RAK Airways closes doors for the second time leaving passengers stranded

The Ras Al Khaimah’s directors reportedly decided on Tuesday to pull the plug on the airline which operates from the northernmost emirate. RAK is just 45 minutes from Dubai and had been adjusting it operation from low cost to full-service and then back to a hybrid carrier.

The airline ceased operations yesterday (Wednesday). All calls to the company’s office remain unanswered.

The shareholders had had great ambitions for the airline but a succession of chief executives passed through with some privately citing difference of strategic direction with the owners. At the start of the financial downturn RAK suspended flights.

Last year the airline began links to long haul services through code-share with Etihad via Abu Dhabi. However, the RAK airline faced competition from Rotanajet which began operations from the UAE capital to the northern emirates.

The online booking on the company’s website shows ‘no flights available’. The airline did make an official statement on the suspension. It said: “The decision for suspending operations was taken following increased pressures on the carrier’s performance due to continuous market conditions, increased operating costs and the impact of the regional political instability on the overall aviation industry.

‘‘The board of directors took the decision to suspend the operations until further notice. We believe this decision is in the best interest of the airline and its shareholders. We will take this time to re-evaluate the best options available for RAK Airways’ future as well as those that fit the industry requirements of the emirate of Ras Al Khaimah.”

While the news came as some surprise to the travel industry, many in the aviation industry were not so surprised.

Industry analyst Saj Ahmad said: “ In a nutshell, when they restarted their operations and claimed they were neither a low cost or full service airline, for me, the writing was definitely on the wall.

“Just because the GCC is the most vibrant region for air traffic doesn't mean that the spoils will be shared. Just ask Gulf Air, Egyptair and others. RAK Airways misread the demand flows coming into the UAE. Ras Al Khaimah is simply too far away from the tourist and business hubs of Abu Dhabi and Dubai, and even Sharjah.

 “And with four of the world's fastest growing airlines in the UAE already (Etihad, Emirates, flydubai and Air Arabia), there was really no room or need for another entrant. And launching bizarre flights from RAK to Abu Dhabi was hardly a shrewd move - the UAE simply doesn't have the landmass to support intra-UAE flights when road options are far better.

 “While I highly doubt RAK Airways will ever see the light of day again, if it is resurrected for a third time, I would question just how long it could survive - the last two attempts have demonstrated quite clearly that there is no need for such an airline.”