Air Arabia business model has great potential: AGM


Air Arabia has created a business model that has the potential to change the face of the regional industry.

This was the message from Air Arabia’s CEO Adel Ali, following the airline’s AGM in March.

It is little wonder that Ali is pleased as the airline announced a US$123 million profit and shareholders received a generous 10% dividend.

Ali continued, “Granted, Air Arabia is a relatively new player at six years old, and is thus rapidly expanding its business in what was a non-existent market before the Sharjah low-cost firm’s arrival, but the strength and diversity of its offering has surprised industry analysts. At the moment, we will probably grow our business at around 10-15% per annum.

"We have an expansion plan this year that will take us into a couple more points in India, and we’re also getting into Central Asia. But a greater focus will be on increasing frequencies into Turkey and intra-Gulf, which should take us to the end of this year."

Ali is reticent in his profit forecast for the year, "While we would like to achieve similar or better results [to 2009] but there is a current surplus of capacity in the marketplace, which is a challenge.

"There’s a lot of unbalanced competition, and the oil price is still high, despite the huge amounts of surplus oil being stored around the world. The whole thing is very ambiguous in terms of how business will develop."

Air Arabia is expanding its network rapidly with the carrier now offering 46 destinations from Sharjah and 12 from its new hub in Casablanca.

The carrier also received its Air Operators Certificate (AOC) last month from the Egyptian Civil Aviation Authority, which has paved the way for the launch of Air Arabia ‘Egypt’, an Alexandria-based joint venture company with the Travco Group. This new venture is expected to start with flights to Khartoum and Kuwait.
Source = e-Travel Blackboard: C.F
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