18 August 21, 2015 Economy

Briefs

Emirates’ -to-Panama City route to be world’s longest

The ’s biggest airline will soon be operating the world’s longest commercial flight. Emir- ates announced plans to begin daily roundtrip flights between its Dubai hub and Panama City, its first desti- nation in Central America. It says the 17-hour, 35-minute flight when heading west will be the longest anywhere. Flights are scheduled to begin February 1, 2016. Australia’s operates the world’s current longest flight, from Dallas to Sydney, which takes just less than 17 hours. is backed by the and has expanded rapidly by routing international transit passengers and cargo through its hub in the Gulf commercial centre. (The Associated Press)

Flydubai has a fleet of 49 737-800 NG aircraft. Qatar to launch major labour UAE budget airlines setting reform

Qatar officially launched “signifi- the pace in region cant” labour reforms to guarantee migrant workers’ wages but rights groups expressed concern over im- plementation of the new regula- Krishna Kumar western China was a major move When it began operations six network. Last year, we opened the tions. The Wage Protection System for and an important years ago, flydubai’s motto was “to lounge at Terminal 2 (WPS) aims to ensure that migrant step in strengthening connectivity take more people, to more places, at Dubai International Airport,” Al labourers, many working on 2022 Dubai between the rapidly growing econ- more often.” The airline flies to Ghaith added. World Cup-related projects, will re- omies of the Middle East and .” more than 94 destinations. It car- Low-cost airlines need not be ceive pay on time. Under the new ir travel in the Gulf has Air Arabia operates from five bas- ried an estimated 7.25 million pas- synonymous with lower service. system, workers will be paid either seen tremendous growth es — Sharjah and Ras al-Khaimah sengers in 2014, according to CEO Budget carriers could be 15-20% twice a month or monthly with wag- after the dramatic take- in the , Alex- Ghaith Al Ghaith. cheaper than regular airlines dur- es electronically transferred directly off of low-cost UAE car- andria in Egypt, Casablanca in Mo- “We operate over 1,500 flights per ing off-season periods but offer the to bank accounts. riers Sharjah-based Air rocco and in . The week across a network of 94 desti- best value for money. A round-trip A 2013 academic study concluded Arabia,A in 2004, and flydubai, in airline’s business model is based nations, which includes 59 routes Dubai--Dubai, for instance, that around one-fifth of migrant 2009. on a single aircraft type, the Air- that did not previously have direct costs an average of $303 on budget workers were “sometimes, rarely or The budget airlines, which initial- bus A320, serving destinations that air links to Dubai. Our extensive airlines compared to $504 on regu- never” paid on time. ly served cities in the Middle East are within a five-hour flying radius network provides connectivity for lar carriers. Companies that fail to pay staff and North , have expanded from the hubs. business and leisure travel across “We don’t believe that the term on time could be fined $1,650, be service to dozens of destinations in While European budget airlines the Middle East, GCC [Gulf Cooper- ‘low-cost’ reflects who we are when banned from recruiting new staff Europe, Africa and Asia, grabbing a mostly operate on routes of around ation Council], Africa, Central Asia, you consider the level and range and company officials sent to jail. significant chunk of the market. two-hour flying distance, the UAE’s Eastern Europe and the Indian sub- of services that we offer, our route The WPS is being overseen by the A decade after beginning op- counterparts reach out to further continent,” Al Ghaith said. network and connectivity. We run Labour Ministry, which has previ- erations, Air Arabia flies to more destinations and second-tier cities. our business efficiently but our ously pointed to its introduction as than 115 destinations, including 15 “If you look at the Air Arabia Air Arabia flies to product offering goes beyond what proof of Qatar’s commitment to la- routes launched in the first half of route map, you will see an incred- you would expect from a low-cost bour reform. 2015, with a fleet of 44 new ible array of destinations in the more than 115 carrier and we know that we exceed (Agence France-Presse) A320 aircraft. Middle East, Africa, Europe, the In- destinations our passengers’ expectations in our dian subcontinent and Asia that can onboard experience,” Al Ghaith Flydubai operates a all be reached directly from one of Flydubai operates a fleet of 49 said. fleet of 49 new our hubs,” said Ali. “Our approach new Next-Generation - Experts acknowledge the pio- Next-Generation of using strategic hubs around the 800 aircraft with another to be de- neering role of the carriers in revo- Iraqi enables us to maximise the livered later in 2015. lutionising budget air travel. Boeing 737-800 range of our A320 fleet and extend Both airlines have the youngest “Flydubai has mastered the art says pipeline aircraft our route network.” fleets in the industry and the latest of competitive innovation with the Early in 2015, Air Arabia bought in their category, which helps them introduction of both a major cargo sabotage cost $501 “Constant innovation has been a 49% stake in Jordan’s Petra Air- maximise operational efficiency, operation and the launch of a dedi- a particular feature of Air Arabia’s lines, since relaunched as Air Ara- aircraft servicing and staff training. cated business-class product,” said million success over the past decade in bia Jordan, opening the possibility Two years ago, flydubai created Saj Ahmad, chief analyst at Strate- such a highly competitive indus- of tapping into Jordan’s open-skies waves by launching a business class gic Aero Research, a London-based Repeated sabotage by “organ- try,” says Adel Ali, group chief ex- pact with Europe. on selected routes, changing the aviation consultancy. ised gangs” of the oil pipeline from ecutive officer (CEO) of Air Arabia. Ali explained that Air Arabia Jor- conventions of budget air travel. At “They dominate proceedings in northern Iraq to Turkey has cost the “In January 2015, we became the dan is a Jordanian carrier that was the end of 2014, business class was the GCC region and are unlikely to autonomous Kurdistan region $501 first low-cost airline from the Mid- established to provide direct ser- offered on 70% of its routes. be threatened at all by any action or million since July 1st, its Ministry of dle East and Africa to enter the Chi- vice from Queen Alia International “Before 2015 is over, we will be movements made by regional com- Natural Resources said. nese market. The launch of regular Airport in Amman to a range of des- able to offer business class as a petitors like Kuwait-based Jazeera Oil flow was suspended due to a non-stop services to Urumqi in tinations, including Europe. consistent product throughout our Airways or Saudi-based or theft attempt on the pipeline, which anyone else,” he said. runs to the Turkish port of Ceyhan Premjit Bhangara, general man- from fields in Iraq’s Kurdish north ager of Dubai-based Sharaf Travel and Kirkuk. The pipeline was left Services, commented: “What these idle for a week after being dam- two airlines did was to offer point- aged in late July after Turkey began to-point airfares that were cheap bombing Kurdistan Workers’s Party and affordable to both the expat (PKK) positions in northern Iraq. worker segment as well as the cor- The PKK denied the attack had porate and leisure traveller. been ordered by its leadership and “Overnight destinations like Is- said it would not target the pipeline. tanbul, Kiev, Odessa, , Although both Kurdish, the PKK Cairo, Baku, Amman, Beirut and has a strained relationship with the a host of cities in the Indian sub- autonomous region, which has culti- continent became affordable to the vated close ties with Turkey, particu- budget traveller and also brought in larly in the energy sector. a lot of inbound travel into the UAE, Lost revenue from July 1st to benefiting the retail and other sec- August 17th amounted to $251 mil- tors immensely.” lion, the ministry said, “in addition Profits made by the two airlines, to $250 million damage to Kurdis- with Air Arabia achieving $65 mil- tan Regional Government finances lion so far in 2015, and flydubai $68 caused by the explosion on the pipe- million in 2014, attest to their big line at the end of July”. Air Arabia operates a fleet of 44 Airbus A320 aircraft. success. (Reuters)