Air Arabia Abu Dhabi, the low-cost joint venture with Etihad Airways, is benefiting from “huge demand” for budget travel through the UAE capital and is bullish on continued growth despite global industry challenges, its top executive has said.
The airline expects to carry more than a million passengers this year, up from 800,000 since its inception in July 2020, Adel Ali, group chief executive of Air Arabia, told The National.
Seat load factor — a measure of how well an airline is filling its available seats — reached an average 80 per cent year-to-date, with destinations in Egypt and the Gulf among the most popular during the summer.
Pent-up demand for leisure, visiting family and friends, education and medical tourism is increasingly growing as travel restrictions ease in various markets, though long-haul business travel has yet to catch up, Mr Ali said.
“On one hand, there's huge demand for people to travel globally, and particularly in our region, with the UAE being open and with the business development of the country, business has been good for us,” he said.
On the other hand, “there is the fuel challenge … but when the oil price is high the economy is good in our part of the world, particularly in the UAE”.
The airline chief was speaking on the two-year anniversary of when Air Arabia Abu Dhabi was launched at the height of the Covid-19 pandemic on July 14, 2020. The airline made its maiden flight to the Egyptian port city of Alexandria from its base at the Abu Dhabi International Airport.
The UAE capital's first budget airline aims to draw tourists to the Gulf city, supply passengers from secondary cities into Etihad Airways' long-haul operations and offer cheaper travel options to UAE residents.
The joint venture is part of Abu Dhabi's push to diversify its economy, boost tourism and bolster its air connectivity.
Expansion plans
Air Arabia Abu Dhabi is currently focused on the Middle East and Indian subcontinent markets, serving 24 destinations with a fleet of eight Airbus A320 narrowbodies.
The airline plans to expand its network into more regions including Africa and Europe, Mr Ali said.
“As the world reopens, we will be looking at many, many more routes,” he said. “We will put a circle around Abu Dhabi and wherever we find potential within four to six hours, we'd like to do those routes, be it in the Middle East, Africa, Europe or India.
“There's a good plan for continuous growth and as we finish the requirements and get permission to fly to a number of these countries and finish the paperwork and we're ready, we'll be sharing more details.”
The airline will receive delivery of another A320 aircraft within three to four weeks, ending the year with a total of 10 planes in its fleet, Mr Ali said.
Recruitment team is 'extremely busy'
Air Arabia Abu Dhabi is hiring more staff to meet the surge in travel demand, with at least 100 employees needed for every aircraft delivered, Mr Ali said.
“The recruitment team has been extremely busy because of the growth and the market coming back, but we're not suffering from a shortage of staff because there is enough expertise in the country to recruit from and the surrounding regional market has been reasonable,” he added.
“I know that's not the case in a lot of places in the world but, so far, fingers crossed, we've been lucky.”
The global aviation industry is facing a shortage of employees as many who were laid off during the pandemic have moved into other occupations with more flexible work options. This has led to chaos at airports and capacity cuts at airlines.
Yields 'holding up' despite high fuel prices
Mr Ali's optimism about the airline's future growth comes despite a perfect storm for the aviation industry, with higher oil prices, rising inflation and staff shortages following the two years of the pandemic.
“The demand is there, people want to travel and the yields are holding up and that's good,” he said.
However, Air Arabia Abu Dhabi is not considering imposing a fuel surcharge despite rising prices, Mr Ali said.
“At the moment, this has not been discussed, mainly because the yields are holding up. At the moment, it's manageable … this industry is never operating with no challenges.”
Air Arabia's new joint ventures
Air Arabia group, which last year signed an agreement with Pakistani conglomerate Lakson Group to launch the new low-cost airline Fly Jinnah, expects the joint venture will receive its Air Operator Certificate (AOC) soon.
“We hope it won't be long before we finish it, with the Eid holidays it gets a bit slower, but I'm optimistic it won't be too long from now,” Mr Ali said.
Fly Arna, Air Arabia's joint venture with the Armenian National Interests Fund, obtained its AOC on June 11, he said.
It operated its first commercial flight between Yerevan, Armenia, and Hurghada, Egypt, on July 4. The Red Sea coast town of Hurghada is a major tourism spot featuring luxury resorts and watersports including diving and snorkeling.
UEFA CHAMPIONS LEAGUE FIXTURES
All kick-off times 10.45pm UAE ( 4 GMT) unless stated
Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid
Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona
How much sugar is in chocolate Easter eggs?
- The 169g Crunchie egg has 15.9g of sugar per 25g serving, working out at around 107g of sugar per egg
- The 190g Maltesers Teasers egg contains 58g of sugar per 100g for the egg and 19.6g of sugar in each of the two Teasers bars that come with it
- The 188g Smarties egg has 113g of sugar per egg and 22.8g in the tube of Smarties it contains
- The Milky Bar white chocolate Egg Hunt Pack contains eight eggs at 7.7g of sugar per egg
- The Cadbury Creme Egg contains 26g of sugar per 40g egg
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Arabian Gulf Cup FINAL
Al Nasr 2
(Negredo 1, Tozo 50)
Shabab Al Ahli 1
(Jaber 13)
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
The National in Davos
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
Killing of Qassem Suleimani
The 12 Syrian entities delisted by UK
Ministry of Interior
Ministry of Defence
General Intelligence Directorate
Air Force Intelligence Agency
Political Security Directorate
Syrian National Security Bureau
Military Intelligence Directorate
Army Supply Bureau
General Organisation of Radio and TV
Al Watan newspaper
Cham Press TV
Sama TV
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
Brief scores:
Barcelona 3
Pique 38', Messi 51 (pen), Suarez 82'
Rayo Vallecano 1
De Tomas Gomez 24'
BELGIUM%20SQUAD
%3Cp%3EGoalkeepers%3A%20Thibaut%20Courtois%2C%20Simon%20Mignolet%2C%20Koen%20Casteels%0D%3Cbr%3E%0D%3Cbr%3EDefenders%3A%20Jan%20Vertonghen%2C%20Toby%20Alderweireld%2C%20Leander%20Dendoncker%2C%20Zeno%20Debast%2C%20Arthur%20Theate%2C%20Wout%20Faes%0D%3Cbr%3E%0D%3Cbr%3EMidfielders%3A%20Hans%20Vanaken%2C%20Axel%20Witsel%2C%20Youri%20Tielemans%2C%20Amadou%20Onana%2C%20Kevin%20De%20Bruyne%2C%20Yannick%20Carrasco%2C%20Thorgan%20Hazard%2C%20Timothy%20Castagne%2C%20Thomas%20Meunier%0D%3Cbr%3E%0D%3Cbr%3EForwards%3A%20Romelu%20Lukaku%2C%20Michy%20Batshuayi%2C%20Lo%C3%AFs%20Openda%2C%20Charles%20De%20Ketelaere%2C%20Eden%20Hazard%2C%20Jeremy%20Doku%2C%20Dries%20Mertens%2C%20Leandro%20Trossard%3C%2Fp%3E%0A
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Results
5pm: Al Falah – Maiden (PA) Dh80,000 (Turf) 1,200m; Winner: Bshara, Richard Mullen (jockey), Salem Al Ketbi (trainer)
5.30pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 1,400m; Winner: AF Musannef, Tadhg O’Shea, Ernst Oertel
6pm: Al Dhafra – Maiden (PA) Dh80,000 (T) 1,600m; Winner: AF Mualami, Antonio Fresu, Abubakar Daud
6.30pm: Al Khaleej Al Arabi – Handicap (PA) Dh80,000 (T) 1,600m; Winner: Hawafez, Adrie de Vries, Abubakar Daud
7pm: Al Mafraq – Handicap (PA) Dh80,000 (T) 1,600m; Winner: JAP Almahfuz, Royston Ffrench, Irfan Ellahi
7.30pm: Al Samha – Handicap (TB) Dh80,000 (T) 1,600m; Winner: Celestial Spheres, Patrick Cosgrave, Ismail Mohammed
COMPANY%20PROFILE
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SPEC%20SHEET%3A%20SAMSUNG%20GALAXY%20Z%20FLIP%204
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More on Quran memorisation:
Ferrari
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Michael%20Mann%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Adam%20Driver%2C%20Penelope%20Cruz%2C%20Shailene%20Woodley%2C%20Patrick%20Dempsey%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
UAE currency: the story behind the money in your pockets
'Falling%20for%20Christmas'
%3Cp%3EDirector%3A%20Janeen%20Damian%3Cbr%3E%3Cbr%3EStars%3A%20Lindsay%20Lohan%2C%20Chord%20Overstreet%2C%20Jack%20Wagner%2C%20Aliana%20Lohan%3Cbr%3E%3Cbr%3ERating%3A%201%2F5%3C%2Fp%3E%0A
INDIA'S%20TOP%20INFLUENCERS
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