The past couple of weeks have seen the launch of two new airlines in the UAE, Air Arabia from Sharjah and Etihad Airways from Abu Dhabi. Both are government funded, but can they really make it in a market where Gulf Air is still losing money?
This question Peter J. Cooper, Editor-in-Chief of Middle East Finance an Economy is asking...
Heavy discounts by Air Arabia and Etihad could make an impact in the regional market. Competition in any market is usually a good thing. But in Europe the number of carriers in the market is shrinking and not expanding these days, and surely in due course the Gulf airline market will also consolidate.
I wondering what you think about these staart ups. Do they have a chance to fly?
And why should a government funded, Gulf Air get competition of other government funded low-cost airlines?
Can the new Gulf airlines really fly?
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