FlyDubai Putting the Squeeze on Air Arabia, Says NBK Capital - Middle East Real Time - WSJ:
"Competition is hotting up among low-cost carriers in the Persian Gulf desert. That’s according to analysts at NBK Capital, who say government-owned FlyDubai’s aggressive expansion is having a negative impact on publically-listed Air Arabia at its Sharjah hub.
FlyDubai and Air Arabia already overlap on 40 destinations from their respective airports, which are just a short drive away from each other. In total, Air Arabia offers 70 destinations from Sharjah International, while FlyDubai launched 17 new routes last year from Dubai International to now serve a total 66 destinations.
Air Arabia also recently added a new hub about 100 kilometers away in Ras Al Khaimah, filling a void left by RAK Airways which suspended operations in January. Low-cost carriers have grown to make up 7% of total traffic in the region, from nothing ten years ago, Boeing Co. says, illustrating the growth in the sector."
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