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AirBlue on Runway to Major Gulf Expansion

Sunday, 24 August 2008

arabianBusiness.com

AirBlue, Pakistan’s biggest private airline, is looking to corner the lucrative Gulf market with four more destinations set to follow the launch of its Abu Dhabi service on Sunday.

Four flights a week will operate between Lahore and Abu Dhabi International Airport with the airline hoping to step the service up to twice daily as demand from the estimated 300,000 Pakistani expatriates living in the emirate increases.

Building on the success of AirBlue’s existing Dubai service, the carrier revealed it planned to start a Lahore to Muscat, Oman, operation from September 15 and to fly to Kuwait City by the end of the year.

With around 600,000 Pakistani nationals in the UAE, the carrier said it also wanted to increase its routes in the country, with two to three weekly flights to Al Ain from Peshawar commencing in three months time.

It said it was still committed to launching its Sharjah operations despite having to halt the service earlier this month after being denied access to the airport. The airline said it could commence the service within two to three weeks of being given permission to start operations to the airport.

AirBlue carries around 30,000 passengers each month between Pakistan and Dubai.

The service began in 2005, a year after AirBlue started operations. AirBlue’s only other international service is to Manchester in the UK.

At a reception ceremony to mark the airline’s first flight into Abu Dhabi, the 40th carrier to operate from the airport, AirBlue said its target for the route would be 4 to 5,000 passengers per month.

Sarosh Bhatti, general manager of marketing for AirBlue, said: “The UAE is our most important market because the growth rate is there, the yield is there and the expansion is there.

“There are a lot of Pakistanis who are coming to visit the UAE and a lot who are working here and a lot of Pakistanis who have invested in the UAE in real estate.”

He said the rising cost of oil meant fuel now formed 50 to 55 percent of the airline’s overall operational costs but it was overcoming the problem by cost control measures including reducing commission for travel agents, offering snacks instead of meals on some flights and using only one engine when taxiing.

Mohammed Al Bulooki, VP, airline marketing and aeronautical revenue at ADAC, said : “We are sure that AirBlue will prosper on this route and we are sure they will increase their frequencies into Abu Dhabi. Within the past year or so $7bn of trade has happened between the UAE and Pakistan and we hope AirBlue will add to this impressive core.”