Emirates’ Tim Clark to Retire Prior to Growth in Middle East Aviation Sector
As per the International Air Transport Association (IATA), the Middle Eastern airlines are all set to overcome losses to $1 billion in 2020, as a part of a restructuring process. Pertaining to the ongoing political uncertainty due to the Brexit deal and the US-China trade war, the aviation industry worldwide has witnessed a major blow this year. The reports claim that the aviation sector of the Middle East is on its way to recovery.
Sources claim that the President of Dubai-based Emirates Airlines, Tim Clark is all set to retire in 2020. The company’s Chairman, Sheikh Ahmed bin Saeed Al Maktoum announced the news in an internal memo listing June as the last working month for Tim Clark.
Details from inside sources reveal Emirate’s Chief Operating Officer, Adel Al Redha and Chief Executive of Flydubai, Ghaith Al Ghaith, to be suitable candidates to take over Tim’s positon.
Leaving Bahrain-based, Gulf Air in 1985, Tim Clark joined Emirates Airlines with the aim of transforming the outlook of the firm, making it a global giant in the industry. Viewed as a major driver in the development of the Airlines to the European, Asian and American region, Tim Clark has helped the firm achieve great heights.
In October, Clark enlightened on the future prospects of the company, revealing plans to expand fleet by 30 percent by 2025. In November, he told reporters that the expansion would be started early in 2020. At the Dubai air show, Tim said that the introduction of varied aircrafts will permit Emirates to introduce new destinations, initiating the next phase of its growth. He said, “Next year will remain tough, but by 2021 we will be through it and the global economy will be stronger”.
In a recently made statement, the IATA said, “After very weak economic growth in 2019, which limited local traffic, some rebound is expected in 2020. Restructuring and stronger growth will boost performance.”
IATA’s forecasts claim that the global airline industry will produce a net profit of $29.3 billion in 2020, which is much more than the $25.9 billion net profits expected for 2019.
Middle East carriers are forecast to make a $4.48 loss per departing passenger compared to the average net profit globally of $6.20.
The Director General of IATA, Alexandre de Juniac said that despite the political turmoil, restrictions and cost-cutting have continued to pay dividends in 2019. Consequently, “forecast for 2020 is somewhat brighter.”
At a time when the entire Middle Eastern aviation industry is working towards improving performance in 2020, the departure of Tim Clark will give the other Middle Eastern companies an upper hand in attracting customers.
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