flydubai to break even in 2 years

Dubai: flydubai has set a target to reach profitability in two years, Gaith Al Gaith, the budget carrier's chief executive, told reporters yesterday at the Dubai Airshow.

"Within the next two years would be an achievable target to break even and make profits," Al Gaith said.

The airline has been on an aggressive expansion plan since it placed an order for 50 aircraft and adds new destinations to its network every few weeks.

The government airline yesterday announced a new route to Bahrain during a press conference.

Its second destination in the Gulf Cooperation Council (GCC), Bahrain will see two daily flights starting December 13. The tenth point in its network will begin just a few weeks after its maiden flight to Baku, Azerbaijan, on November 20.

"Bahrain is attracting a lot of foreign investment. Our timing couldn't have been better. There is a need for flydubai as an alternative travel partner and Bahrain will prove to be a successful destination," Al Gaith said.

By the end of the year, the airline will have 12 destinations and it will continue to add more as it takes delivery of new aircraft, one in December and the next in March 2010.

The extra aircraft will make it easy for the carrier to add more flights and it will probably announce its next GCC destination next March.

While the low-cost carrier is not the first for the country, after Sharjah's Air Arabia, its launch this summer during the downturn of the aviation industry raised doubts as to its initial performance.

However, officials say that routes have been busy and seat load factors high.

"Passenger numbers are significant and up to our plans," Al Gaith said. The airline has also had help from the recent lows in fuel prices.

"With these prices, we will be able to cover all costs," said Al Gaith.

The airline was initially launched as part of Emirates, but has since spun off as an independent enterprise.

With its current and planned routes, its direction is to fill the gaps in demand and supply to destinations within a 4.5-hour radius.

"The low-cost travel future is bright in the region. Europe's penetration for low-cost is at 25 per cent and could increase to 50 per cent. The case is the same in the United States. Here it is only five per cent. There is still lots for us to do," Al Gaith said.

The airline has no plans to place new orders at the moment, according to Al Gaith. Its order for 50 aircraft last year at Farnborough for $4 billion (Dh14.69 billion) will be delivered by 2015.

"In the future, we will review our aircraft requirements," Al Gaith said, adding that it would not be the case in the immediate future.

Logistics deal

flydubai signed a deal yesterday for its logistics requirements with Danzas AEI Emirates, a joint venture between the Al Tayer Group and DHL. The transport company will be transporting aircraft maintenance consumables of the airline.