Transport

Dubai: Getting on track

Dubai's transport sector is about to enter a new era, with the launch of the initial stage of the world's largest fully automated metro system scheduled for early September. The first phase of the network, the Red Line, consists of 52 km of track, linking 29 stations, and will begin a limited service on September 9, with the second stage, the 18-station Green Line, scheduled to start running in March 2010. There are also plans being drafted for an additional two lines - Purple and Blue - though work on these will be held off pending further studies on growth trends and transport requirements. At optimum levels, the initial metro link will be able to carry 23,000 passengers in each direction every hour, a figure set to expand as further services come on-line.

NBAD to partner in US$1bn aviation fund

National Bank of Abu Dhabi and Germany's DVB Bank SE are forming a joint- venture to launch a US$1 billion investment fund to pay for purchases of commercial aircraft and jet engines. The fund, to be launched within the next 60 days, will finance the acquisition of assets that the banks will then lease out to international airlines, NBAD officials said. The partners expect to purchase mainstream jetliners, primarily those manufactured by Boeing Co. and Airbus. "We will be buying aircraft only after ensuring that there will be assured demand from reputed airlines to take them on lease,"" said Shiraz Habib, Head of Product Development at NBAD's investment banking division. The asset acquisitions program is likely to stretch for the next two years. "Obviously you can't make a US$1 billion purchase decision overnight," Habib said. "It will take some time to select the aircraft and other aviation assets to be purchased." The venture will buy both new and used aircraft. Among the models under consideration are workhorse single- aisle planes such as the Boeing 737 and Airbus A320, he said.

7 companies to bid to build the Baghdad subway

Seven international companies will submit their bids for the construction of the Baghdad subway project in January 2010, a senior official said this month. "Seven companies have been selected to proceed to the bidding stage, given their extensive experience in the field," Baghdad's Mayor Sabir al-Issawi said. The companies have been given six months to offer their bids, the mayor explained. "We are on the right path," the mayor added.

Ras Al Khaimah's new transport system on track

Ras Al Khaimah: The RAK Transport Authority is soon to introduce as many as 75 new buses that will work within the boundaries of RAK and connect the emirate with the rest of the UAE. A total of 50 buses will be dedicated for routes in Ras Al Khaimah and the rest will connect RAK with other emirates. According to Jason Farhat, Director of Commercial and Investment Affairs at the Transport Authority, five routes will be created within Ras Al Khaimah in a circular fashion, and they will start from the emirate's centre moving out to the borders. He said the new buses will be of various sizes, accommodating 14 to 30 passengers, and are provided with the world's latest standards for passenger convenience.

Oman receives first Airbus A330

Oman Air has received its first Airbus 330-200, based on a lease agreement with Dublin based AWAS. Oman Air is now the newest operator of this plane allowing it for the first time to operate long distance sectors. Peter Hill, CEO of Oman Air said that new plane will be used for the long-haul sectors from Muscat to London, Paris and Frankfurt, in addition to other destinations in Asia.

Airline industry set to suffer US$500m loss

Airlines in the Middle East are likely to witness a cumulative 8 per cent growth in passenger volume in 2009, but they are set to incur an estimated US$500 million (AED1.83 billion) loss this year due to the impact of the global financial crunch, Giovanni Bisignani, International Air Transport Association (IATA) director-general, said. "[The] Middle East is the only part of the world where we have positive figures for growth. In July, we saw passenger traffic growing by 13 per cent. I think there will be an 8 per cent increase for the full year," Bisignani said. He said the estimates of combined losses to be incurred by airlines this year have been increased by IATA to US$11 billion from US$9 billion previously, due to declining yields, increasing fuel costs and slump in business travel.