Air Arabia lags flydubai in the battle for Middle East LCC supremacy, but opportunities abound

Air Arabia and flydubai have hubs that are no more than 150 km apart and their networks overlap on better than 40 destinations, but the two fierce competitors have remarkably both been able to operate profitably. In 2013, combined, they handled traffic of almost 13 million passengers and earned an impressive combined profit of AED657.8 million (USD179 million).

Even rubbing shoulders as they do, the carriers' outlooks for profitability and growth in 2014 are positive. Both are maintaining the aggressive fleet and network expansion plans that have characterised their behaviour over the past few years.

flydubai is due to receive eight aircraft in 2014; Air Arabia is scheduled to take delivery of 10. As new aircraft are accepted into their fleets, the two will continue to build new connections within the Gulf and wider Middle East region. In addition, both are exploring new markets bordering the Middle East, particularly markets underserved by other Middle East-based airlines.