flynas benefits from relaxed Saudi fare cap; could become the second Gulf partner for Cebu Pacific

Following the withdrawal of its short-lived long-haul flying, Saudi Arabian LCC flynas is concentrating on its core domestic market, which accounts for just under two-thirds of seat capacity in Apr-2015, according to OAG data. The domestic Saudi market had been challenging with the existence of a domestic fare cap and national carrier Saudia receiving subsidised fuel.

flynas is benefitting from a late 2014 change that allows it to exceed the fare cap for bookings within 10 days of departure - an essential part pf many LCCs' revenue management strategies. A few days before departure Saudia typically has only limited inventory remaining and is unable to increase economy fares, leaving flynas as the only option.

flynas aims to carry six million passengers in 2015 with a fleet of 24 A320s, making it the Middle East's third largest LCC after flydubai (46 aircraft) and Air Arabia (36). Like other airlines, flynas is looking to grow partnerships. It may join Air Arabia in partnering with Filipino LCC Cebu Pacific, which operates long-haul A330 flights to the Middle East. There could also be a partnership with Turkey's Pegasus.