Hub of growth: Dubai flies high

People flying to and from of Dubai will continue to enjoy cheaper flights and greater convenience due to the emirate's tax-free regime and an "open skies" policy, a senior official said on Wednesday. Paul Griffiths, CEO of Dubai Airports, said: "Our airport charges [such as parking fees] are lower than other major airports for both short-haul and long-haul operators. If you compare us to Amsterdam, our airport charges are less than 50 per cent. In Europe, a large part of the airport fees are government taxes. Of course we don't have any of that here," he said. Dubai Airports owns and runs Dubai International and Dubai World Central. Soaring numbers Article continues below Griffiths said with soaring passenger numbers - expected to hit 50.9 million by year-end - Dubai International is en route to dislodging Hong Kong as the world's third-busiest airport in terms of passenger numbers, topped only by London's Heathrow and Paris' Charles de Gaulle. This regime, he said, allowed convenient connections to over 220 destinations on six continents via Dubai and facilitated over 900 aircraft movements daily. And following a planned Dh28.8 billion expansion over the next ten years, for every Dh10 of the airport's income, up to Dh8 will come from rentals of commercial and retail space and only Dh2 will come from fees such as aircraft parking or handling fees. That plan also includes aggressive expansion of airspace, airfield, aircraft stands and terminal areas at Dubai International, he said. Griffiths said they are in talks with civil aviation authorities and air navigation providers to decongest air routes, reduce bottlenecks and "unlock" airspace capacity. While the current airspace allowed for commercial aviation does not inhibit current growth, "the challenge for us is how we can stop it from becoming an inhibitor," he said. Griffiths said he is "confident" that as airspace opens up, additional aircraft movements will be accommodated on the ground with the addition of a new taxiway and an increase in the number of parking and service spaces for aircraft. New upgrades Baggage handling will also be upgraded, with the construction of a remote baggage facility and a high-speed baggage link across the airport. Aviation supports one in every five jobs in Dubai and contributes in excess of $22 billion (Dh80 billion) to the emirate's economy. By 2020, aviation's contribution to the economy will grow by nearly 50 per cent to 373,000 jobs and $45.4 billion, an Oxford report shows. An under-construction concourse exclusively for the A380 superjumbo will open next year and will add an extra 675,000 square metres of floor space. Terminal 2 will also be expanded and a fourth concourse connected to Terminal 1 will smooth check-in and baggage handling.