New Budget Airline Boosts Dubai's Success

Award winning international airline, Emirates, has announced its decision to help the government of Dubai tap into the sky-high demand for travel options in the Persian Gulf, by managing a new low cost carrier.

Arab Emirates News Agency, WAM, reported on March 18th that, in his capacity as Ruler of Dubai, Sheikh Mohammed instructed the competent authorities to set up a new airline company to cater for the growing passenger traffic to and from the UAE.

The new low-cost carrier will benefit from being managed by Emirates, the biggest Arab airline. HH Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive of Emirates, welcomed the initiative: "Emirates welcomes this announcement, and any new Dubai airline operation. Dubai's Open Skies policy encourages the growth of air transport, which has and continues to contribute to the development of this city. The new airline, a low cost carrier, will complement the international air services already provided by Emirates. As Chairman and Chief Executive of Emirates and Chairman of the new low-cost airline announced today, I can confirm that Emirates will extend its support to the new company.”

Emirates president, Tim Clark, explains how “Emirates has been urging Dubai to encourage budget carriers to help feed customers onto its long-haul flights. Low cost carriers haven’t taken off in the Middle East as fast as in Europe or Asia partly because Dubai’s airport is too congested.”

An Impressive Airport

Dubai’s government is already on the case, building what they expect to be the largest airport in the world by 2012. The six-runway Al- Maktoum International Airport will be spending $33 billion of the government’s budget in order to construct an airport 10 times the size of the one operating at present.  It will, in fact, be bigger by area than London’s Heathrow and Chicago’s O’Hare combined.

The new budget airline, to be based in Dubai, will aim to attract travelers from the Indian subcontinent as well as the Arab world; good news for buy-to-let investors in Dubai who will enjoy an even greater influx of customers to rent their properties.  “If you look at the network for Dubai, there are so many points that Emirates today is not covering,” said HH Sheikh Ahmed bin Saeed Al-Maktoum in a telephone interview to ETurbo News. “There are so many countries four, five hours from Dubai that we don’t cover.”

World Class Events

Sara Romera, analyst at propertyshorooms.com, explains: “The new airline is great news for buy-to-let investors in Dubai. As the airline taps into new markets, landlords will enjoy a larger array of customers to book their properties. This will also make it easier and more cost-effective for people travelling to Dubai for the many events which will be taking place in such huge impending attractions as Dubailand’s Sports City.  It will definitely encourage even more trade and business to Dubai.”

Today Dubai is an increasingly popular tourism destination, thanks to its awesome selection of locally based attractions.. Likewise, the Emirate holds many shopping and cultural events at its highly successful Global Village as well as other attractions, such as the Barclays Dubai Tennis Championships or The Global Travel and Tourism Summit.

In its 2008 report, The World Travel and Tourism Council predicts that real GDP for the travel and tourism in the United Arab Emirates will grow at an average rate of an impressive 4.3% per annum over the coming decade.

Like this? Then share with your friends and colleagues!