Most folks in North America and in Europe have never heard of Air Arabia. It never seems to quite make anyone's list. Yet it is today a powerhouse in the GCC states. It is today probably the most profitable airline in the world with yields that most legacy airlines can only have fantasies about.
It has built an extensive network feeding the the GCC markets into Southern Asia and even beyond. It has steadfastly avoided stepping into the territory of the European based LCCs. Well dream no more. Air Arabia has announced its first Western European destination - Athens. Albeit with a very modest 3x a week ATH-SHJ service. This will not be the last of their European destinations.
With Dubai's new LCC - FlyDubai rearing to go this year - Air Arabia must spread its wings and continue to develop more cross feed and keep ahead of the its Emirates neighborhood cousin who is surely going to make a big impact in the LCC market arena when it arrives later this year.
While technically not its first flights to Europe (the carrier already serves Istanbul and Kiev) this is the first step into a major European gateway.
Welcome to Adel Ali and his team. it would be interesting to see if Ryanair is going to fly to Sharjah! I wouldn't put it past the Irish.
Cheers
Showing posts with label Air Arabia. Show all posts
Showing posts with label Air Arabia. Show all posts
24 February 2009
26 June 2008
FlyDubai announced today!
The world's newest LCC got its naming rights today and like its surrogate parent Emirates - it promises to change the way we see airline offerings in this case LCCs.
It is expected that FlyDubai will launch its first flights "by mid-2009." FlyDubai will initially focus on regional flights within the GCC area and surrounding countries. Its operations will be completely "separate from Emirates Airline and Group."
Ghaith al Ghaith, the designated Chief Executive of FlyDubai said since the government announced the formation of Dubai's new low cost airline in March, "We are recruiting for key positions, evaluating aircraft options and routes, working out our pricing and distribution strategy, and putting in place the structure and operational resources for the business."
Watch for some key announcements in the coming weeks about the first routes - FlyDubai will potentially cover a market of "2 billion people". Wow that's one heck of a lot. So I am assuming that we are talking a focus on Regional as they stated and this screams India as the prime target. So I am going to suggest that the market is India and the MENA area as the geographic focus. However that is pure speculation on my part so don't read anything else into it! It does tell us who they see as competition, namely it is Air Arabia and Jazeera as key targets.
Best of luck guys. Lets hope you are true to the model! It could really make a huge change in the flows of traffic. If I was sitting in the LCCs of India as well as Air Arabia and Jazeera - I would be pretty nervous.
Cheers
Timothy
It is expected that FlyDubai will launch its first flights "by mid-2009." FlyDubai will initially focus on regional flights within the GCC area and surrounding countries. Its operations will be completely "separate from Emirates Airline and Group."
Ghaith al Ghaith, the designated Chief Executive of FlyDubai said since the government announced the formation of Dubai's new low cost airline in March, "We are recruiting for key positions, evaluating aircraft options and routes, working out our pricing and distribution strategy, and putting in place the structure and operational resources for the business."
Watch for some key announcements in the coming weeks about the first routes - FlyDubai will potentially cover a market of "2 billion people". Wow that's one heck of a lot. So I am assuming that we are talking a focus on Regional as they stated and this screams India as the prime target. So I am going to suggest that the market is India and the MENA area as the geographic focus. However that is pure speculation on my part so don't read anything else into it! It does tell us who they see as competition, namely it is Air Arabia and Jazeera as key targets.
Best of luck guys. Lets hope you are true to the model! It could really make a huge change in the flows of traffic. If I was sitting in the LCCs of India as well as Air Arabia and Jazeera - I would be pretty nervous.
Cheers
Timothy
19 February 2008
Meet The New Profit Champ - Air Arabia
Move over Ryanair, Easyjet, Air Asia and Gol. Say hello to the new king.
OK so my mathematical skills are not always the best but I think I can use a spreadsheet. (Should anyone be able to prove me wrong I will immediately retract this story!)
It looks like we have a new Champion in the airline yield stakes. Its one that most people in Europe and the US - probably Asia have never even heard of let alone flown on.
Its Air Arabia.
For its 2007 results go here: http://www.airarabia.com/Air%20Arabia%20Net%20Profit%20Soars%20to%20AED%20376%20million.html
Frankly the numbers really shocked me. I was expecting a good result but this was very good. So net yield is 29.3% vs 13.5% last year. That is pretty much at the highest I have seen in any carrier. Higher even than Ryanair (2006 FR's numbers put them at the top of the Airline Business profitability league with 21.1% yield). With fares at about the right level for a Low Cost Carrier ($130 each way) they are doing a lot right.
Congrats to Adel Ali and his team.
Cheers
Timothy
OK so my mathematical skills are not always the best but I think I can use a spreadsheet. (Should anyone be able to prove me wrong I will immediately retract this story!)
It looks like we have a new Champion in the airline yield stakes. Its one that most people in Europe and the US - probably Asia have never even heard of let alone flown on.
Its Air Arabia.
For its 2007 results go here: http://www.airarabia.com/Air%20Arabia%20Net%20Profit%20Soars%20to%20AED%20376%20million.html
Frankly the numbers really shocked me. I was expecting a good result but this was very good. So net yield is 29.3% vs 13.5% last year. That is pretty much at the highest I have seen in any carrier. Higher even than Ryanair (2006 FR's numbers put them at the top of the Airline Business profitability league with 21.1% yield). With fares at about the right level for a Low Cost Carrier ($130 each way) they are doing a lot right.
Congrats to Adel Ali and his team.
Cheers
Timothy
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