menaJet to launch its services in early 2004

Budget airline menaJet, the new no-frills Saudi-Bahraini venture, will launch its services in the first quarter of 2004. When it was formed earlier this year the promoters planned a December launch, so they are on schedule.

"We are well advanced in our route selection and in the process of speaking to several airports regarding menaJet services," said Majen Hajjar, its general manager.

The carrier's coverage area will be the primary and secondary cities in the Middle East - the same territory being tapped by Air Arabia, another recent entrant owned by the Sharjah government.

With a capital base of $50 million, the airline, which will be based at Sharjah International Airport, is equally owned by Saudi Arabia's Al Zamil Group and Bahrain's Gulf Finance House.

"All the capital has been raised and no further capital will be needed for now. There may potentially be a public offering at some point in the distant future, but nothing concrete or in the near future is planned," added Hajjar.

It will operate with two Airbus A320s but plans are progressing to look at expanding the fleet in the short term.

The no-frills concept is new to the Middle East and the newcomers are aiming to cash in on the huge success enjoyed by similar airlines such as UK-based Ryanair.

Apart from menaJet and Air Arabia, Gulf Air recently created Gulf Traveller to spearhead its efforts on select routes through an all- economy concept.

Travel within the Middle East remains uniquely unaffected over the past year by factors such as the conflict within the region and the concerns over SARS.

In 2002, traffic growth in the region was estimated at 5 per cent.

"Yes, we do look at competition, but we concentrate on menaJet. We execute our own business plan with our own product adjusting as needs be to the market conditions," said Hajjar.

Assessing menaJet's prospects of breaking even, he said, "As quickly as possible, but with a planned break-even by the second year."