Royal Jordanian could launch low-cost carrier

Amman-based airline says market demand could support separate low-cost carrier
Royal Jordanian could launch low-cost carrier
Any future low-cost unit would be branded separately to Royal Jordanian, its CEO said
By Shane McGinley
Tue 04 Jan 2011 01:10 PM

Royal
Jordanian, the country’s flagship carrier, is mulling plans to launch a budget
airline as UK no-frills carrier easyJet prepares to launch flights to Amman in
March.

Any
future low-cost unit would be branded separately to Royal Jordanian, its CEO
said, adding that he was confident there was enough demand to support two
carriers.

“If
we want to have a small LCC [low-cost carrier] developed that is something we
would probably look into later in the future. But you cannot combine them both…
they have to be completely separate,” Hussein Dabbas, president and CEO of
Royal Jordanian (RJ) told Arabian Business.

“The
market can sustain two models: full service model and LCC model.”

The
Jordanian carrier is not the first to eye a low-cost option. Qatar Airways’ CEO
Akbar Al Baker has previously said the airline could launch a no-frills carrier
within 90 days, if its market share was being eroded.

 Abu Dhabi-based Etihad Airways already
operates economy-only flights on some of its routes.

UK
carrier easyJet is set to launch flights to the Jordanian capital in March this
year.

The
airline will be competing with flydubai, Sharjah-based Air Arabia and Saudi’s nasair,
which already operate routes to Amman. However, the increased rivalry will benefit
passengers, said David Symes, Jordan Tourism Board country manager for the UK
and Ireland.

“The
increased frequency, capacity and more flexible pricing is great news for
tourism to Jordan and should work to increase awareness of the destination as
well as grow the independent traveler market, which already makes up
approximately 50 percent of UK visitors,” he said.

 

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