No-frills carrier Jazeera Airways, Kuwait's first private commercial airline, will start operations next month with flights to five Middle Eastern destinations.
"We are proud to announce that the official launch of the airline will be in late October as scheduled and we are currently taking in bookings for flights on November 16 and beyond," Chairman and CEO Marwan Boodai said.
Boodai, speaking at a news conference, said the firm would initially provide 30 flights per week to Dubai, Damascus, Amman, Beirut and Bahrain. This will rise later to more than 75 weekly flights with the addition of Egypt, Saudi Arabia and India.
Jazeera Airways was formed last year after the government said it would open up the sector for competition, and it will be the latest commercial airline to make its regional debut.
In July, Al Khayala, a luxury airline started operations in Saudi Arabia while the United Arab Emirates' Air Arabia, the Gulf's first budget carrier, was established in 2003 and has proved popular with passengers.
Jazeera Airways will be the first local competitor to debt-ridden state carrier Kuwait Airways and will end the national flag carrier's monopoly on flights to and from Kuwait. It will fill a big shortage in the market, Boodai said.
"The market is very big in Kuwait, demand is much more than supply," he said. "Just try to book a flight during eid (Muslim feast) holiday, you will find no reservations... But in the long run there will be competition."
Boodai said he expects Jazeera Airways will carry 500,000 passengers annually by early 2007, upon completion of its fleet.
Jazeera is spending USD$400 million to purchase up to eight Airbus aircraft. It will get delivery of its first Airbus A320 airliner around October 25, a second on November 4, two more in June 2006 and it has an option on four more by 2007, he said.
The airline has reached an initial maintenance agreement with Germany's Lufthansa, he added.
Ticket prices, though variable, will on average be 50 percent less than on major carriers, Boodai said. Flights to nearby destinations such as Bahrain and Dubai will cost as little as 10 Kuwaiti dinars (USD$34) and 22 dinars one way, respectively.
"The earlier the booking is made the cheaper the ticket," Boodai said, adding payments will not be refundable but flight destinations can be amended.
Passengers will be able to book their flights online, by phone, SMS or through travel agents. This will enable it to cut costs, as will using only Airbus aircraft, which will lower operating and maintenance costs, Boodai noted.
"The planes will have the same flight crew, same engineers and same technical teams," he said. "Our planes are new which will also cut fuel usage and make operational costs much lower."
