Airline passengers in the UAE can expect “competitive prices” as the industry gradually recovers from the devastating economic impact of the global Covid-19 pandemic, according to the CEO of Air Arabia, Adel Ali.
The Sharjah-based budget airline is currently operating around 45 percent of its fleet of 50 aeroplanes in a mix of scheduled, repatriation, charter and cargo flights across its operating hubs in the UAE, Morocco and Egypt.
Like many, it has implemented strict health and safety protocols, however, to tempt nervous passengers back into the skies, Ali admitted that carriers may be forced to drop prices.
He told Arabian Business: “I think the prices will always continue to be market driven, in terms of supply and demand. Because of the gradual growth of the market and because you want to stimulate the business and you want to encourage people back travelling, we probably will see some decent competitive pricing at the start as the places open up more. Also, because there will be more capacity, then the price may drive itself down.
“The two options airlines will have is either to continue dropping their prices or reducing the seats available in the market and one of the two will happen, either of the two will normalise the circumstances.”
Last month the joint venture between Etihad Airways and Air Arabia – Air Arabia Abu Dhabi – launched and currently operates flights to Egypt, Afghanistan and Bangladesh.
It marked the fifth carrier to launch in the UAE, behind Emirates airline, Etihad Airways, Flydubai and Air Arabia, while Wizz Air Abu Dhabi, which is scheduled to take-off later this year.
Ali added that the proliferation of airlines operating in the country will be further good news for customers.
He said: “The fact is, all the carriers have done well over the last 20 years and one or two more, market supply and demand and the business will have to dictate itself. The good people will have to stay and if you’re not doing good then you’ll have to decide if your business is worth having or not.
“It’s great news for the consumer and I think right now obviously the skies are not busy, but they will become busy once the pandemic goes away.”
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