CEO defends RAK Airways’ 2009 suspension
RAK Airways CEO Omar Jahameh has defended the airline’s decision to suspend services in 2009, which he believes enabled it to be in a position to relaunch in a stronger position in 2010 and grow a new market segment. The airline, which states it is not an LCC, has found a new market with which to stimulate demand: expatriate workers in Ras al-Khaimah mainly from the Indian subcontinent.
RAK Airways: “The suspension is a negative and has been seen as that. But the reality is that if we look at 2008 as then a new airline we saw the air transport industry in crisis. According to IATA there was an industry loss of USD10.4 billion. The ground was shifting and the whole air transport industry was shaken. The decision was made to suspend the airline and protect the capital investment of USD200 million.” Omar Jahameh, CEO. Source: Arabian Aerospace, 14-Mar-2011.
RAK Airways: “We are not a low-cost carrier. We provide the service that a full service carrier might with baggage allowance and meals – but we do it at a low price. We are able to do that because we are consolidating everything we do such as catering and duty free.” Omar Jahameh, CEO. Source: Arabian Aerospace, 14-Mar-2011.