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FINANCIAL NEWS
ME’s low cost carriers to capture 20% of air market
27 Jun 2011
(MENAFN) UK’s Official Airline Guide (OAG) said that in the next few years, low cost carrier (LCC) market in the Middle East could have the ability to hold 20 percent of the air market, reported Gulf News.
It added that more than one flight in every five worldwide was operated by a low cost carrier, with Europe having the highest regional penetration with 28.2 percent indicating that the low cost carrier sector would enhance international airline growth.
It also said that seven years ago, low cost carrier’s regional market share by passengers was just one per cent, nevertheless, two years ago, the low cost airlines’ market share in the Middle East increased to between 6 percent and 8 percent, and to around 10 percent at the time being.
It is worth noting that the Middle East s main budget carriers are Air Arabia, which operates 27 new Airbus A320 aircraft on 67 routes from three hubs, in the UAE, Morocco and Egypt, and by the year 2015, will forecast its fleet to reach 55 aircraft, and the other carrier is Flydubai, which has 17 aircraft and more than 50 Boeing 737s on order to implement its expansion plans.
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