Dubai, Mar 19: Dubai has announced that it will set up a new low cost airline to cater to the growing segment of middle income travellers to give stiff competition to Air India Express and Sharjah's popular Air Arabia, both of which fall under the same category.
Dubai ruler Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE has directed the formation of a separate aviation company, which along with its premier airlines Emirates will have a common Chairman. Aviation industry watchers said the decision may have been prompted by large volumes, including high networth expats, patronising an increasing brood of low cost but efficient airlines. Jazeera Airlines, another low cost airlines of Kuwait, the latest entrant has been a roaring success, they added.
The increasing competion would offer a stiff challenge to Air India, which so far enjoyed a monopoly in the Gulf sector.