Emirates clarifies it will help set up, not own, new LCC

Emirates has clarified that the new Dubai-based low-cost carrier to be established by the government "will be initially supported by Emirates during the setup period [but] will not be part of the Emirates Group." According to a state-owned news agency report, UAE VP and prime minister, Mohammed bin Rashid Al-Maktoum, on Tuesday called for the launch of a new carrier "to cater for the growing passenger traffic from and to the UAE."

Emirates chairman and CEO, Ahmed bin Saeed Al-Maktoum, who will serve as chairman of the yet-to-be-named carrier, said, "services will be of low cost economics keeping in mind Sheikh Mohammed's sincere keenness to ease burden of living conditions of passengers and enable them to reunite with their families and relatives at home."

According to Emirates' executive VP-commercial operations, worldwide, Ghaith Al-Ghaith, the low cost start up is expected to begin operations in a year's time. Ghaith is also expected to vacate his current position and take over as CEO of the startup.

The airline will base its operation at the new Al-Maktoum International Airport, under construction at Jebel Ali, and operate under its own brand, according to officials.

It is being speculated that the new carrier may even begin limited operations by summer using aircraft leased by Dubai Aerospace Enterprise.