Flydubai will start hedging fuel this year

As oil prices continue to soar, budget carrier flydubai will start hedging its fuel by the end of this year, according to its chief executive. "We are not yet hedged but we are looking at a hedging programme. We are now big enough to have one. And we should be able to make an announcement to this effect by the end of this year," flydubai CEO Gaith Al Gaith told Gulf News in an interview. He added that fuel accounts for over 40 per cent of flydubai's costs at present. "And whenever the fuel prices change, we reflect that in our fares, including increasing fares as fuel prices go up," said Al Gaith. Asked how the airline manages to maintain its budget model, he said: "We maintain our budget edge by offering different products at different prices and by giving people choices," adding that flydubai's prices are always lower than those of full service carriers. Al Gaith also said he is certain that flydubai will make a profit this year. While India is considered by Gulf carriers one of the most lucrative markets, flydubai has no plans to expand its operations there, according to Al Gaith. "We have no plans to expand our operations in India," he said, citing the issue of bilaterals as the prime reason. "We can only look at the market when both countries can agree on expanding the bilateral capacity offer between the two countries," he said. Flydubai currently flies to three destinations in India — Ahmedabad, Hyderabad and Lucknow. Asked if the carrier would consider expansion into global markets through a hub strategy such as the one pursued by rival budget carrier Air Arabia, Al Gaith said: "Absolutely not." He added that the airline's focus is to "make Dubai work. There is still a lot more potential here than the rest of the world." Flydubai is considering a move to Dubai World Central, but Al Gaith said there is no fixed time frame. "DWC will be a fantastic opportunity for our airline. But nothing has been agreed or committed from our side." He added: "The expansion of DWC is an important one as far as facilities and future growth are concerned in Dubai's aviation industry. "So we are definitely looking at it and at how we will be able to take advantage of that."