CAPA Live: Air Arabia CEO: JV with Etihad working well

Air Arabia CEO Adel Ali is optimistic about travel in the Middle East region, with the coronavirus largely under control. Travel may be down on 2019, but compared to earlier in the summer the LCC is experiencing strong demand.

Testing within the UAE is widespread and compulsory before travelling on Air Arabia. With protocols in place the number of flights the airline can operate is reduced, but that means load factors are high. There is plenty of pent-up demand, and as more flights are able to get online, the capacity is absorbed quickly.

The joint venture with Etihad is working well, as Air Arabia provides a service to those customers who want to pay less but still fly on short and medium haul routes. The LCC currently sees no need to delay long haul narrowbody aircraft orders which are due in 2024, as by then the LCC expects that demand will have recovered, and they will need those aircraft for their expansion.

Talking at the CAPA Live on 11-Nov-2020, Air Arabia's CEO Adel Ali spoke with CAPA's chairman emeritus Peter Harbison. Some of the key highlights can be found below.