Budget airline market still strong, says Jazeera CEO

The company has added a number of routes of late, including Doha and Riyadh, with Khartoum to come, and said the low-cost market was still expanding in the Gulf, regardless of events elsewhere in the world.

In November Jazeera takes delivery of its eighth aircraft (number seven arrives this week) and the company will continue focusing on the Middle East rather than moving into areas such as Europe, a rich region he believes is poorly served by the air transport sector.

He argued that by having more open sky policies and the freedom to fly to more destinations in the Middle East, airlines such as Jazeera can help stimulate local economies. 'It's already there, but we'd like to have even more openness in the skies,' he said.

Although the Arab Air Carriers Association has warned that airlines are trying to 'dodge a bullet' - and in particular budget airlines - Boodai is confident that Jazeera will not be overly impacted. 'It's going to deter any newcomers coming in and financing is going to be much more difficult to find with banks for new start ups. And that's going to be good news for Jazeera.'

Despite this, the biggest competitor Jazeera is likely to face is a new start up - FlyDubai, which launches flights in mid 2009. Owned by Emirates Airlines, FlyDubai has ordered 54 Boeing 737-800s, an order valued at $4bn. 'Emirates is a great airline. It's a great legacy airline. They do their business best as a legacy, connecting different parts of the world. Low cost...is a totally different ball game.'

You can watch part one of AME Info's interview with Marwan Boodai, CEO of Jazeera Airlines, in our Face to Face section.

See also:
Jazeera backs Sahaab Leasing venture, despite aviation turmoil
Low-cost carriers fly high in the Gulf
Saudi Arabian Airlines sets privatisation strategy