Budget carriers claim advantage

While most full-service airlines globally are busy pruning capacity and scaling back route expansions to met the new economic realities, budget carriers are spreading their wings.

Dubai's start-up budget airline, flydubai, said it would begin operations on schedule in the first half of 2009. "We are starting at the right time – we have an advantage, as other airlines are not launching now," said Chief Executive Ghaith Al Ghaith.

Air Arabia plans to launch a Morocco hub early this year, while Jazeera Airways has already launched a $375 million (Dh1,377 billion) aircraft leasing arm called Sahaab Leasing.