Gulf carriers expected to lose premium business after US device ban

The ban will affect about 350 flights a week, equivalent to 2 per cent of international flights to the US.

Emirates is now scrambling to ensure it will comply with the new rules and is working on ways to let passengers keep their devices up until boarding before securing them in cargo holds. Mark Ralston /Show more

Regional airlines are expected to lose significant business following the US decision to ban large electronic devices in cabin luggage.

The move is expected to hit premium-class travellers hard as well as leisure tourists to the US from the Arabian Gulf, analysts said.

Gulf carriers had been expanding aggressively to the US destinations during the last few years. Emirates alone flies to 12 cities, including Boston, Chicago, Dallas, Houston, Los Angeles and New York, while Etihad flies to six.

The ban will affect about 350 scheduled flights a week, equivalent to about 2 per cent of total international flights to the US, an International Air Transport Association spokeswoman said.

“We are closely monitoring the business impact of this new security measure, ” said Emirates airline president Tim Clark. “The airline industry is no stranger to new security protocols and, as a global player, we must expect and adjust to these unexpected situations. Emirates is highly resilient.

“Yes, this new security measure is disruptive and operationally challenging in several regards but I am optimistic we will get through this.”

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Emirates airline will deploy extra staff on the ground at the Dubai International Airport during the first few days as the US ban comes into effect to help passengers comply with the ruling,” he added.

“We are working on a solution that will enable our passengers to utilise their electronic devices up to the last possible moment – whereby they hand their laptops or tablets into our care just before boarding the US bound flight,” he said.

“These will then be stowed in the cargo hold and returned to the passengers when the flight lands in the US.”

Some travel agents in Dubai have received several inquiries from their clients about the ban.

“We have got a negative response and it is going to hit corporate travel to the US from the region as few people would be willing to put their gadgets in the luggage,” said a spokeswoman of Dubai-based Akbar Travels.

“For leisure travellers also, few would put their expensive cameras in the luggage, which might get lost or robbed.”

For corporate travellers for whom laptops and other devices are work tools, the ban is expected to be tough.

“I expect the Gulf carriers to suffer significant traffic loss over this ban as the majority of their traffic rights are non-stops,” said Geoffrey Thomas, an analyst with AirlineRatings.com.

“It would take time and permission before new services could be developed through other destinations.”

The US device ban applies to direct flights from Jordan, Egypt, Turkey, Saudi Arabia, Qatar, Kuwait, Morocco and the UAE.

The directive is effective from Saturday until October 14.

The widespread effect of the ban is expected to become more pronounced as passengers seek to retain their devices on board.

“This could mean passengers looking at alternative routings outside of the Middle East, or even possibly not travelling,” said Peter Morris, the chief economist at London-based consultancy Ascend Worldwide.

“It will cause some loss or diversion of passengers for airlines serving the listed airports to the destination countries.”

There could also be a rise of other hubs outside these countries and the UK, which also implements the device ban.

“One possibility could be flights via Shannon in Ireland,” Mr Thomas said.

The number of trips into the US from the UAE has increased over the years.

The US recorded 116,700 trips from the UAE last year, a figure that is expected to rise to 120,400 trips this year, a slower growth of 3 per cent compared to 4 per cent in 2016 due to the travel uncertainties, according to research company Euromonitor International.

This includes trips from corporate as well as leisure travellers to the US.

The Gulf carriers have invested heavily in premium-class cabins.

Qatar Airways declined to comment beyond statements issued on Tuesday.

Etihad did not respond to emailed questions.

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