Fly for le$$

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Despite economic turbulence, low cost carriers in the region seem prepared to soldier on. Aviation Business profiles the industry leaders.

As the global financial crisis begins to affect the previously affluent Middle East, it seems logical for low cost carriers to prosper. However, while prices are lower than legacy carriers in the region, budget fares do not compare with cheaper European equivalents, Ryanair and Easyjet.

Huge airport taxes mean that, despite the initial bargain price tag, passengers will pay over the odds for ‘cheap' tickets. In Saudi Arabia, privately owned carriers are struggling against fare caps, which are imposed on all non government airline routes.

And for low cost carriers in the country, it is unfeasible to pass on the expense to consumers, as it would destroy the budget model. In addition, while the government subsidises Saudi Arabian Airlines' fuel costs, the private carriers are left to fend for themselves in times of financial uncertainty.

After six months of crippling fuel prices, followed by worldwide recession, it is unclear whether all low cost airlines in the region will be able to bear the financial repercussions.

But for now, as we head into another turbulent year, airline management teams in the Middle East remain confident they will ride out the storm and achieve future success.

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