ETIHAD Airways has announced the addition of its first all-economy-class aircraft fleet from October 2010.
The move comes as the Middle East region appears to be turning from luxury travel and airlines are looking to tap into the high-volume but low-yielding markets more effectively.
Full-service airlines in the region have constantly been subject to speculation about the addition of low-cost-carriers (LCC) to their existing operations though, according to the latest IATA (International Air Transport Association) statistics, LCCs account for only seven per cent of the total air travel market in this region compared to more developed markets, such as Europe and America, where the budget-carrier sector is around 35 per cent.
Realising this potential, Etihad will launch its all-economy aircraft to operate on short-haul destinations, including Alexandria, Calicut, Colombo, Damascus, Doha and Thiruvananthapuram and plans are in place to expand the all-economy fleet to 10 A320 aircraft enabling the airline to launch new destinations where there is low demand for premium travel and also offer an increased economy service to existing Etihad destinations.
The move comes as LCC Air Arabia has announced its financial results for the three months ending June 30 with profit showing at Dh 50 million ($13.6 million) and Kuwait-based Jazeera Airways has seen a sustained period of passenger growth while adding new destinations to its network in the Middle East, Europe and North Africa.
The airline’s continued efforts to reduce costs and overcapacity have also shown signs of success, with the carrier, in response to its overcapacity problem, announcing in late 2009 a restructuring of its marginal or loss-making routes, shelving several destinations and reducing others to peak season services. Jazeera now operates to 23 destinations in 12 countries across the Middle East, North Africa, Iran and Turkey. Currently operating a fleet of 11 Airbus A320s across its network, the rapidly expanding airline is set to become the largest operator of Airbus A320s in the Middle East by 2014, when its remaining order of 29 new aircraft will be delivered.
The newest airline to join the LCC market in the region is flydubai. Since its launch last year, the carrier has taken delivery of six 737-800NG aircraft from Boeing and its seventh aircraft was the first Boeing Next-Generation 737 aircraft equipped in March 2010.
At flydubai, the focus is to keep fares low, with a commitment to offer fair fares, as they include all taxes and charges and a generous hand baggage allowance of 10 kgs. This year, the airline plans to grow its network to more than 20 destinations in total.
Bahrain Air continues its mission to fly a million passengers in 2010. Currently serving 21 destinations, in its first year of operation Bahrain Air carried 403,691 passengers and last year this rose by more than 60 per cent to 658,926. The airline plans to increase its authorised capital by 50 per cent to BD30 million ($79.6 million) and hopes to break even in 2011 as it expands operations.