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As many carriers suspend operations, Aziz, a former adviser to Middle East Airlines, discusses how Beirut’s airport continues to operate despite Israeli strikes in Lebanon.
Since the start of the US-Israel war in Iran in late February, air travel in the Middle East has been severely disrupted. Large segments of the region’s airspace are closed or avoided, forcing airlines to reroute flights and cancel services.
In Lebanon, the situation is even worse: Israel attacks Beirut and its southern suburbs almost every day, just minutes from its only international airport. With many airlines suspending operations, Middle East Airlines (MEA) remains the only airline, maintaining a fragile lifeline with the rest of the world.
Global Finance sits down with Captain Mohammed Aziz, head of the Civil Aviation Authority of Lebanon and former senior advisor to the CEO of MEA, to discuss how Beirut Airport continues to operate under fire and what this means for the airline’s business.
Global Finance: How is the airport operating these days?
Aziz: Considering what is happening around us, the airport is doing very well. For example, on April 1Stthere was a collision near the airport road. The soldiers closed the road for half an hour, time for the bombing to take place and for it to be cleared. Then they continued to work. But the airport did not stop at all this time. We ensure that the airport remains open safely and securely despite the situation.
GF: How do you know when the strike will take place and when the planes can go in and out?
Aziz: First, most of the time, [Israeli authorities] they announced where they want to detonate, especially if it is near Beirut. Second, we can see on the radar if there are planes coming in to be bombed. They also know when human flight is coming in, and try to avoid it. They only come once or twice during the civilian campaign. We had to hold the plane in the air until it completed the mission before landing.
GF: Who are the planes flying in and out of?
Aziz: MEA flies on all its routes, except to destinations where airports are closed, such as Kuwait, Doha or Abu Dhabi. They lost about 40% of their traffic because most of the Gulf airports were closed. Gulf carriers don’t go to Beirut either because their airport is out of order, or, if it is, they have other priorities. European carriers stopped serving the entire region from day one.
GF: What are the functions of MEA?
Aziz: MEA now has 22 aircraft; five or six are continuously parked abroad, so that they are not exposed if something happens. That means they operate 16 aircraft. But even these 16 planes are not fully operational. For example, some airports that used to take Airbus A330s are now getting A321s. They have to maintain a balance to minimize their losses and insurance exposure.
GF: Why is MEA the only airline that flies?
Aziz: Well, because it’s a Lebanese carrier. For the MEA to survive, it must fly. They also consider it a duty to maintain communication between Lebanon and the outside world. This has always been the policy of the MEA. They only stop when a risk assessment tells them not to fly. This happened mostly during the civil war (1975-1990) and more recently during the 2006 war. But for now, MEA is still flying.
GF: Is flying to and from Beirut still a good business idea for MEA?
Aziz: To be able to fly in such a situation, you need a daily risk assessment done at the highest level, with the highest contacts. The head of civil aviation, the MEA chairman and the defense chief should be in direct contact with the government 24/7. The government is in contact with the embassy and the foreign minister. So if something changes, we can quickly know and take the right decision. Every day we have a coordination meeting. If something changes, we know about it, but this takes time. Now, if Lebanon is 100% of your work, you do it because the only way is to quit. But for foreign airlines, Beirut is one of thousands of airlines, so they say, “Okay, forget about it, when the situation improves, we will come back.”
GF: How do insurance costs change in a situation like this?
Aziz: Insurers look at many factors: risk management by the company, the authorities, their own experience, and adjust their policy accordingly. Sometimes they issue higher premiums, sometimes they lower the ceiling, sometimes they say you can continue as you are. And it changes constantly. Today it may be one thing, tomorrow another, so we have to keep in touch with them.
GF: During the war, aare there any additional costs?
Aziz: Of course. We should pay workers more to encourage them to come in and thank them for being here under the circumstances. If they feel they don’t want to come, they still get their salary. We also have special accommodations for staff to stay near the airport. Then there is the cost of fuel. A ton used to be $700; now it’s $1,500. That’s more than 100%. And finally, some routes now survive. For example, Beirut to Dubai used to take three hours. Now, there are about five because flights have to go from Dubai to Oman to Saudi Arabia to Egypt to Cyprus to Beirut instead of arriving directly. In addition to more fuel costs, longer flight times mean more aircraft maintenance and more crew hours. It is these rising costs that continue to grow.
GF: How can a company like MEA compensate for these additional costs?
Aziz: They cannot compensate 100%, but they can cover some of the costs through yield management. The more empty seats you have, the lower the ticket price; when the plane is full, he lifts it. It doesn’t reimburse all the extra costs, but the only option would be to stop flying. Even if they lose for a while, MEA considers that people will appreciate that they have continued to fly, and when things return to normal, they will remain loyal customers. We are sure that the future will be bright. That is why we are working around the clock to ensure that the airport remains open and that people’s confidence in the airline and the country remains the same, so that whenever things are ready, they know that they have a great airport that will not let them down.
GF: Do you see opportunities at this time?
Aziz: Yes, we are using the current situation as an opportunity to speed up the development of the departure and arrival points that we started last year. Usually, it should take a year. However, the passenger density is now 20-25% of what is normal. I think we can finish it in two to three months.
