DUBAI – Emirates has responded to the growing influence of budget carriers in the Middle East by launching its own low cost carrier.
Emirates Executive VP Commercial Operations, Ghaith Al-Ghaith, has been appointed CEO of the new airline.
The unnamed Dubai LCC will be part of the Emirates Group, operating to destinations up to 4.5 hours flying time from its base.
This includes the Middle East, all the key points in the India, Bangladesh, Sri Lanka and Northeast Africa, Southern Europe and Central Asia.
The new carrier plans to lease or buy single-aisle aircraft (B737s or A320s) and will begin operations within a year.
However, the Centre for Asia Pacific Aviation believes it is only a matter of time before A380 equipment is eventually deployed at the airline – “a move that would strike fear into airline managements in Europe and Asiaâ€.
CAPA said Emirates has 58 A380s on order, or 30% of the entire global A380 orderbook. The carrier has previously indicated it could operate low cost services with A380 equipment.
The airline is currently officially planning a higher density medium-haul configuration with 604 seats, although the A380-800 model is licensed to handle 853 in an all-economy layout.
The Emirates LCC move follows the success of Air Arabia, based in the neighbouring emirate of Sharjah, which has reported outstanding profitability since its launch and has recently established cross-border JVs in Morocco and Nepal to target the North Africa/Europe and Asian markets, respectively.
Kuwait-based LCC, Jazeera Airlines, has also established a base in Dubai.
