Air Arabia: yield dilution more severe in the Middle East

Air Arabia CEO, Adel Ali, stated Middle East airlines are suffering more severely from yield dilution than carriers in other regions worldwide, due to excess capacity as a result of strong aircraft ordering, new market entry and the global economic downturn (Emirates Business 24/7, 13-Oct-2009).

Air Arabia: "There has been an 18% yield dilution in the Middle East basically because the capacity is more than the demand at the moment because of the recession… This is more severe than the global average yield dilution of 12%. In the Middle East, the demand is growing, but not as fast as the capacity is growing. Also because demand is growing, it becomes an attractive place for other GCC carriers and international carriers," Adel Ali, CEO. Source: Emirates Business 24/7, 13-Oct-2009.