Six months following the launch of low cost carrier (LCC) flydubai, an undisclosed investment firm in Abu Dhabi is planning to introduce an LCC in 2010.  The budget airline would be based in Abu Dhabi and is expected to begin operations in mid 2010.  It will be the third budget carrier in the UAE, competing with Sharjah’s Air Arabia and Dubai’s flydubai, as well as other LCC’s operating in the Middle East.  The robust performance of LCC’s in 2009 indicates they will see strong growth in 2010. 

Eight LCC’s have been established in the region over the last six years, and the new carriers have generally stayed on track with their expansion plans, despite difficult economic conditions.  A recent report by the Centre for Asia-Pacific Aviation (Capa) said this track record indicates a “strong sign of future growth”   The Capa report covered over 130 LCC’s from around the world and showed carriers had solid growth well into the decade despite the economic downturn.