Jazeera Airways chairman claims flydubai survives on Dubai government
Low-cost carrier flydubai would not survive without funding from the Dubai government, the chairman of Kuwait-based rival Jazeera Airways told Arabian Business.
“flydubai are government backed and without that they can’t survive,” said Marwan Boodai, group chairman of Jazeera Airways.
Analyst Saj Ahmad commented: “flydubai has leveraged its growth off the back of air accords already in place where Emirates effectively laid a clear path and also because the Dubai Govt has a vested interest in ensuring the carrier succeeds, but to allude that flydubai is alive solely due to the hand of the Dubai Government is a remark far removed from reality.
“flydubai has excellent load factors across its system-wide network and the growth they've had over the last three years has come about because their open and low pricing, world class innovative cabin product using fiber-to-the-screen, High Definition touch screen IFE and low cost of operation gives the airline a huge advantage against its rivals. That's why even the Sharjah Government-backed Air Arabia is resigned to falling into second place behind flydubai within a matter of months. But even then, you saw a couple of weeks ago just how strong Air Arabia's earnings were - a sharp rise in profits underlines just how strong low cost travel is in the GCC and carriers like flydubai are capitalizing on that market vibrancy.”
Ahmad concluded: “Jazeera Airways is mistaken if it believes that state support is propping up flydubai. With over 50 routes under its belt in three years, the fact is that flydubai has shaken up the competitive landscape. Jazeera Airways cancelled 25 A320s last year, whereas flydubai is closing in on selecting the 737MAX family as it continues to induct its existing 737-800s, which incidentally have much lower fuel burn than Jazeera's A320s and carry more revenue-generating seats, translating into lower seat and trip costs. It is this sort of advantage that allows flydubai to be so aggressive in growth and pricing - it's no surprise that flydubai is fast becoming a popular and favourite GCC airline, and with darn good reason."