Thursday, September 6, 2012

Etihad Airways and RAK Airways sign codeshare deal


This make me laugh. Do you know why? RAK Airways is marketed as a low cost carrier but it has certain frills, and Etihad is aiming to be a boutique carrier. RAK Airways has had a rocky start, it was shut down initially then restarted and now its plagued with lengthy delays. Etihad seems to be partnering up with a lot of airlines and investing in ailing airlines. Previously AirBerlin and Etihad have signed a partnership deal - Etihad heavily investing in the airline and boom, Etihad demanded change of the AirBerlin CEO....

Anyway the partnership of Etihad with airberlin might be a good move, since Etihad will not become a global player but remain mostly as a regional player. Emirates has taken the position of global player in the market years back. Etihad service might be much better, but it does not compare in terms of sheer size when you put Emirates in the picture. What's funnier is the start of Abu Dhabi to Ras Al Khaimah flights. Now, I do know that RAK is trying to come up as an Emirate in the UAE by luring in investors at its free zone and its also become much easier to start a business in RAK but I just don't see the market potential. 

Dubai and Abu Dhabi have crossed the limits and they were the first two emirates to invest in a free economy and well they are reaping the benefits. RAK has woken up too late, i think trying to compete with these two might be a tough task as Abu Dhabi has ample amount of money to support itself and also Dubai. The distance between Abu Dhabi and Ras Al Khaimah is a mere 234 kms, which traditonally people have been driving. UAE does have a wonderful network of roads which allows this. RAK is not a business center or a major tourist destination. Most tourists bound for RAK fly into Dubai or Abu Dhabi and then tour operators have already arranged transport for them. 

Anyway for me a domestic flight in the UAE is pointless, the partnership between the two arilines is also pointless, but who knows they might make it work? It two totally opposite business models trying to make it work. More over, flights between Abu Dhabi and RAK are also not worth the effort, the drive down is much more scenic and less hectic than going through check-in, security, etc etc.... and lets not forget about RAK Airline's on time performance.

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