By Daniel Shane
Financial pressures force UAE-based carrier to ground all planes indefinitely
RAK Airways, the carrier based in the emirate of Ras Al Khaimah, has suspended all of its flights with immediate effect as the airline buckled under the pressure of financial constraints.
The UAE airline, which previously ceased operations for the two years following the 2009 financial crisis, said that its services had been grounded by increased costs and regional instability.
“The decision for suspending operations was taken following increased pressures on the carrier’s performance due to continuous market conditions, increased operating costs and the impact of the regional political instability on the overall aviation industry,” RAK Airways said in a statement.
RAK Airways served 12 destinations across the Middle East including Doha, Riyadh, Islamabad and Lahore, via a fleet of two Airbus A320-200 aircraft. It also offered a domestic service to the UAE capital Abu Dhabi. It had said as recently as August last year that it was aiming to increase its network of routes to 40 by 2015.
In 2012, the airline carried approximately 300,000 passengers. It operated out of the tiny northern emirate’s Ras Al Khaimah International Airport, which also serves a small number of charter flights.
it is sad to see RAK out of market and a good reminder of how intricate and challanging this market is even in booming UAE which is the centre of aviation.
I felt it was inavatable as the business modle isnt correct, the Emirate it self doenst slef sustain business for minimum operational requirement, plus within an hour's time you have the fearce Air Arabia with its gigantic network, Fly Dubai which is the tiger of the region and last but not least Emirates Airlines.
what are the sucess rate targetting the same market against those Airlines!!!
low cost cargo, Indian subcontent flights is the answer plus some tourism charters, once this business is established, only then the Airline can we relounched.