Business | Aviation
RAK Airlines ready to take off next year
RAK Airlines, the UAE's fourth national carrier is set to take off early next year by acquiring two used Airbus A320s.
- By Saifur Rahman, Staff Reporter
- Published: 00:00 December 15, 2005
Dubai: RAK Airlines, the UAE's fourth national carrier, is set to take off early next year, officials said.
"The airline is acquiring two used Airbus A320s to start operations from Ras Al Khaimah airport," said a source.
The Ras Al Khaimah Government-owned airline, initially named Al Hamra Airlines, has been granted official approval by the UAE Cabinet.
"The Cabinet has already granted permission to launch the airline, as the UAE's fourth national carrier and we have already awarded it the necessary Air Operator Certificate (AOC)," Mohammad Ganim Al Gaith, director-general of the General Civil Aviation Authority (GCAA) told Gulf News yesterday. "It has already registered an aircraft under the airline," he added.
The UAE already has three national airlines Emirates, Etihad and Air Arabia. Both Emirates and Air Arabia are operating at a profit while Abu Dhabi-based Etihad has yet to release its financial results.
A fourth airline for a country inhabited by only 4.32 million people could make it overcrowded as the airline to population ratio is definitely going to be very high.
"The UAE has an open skies policy. At the GCAA, our job is to facilitate permission and services to airlines, and not obstruct the growth of the aviation industry," Al Gaith said.
RAK Airlines is part of Ras Al Khaimah's plans for economic diversification and accelerate the growth of its non-oil economy, driven by property, construction and tourism.
The emirate has attracted strong investor interest in real estate and tourism projects.
However, the new airline will have to carve out its own niche in order to sustain itself in the market, analysts say. "The UAE is a small but fast growing market. Dubai has witnessed strong growth. For such a high-growth market, there is always room for new airlines, especially if they can create a niche for themselves," said David Kaminski-Morrow, editor of Air Transport Intelligence, a UK-based publication.
However, there is always a danger of correction and consolidation in an overcrowded market. "Market forces will determine which will survive and which will not. Any region with such explosive growth can probably accommodate some new players."
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