Predicting more demand for low cost carriers

THE Centre for Asia Pacific Aviation (CAPA) has predicted that low cost carriers will see increased demand in terms of both traffic growth and earnings this year compared to traditional airlines.
 A recent report from CAPA mentioned that stormy conditions in 2008 had already helped the low cost segment gain a larger share of global aviation, and that the expected tougher economic conditions and lower fuel prices will give the sector a major advantage in 2009.
Adel Ali, chief executive officer of Air Arabia said, “Worldwide, across the MENA region and here in the UAE, the appeal of value for money services is growing greater every year, as it provides travellers with low fare offers in these unstable economic times.”
In the UAE, where Air Arabia is headquartered, a recent survey of business and leisure travellers also points to significant opportunities for LCCs like Air Arabia. According to the survey conducted by YouGovSiraj, the number of UAE based leisure travellers who said they will shift from premium to economy increased by seven per cent between October 2008 and January 2009.
During the same period, the number of UAE based business travellers who said they expected to fly economy increased by 12 per cent.