A Model For GROWTH

Alan Dron

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A Model For GROWTH

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Gulf-based LCC Air Arabia has created a template for developing operating companies around the Middle East. As the longest-established LCC in the Middle East and North Africa (MENA) region, the airline has steadily expanded operations from its base in Shar-jah, one of the seven constituent emirates of the UAE, through the creation of a series of JVs throughout the region.It's a pattern that seems to work. Since its launch in 2003, with the exception of the pandemic period, the group has been consistently profitable, with 2022 delivering record net earnings of AED1.2 billion ($326 million). How has the JV model worked so successfully?Air Arabia knows how to operate an airline, but understanding the local tax system and regulations, not to mention the culture of the country, is obviously better handled by local personnel, rather than executives trying to do so by remote control."We've always found that having JVs and having partnerships gives us access to the market much quicker," group CEO Adel Ali said.

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《Air transport world》 |2023年第9期|25-27|共3页
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Alan Dron;
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A Model For GROWTH

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