07 April 2009

Emirates Lite launches in Dubai

DUBAI - Dubai has bowed to global aviation trends by launching its first budget carrier, a sister company to Emirates airline.

Flydubai will launch with flights to Beirut on June 1 and to Amman on June 2, said company chairman Sheikh Ahmed bin Saeed al-Maktoum.

"We are committed to bringing a new option to the market and to growing the region's budget air travel business," said Sheikh Ahmed, also chairman of Emirates.

"This will benefit our economy, our people, and tourism business as a whole."

Despite a global economic slowdown whose effects are being felt in the oil-rich Gulf, Sheikh Ahmed said: "There is a lot of potential in this region... and we have a lot to do."

Flydubai will operate two next-generation Boeing 737-800 aircraft on the Beirut and Amman routes, and have four aircraft by the end of the year, he said.

The move to a low cost carrier, previously discounted by Emirates, comes at a time when aviation analysts are predicting that Emirates is about to join the air fare war ex Australia.

Last week Singapore Airlines rolled out huge discounts on its fares from Australia to the UK, under-cutting Emirates fares by more than 50 percent.

BA/Qantas followed the SQ lead, leaving Emirates to contemplate similar air fare cuts to maintain market share.