Just when many economies are bracing for another oil jolt to their airlines, the engines in the Middle East seem to be howling on full throttle. However, it is too early to predict the success of the new airline emerging on the UAE aviation scene.
This is not out of the blue as in its recent forecast for CY12; IATA has painted a considerably better picture for Middle Eastern carriers. Where European and African carriers are expected to file losses, first due to the aftermath of euro zone and then the escalating fuel prices, Middle Eastern carriers are expected to earn profits of around half a billion greenbacks.
The figures have been revised upwards from $300 billion projected towards the end of CY11 after comparatively healthy long haul markets and improvement in passenger load factors.
The new airline which plans to commence operations somewhere in May 2012 is owned by MMA group, one of the worlds leading online forex trading brokers. The company has over 100,000 registered customers globally with volumes of more than $20 billion a month.
With 10 inaugural flights to Karachi, the airline eyes expansion of routes in not only other parts of Pakistan but other South Asian countries like India. The low cost airline is based in Ras Al Khaimah, UAE, and has a young fleet of two Airbus A320 with inclinations to acquire two Boeing-777s in the next six months.
This is good news for Pakistan in two ways. First, the addition of MMA Airlines on the UAE aviation map brings in competition for other airlines flying identical routes not only in terms of more flights but also customer service and flying experience.
Secondly, the CEO, Malek Naureed Awan happens to be a Pakistani businessman from Abbottabad who aims to attract air traffic from the cost conscious centres of Asia, starting from Pakistan.
Sustaining in a region that has some very strong players is a critical factor facing the new budget airline. Other challenges common to all players include security and safety issues, environmental requirements and technical concerns.
Only time will tell if the airline will succeed in emerging as a survivor of the competitive forces and industry dynamics.
There are hardly any carriers of repute left operating to Pakistan. With Malaysian Airline pulling out, there are no European or US carriers and a handful of Middle Eastern and Western airlines. Tourism is hardly on any ones schedule. Heres to hoping the new player comes in with a clear and actionable plan to enter this market, uncertainties et al.