flydubai confirmed plans to launch twice daily Dubai-Muscat and twice daily Dubai-Kuwait services from 28-Mar-2010 and 30-Mar-2010, respectively – see Route Changes Table for more information (Kuwait Times, 22-Mar-2010). The new services will expand the carrier’s network to 13 destinations. CEO, Ghaith Al-Ghaith, stated there is a market of 2.5 billion people in the Gulf region, India, Pakistan, Iran, the CIS countries and Africa, hinting that flydubai would be interested in serving these markets. The carrier reportedly announced a proposal to launch services from Dubai to Indian destinations, including from Lucknow, Chandigarh and Kozhikode in Northern Summer 2010 (The Economic Times, 23-Mar-2010). flydubai deferred plans to launch services to India in Aug-2009, due to regulatory delays. The carrier is scheduled take delivery of six additional B737s by the end of 2010, increasing its fleet to 13 aircraft. Delivery of the carrier’s total order for 50 B737s is expected to be completed by 2015/16.
flydubai confirms Muscat and Kuwait services and interest in India
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Georgia aviation market Part 2: a case study on liberal policies driving rapid airport growth
Georgia’s three international airports have benefitted from a liberal aviation policy, which has led to a period of rapid traffic growth. As highlighted in the first half of this report, total passenger traffic in Georgia increased by 26% in 2016 and is projected to grow by another 40% in 2017.
Passenger traffic at Georgia’s main gateway, Tbilisi International Airport, increased by 22% in 2016. Tbilisi traffic has grown from only 700,000 in 2009 to 2.3 million in 2016. The airport has been operated by Turkey’s TAV since 2007.
Georgia’s other two international airports, at Batumi and Kutaisi, grew even faster in 2016. Batumi also has been operated by TAV since 2007, while Kutaisi has been government owned since it opened in 2012.
Kutaisi is marketed as a low cost airport – the first of its kind in former Soviet republics – and has experienced an accelerated rate of growth since the opening of a base by Wizz Air in Sep-2016. Georgia’s investment in Kutaisi, and decision to pursue an LCC model for the new airport, represent another example of a liberal and innovative approach in a region dominated by legacy thinking.
Europe summer 2017 airline capacity outlook: fifth successive summer of above trend seat growth
Airline seat growth from Europe in summer 2017 is set to stay at almost 6% for the third successive summer, according to data from OAG. This rate had not previously been reached since 2010, although this will be the fifth straight summer of growth ahead of its 10 year average rate. The summer 2017 season started on 26-Mar-2017 and, although always subject to further change, the data give a fairly clear picture.
Seat capacity on routes from Europe to Africa will grow the fastest, as the region recovers from a terrorism related drop in demand in North Africa. There will also be above trend growth in almost every other region from Europe (including intra Europe). The only exception is Europe-Middle East, where the newly cautious Gulf airlines' growth is slowing this summer.
On the North Atlantic, always important for the profitability of Europe's leading legacy airlines, growth will be faster than its 10 year trend, but it will at least be a little slower than in the past summer. The loss of market share from the immunised North Atlantic JVs to newer and smaller competitors, including LCCs, is set to continue. As ever, the OAG capacity data provide a window into the changing structure of the airline markets from Europe.