Cost cutting

The emergence of low-cost carriers in the Middle East has provided cheaper air travel for the masses. Lizzie Cernik looks at the region's leading budget airlines.

Air Arabia

Air Arabia, recently named "Low Cost Carrier of the Year" at the inaugural Aviation Business Awards 2007, was one of the first budget carriers in the UAE.

The region's largest low-cost airline was established in February 2003 following an Ameeri decree issued by His Highness Dr. Sheikh Sultan Bin Mohamed Al Quassimi, the ruler of the UAE's Supreme Council. The company's management says it aims to provide convenient low-cost flights without compromising high standards. Operating under a "pay less, fly more" motto, the service offers fast check-in processes, internet bookings and amenable airport staff.

After only 18 months of service, the airline welcomed on board its one millionth passenger, a figure that had doubled by 2006.

The Sharjah-based airline has recently joined forces with FlyYeti.com, the first Nepalese budget carrier, and established a new hub in Kathmandu. With more than 35 destinations , Air Arabia aims to promote affordable fares to a wide range of countries across the Middle East, Asia and Africa. Adel Ali, CEO of Air Arabia, says: "This newest hub will give air travellers who use Air Arabia access to new destinations in India and wider South Asia, as well as the Far East and Central Asia." He adds this venture is testament of the company's ambitious nature and rapid growth since 2003.

Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia, says: "As we set our sights on global expansion, we remain focused on youthful, fast-growing markets where the opportunities for growth are greatest. Nepal, with a population of 29 million and a median age of just 20, is clearly among them.

Bahrain Air

Starting operations in February, Bahrain Air is the first privately-owned premium low-priced carrier. The airline's inaugural flight landed at Dubai International Airport on February 3 to a water canon salute, followed by a welcoming ceremony.

The no-frills airline is focusing on medium-to-short-haul destinations, although large-scale plans to expand within the Middle East, Africa and Asia are also on the agenda. Using dry-leased A320s and B737-800s, the carrier already offers more than 10 destinations around the Middle East and Indian Subcontinent, including Colombo and Kuwait.

Mohammed Bin Ghannam, general manager for the airline development department of aviation unit at Dubai Airports, says the airline will be a premium low-cost carrier. "Bahrain Air is a unique addition to our list of 120 airlines serving Dubai International, and will cater to the specific needs of a large number of passengers.

The company has an ambitious three year plan, which involves increasing the fleet to four aircraft by year-end and 10 in 2010. If Bahrain Air's aircraft expansion strategy is successful it will be the fastest growing budget airline in terms of fleet development, according to management.

Bahrain Air director for commercial operations M. S Fakhri believes that changing attitudes towards domestic and international travel will contribute to the company's success. "With the current boom and the oil prices going up people can afford to travel - where as they used to travel once a year, now they can afford to travel four times a year. In fact, the low-cost airline model makes it affordable for you to travel eight times a year in theory.

Sama

Sama was founded by Investment Enterprises Ltd, which is chaired by HRH Prince Bandar bin Khalid al Faisal. When launched, the airline was backed by Mango Aviation Partners, a UK firm that specialises in low-fare carrier start-ups. The company operates six Boeing 737s and one Jet Turbo Stream to several destinations across the Middle East. Ambitious plans to expand are underway, with management expecting to have 35 aircraft by the end of 2010.

The carrier has recently launched customer care campaign, ‘Just for you', to establish itself in an increasingly competitive market. The scheme includes a frequent flyer service, which awards regular customers with their 10th flight free of charge.