The rise and rise of low-cost flying

Any frequent traveller knows that all too frequently, you don’t get anywhere near what you pay for with air travel. The popularity of low-cost carriers like easyJet and Ryanair in Europe and JetBlue in the United States is therefore easy to understand – many consumers will happily trade already-decreasing amenities and services for lower ticket prices on short, simple flights.

So it was to great fanfare that flydubai – a low-cost airline designed to cater to a region brimming with expats – was founded in March 2008. Begun at a cost of Dh250 million, it is completely owned by the Government of Dubai and operates out of Dubai International Airport between various cities in the Middle East and Africa. Though not part of the Emirates Group, flydubai was founded by Emirates Chairman Ahmed bin Saeed Al Maktoum, and is led by Ghaith Al Ghaith, a former Emirates executive.

According to him, it had long been the vision of Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai, to have a low cost carrier headquartered in Dubai. He recognised the need for Dubai to have its own low cost airline to serve the largely expat population in the region and to ensure more people would be able to travel to more destinations more often. The capacity constraints at Dubai International Airport made the establishment of another airline in Dubai impossible before now. However, with the recent opening of Terminal 3 and the expansion of Terminal 2, these constraints were no longer a barrier to Dubai having its own low cost airline and flydubai took flight in spring 2008.

Two years into the running of the fledgling company, and Al Ghaith is pleased with the success of the airline thus far. “We only started commercial operations with flights to Beirut on June 1 last year,” he explains. “Since then we have begun flights to a further 20 locations, bringing our total now to 16 operational destinations. We recently announced Colombo in Sri Lanka and Lucknow in India as our next routes with flights starting in June.”

To help meet rising demand for services, the airline recently took delivery of seven 737-800NG aircraft on schedule from Boeing, including the first Boeing Next-Generation 737 aircraft equipped with Goodrich Corporation Duracarb carbon brakes. In July and November last year, it signed aircraft financing, maintenance and logistics deals worth around US$520 million. And it also moved into a new headquarters building on the North side of Dubai International Airport, near to Terminal 2. 

“We are more than pleased with the success of flydubai to date,” says Al Ghaith. “Flydubai brings a fresh approach to travel and has its own unique business model. It was not modelled on any other airline, although we have tried to take the best of other airlines from around the world and adapt them to the market in this region. The flydubai model aims to make travel a little less complex, a little less stressful and a little less expensive for travellers. We’ve kept these basic principles in mind when conceptualising our business model. And, going by the enormous number of passengers that continue to travel with flydubai, I think we’ve successfully achieved what we set out to do.”

The original order for 50 Boeing 737s at the Farnborough airshow was valued at approximately US$4 billion and marks the biggest single order by a Gulf-based low-cost carrier for the aircraft. The reason for making such a large order at once was twofold: “First, to assure the best price possible for the fleet and second, because only once we have our fleet in place can we move forward and make decisions on the route network, staff appointments, etc.” says Al Ghaith.

He explains that the Boeing 737-800 Next Generation aircraft was chosen above any other model because they are acknowledged as being the safest, most reliable and most fuel-efficient aircraft flying today. “The aircraft has the equivalent of more than 30,000 years in the air and has carried 12 billion passengers across 75 billion miles. Those are fantastic credentials by any standards. Its reliability, safety and fuel efficiency make the aircraft ideal for flydubai, which can pass on the savings to its customers,” says Al Ghaith remarking that the five safest aircraft models currently under production – with more than 10 million flights a year – are all Boeing, with the 737 having one of the best records and the most flights.

“One of the most striking features of our aircraft is the winglets, in which we invested US$50m,” continues Al Ghaith. “These winglets add an extra 1.4m to the wingspan, and are aerodynamically designed to save up to four percent of the total fuel burn. A winglet-equipped aircraft can typically use three percent less climb thrust on take off, and cruising fuel flow is six percent less. This will save flydubai between 75,000 and 125,000 gallons per aircraft per year, which not only saves on energy expense and extends engine life, but also ensures lower fuel consumption,” he says.

“This reduction in fuel has a positive impact on the environment as it ensures nitrogen oxide emissions are reduced by as much as five percent and carbon dioxide emissions by around four percent. Another great benefit of the winglets is the reduction in noise from the aircraft. Because les thrust is needed on take off, there is an average 6.5 percent drop in decibels, making it a much more flight path friendly option for local residents.”

These considerations are of course gaining in importance, not only as environmental concerns work their way up the international agenda, but also as flydubai expands its route network. The low-cost carrier currently serves and will continue to launch a mix of destinations that are commercially popular as well as those that are currently underserved by direct flights from Dubai. “Our aim is to expand the region’s low-cost air travel sector by making travel more affordable and accessible for everyone,” explains Al Ghaith. “I think all the destinations we currently fly to and will fly to in the future have great potential, especially since Dubai is a country dominated by a strong expatriate population. With flydubai, travellers now have the option to travel more often – be it for business, leisure or to visit friends and family back home.”

In terms of geographical reach, flydubai will serve those countries that are within a five-hour flight radius of Dubai. This takes in a population of 2.5 billion people and gives flydubai access to one third of the world’s population. “It is important to us to expand our network quickly to give our passengers the widest possible range of destinations to fly to. But some of our routes are proving to be so popular that we need to add extra capacity to existing routes to keep up with the demand.”

And even though it has only been 12 months since the airline started commercial operations, it is expanding rapidly. “We are proud of our achievements and have been on track with our plans; to be honest, I am overwhelmed by the great response we have received,” says Al Ghaith. “Like any business, our rapid expansion has meant we’ve had a very steep learning curve, however, we’ve met these challenges well and are in a strong position this year. Also, as flydubai continues to expand, another one of our challenges will be to continue to attract and recruit the right number and calibre of staff to ensure we can continue to offer our customers the excellent levels of service that we have started with.”

Providing a good customer experience is one of the main priorities for flydubai and it’s what sets it apart from its competitors. “At flydubai, we like to keep things simple to keep costs low and that’s how we keep fares low,” says Al Ghaith. “We’re constantly looking at ways to make things easier and to save costs. We want to be clear about the way we operate so there never any doubt about the cost of a fare. Our fares are fair, as they include all taxes and charges and a generous hand baggage allowance of 10kgs. On flydubai you only pay for the services you want and we believe you should only pay for the baggage you have. If you require checked-in luggage, you can have it, but you pay for it separately.”

Al Ghaith is also quick to stress that low-cost does not equate to low quality. “We are also committed to ensuring a good on-time performance and a high quality on-board service. flydubai may be low cost but that doesn’t mean we will cut corners in terms of our on board experience. Our cabin crew is trained to provide the best customer service possible and they are of a variety of nationalities to ensure a wide range of spoken languages and cultural diversity,” he explains.

There is plenty to look forward to in the future, too. “We have only just completed a year of operations and have already achieved more than we set out to do. I am excited about everything we do. I’m looking forward to flydubai evolving as a company and helping to expand the region’s low-cost travel sector even further.”

Top five low-cost airlines:

• easyJet, UK
• Air Asia, Malaysia
• Air Arabia, UAE
• Ryan Air, Ireland
• US Airways, US

flydubai in numbers

• flydubai was established by the Government of Dubai in March 2008
• It was Dubai’s 1st low-cost airline
• The first commercial flight took place on June 01, 2009 to Beirut
• flydubai has a network of 21 destinations, 16 of which are currently operational
• The company operates 8 Boeing 737-800 Next Generation aircrafts
• In the first 12 months of operations, the airline notched up 1 million passenger bookings and ¾ of a million passengers
• In the first year flydubai operated almost 8000 flights and of these 85% departed on time
• flydubai employs more than 500 staff from almost 70 countries, including more than 100 pilots and more than 200 cabin crew
• In the coming months the company expects to receive a further 5 aircraft and will fly to over 25 destinations by the end of the year