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According to Mr. Adel Ali, CEO, Air Arabia, at a time when Middle East air travel is growing at double the global average, the need for new airports - especially low-cost or secondary airports - has never been greater. Air Arabia (PJSC), listed on the Dubai Financial Market, is the Middle East and North Africa's leading low-cost carrier (LCC).
Speaking at the Future Airports conference in Dubai, Mr. Adel Ali said that the region must invest in the development of secondary airports that will support increased activity in the LCC sector, which has expanded rapidly following the launch of Air Arabia in October 2003.
Pioneered by Air Arabia, the regional low-cost sector is growing at an especially dramatic pace, with more than 10 new LCCs introduced in the region in the past five years alone. Considering that this segment still represents just 2 per cent of total regional market share - compared to 25 per cent in more mature markets, such as North America - it is clear that the opening of new secondary airports is vital to ensuring that this growth can be sustained in the long term.
"Secondary airports are able to maintain costs that are on average 20 per cent below those of their peers, partly because of lower operating expenses associated with their location outside major metro areas….The ongoing expansion of Air Arabia and the consistent growth of Sharjah are clearly interlinked, with each supporting the other, and driving increased tourism revenues and other ancillary services," Mr. Ali concluded.
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