Flydubai to become profitable next year

Dubai Budget carrier Flydubai is "very close" to break even and aims to make a profit next year, a top official said yesterday. It has added two new Russian destinations to its network with flights to Kazan and Ulfa and expects to take delivery of one aircraft in December, Gaith Al Gaith, flyDubai CEO, told reporters on the sidelines of an event. FlyDubai identified "at least 12" destinations in Russia it can potentially serve and is negotiating increasing its allocated quota with the Russian government. The airline increased destinations to the country in July to four, the maximum currently allowed, and is able to increase frequencies on existing flights, he said. Al Gaith said: "The new routes bring flydubai's network to 46 destinations across the GCC, Middle East, Africa, Indian sub-continent, Asia and the fringes of Europe." Al Gaith revealed that in addition to the existing flights to Yekaterinburg and Samara, there are 12 other routes flydubai is considering. However, at this stage a bilateral agreement with Russia only gives flydubai the right to fly to four destinations — Samara, Yekaterinburg, Ufa and Kazan. One-way fares between Dubai and Kazan or Dubai and Ufa start at Dh1,285, and Dh1,175 for a return ticket. All fares include 20 kg of luggage plus seven kg of hand luggage and one small laptop bag or handbag. "Our aim as an airline is to open up diverse global destinations to travellers and we are grateful to the Russian authorities for their continued support to our expansion plans in their country." "Our new flights to Ufa and Kazan directly connect Dubai to two economic and industrial power centres in Russia for the first time, while also helping to showcase Dubai as a business and leisure destination to the important Russian and larger CIS markets." UK-based aviation analyst, Saj Ahmad said, "If flydubai can achieve profits by next year, just 3 years after launching, this would be seen as a significant feat almost unheard of in the airline industry — no low cost airline has launched so many routes, taken delivery of so many airplanes and achieved breakeven, let alone profitability in such a short space of time, particularly against a backdrop of global economic uncertainty. According to the Dubai Chamber of Commerce and Industry, Russia is ranked 38th on the list of Dubai's trading partners. While there are 412 Russian partnerships and ownership companies in the UAE, the non-oil trade between the two countries grew 27 per cent to Dh4.2 billion in 2010 compared to 2009, the Dubai Chamber reported. Dr Igor Egorov, Chairman of the Russian Business Council, said, "Dubai offers Russian businesses an enormous opportunity to reach out to a global audience, given the city's central location relative to emerging markets in Asia, Africa and Latin America."