CAPA Low-Cost Long-Haul Summit
Hamburg 2019
Air Arabia started its operations in October 2003 as the first low-cost airline in the MENA region.
We have since then:
• Grown to become the largest LCC operator in the MENA region.
• Carried over 90 million passenger so far.
• The Arab world largest listed airline with shares traded in the Dubai Financial Market.
• A group of diverse businesses worth over $4 billion.
• Amongst the world most profitable airlines.
Ranked 3rd airline in the world in terms of:
EBTIDARMargins
FixedCharges Liquidity Leverage Average
Fleet Age
NetMargins
Ranked 1st airline in the world in terms of:
Source: Aviation Week
Source: Airline Weekly
Adopted the multi-hub business model
Morocco
Casablanca Fez Marrakech Nador Tangier
Egypt
Alexandria Upper Egypt Sharm El Sheikh
UAE
Sharjah Ras Al Khaimah
Cairo
2019
6 leased Airbus A321 NEO/LR
Range: Up to 8 hrs
Future
54 owned Airbus A320
Range: Up to 5.5 hrs
Current
Fleet growth projection
Possible 100+ aircraft order
Before year end 2019
Fleet utilization
Block hours
Average weekly utilization
Currently serving 170 routes in 50 countries
Extending reach (6-8 hours) operation with A321 neo LR
Unlocking potential markets within 8hrs radius
Low-Cost Medium-Haul?
• Evolving our business model rather than changing it.
• Embarking on a new generation aircraft to open-up new
markets while maintaining a low-cost operations.
Never say never – the future is changing
• While low cost–long haul is yet to be proven successful; the economics of the
industry is constantly changing.
• Airline bankruptcies have increased in 2019 at the fastest ever rate, reaching 17
carriers.
• 2019 also seen the most profit warnings issued by airlines – conventional
airlines & LCC’s alike!
Why?
Who controls the state of the industry?
• The dual monopoly of aircraft manufacturers imposed on airline operators?
• Airports who constantly increase charges or keep on adding new ones?
• Regulations in many countries where taxation exceeds the airline fare charged to
customers?
• The few international organizations that speaks for the industry but don’t add
tangible value?
We need a closer look at the industry’s strength?
What can we do?
• Capitalize on the force of aviation which has a global economic impact.
• Take control of prioritizing the key drivers of a successful & sustainable
industry.
• Airlines should work together for a better industry and not against each
other.
Thank you
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