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Air Arabia, based out of Sharjah in the UAE, pioneered the low-cost carrier (LCC) model in the Middle East, being the first to introduce it successfully in the region. Its fleet today consists of nine aircrafts, which it flies to 32 destinations around the Middle East and the Indian Sub Continent. The company plans to grow the fleet to 34 aircrafts by 2015, to be utilized on existing routes and new potential routes in the region.
Core competitive strengths of Air Arabia include its first mover advantage, its ability to quickly scale up, a young fleet, high utilization of its aircrafts, its strong and established brand, its established and effective distribution network, its efficient low cost base and highly favourable home and regional market dynamics.
Core drivers for the company include high expected economic growth, the demographic mix in the UAE and the region, the current low penetration rate of LCCs, the high elasticity of demand, growth in air travel infrastructure and the expected deregulation and liberalization of the sector.