RIO DE JANEIRO, June 6 (Reuters) - Deferring jet orders due
to uncertainty and higher jet fuel prices caused by the war in
Iran would be unwise for Middle Eastern carriers, as the
decision could be costly in the long term, a vice president of
the airline trade group IATA said on Saturday.
Kamil Al-Awadhi, regional VP for Africa and the Middle East,
told reporters that he does not expect the war and higher costs
to affect aircraft orders from Middle Eastern carriers. The
region's airlines are major buyers of jets from planemakers
Boeing ( BA ) and Airbus.
Deferrals are "not wise because that deferral will cost
you," he said, citing long waiting times for aircraft. He made
the remarks on the sidelines of the International Air Transport
Association's (IATA) annual summit this weekend in Rio de
Janeiro.
Given the waiting time for Airbus's latest generation of
single-aisle planes, it would take years for operators to get
their planes, Al-Awadhi said.
"The plan is to continue where we're going ... even though
this is a hiccup," he added.
Global airlines are slashing flights and raising fares and
fees to offset higher costs, even as airports in the Middle East
have been targeted by air strikes linked to the war in Iran.
Al-Awadhi also said he was worried that an Iranian attack that
killed one person at an airport in Kuwait earlier this week
resulted in damage to a terminal used by foreign carriers in the
country. He said he believed the terminal would take at least a
year to repair.
"My personal guess, looking at the damage from the videos
and pictures that were sent to me, it's going to take ages," he
said. "So my concern is, will the other carriers be able to go
into Kuwait?"
He said Kuwait would either need to fast-track completion of
part of a new airport terminal, or allow foreign airlines to
operate out of terminals currently used by domestic carriers
such as Kuwait Airways.
"It will take some tough decisions and logistics to get that
sorted," he added.