|
Dubai: Budget carriers are beginning to make a dent in the Gulf's growing aviation sector, traditionally dominated by the full-service airlines.
Currently Air Arabia, Jazeera Airways and Air India Express have entered this nascent market, while a number of new players are going to start flights within the next few months to serve this captive but growing sector. Despite increasing competition, most no-frills flights remain almost full due to capacity constraints.
"However, there is room for everyone as the market grows," Adel Ali, chief executive of Air Arabia told Gulf News yesterday as the airline completes three years of operation.
"We need more low-cost services with more options. It's good to have competition. I'm not bothered at all," he said of the growing competition. "By the end of this year, we will carry 2 million passengers with eight aircraft in the fleet having a 79 per cent seat load factor and 90 per cent record in on-time departure.
"We broke even during the first year and became profitable in the second year of operations, and we continue to remain profitable despite the challenges of high fuel prices."
Air Arabia made history by lauching the region's first low-cost service in October 2003 with just two leased Airbus A320s.
The airline achieved financial breakeven in its first year of operations, followed by record profits of Dh32.1 million in the second. It now serves 30 destinations accross 18 countries with a fleet of eight Airbus A320s.
Air Arabia's success has been closely followed by Kuwait-based Jazeera Airways which completed a year of operations yesterday. "A year ago, we launched our dream to be in the business of empowering travellers, today we are proud that Jazeera Airways has been able to achieve our vision of putting more control into the hands of our travellers. We will continue to work with the best partners and international suppliers to enable us to continue empowering them," Marwan Boodai, chairman and CEO of Jazeera Airways said in a statement.
|
