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Author Topic: Emarati Investments INC. launches low cost carrier based out of Sharjah  (Read 75 times)

Offline humbleadnan94

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When asked two years ago whether rival carrier Green Tea Airways would ever reach the size of his Emarati in size and profitability, CEO Hunmble let out a huge laugh.

Fast forward to the present day and the airline is not just facing severe competition from Green Tea but the airline is equal in terms of last quarter sales with Emarati Airlines.

What’s more, Green Tea has been a resounding success, a stern faced Hunmble said in interviews last month. Thats when he announced the launch of a low cost carrier in Sharjah to expand Emarati Investment's portfolio while giving customers with tighter wallets a better way to travel. He told Bloomberg TV. “We haven’t finished that exercise by any stretch of the imagination and Stallion Air will take control of all low cost travel in Asia and with the help of the A321LR Neo we will be able to expand towards Europe."

So far things look steady in Sharjah as the new airline settles into is routes, only time will tell whether this was a good move or did the CEO just shoot himself in the foot.

 
To be fair to its president, Emirati hasn’t been in obvious need of help for most of its 3-year lifespan. The carrier evolved from a two-plane outfit into one of Middle East's largest long-haul carrier, using Dubai’s amenable location to connect Europe and the US with Asia, Africa and the rest of the Middle East.

Last year, Emarati flew over 3.8 million passengers from its exclusive terminal at Dubai International Airport, which includes a purpose-built facility for the Boeing 747-8 Intercontinental.

But the last year has been a turbulent one. Oil prices plunged in 2016, disastrous for Middle East travel. Meanwhile, the dollar strengthened and competition has become stiffer, with China seeking to gatecrash the market and carriers such as Ethiopia Airlines Group on the rise.

That’s led Emarati’ owners to begin to see how starting a  low-cost sister airline Stallion Air could be positive for both sides.

On October the 2nd, Stallion Air began operations and the two carriers entered into an expanded code-share agreement intended to prepare the way for rationalising networks and aligning schedules.There are 62 destinations currently available under the codeshare, and that’s set to reach 180 by 2022. Meanwhile, both airlines have been eliminating overlapping routes and “wasteful resources,” Hunmble said.

There are still 6 destinations served by both Emarati and Stallion aircraft, but the partnership has enabled the carriers to reduce overlap.

Stallion Air, which solely operates Airbus A320 series narrow-bodies plans to operate them in Thai capital Bangkok, Dhaka in Bangladesh and honeymoon favourite the Maldives.


Detrie Miller

Gulfpaper News

 

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