Wednesday 28 July 2010

Gulf’s budget carriers aim high

Five years ago, low-cost airlines’ regional market share by passengers was only 1 per cent, as the pioneer, Sharjah-based Air Arabia, ramped up operations after its 2003 launch.

Yet today, Air Arabia, which is listed on the Dubai stock market, is competing with a host of other private-sector airlines in Kuwait, such as Jazeera, Saudi Arabia’s Sama and NAS, Bahrain Air and Dubai’s state-owned Flydubai. There are also plans to relaunch RAK Airways in Ras al-Khaimah, another member of the United Arab Emirates.

The low-cost carriers have seen their market share grow to between 6 and 8 per cent in 2009, according to industry participants and analysts. Airlines from outside the region are getting in on the act too: Air India Express, for example, serves the busy Gulf-India routes that have proved so lucrative for Air Arabia."

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