flydubai: ‘Our niche is Dubai.’ But could Emirates have incorporated the short-haul strategy?

Low-cost carriers were once cast off in the Middle East, said to never work. But now turning five years old is Dubai government-owned flydubai, which has become the largest LCC in the Middle East. Explaining the business model that has sustained 40 737s with more on order, CEO Ghaith Al Ghaith says: "Our niche is Dubai."

It may be surprising to carve out a niche in the city home to the world's largest international airline based on ASKs. But flydubai has done so by focusing on regional links and using its 737s to serve markets too thin for Emirates' all-widebody fleet.

flydubai is increasingly hybridising, to the point the differences between it and the short-haul aircraft of Etihad and Qatar Airways are not vastly different. Could Emirates have done the same? In this first instalment in a series of reports analysing flydubai, CAPA examines the history and strategy behind the Dubai airline industry's second, albeit quieter, brand.