Abstract
We examine the ‘low cost’ airline sector in the Middle East and North Africa (MENA) and develop a number of indicators of growth potential for the sector. We also discuss the role of ‘open skies’ air service agreements and examine the characteristics and business models of MENA-based airlines that are commonly referred to as ‘low cost carriers’ (LCCs). Utilizing a bench marking methodology, we compare the business strategy of Air Arabia Group with those of dominant European LCCs easyJet and Ryanair. We find that while Air Arabia adheres most closely (of all current MENA-based airlines) to the traditionally defined LCC business model, its current strategy differs significantly from those of Ryanair and easyJet. We conclude that the air transport environment in the MENA region has influenced the strategies of current carriers in ways that may be detrimental in a more liberalized future environment.
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