An

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Air Arabia A Low Cost Success Story
An air arabia presentation by A K Nizar Head of
Sales
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The Background

• The Government of Sharjah wanted to start an
  airline for several years.
• The way forward
• Conventional Full Service Airline
• Or

3
The Need for LCC
Low Cost Airlines The Preferred Choice
4
Filling the Niche

• Civil aviation infrastructure
• State Infrastructure
• Financial Resources
• Management/Expertise

• SHJ The residential city
• Proximity to N. Emirates
• Exploiting Dubais High
• Profile
• Coach links with Capital
• SHJ Educational Inst.

• Labor Market
• Middle Income Group
• Students
• Holiday Seekers
• UAE Nationals

5
The Learning Curve

• Negative perception of LCC Educating customers
  of the new concept
• Initial reluctance from the travel trade
• Bad publicity initiated by vested interests.
• Aero-political issues lack of open skies,
  monopoly agencies, protectionism
• Technology Internet penetration etc.

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G9 Present Day

• Fares offered 30-40 lower than OAL
• Fast growing network 14 destinations in 9
  months!
• No overbooking / seat guaranteed
• High loadfactors
• Large base of satisfied/repeat customers
• Superior product 34 seat pitch

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operations

• 3 modern Airbus A 320s
• 150 seats Not 189
• 34 seat pitch Not 29 - 32
• Present Destinations (14)
• Sharjah to Aleppo, Alexandria, Assiut, Bahrain,
  Beirut, Colombo, Damascus, Dammam, Doha, Jeddah,
  Khartoum, Kuwait, Muscat Riyadh.
• Future Aspirations
• India, Jordan, Yemen and more

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M.E. to Indian Subcontinent

• Projected pax growth of 12-15 annually
• Cap on capacity
• High Seatfactors coupled with high fares
• Lack of initiative by carriers to promote Tourism
• Adverse social/emotional impact on contract
  workers families living apart
• Operations by LCC will generate employment in
  Aviation Tourism related sectors

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Sharing Experiences

• What makes a LCC successful?
• High loadfactors high fares on conventional
  airlines
• Large component of low/mid income
• Favorable legislation / Open-Skies
• Customize the LCC model to local conditions
• Strong existing travel needs large number of
  aspiring travelers.
• Strict adherence to Low-Cost principles
• Access to the best resources available

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thank you! questions are welcome