New low-cost airline from Dubai planned

27 March, 2008:

A new company that will operate a low-cost airline model with its own brand and identity will be set up in the UAE. The budget airline will initially operate in areas four to five hours away from Dubai, and will start operations by early 2009.

Although the new airline will be initially supported by Emirates during the set-up period, it will not be part of the Emirates Group. Elaborating on this, Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said Emirates will assist in the formation of Dubai's new low-cost airline up to its first flight. I am confident that with Ghaith as the CEO, this new airline will be very successful. The Emirates Group will assist him in forming the new company and will continue to give all support as required up to its inauguration.”

Saeed Al-Maktoum has been appointed by the government as Chairman of the new low-cost airline, while Ghaith Al Ghaith, Executive Vice President Commercial Operations Worldwide at Emirates, has been appointed Chief Executive of the new entity. The new budget airline will initially operate regionally within the GCC area and surrounding countries.

The low-cost airline plans to lease or buy single-aisle aircraft.

Meanwhile, a related report said that Dnata Travel Services has announced a new addition to its portfolio of products and services, Luxury Air Travel by Dnata.

The division will represent private jet charter operators and offer customized, discreet services to meet the growing demand for luxury, bespoke air travel solutions in the Middle East. IATA has predicted the Middle East will be the fastest growing region for international traffic over the next few years, with increases expected to be around 7% annually, well ahead of the world average of 4.8 per cent.

There is a significant demand in the marketplace for private jet charters.