Low-cost airlines seen moving to DWC from 2013

Low-cost airlines operating from Dubai International Airport are likely to transfer services to Dubai World Central when the emirate’s second airport starts passenger flights in 2013, analysts have said.

Paul Griffiths, CEO, Dubai Airports, announced on Monday that operational trails for Dubai World Central’s passenger terminal are set to start during the second quarter of this year and “we could see commercial passenger operations commence in 2013."

Analysts have speculated that low-costs airlines, currently operating mainly from Dubai International Terminal 2, will move to the new airport to free up space at Dubai International.

“My understanding is that low cost airlines will commence operations at DWC first however I would caveat that by saying no airline has publicly committed to a move… Discussions are likely to be ongoing behind the scenes and it’s very unlikely that carriers will split operations between the current airport and DWC,” Saj Ahmad, chief analyst at StrategicAero Research, told Arabian Business.

Low-cost carriers currently operating from Dubai International include flydubai, Jazeera Airways and Air India Express. Flydubai did not respond when contacted by Arabian Business for comment.

Griffith stated that Dubai International will continue to serve as the primary focus of expansion and Dubai Airports is planning to invest $7.8bn to boost capacity to 90 million passengers by 2018.

Dubai International, the world's fourth busiest airport in terms of international passenger and cargo traffic, handled 51.0 million passengers last year, up from 47.2 million in 2010, it said earlier this month.

In terms of cargo, Dubai's two airports handled 2.3 million tonnes of cargo last year and Dubai Airport forecast that volumes are expected to hit 3m tones by 2015.

"Although the airport is in its infancy, incremental cargo traffic growth has been steady and continues to ramp up as new operations are launched," Griffiths said.

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Phase 1 of Dubai World Central's cargo facilities has been built and has the capacity to handle 600,000 tonnes of cargo per year. When the airport is fully completed, it will be able to handle 12 million tonnes of cargo and 120 million passengers a year, according to its website.

“I don't think DWC will be a white elephant at all. It is a longer term project and must be viewed as such. It has years of development to undergo and it will complement the current airport with more capacity as both growth and new competition enters Dubai,” Ahmad said.

“I'd say the prospects are good but the litmus test will be to secure the services of airlines who already serve the current airport,” he added.

Trade and logistics are key drivers of growth in Dubai, which lacks the oil wealth of neighbouring Abu Dhabi. The emirate accounts for around 80 percent of the United Arab Emirates' non-oil trade but only 28 percent of its economic output.