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Saudi Arabia's flynas long-haul LCC to Europe and Asia, introducing a new low cost alternative

Analysis

In the Middle East, Emirates, Etihad and Qatar capture most attention, but the market is home to increasing numbers and varieties of airlines. Saudi Arabia's LCC flynas, recently re-branded from Nas Air, has embarked on its 20x20 plan that sees it aiming to fly 20 million passengers by 2020, a large increase from over 3 million in 2013. Central to boosting numbers is a long-haul low-cost operation that will by May-2014 serve an impressive - if challenging - eight destinations in five countries.

The plan has elements of other long-haul LCCs: targeting a large outbound market (as Jetstar has done in Australia) but also, in catering to religious traffic, taking a Cebu Pacific approach of a specific type of traffic, which can be voluminous but seasonal and flows in very specific directions. flynas will be a hybrid LCC from the start, embodied in its "LCC+" approach. Business class will be offered and all fares come with checked luggage. Some may find this counterintuitive to the basics of an LCC, but the approach seems adapted to cater to the nuances of the Saudi market, which has the appetite and wallet for travelling. Despite being close to Gulf mega carrier hubs, the Saudi market is ripe for more stimulation.

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