Dubai responds to aviation growth potential

Dubai: Dubai is responding to the huge growth potential in the region's underdeveloped budget travel sector, industry experts said on Tuesday.

Growth in tourist numbers and expatriate population is seen creating new opportunities for such carriers.

"The Middle East is a natural region for low-cost aviation growth. There is going to be enormous traffic flow between the UAE and countries such as India and Pakistan. With the new airport coming up in Jebel Ali, there will be more opportunities," John Strickland, director of London aviation consultancy JLS, told Gulf News.

Existing budget carriers such as Air Arabia, Jazeera Airways and Nas Air are aggressively expanding their routes and have dozens of new aircraft on order. Budget airlines are mostly targeting destinations within a distance of six-hour flight time.

In an interview to Gulf News on Thursday, Saudi Arabia-based Nas Air's chief executive officer Edward Winter said the budget airline sector in the Middle East would grow "the same way it developed in Europe and Asia."

He said Pakistan, India, Egypt, Sudan, Syria, Jordan, Lebanon, Yemen and the GCC are among the key markets for his company for route expansion, which comprises 21 domestic and one international destination at present.

Traffic flow

"The key traffic flows will be the UAE, India, Pakistan and Egypt," Winter said, adding that there is growth in both leisure and religious traffic.

The company has signed a deal with Airbus to buy 20 A320s, with an option on 18 more, with deliveries scheduled to start in 2012.

Growth in intra-region tourism has also given a boost to the sector.

Sharjah-based Air Arabia is starting its 11th Indian destination on March 31 that will be its 39th internationally.

Air Arabia plans to have an operating fleet to 50 aircraft by 2015. It signed an agreement last November with Airbus to acquire 49 planes.

Strickland does not expect budget carriers to take away the market share of existing full-service airlines.

"They are going to stimulate the market, depending on what destinations they fly," he said, adding that Dubai's yet-to-be named airline is seeking to exploit opportunities in the market.

Naming a senior Emirates management official as chief executive of the new airline shows "the seriousness" of the venture, he said.

Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai's Civil Aviation Authority and Chairman and Chief Executive of the Emirates Group, will be the chairman while Gaith Al Gaith, executive vice-president for commercial operations at Emirates, will be its chief executive officer.