What is your assessment of the regional and global aviation sector?

The Middle Eastern aviation sector is driven by GDP growth and the underlying growth of the economy helps.  On the other hand, the structure of the population is quite small but there are a lot of young people who start traveling and this is a new target group for market simulation.  This explains to airlines coming into the market. The Middle East is also pretty central to all other parts of the world so we have a lot of connecting traffic that is happening via Doha, Bahrain, Abu Dhabi, and Dubai.  Smaller GCC air carriers also help.  We have been the fastest growing GCC carrier in the region and we are a small carrier. Big carriers do more damage to other airlines and countries because with their wide body aircraft they suck more traffic out of Europe to Asia via the Middle East and their impact is stronger (negative) for smaller carriers.

Medium haul airlines are fast growing and will eventually reach maturity. When do you expect consolidation to happen in the industry?

There are different dynamics. The first one is in the global phenomenon that all short haul traffic (up to three or four hours) is basically driven by low cost airline carriers and competitive advantage is as a result of offering the lowest price possible.  Legacy airlines who offer short haul flights are transferring these kind of operations to lower cost platforms.  Long haul travel where you have the network and global airlines who can give you the best experiences and connections extract a premium by charging high fares and the cost of flying ten hours are the same for everybody.  In that case it is the same mechanics and a different business model.  The business models won’t converge into one because they are worlds apart. 

Jazeera Airways recently secured 105 million dollars in financing for three new aircraft from Europe.  Your plan is to have 29 new aircraft in the next nine years and you currently operate 11 and you also have plans for acquisitions.  With this growth how are you going to secure your financing and how risky do you think it is to grow at this pace?

This is a question to ask to the banks who finance us because they make this kind of risk assessment.  The banks we have been talking to think the Jazeera business model is an attractive business model that is growing and profitable and is in a market with a lot of potential for growth.  How do we grow?  We need to grow in our core business, transporting from A to B which is now within our 11 current aircraft and in our 29 to come.  Beyond growing our core business we have to think about supporting our core business and yesterday we announced that we bought an aircraft leasing business and we have more projects to follow.  Businesses that surround the growth of the core business are worthy investments to us and part of our strategy.  For example, the leasing company will give you more flexibility in terms of your ordering and aircraft profile and this is important. 

Are you afraid of over diversification and the rising costs?

No.  Everything we do is not to diversify in different business streams.  Everything we do is to support our core business and everyone is focused on this core business as well.

How are you going to stay competitive among other GCC aircraft carriers?

Our competitive strategy defines itself from our vision to become the leading regional carrier.  Our competitors are GCC carriers like Royal Jordanian and Gulf Air who focus on short and medium haul traffic.  We try to have a better product and to offer better value for your money.

How do you manage risk such as fuel prices?

In our business you have risk in terms of fuel, interest rates, and currency and you have to hedge these risks by securing different prices for all of these risks.  The core business in the airlines is risky due to a volatile market where your investments are.  Hedging strategies help mitigate these risks.

Where would you like to establish your second base and what company would you like to acquire or partner up with?

For us it is important to be able to connect any current hub or existing airline operations to future supported airline operations in order to support the core business.

In terms of destinations, where would you like to expand your business as a carrier?

In general where we operate now in the GCC we have a big footprint in UAE, in Egypt, and the Middle East.  Middle East non-GCC countries are effective for us.  Qatar and Emirate airlines have a lot of travelers and not a lot of seats available so we would like to focus on those regions.

You mentioned that you launched a business class section but it hasn’t been rebranded.  What kind of segment would you like to attract?

We want to offer a low cost airline and have the highest revenue possible.  Business class for Jazeera Airways is about nothing more than generating higher revenues and we want to target all segments.  We would love to have business travelers travel on Jazeera Airways so that is why would want to offer this.  Offering attractive fares for both business and economic class is our priority.

Have you seen increased interest from corporations in flying with Jazeera Airways?

Everybody is watching their wallet and travel expenses in times like these.  Airlines that can offer more attractive prices with a comparable product are the winners.  Easyjet in Europe has the same story.

What is your biggest challenge?

The degree of regulation and deregulation is our biggest challenge.  If the Middle East wants to be open sky like in other parts of the world we could grow much faster and in a more profitable way.  We can’t influence this and it is not the goal of a private airline but I believe in the future it will open up.

What is your future plan for 2015?

We are going to be the number one player in the Middle East/GCC region.  We are going to have separate airline platforms all linked to each other and airlines in other parts in the Middle East and a fantastic network.  We are also going to have our fair share of travelers in each market segment like business, leisure, labor travelers or whatever all while becoming a consumer champion brand for the GCC region.  Jazeera Airways has the potential to get there and this is important for attracting customers, good staff, and shareholders.

How would you define your management style and the company culture that governs Jazeera Airways?

I am a bit of an international child and I have been exposed to a lot of countries as an expat and this is good for balancing a multicultural environment like we have at Jazeera Airways.  We have more than twenty nationalities coming from four continents and the more you get to know people and culture the more exciting and fulfilling it all becomes.  I believe in the wisdom of teams and team decisions are better than one made on your own.  I like to be challenged in my decisions in order to find the best solutions and this is what management is all about.