DEMAND FOR DOMESTIC FLIGHTS IN UAE UNLIKELY TO TAKE OFF
Dubai: Demand for domestic flights in the UAE is unlikely to soar high enough to make the venture economically viable for carriers or practical for travellers, especially given the country’s small size, aviation experts say.
On Tuesday, RAK Airways announced plans to launch the UAE’s first domestic flight from Ras Al Khaimah to Abu Dhabi starting October this year. But analysts remain sceptical about domestic flights.
“It’s difficult to understand RAK Airways’ logic here, especially when the UAE landmass is small to negate the need for intra-city flights,” Saj Ahmad, chief analyst at StrategicAero Research, told Gulf News.
Around the world, flying domestically tends to be less profitable than international flights, points out Peter Morris, chief analyst at aviation consultancy, Ascend Worldwide, adding regular business travellers will not be prepared to wait for more than a day to return from or head to meetings.
“On a domestic business route, you need frequency, frequency and frequency. That’s the single mantra that defines what is successful,” he said.
“There is the hassle of check-in and security. You could make a faster journey by road at a far lower cost,” argues Ahmad. “Unless subsidized there’s no way RAK can make this financially viable. I expect this adventure to be short-lived.”
18/08/2012 : Deena Kamel Yousef / Gulf News
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