Dubai Airline

Dubai to launch low-cost airline

Dubai: Dubai is to launch a low-cost carrier that will serve the growing budget travel market within the region and benefit the huge number of expatriates in the UAE.

• His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has instructed concerned authorities to set up the low-cost airline company in Dubai.

  “While setting fares, the company will be taking the financial and living conditions of passengers into consideration,” Wam reported, without elaborating when the airline will be launched and its routes.

  Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of the Emirates Group, will also be the Chairman of the new airline, while Gaith Al Gaith, Executive Vice-President for commercial operations at Emirates, will be its chief executive officer.
  “Dubai’s open-skies policy encourages the growth of air transport, which has and continues to contribute to the development of this city. The new airline, a low-cost carrier, will complement the international air services already provided by Emirates,” Shaikh Ahmad said.

  Although two Emirates officials have been named chairman and CEO of the airline, it is unclear what relationship will the new airline have with the Emirates Group. Mike Simon, Emirates’ vice-president for corporate communications, told Gulf News: “It is a completely separate airline. Emirates has nothing to do with it except the fact we have the same chairman.”

  The much anticipated move comes at a time when Emirates, a premier full-service airline, has been raising its fares on most routes – leaving room for others to benefit from lower prices.

  The new low-cost airline will help Dubai to regain the market gradually being left out by Emirates, analysts believe.

  Senior Emirates officials – Maurice Flanagan, Emirates Group vice-chairman, and Tim Clark, president of the airline – have repeatedly said that the airline might launch a low-cost livery, putting A380s on selected routes.

  Dubai Aerospace Enterprise – a new aviation investment arm – is placing lease orders for 100 aircraft and analysts expect the new carrier to begin services with DAE’s leased aircraft before summer to cash in on the summer traffic.