Boodai outlines growth strategy as Jazeera gets funding for fleet expansion

The carrier has targeted 82 destinations within the next five years but is withdrawing from the key GCC capitals which the airline’s chairman Marwan Boodai described as being “flooded” by the national carriers of the Gulf states.

Speaking at the Reuters Middle East Investment Summit in Kuwait, the Jazeera chairman said that reports that the company had finance of $70million was below the mark. In fact, he said, the airline had agreed financing with Kuwaiti and European banks for some $200 million which is being used to purchase four new Airbus A320 aircraft. This will take the fleet to 15 aircraft.

The international banks have been impressed by the Jazeera plan and financial turnaround and Boodai told the conference that by the end of this year the airline is likely to be recording record profits.

The airline reported a full-year net loss of 2.8 million dinars in 2010, compared with a loss of 8.2 million dinars in 2009. But at the conference  Boodai said: “"Our plan is to get back to profitability, and now we have moved to a new plan which focuses on the regional points that we fly to."

He projected passenger growth from the current 1.2 million by more than 50% over the five year period. He cited examples such as Cairo for which Jazeera now holds 30% of the market share.

Jazeera’s proposed 82 routes will push even harder at the beleaguered Kuwaiti national carrier, Kuwait Airways which is aiming at an IPO but has been bogged down with a legal action against Iraq Airways and a lack of funding for new aircraft. More importantly, it will put Jazeera   firmly matched against the regions other main LCCs Air Arabia and flydubai.

The airline is increasing its market capital following an agreement by shareholders last year and Boodai told the Reuters event that the company was working on the procedures at the moment.