UAE budget airline Air Arabia is optimistic about growth across its seven hubs, with “healthy” forward bookings in the fourth quarter and an expected boost from the opening of Abu Dhabi's new airport terminal next week.
The trend of “revenge travel” that was prevalent after the Covid-19 pandemic is easing but passenger demand has held up and is expected to extend into the coming months, the airline's group chief executive, Adel Ali, said in an interview.
Leisure travel is set to grow at an annual rate of 4 per cent to 7 per cent in terms of passenger numbers, although corporate trips will lag behind as companies opt to conduct some of their business by video conference, he told The National.
“November is a busy events season and forward bookings are looking reasonably well and healthy,” Mr Ali said.
“Hopefully the geopolitical [tensions] will not extend further and will be contained and will not impact business … so far, people are travelling.”
Air Arabia operates hubs in Sharjah, Ras Al Khaimah, Abu Dhabi, Morocco, Egypt, Armenia and Pakistan.
Air Arabia Abu Dhabi, the low-cost joint venture with Etihad Airways, is expected to benefit from the opening of Abu Dhabi International Airport's new Terminal A on November 1.
“Opening a modern new airport makes the customer experience much more happier, smoother and easier. So definitely, we are very excited for the opening of the [new terminal at the] airport and shifting of the airline,” Mr Ali said.
“It is hard work for everyone involved in Abu Dhabi aviation to shift an airport or an airline, but it's worth it because you end up with a much better facility … For us, we see the tourism infrastructure that has been put into place in Abu Dhabi over the last few years as a great opportunity for the airline to grow.
“The demand keeps increasing and more people want to visit. Abu Dhabi as a tourist city is becoming more value for money. We think the new hub in Abu Dhabi should be a source of continuous organic growth for us.”
Air Arabia is marking 20 years of service since it began operations in October 2003, becoming the first budget airline in the Middle East.
The milestone coincides with the long-awaited opening to the public of Terminal A in Abu Dhabi on November 1.
Airlines will move to the new Terminal A building in three phases over a two-week period from November 1 to November 14.
Air Arabia Abu Dhabi will shift its operations on November 14, along with 10 other airlines.
From November 15, all flights will operate solely from the new terminal.
Business across Air Arabia's other hubs continues to be brisk, Mr Ali said.
Fly Jinnah, a joint venture between Air Arabia and Pakistani conglomerate Lakson Group, is expected to begin international operations by the end of 2023 or the beginning of 2024, Mr Ali said.
Its domestic flights are “doing very well”, with load factors exceeding 90 per cent.
Air Arabia Maroc, which is based in Casablanca, is “doing good”, particularly, as Morocco hosted the annual meetings of the World Bank and International Monetary Fund earlier this month.
Performance at its hub in Borg Al Arab International Airport in Alexandria, Egypt, is also “very good” amid demand from tourists and Egyptian expatriates.
Plans for Air Arabia Sudan, its joint venture with Sudanese conglomerate Dal Group, have been temporarily shelved amid the war in the country but will be reviewed once fighting ends, Mr Ali said.
Air Arabia is getting “a lot of interest” from cities and businesses looking to set up a joint venture airline.
“Opportunities tend to knock on our door and we evaluate these,” Mr Ali said. “But what we’re busy with now is growing our existing hubs … Our hands are full and we haven’t looked beyond that.”
Airbus plane deliveries in 2025
To cope with the group-wide growth, the airline has signed an agreement to lease eight planes that will be added to its fleet in 2024, all of which will be delivered before the summer of next year, he said.
It leased a total of 23 jets in 2022 and 2023.
Air Arabia currently has no plans to buy new aircraft, after its signed a $14 billion (Dh51 billion) firm order for 120 Airbus A320 family jets at the Dubai Airshow in 2019, Mr Ali said.
The delivery of those jets – including A320 Neos, A321 Neos and A321 XLRs – has now been delayed to the first quarter of 2025, from the fourth quarter of 2024, due to supply chain problems facing the global aviation industry, Mr Ali said.
The airline is scheduled to receive 20 planes each year from 2025 until 2030.
Jet engine selection
Air Arabia is also close to reaching a decision on an engine that will power these single-aisle planes, Mr Ali said, declining to provide a time frame.
The airline is continuing discussions with General Electric's CFM venture and Pratt & Whitney, the rival providers for the Airbus A320 Neo, for the engine order.
The carrier has been “slow in deciding” because of the production issues facing engine makers, he said.
The new jets will offer a reduction on fuel burn of about 12 per cent, a key part of its sustainability efforts.
Sustainable aviation fuel (SAF) is widely considered to be the most significant contributor to helping the airline industry reach its goal of net-zero by 2050, but supplies are limited, making it more expensive than kerosene.
“SAF means increasing ticket prices by five times more to break even, so it's not a practical solution,” Mr Ali said.
Asked about the impact of oil price volatility, as the Israel-Gaza war stokes fears of an escalation in the oil-producing region, Mr Ali said the airline was continuing with its oil-hedging policy.
Pioneering low-cost travel 20 years ago
Air Arabia launched its inaugural flight from Sharjah to Bahrain in October 28, 2003, when Mr Ali first introduced the concept of low-cost travel to the region 20 years ago.
The airline, which was established on February 3, 2003 by royal decree, began operations with two Airbus A320s, flying short-haul trips to Bahrain, Kuwait, Lebanon, Oman and Syria.
The idea was to democratise air travel and make travel accessible to people of all socioeconomic backgrounds.
It's been a fantastic journey. The most significant part is revolutionising air travel in the region, enabling people who weren't able to travel by air before to get on a plane
Adel Ali,
group chief executive of Air Arabia
“It has been a fantastic journey,” said Mr Ali, reflecting on the 20-year experience. “The most significant part is revolutionising air travel in the region, enabling people who weren't able to travel by air before to get on a plane.”
Introducing the idea of budget travel was not easy at the outset as people had stereotypes, such as uncomfortable seats or old aircraft, which required changing this mindset, he said.
“Low-cost carriers 20 years ago was a bad thing to have. The public knew very little about it … we had to educate the public about this business model,” Mr Ali said.
“For us, we find success is the number of people that never got on [a] plane and now it’s a normal part of their lives. That was our aim and objective.”
The airline became profitable in its first year of operations.
Since then, Air Arabia – the UAE's only listed carrier – has increased the size of its fleet to 71 aircraft and grown its network to more than 190 destinations. It carried 13 million passengers in 2022.
“Air Arabia has been the trailblazer for low-cost carriers [LCCs] in the Gulf region. It has not only proved that there is consumer demand for low-cost services but that it can be met profitably,” John Strickland, an aviation consultant with JLS Consulting, told The National.
The airline is expected to continue being profitable as travellers look for better deals amid inflationary pressures on consumer spending, according to analysts.
“When economic times are tough, people look for more economic pricing and this is offered by LCCs like Air Arabia,” Mr Strickland said.
The airline's second-quarter profit rose to a record Dh459 million ($124.96 million), up from Dh160 million in the same period last year, it said in August.
"As a first mover in the region, Air Arabia had played a pivotal role in shaping the low-cost aviation landscape," Linus Bauer, founder and managing director of Bauer Aviation Advisory, told The National.
“By offering competitive pricing, point-to-point services and minimal frills, it has set a precedent for other carriers,” he said.
“Furthermore, Air Arabia’s focus on secondary airports has helped decongest major hubs and spread out the economic benefits of aviation more evenly.”
The low-cost model recorded “substantial growth and acceptance” in the Middle East.
“The model has been particularly successful in catering to the price-sensitive segment of travellers, including expatriates working in the Gulf countries and tourists looking for budget-friendly travel options,” Mr Bauer said.
“The growth of LCCs has also been facilitated by the strategic geographical location of the Middle East, serving as a hub connecting East and West.”
Future of the low-cost carrier model
The future success of the LCC model will depend on several factors, including inflationary pressures and a slowing global economy facing mounting uncertainties.
“Rising fuel costs and inflation will potentially impact consumer spending and force LCCs to increase their fares. However, the inherent cost efficiency of the LCC model helps in mitigating some of these pressures,” Mr Bauer said.
“A global economic slowdown and uncertainty could result in reduced travel demand. LCCs could potentially be more resilient due to their lower cost structures and focus on short to medium-haul routes.”
Budget airlines in the region include Flydubai, Wizz Air Abu Dhabi, Kuwait's Jazeera Airways, Saudi Arabia's Flynas and Flyadeal.
Air Arabia can continue to capitalise on the UAE's growth as a global travel and tourism hub, tap into Africa's emerging travel market through its Egypt and Morocco hubs and seize growth opportunities in the underserved markets of its Pakistan and Armenia hubs, Mr Bauer said.
“Ongoing geopolitical tensions in the Middle East and beyond, competition and regulatory changes will continue to pose challenges, but also present opportunities for strategic partnerships and expansion,” he said.
“Air Arabia’s proven track record, strategic hub locations and efficient operations place it in a strong position to navigate these challenges and continue to thrive in the low-cost carrier segment.”
Airlines are affected by oil price fluctuations, currency swings, extreme weather, conflicts and supply chain bottlenecks.
They are also recovering from coronavirus-induced border closures that forced airlines to ground their fleets, driving the industry to the brink of collapse.
Mr Ali said it had “been hard, as this industry is, but every moment of it has been enjoyable and satisfactory”.
Reflecting on his personal journey with the airline for two decades, Mr Ali said: “We've had challenges but I'm very satisfied 20 years later to sit here and say 'it has been good'.”
COMPANY PROFILE
● Company: Bidzi
● Started: 2024
● Founders: Akshay Dosaj and Asif Rashid
● Based: Dubai, UAE
● Industry: M&A
● Funding size: Bootstrapped
● No of employees: Nine
How has net migration to UK changed?
The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.
It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.
The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.
The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
The specs: 2018 Honda City
Price, base: From Dh57,000
Engine: 1.5L, in-line four-cylinder
Transmission: Continuously variable transmission
Power: 118hp @ 6,600rpm
Torque: 146Nm @ 4,600rpm
Fuel economy, combined: 5.8L / 100km
If you go
Flight connections to Ulaanbaatar are available through a variety of hubs, including Seoul and Beijing, with airlines including Mongolian Airlines and Korean Air. While some nationalities, such as Americans, don’t need a tourist visa for Mongolia, others, including UAE citizens, can obtain a visa on arrival, while others including UK citizens, need to obtain a visa in advance. Contact the Mongolian Embassy in the UAE for more information.
Nomadic Road offers expedition-style trips to Mongolia in January and August, and other destinations during most other months. Its nine-day August 2020 Mongolia trip will cost from $5,250 per person based on two sharing, including airport transfers, two nights’ hotel accommodation in Ulaanbaatar, vehicle rental, fuel, third party vehicle liability insurance, the services of a guide and support team, accommodation, food and entrance fees; nomadicroad.com
A fully guided three-day, two-night itinerary at Three Camel Lodge costs from $2,420 per person based on two sharing, including airport transfers, accommodation, meals and excursions including the Yol Valley and Flaming Cliffs. A return internal flight from Ulaanbaatar to Dalanzadgad costs $300 per person and the flight takes 90 minutes each way; threecamellodge.com
Correspondents
By Tim Murphy
(Grove Press)
England v South Africa schedule
- First Test: Starts Thursday, Lord's, 2pm (UAE)
- Second Test: July 14-18, Trent Bridge, Nottingham, 2pm
- Third Test: The Oval, London, July 27-31, 2pm
- Fourth Test: Old Trafford, Manchester, August 4-8
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Company Profile:
Name: The Protein Bakeshop
Date of start: 2013
Founders: Rashi Chowdhary and Saad Umerani
Based: Dubai
Size, number of employees: 12
Funding/investors: $400,000 (2018)
LUKA CHUPPI
Director: Laxman Utekar
Producer: Maddock Films, Jio Cinema
Cast: Kartik Aaryan, Kriti Sanon, Pankaj Tripathi, Vinay Pathak, Aparshakti Khurana
Rating: 3/5
Mobile phone packages comparison
CHATGPT%20ENTERPRISE%20FEATURES
%3Cp%3E%E2%80%A2%20Enterprise-grade%20security%20and%20privacy%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Unlimited%20higher-speed%20GPT-4%20access%20with%20no%20caps%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Longer%20context%20windows%20for%20processing%20longer%20inputs%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Advanced%20data%20analysis%20capabilities%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Customisation%20options%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Shareable%20chat%20templates%20that%20companies%20can%20use%20to%20collaborate%20and%20build%20common%20workflows%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Analytics%20dashboard%20for%20usage%20insights%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Free%20credits%20to%20use%20OpenAI%20APIs%20to%20extend%20OpenAI%20into%20a%20fully-custom%20solution%20for%20enterprises%3C%2Fp%3E%0A
Results
5pm: Al Maha Stables – Maiden (PA) Dh80,000 (Turf) 1,600m; Winner: Reem Baynounah, Fernando Jara (jockey), Mohamed Daggash (trainer)
5.30pm: Wathba Stallions Cup – Maiden (PA) Dh70,000 (T) 1,600m; Winner: AF Afham, Tadhg O’Shea, Ernst Oertel
6pm: Emirates Fillies Classic – Prestige (PA) Dh100,000 (T) 1,600m; Winner: Ghallieah, Sebastien Martino, Jean-Claude Pecout
6.30pm: Emirates Colts Classic – Prestige (PA) Dh100,000 (T) 1,600m; Winner: Yas Xmnsor, Saif Al Balushi, Khalifa Al Neyadi
7pm: The President’s Cup – Group 1 (PA) Dh2,500,000 (T) 2,200m; Winner: Somoud, Adrie de Vries, Jean de Roualle
7.30pm: The President’s Cup – Listed (TB) Dh380,000 (T) 1,400m; Winner: Haqeeqy, Dane O’Neill, John Hyde.
The five pillars of Islam
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
How it works
A $10 hand-powered LED light and battery bank
Device is operated by hand cranking it at any time during the day or night
The charge is stored inside a battery
The ratio is that for every minute you crank, it provides 10 minutes light on the brightest mode
A full hand wound charge is of 16.5minutes
This gives 1.1 hours of light on high mode or 2.5 hours of light on low mode
When more light is needed, it can be recharged by winding again
The larger version costs between $18-20 and generates more than 15 hours of light with a 45-minute charge
No limit on how many times you can charge
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%3Cp%3E%3Cstrong%3EFirst%20round%3C%2Fstrong%3E%3Cbr%3EEmmanuel%20Macron%3A%2051.1%25%3Cbr%3EFrancois%20Fillon%3A%2024.2%25%3Cbr%3EJean-Luc%20Melenchon%3A%2011.8%25%3Cbr%3EBenoit%20Hamon%3A%207.0%25%3Cbr%3EMarine%20Le%20Pen%3A%202.9%25%3Cbr%3E%3Cbr%3E%3Cstrong%3ESecond%20round%3C%2Fstrong%3E%3Cbr%3EEmmanuel%20Macron%3A%2095.1%25%3Cbr%3EMarine%20Le%20Pen%3A%204.9%25%26nbsp%3B%3C%2Fp%3E%0A
Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
The%20specs
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HEADLINE HERE
- I would recommend writing out the text in the body
- And then copy into this box
- It can be as long as you link
- But I recommend you use the bullet point function (see red square)
- Or try to keep the word count down
- Be wary of other embeds lengthy fact boxes could crash into
- That's about it
UAE currency: the story behind the money in your pockets
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
More from Neighbourhood Watch:
Wenger's Arsenal reign in numbers
1,228 - games at the helm, ahead of Sunday's Premier League fixture against West Ham United.
704 - wins to date as Arsenal manager.
3 - Premier League title wins, the last during an unbeaten Invincibles campaign of 2003/04.
1,549 - goals scored in Premier League matches by Wenger's teams.
10 - major trophies won.
473 - Premier League victories.
7 - FA Cup triumphs, with three of those having come the last four seasons.
151 - Premier League losses.
21 - full seasons in charge.
49 - games unbeaten in the Premier League from May 2003 to October 2004.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Killing of Qassem Suleimani
Is it worth it? We put cheesecake frap to the test.
The verdict from the nutritionists is damning. But does a cheesecake frappuccino taste good enough to merit the indulgence?
My advice is to only go there if you have unusually sweet tooth. I like my puddings, but this was a bit much even for me. The first hit is a winner, but it's downhill, slowly, from there. Each sip is a little less satisfying than the last, and maybe it was just all that sugar, but it isn't long before the rush is replaced by a creeping remorse. And half of the thing is still left.
The caramel version is far superior to the blueberry, too. If someone put a full caramel cheesecake through a liquidiser and scooped out the contents, it would probably taste something like this. Blueberry, on the other hand, has more of an artificial taste. It's like someone has tried to invent this drink in a lab, and while early results were promising, they're still in the testing phase. It isn't terrible, but something isn't quite right either.
So if you want an experience, go for a small, and opt for the caramel. But if you want a cheesecake, it's probably more satisfying, and not quite as unhealthy, to just order the real thing.
MATCH INFO
Uefa Champions League, last-16 second leg
Paris Saint-Germain (1) v Borussia Dortmund (2)
Kick-off: Midnight, Thursday, March 12
Stadium: Parc des Princes
Live: On beIN Sports HD
The specs
Common to all models unless otherwise stated
Engine: 4-cylinder 2-litre T-GDi
0-100kph: 5.3 seconds (Elantra); 5.5 seconds (Kona); 6.1 seconds (Veloster)
Power: 276hp
Torque: 392Nm
Transmission: 6-Speed Manual/ 8-Speed Dual Clutch FWD
Price: TBC
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
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About Takalam
Date started: early 2020
Founders: Khawla Hammad and Inas Abu Shashieh
Based: Abu Dhabi
Sector: HealthTech and wellness
Number of staff: 4
Funding to date: Bootstrapped
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
