Third low-cost carrier to takeoff from UAE

A third budget carrier is set to launch in the UAE, creating further competition for established players flydubai and Air Arabia, an aviation official has revealed.

The General Civil Aviation Authority (GCAA) has responded favourably to the proposal and is expected to grant an airline licence after completing its review, according to Gulf News.

No details about the UAE investors behind the proposed low-cost carrier, the airline size or launch date were provided. But more news is expected within a month, Saif Mohammad Al Suwaidi, director general of the GCAA, said.

If approved, the third budget carrier will be entering a market that has grown steadily throughout the economic downturn.

Sharjah-based Air Arabia has carried more than 10 million years since launching in 2003, while flydubai secured 750,000 passengers during its first year.

By 2011, flydubai plans to increase its route network from 16 destinations to 40 and operate 13 aircraft. Its chief executive Ghaith Al Ghaith has set a 2012 breakeven target for the airline.