The continued growth of the Gulf's national airlines - which are expanding their fleets and route networks - does not bode well for regional carriers such as Air Arabia, according to Nomura Holdings.
A Nomura analyst downgraded the Sharjah carrier to neutral from buy yesterday.
"Smaller, domestically focused regional carriers have less operational and financial strength to compete with national carriers," said Scott Darling, the analyst. National carriers were becoming increasingly comfortable in operating Boeing 777 and Airbus A380 aircraft on short-haul routes "to maintain fleet load factors and access specific premium cabin traffic", he said.
No comments:
Post a Comment