Curious
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Can LLC Work In The Middle East?

Fri Dec 09, 2005 12:35 am

With a few exceptions the region is heavily regulated and legacies protected, few secondary Airports and already highly active legacies can LLCM’s work in the Middle East. Can the Likes of Air-Arabia, Al-jazeera, Menajet ever have the same dent on the market share of legacies as easyjet and Ryanair and others have in Europe?
 
DfwRevolution
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RE: Can LLC Work In The Middle East?

Fri Dec 09, 2005 1:20 am

LLC = limited liability corperation

LCC = low-cost carrier (aka discount carrier, LoCo, etc)
 
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yowza
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RE: Can LLC Work In The Middle East?

Fri Dec 09, 2005 2:55 am

Definitely LCCs can work in the MENA region (Middle East, North Africa). There are a lot of foreigners working in the middle east. Amongst these foreginers are a lot of laborers and a lot of GCC nationals working in other GCC countries. Laborers do not make a tremendous amount of money and the companies that handle them will book them to and from their home countries as cheaply as possible. If that means cramming them onto buses from Dubai to Sharjah so they can be flown home then that's what they will do. For other working outside the UAE they are simply in transit so it's even easier.

The large number of GCC nationals working in other GCC countries will be tempted to travel back to their own countries/cities with these cheaper fairs and there is definitely a market for that.

Most people assume that the middle east is just rolling in filthy oil billionaires. What they fail to see is that there a re a lot of entrepreneurs and small businessmen, these types will take this alternative as it is cost effective.

Air Arabia has been very shrewd about their approach. They fly to destinations that other airlines ignore such as Nagpur and really chop down prices. For instance I flew Sana'a - Sharjah return last year for about 310AED (85USD) three weeks prior to that I flew SAH-DXB return for about 500US on EK. Considering Sharjah is only a short car ride to Dubai this left me with a few hundred extra dollars to blow in DXB.

YOWza
 
2travel2know
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RE: Can LLC Work In The Middle East?

Fri Dec 09, 2005 5:02 am

LCC in the Middle East I can see them operating from TLV, BEY, AMM and CAI in the near future.
I'm not that sure they would do well in other routes; Maybe between airports in The United Arab Emirates and airports in Pakistan.
I don't work for COPA Airlines!
 
Curious
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RE: Can LLC Work In The Middle East?

Sat Dec 10, 2005 12:54 am

Thanks guys, isnt Egypt already a crowded market? how much compitition/LCC carriers can teh region support? what about Iran?
 
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yowza
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RE: Can LLC Work In The Middle East?

Sat Dec 10, 2005 1:11 am

Egypt is somewhat crowded but the approach that LCCs in the area have taken see them serving the more touristy locations that can support more seats. Namely Alexandria, Luxor and Sharm El-Sheikh. The market into Cairo is already a bit of a nightmare and to the best of my knowledge no LCCs serve it. As far as Iran goes, I don't think there is any demand for LCC service from the Arab world to Iran just yet.

YOWza