Budget carriers take-off

(CNN) -- As recently as a few years ago, flying around the Middle East was an expensive exercise. Unlike the U.S. and Europe, there were no low-cost carriers competing for passengers on price. How times have changed.

Air Arabia became the first low-cost airline in the region when it started flying in February 2003. It remains the market leader; this year voted the region's best low-cost carrier at the Aviation Business Awards.

At the same event, the man in charge, Adel Ali, was named the region's leading Airline CEO.

"Low cost has been very successful in the domestic market within America within Europe, the rest of the world has taken longer because of aero political system was a bit slow", Adel Ali says.

"However about three years ago things changed, governments started opening up, most airports were welcoming low cost business, and we thought that was an opportunity to do something that was not done before in this region."

The airline's wasting no time in expanding its reach.

This month, the public listed company agreed to buy 35 new Airbus A320s, and option a further 15, more than tripling its current fleet.

By 2015, Air Arabia aims to be one of the world's leading airlines, operating more than 50 planes on routes in the Middle East, Northern African and southern Europe.

To that end, it has signed a deal with Morocco's largest private carrier, Regional Air Lines, to establish a second hub in the country's capital, Rabat.

Air Arabia Chairman, Sheikh Abdullah Bin Mohammed Al Thani, says: "This agreement provides us with the opportunity to reach into fast-growing markets in North Africa and across the Mediterranean into southern Europe."

"With a strong presence in the Egyptian cities of Alexandria, Luxor and Assiut, Air Arabia will now be able to expand significantly this coverage area across the EMEA region."

It's not the only low-cost airline to spot the potential.

Jazeera Airways started flying in 2004 when Kuwait opened the market up to non-government airlines.

In the last two years, it's launched a second hub in Dubai and added more than 20 new destinations to its schedule, most recently ending the 50-year duopoly on flights between Kuwait and Jeddah.

It's going back to shareholders to raise more money for expansion in new markets across the Middle East, North African and the Indian subcontinent.

Saudi Arabia's first low-cost airline Nas Air so far only travels within the Kingdom's borders but it too has plans to expand internationally.

It's only been flying a matter of months -- since February 2007 -- but already it's added 20 domestic destinations to its schedule.

By May, 100,000 passengers had boarded its aircraft. It hopes to hit the half a million mark within its first year of business.

It seems there's no shortage of passengers who are willing to trade traditional carriers for their low-cost competitors.

And with the amount of investment currently being poured into the industry, for the airlines, it's just as well.

FAST FACTS

Air Arabia

Base: Sharjah, U.A.E.
Established: February 2003 by an Ameeri decree issued by His Highness Dr. Sheikh Sultan Bin Mohamed Al Qassimi, the Ruler of Sharjah and Member of the Supreme Council of the United Arab Emirates.
Status: Air Arabia transformed from a Limited Liability Company (LLC) to a Public Joint Stock Company (PJSC) on June 19th, 2007. Listed on the Dubai Financial Market.
Passengers: 5 million to date
Destinations: 38
Says: "Pay less. Fly more."

Jazeera Airways

Base: Kuwait
Established: The 2004 Emiree Decree #89 established Jazeera Airways as first airline to enter Kuwait's newly liberalized airline industry.
Status: Kuwait Shareholding Company (claims it is the only airline in the Middle East that is neither owned nor subsidized by any government)
Passengers: 600,618 to July 2007
Destinations: 23
Says: "Wings of Freedom"

Nas Air

Base: Riyadh, Saudi Arabia
Established: Started commercial flights in February 2006.
Status: Owned by local airline National Air Service
Passengers: 100,000 to May 2007
Destinations: 21, domestic only
Says: "hayyakum" ... "welcome" E-mail to a friend