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Dubai's new terminal

Catherine Deshayes

Dubai, home to the biggest Arab airline Emirates, will increase its airport capacity by 50 per cent when it opens a third terminal on October 14^th...

The new terminal gives Dubai Airports the ability to handle 60 million passengers a year and help boost its status as a hub for trans-continental flights from Europe to Asia, Paul Griffiths, Dubai Airports' Chief Executive Officer, told reporters at a tour of the facility today. Passenger traffic growth at Dubai continues to be "very strong'' even amid the global credit crisis and record fuel prices, he added.

Passenger traffic at Dubai's only airport has grown more than 15 per cent for the past six consecutive years as the emirate's reputation as a financial and tourist hub has grown. It has built tax-free business parks; constructed palm tree- shaped islands and has planned a Las Vegas-style strip with more than 50 themed hotels in a bid to woo tourists.

The Dubai airport handled a record 18.5 million passengers in the first half of 2008, 14 per cent more than the year earlier period. Passenger numbers grew 19 per cent in 2007 to 34.3 million and traffic in 2008 will be just short of 40 million, Griffiths said today.

The new terminal 3, which will have a phase-two wing built by 2011 and increase capacity to 75 million passengers by then, will be exclusively used by Emirates. The Dubai Government- owned carrier will move to the facility in phases, starting with 40 flights a day to the six Gulf Arab states and the Americas.

Emirates' shift to the new facility will be completed in four phases by the end of December when it will serve 269 flights a day. Terminal 3, which includes Concourse 2 and the still incomplete Concourse 3, will cost £2.6 billion.

Dubai Airports is also building another airport 40 kilometres away, Dubai World Central, which will be 10 times the size of the existing airfield. It will spend £19.4 billion on that facility that will be able to handle 120 million people and its first phase will open before the end of 2009.

Dubai Airports is in the process of being separated from the Ministry of Civil Aviation and will be a stand-alone company by April, Griffiths said. Funding for Dubai airport's expansion and the new Dubai World Central will be met through internally generated funds, Griffiths added.

Dubai Airports isn't interested in buying a stake in London's Gatwick airport, Griffiths said.

Source: Bloomberg