RAK Airways overhaul to give UAE new budget carrier

The UAE will get its third budget carrier shortly as the now-defunct RAK Airways readies for an overhaul, Emirates Business has learnt.

Ras Al Khaimah's carrier has turned focus to smaller aircraft with capacities of 100 to 120 seats and will look to replicate Sharjah-based Air Arabia's low-cost model, Oussama El Omari, Chief Executive of the emirate's free trade zone told this paper.

"The feasibility studies have been completed and the airline's restructuring is almost complete. It will not compete with the Emirates and Etihad but rather with Air Arabia,'' he said.

"The aim to is to target executives and economy passengers. The airline is being restructured to meet the market needs," Omari said.

The Ras Al Khaimah carrier was created by the emirate's government in 2005 and started operations at the end of 2007. The airline carried about 125,000 passengers in 2008 before suspending services in December due to difficulties with its aircraft.

It subsequently reduced its fleet size from three aircraft to one, and terminated its services to Dhaka, Colombo, Calicut and Chittagong. At the same time the airline also cut 60 jobs.

The airline also ran on a charter-only basis using its only aircraft, a Boeing 757-200. The cost of operating an airline with just one aircraft, besides logistics, was the key factor that forced the airline to terminate operations last year.

RAK Airways has been in negotiations for sometime with Boeing thereafter to lease and purchase up to four Boeing single-aisle 737 aircraft, according to industry sources. With these new aircraft, the airline is planning to launch services to new international destinations such as Brussels, Dusseldorf and Beirut as and when it restarts operations.

Besides, the airline has on order four new 737-800s worth Dh1.65 billion (Dh6.06bn), for delivery by 2011. Omari said the strategy would now be to acquire smaller capacity aircraft to suit a low cost model.

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