Jazeera chief sees high risks in multiple MidEast hubs

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Marwan Boodai, chairman of Jazeera Airways.

Marwan Boodai, chairman of Jazeera Airways.

The chairman of Kuwait’s Jazeera Airways said he would like to set up additional hubs around the Middle East for the low-cost carrier but the amount of red tape involved means the risks are too high.

“Having other locations is good but let’s not forget that the challenges and risks entangled in our part of the world in the Middle East is so high that you won’t risk your investors’ money to that,” Marwan Boodai, chairman of Jazeera Airways, told Arabian Business.

While UAE low cost carrier Air Arabia has its main hub in Sharjah, it has launched subsidiaries in Egypt and Morocco.

By comparison, Irish low-cost carrier Ryanair has been able to set up around 50 bases around Europe, in addition to its main hub in Ireland, due to the easier regulatory environment in Europe.

“If you compare to Easyjet or Ryanair, you can easily open up in Europe and get yourself a base in Marseille or other parts of Europe,” Boodai said.

“In the Middle East, we still don’t have the regulatory framework that allows us to freely open up and obtain local AOCs (Air Operators Certificates) on subsidiaries. It becomes so complex, so as a board we have decided to shelter Jazeera Airways completely from any hubbing, or other operations, unless the regulation changes.”

Instead, the airline is focusing on boosting its capacity and this month announced plans to add 61 flights to its summer schedule. The extra flights will increase frequency of routes servicing Jeddah, Dubai, Amman, Luxor, Assiut (Egypt), Sohag (Egypt), Al Najaf (Iraq) and Mashhad (Iran).

Jazeera Airways is listed on the Kuwait Stock Exchange and last year carried 1.1m passengers.

Related:
Topics
Companies

Market Performance

Jazeera Airways
440.0
-5.0 -1.12 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Crowded skies in the Middle East

Crowded skies in the Middle East

Aviation experts give their suggestions on how to solve the Middle...

Cracking the code

Cracking the code

Strategic codeshare agreements are a win-win situation for gulf...

Stronger together? Reviewing Emirates' historic partnership with Qantas

Stronger together? Reviewing Emirates' historic partnership with Qantas

One year after the “historic” Emirates-Qantas partnership deal...

1
Most Discussed
  • 14
    Baby NOT on board?

    The people commenting here were all 20 years old when they were born, never cried, never screamed and never ran etc etc.
    more

    Thursday, 21 August 2014 8:30 AM - Amer
  • 7
    CEO of Just Falafel to step down

    Just Falafel was a disaster waiting to happen. The food isn't even that good and the focus wasn't on building the brand and operations. Instead they focused... more

    Thursday, 21 August 2014 8:37 PM - milad
  • 6
    Belgium diplomat arrested for pulling veil from Qatari princess

    If its illegal to dress in a certain way why didnt the police do something about it.

    Whereever the Europeans go, they demand that society conforms... more

    Thursday, 21 August 2014 8:37 PM - Ghazi