infrastructure, its strategic geographic location, and its ambitious logistics agenda under Vision 2030. Recent initiatives, such as the launch of the 'JRS' shipping service by Global Feeder Shipping in collaboration with the Saudi Ports Authority, support this outlook. Announced in December, the JRS service connects Jeddah Islamic Port with key terminals in Egypt, Oman, and India—bolstering Saudi Arabia's role in enhancing international maritime connectivity and operational efficiency. Paolo Carlomagno, partner at Arthur D. Little, highlighted the findings, noting Saudi Arabia's increasingly vital role in shaping the future of global trade. 'Saudi Arabia sits at the intersection of macroeconomic shifts in global trade, regional port infrastructure growth, and heightened investor appetite for logistics assets that deliver strong, stable returns,' he said. 'Its ability to combine geographic proximity to high-growth corridors with government-backed investment strategies creates a uniquely scalable feeder shipping environment that few markets globally can match,' he added. Feeder shipping—the transport of containers between smaller ports and major global hubs—is becoming an increasingly attractive segment due to asset returns of 17 to 23 percent—outpacing other freight sectors like rail, trucking, and traditional maritime transport, ADL stated. While historically underutilized, the feeder shipping sector is rapidly emerging as a vital link in the global logistics chain. According to projections, container throughput in the Red Sea is set to nearly double — from 12 million twenty-foot equivalent units in 2021 to 23 million by 2030. This surge further solidifies Saudi Arabia's position as a regional logistics hub, enhancing intra-regional connectivity and strengthening its role along critical East-West trade routes. The Arthur D. Little report emphasizes that as consolidation and investment continue to reshape the global maritime landscape, Saudi Arabia's strategic significance will only grow. To capitalize on this momentum, the report outlines a phased market entry strategy for feeder shipping operators. ADL recommends an asset-light approach in the initial stages, focusing on vessel chartering and flexible operations. This model allows new entrants to quickly establish a foothold, mitigate upfront capital risks, and respond nimbly to market demand. Over time, operators can scale into asset ownership and pursue deeper integration with major shipping lines, freight forwarders, and exporters—cementing long-term growth and resilience within the sector. 'Saudi Arabia offers a rare combination of volume potential, policy alignment, and port readiness that makes it a natural launchpad for feeder shipping operations,' said Alexandre Sawaya, principal at ADL, Middle East. 'The Kingdom is no longer a peripheral player in maritime trade. It is fast becoming a focal point for regional connectivity and a strategic base for operators seeking scale and resilience,' he added. The analysis also highlights that feeder shipping is well-aligned with Saudi Arabia's environmental and sustainability goals. Due to their smaller size and adaptable design, feeder vessels are particularly suitable for retrofitting with cleaner fuel alternatives — such as methanol, biodiesel hybrids, and hybrid-electric propulsion systems. This technological flexibility complements the Kingdom's broader climate agenda, which includes a 25 percent reduction in carbon emissions by 2030 and a commitment to achieving net-zero emissions by 2060. With rising container volumes, expanding port infrastructure, and growing investor interest, Arthur D. Little concludes that Saudi Arabia is uniquely positioned to lead the next wave of growth in the feeder shipping sector—both regionally and on the global stage.
Mid East Info
16-04-2025
- Business
- Mid East Info
ARTHUR D. LITTLE: SAUDI ARABIA POSITIONED TO LEAD $8 BILLION FEEDER SHIPPING BOOM
Saudi Arabia is positioned to capture up to 45 percent of Red Sea and 35 percent of Gulf feeder trade as regional volumes rise to 41 million TEUs by 2030. Feeder shipping delivers returns on assets of 17 to 23 percent, outperforming other logistics sectors and aligning with Saudi Arabia's growth priorities. The 8 billion dollar feeder market across MEEAT and South Asia centers on Saudi Arabia, with geography, infrastructure, and policy all aligned. Red Sea container volumes are set to nearly double by 2030, reinforcing Saudi Arabia's role as a key East West logistics hub. Saudi Arabia, April 16 2025: As global logistics undergo rapid transformation, new research from Arthur D. Little (ADL) positions Saudi Arabia as a future powerhouse in feeder shipping, a high-potential segment of maritime trade set to grow to $451 billion globally by 2030. The Middle East, East Africa, Turkey (MEEAT), and South Asia region alone is forecast to account for $8 billion of that total, making it one of the most strategically valuable feeder markets in the world. At the heart of this regional surge is the Kingdom of Saudi Arabia. According to ADL's latest Viewpoint, Unlocking Opportunities in the Feeder Shipping Sector Saudi ports are poised to capture up to 45 percent of Red Sea feeder trade and 35 percent of Gulf trade, driven by infrastructure investment, geographic advantage, and Vision 2030's logistics transformation agenda. Red Sea throughput alone is projected to nearly double from 12 million TEUs in 2021 to 23 million by 2030, positioning the Kingdom as a linchpin for intra-regional and East–West container movement. Feeder shipping, the practice of transporting containers between smaller regional ports and major global hubs, is attracting growing interest from operators and investors due to returns on assets of 17 to 23 percent. This performance significantly outpaces returns in other freight and logistics segments such as rail, trucking, and traditional maritime transport. While historically overlooked, the sector has become an increasingly vital part of the global shipping ecosystem. 'Saudi Arabia sits at the intersection of macroeconomic shifts in global trade, regional port infrastructure growth, and heightened investor appetite for logistics assets that deliver strong, stable returns,' said Paolo Carlomagno, Partner at Arthur D. Little 'Its ability to combine geographic proximity to high-growth corridors with government-backed investment strategies creates a uniquely scalable feeder shipping environment that few markets globally can match.' ADL's analysis outlines a phased strategy for capturing this opportunity. New entrants to the Saudi market are encouraged to adopt asset-light models, chartering vessels and building lean, responsive operations before scaling through asset ownership and deeper integration with major liners, freight forwarders, and regional exporters. This approach helps reduce capital risk while allowing operators to adapt quickly to demand and align with specific Saudi trade flows in the Red Sea, Gulf, and Arabian Sea. 'Saudi Arabia offers a rare combination of volume potential, policy alignment, and port readiness that makes it a natural launchpad for feeder shipping operations,' said Alexandre Sawaya, Principal at Arthur D. Little, Middle East. 'The Kingdom is no longer a peripheral player in maritime trade. It is fast becoming a focal point for regional connectivity and a strategic base for operators seeking scale and resilience.' The report also highlights feeder shipping's compatibility with Saudi Arabia's environmental priorities. Feeder vessels, being smaller and more agile, are easier to retrofit for clean fuels such as methanol, biodiesel hybrids, or hybrid-electric propulsion. This flexibility supports the Kingdom's goals to reduce carbon emissions by 25 percent by 2030 and reach net-zero by 2060. With container volumes rising, infrastructure expanding, and consolidation accelerating across the shipping landscape, ADL concludes that Saudi Arabia is uniquely positioned to lead the next phase of growth in feeder shipping. For access to the full viewpoint, click HERE.
Zawya
16-04-2025
- Business
- Zawya
Arthur D. Little: Saudi Arabia positioned to lead $8bln feeder shipping boom
Feeder shipping delivers returns on assets of 17 to 23 percent, outperforming other logistics sectors and aligning with Saudi Arabia's growth priorities. The 8 billion dollar feeder market across MEEAT and South Asia centers on Saudi Arabia, with geography, infrastructure, and policy all aligned. Red Sea container volumes are set to nearly double by 2030, reinforcing Saudi Arabia's role as a key East West logistics hub. Saudi Arabia: As global logistics undergo rapid transformation, new research from Arthur D. Little (ADL) positions Saudi Arabia as a future powerhouse in feeder shipping, a high-potential segment of maritime trade set to grow to $451 billion globally by 2030. The Middle East, East Africa, Turkey (MEEAT), and South Asia region alone is forecast to account for $8 billion of that total, making it one of the most strategically valuable feeder markets in the world. At the heart of this regional surge is the Kingdom of Saudi Arabia. According to ADL's latest Viewpoint, Unlocking Opportunities in the Feeder Shipping Sector Saudi ports are poised to capture up to 45 percent of Red Sea feeder trade and 35 percent of Gulf trade, driven by infrastructure investment, geographic advantage, and Vision 2030's logistics transformation agenda. Red Sea throughput alone is projected to nearly double from 12 million TEUs in 2021 to 23 million by 2030, positioning the Kingdom as a linchpin for intra-regional and East–West container movement. Feeder shipping, the practice of transporting containers between smaller regional ports and major global hubs, is attracting growing interest from operators and investors due to returns on assets of 17 to 23 percent. This performance significantly outpaces returns in other freight and logistics segments such as rail, trucking, and traditional maritime transport. While historically overlooked, the sector has become an increasingly vital part of the global shipping ecosystem. 'Saudi Arabia sits at the intersection of macroeconomic shifts in global trade, regional port infrastructure growth, and heightened investor appetite for logistics assets that deliver strong, stable returns,' said Paolo Carlomagno, Partner at Arthur D. Little 'Its ability to combine geographic proximity to high-growth corridors with government-backed investment strategies creates a uniquely scalable feeder shipping environment that few markets globally can match.' ADL's analysis outlines a phased strategy for capturing this opportunity. New entrants to the Saudi market are encouraged to adopt asset-light models, chartering vessels and building lean, responsive operations before scaling through asset ownership and deeper integration with major liners, freight forwarders, and regional exporters. This approach helps reduce capital risk while allowing operators to adapt quickly to demand and align with specific Saudi trade flows in the Red Sea, Gulf, and Arabian Sea. 'Saudi Arabia offers a rare combination of volume potential, policy alignment, and port readiness that makes it a natural launchpad for feeder shipping operations,' said Alexandre Sawaya, Principal at Arthur D. Little, Middle East. 'The Kingdom is no longer a peripheral player in maritime trade. It is fast becoming a focal point for regional connectivity and a strategic base for operators seeking scale and resilience.' The report also highlights feeder shipping's compatibility with Saudi Arabia's environmental priorities. Feeder vessels, being smaller and more agile, are easier to retrofit for clean fuels such as methanol, biodiesel hybrids, or hybrid-electric propulsion. This flexibility supports the Kingdom's goals to reduce carbon emissions by 25 percent by 2030 and reach net-zero by 2060. With container volumes rising, infrastructure expanding, and consolidation accelerating across the shipping landscape, ADL concludes that Saudi Arabia is uniquely positioned to lead the next phase of growth in feeder shipping. For access to the full viewpoint, click HERE. About Arthur D. Little Arthur D. Little has been at the forefront of innovation since 1886. We are an acknowledged thought leader in linking strategy, innovation and transformation in technology-intensive and converging industries. We navigate our clients through changing business ecosystems to uncover new growth opportunities. We enable our clients to build innovation capabilities and transform their organizations. Our consultants have strong practical industry experience combined with excellent knowledge of key trends and dynamics. ADL is present in the most important business centers around the world. We are proud to serve most of the Fortune 1000 companies, in addition to other leading firms and public sector organizations. For further information, please visit:
