Soaring above the competition
Ghaith Al Ghaith, CEO of flydubai, visits Khaleej Times as part of our ‘Meet the CEO’ initiative. He offered his insights on the budget travel sector and how the airline has thrived amid competition
dubai — Flying above the competition is not easy, but flydubai’s profitable flightpath since its launch in 2009 indicates that the low-cost carrier has a promising future ahead. The airline’s chief executive Ghaith Al Ghaith attributes part of its success to Dubai’s visionary leadership for putting in place an excellent infrastructure and developing a wonderful cosmopolitan environment.
Speaking at Khaleej Times’s ‘Meet the CEO’ session at the newspaper’s head-office on Sunday, Al Ghaith offered his insights on the future of the aviation industry, and shared anecdotes on how Dubai’s young airline came into being.
Air travel in Dubai was and is still, to an extent, synonymous with Emirates, the airline that boasts the world’s biggest fleets of Airbus A380s and Boeing 777s.
So, when the Dubai governmentbacked flydubai launched operations in 2009, not too many would have thought that it would be successful, given the overarching competition from its elder sibling Emirates.
But last year, in its seventh full year of operations, flydubai announced revenues of Dh5 billion, carrying 10.6 million passengers, and reporting profits of Dh31.6 million.
How? “Competition is what has made us so successful,” says flydubai CEO Ghaith Al Ghaith.
Speaking at Khaleej Times’ ‘Meet the CEO’ series session at the newspaper’s head office on Sunday, Al Ghaith offered his insights on the aviation industry, and shared several stories on how Dubai’s young airline came into being.
“Every time you launch a company, it should be with the intention of becoming the best in your field. But, it was never our intention to directly compete with Emirates when we launched. We always saw ourselves as working side by side to provide the very best flight options for travellers in the region,” he said.
Flying above any competition, Al Ghaith says out of the airline’s 94 destinations in 44 countries, 63 are new routes that did not previously have direct air links to Dubai or were not served by a UAE national carrier from Dubai. He added that flydubai and Emirates “complement each other.”
“When we started the business, we hadn’t even decided on a name,” the charismatic CEO said. “But, we have always been very blessed to have the word ‘Dubai’ in the name of our airline, because this has helped us in our growth.”
It is natural for people who hear the word ‘flydubai’ to associate the airline with many of the things that the city is known for, and that can be a challenging task, Al Ghaith agreed. “Customers expect quality products and great customer service, and we always strive to meet those expectations. We have to constantly challenge ourselves to offer a memorable experience that not only meets their expectations, but exceeds it.”
Get your co-pilots in place
There is only so much a single person can do by himself, which is why it is important to surround yourself with the right type of people, says Al Ghaith.
“It is important to interact and learn from other people and professionals, and that is why it is a very good idea to have people in your company that know more than you do,” Al Ghaith candidly said.
Looking back on what the airline has achieved since it was first set up in March 2008 by the Government of Dubai, Al Ghaith disclosed that the journey had been a period of highs and lows.
In June of 2008, the airline made waves in the aviation industry by placing an order for 50 Boeing 737800 NG aircraft at the Farnborough Airshow. The airline’s first aircraft arrived in May next year, with the inaugural commercial flight being scheduled for Beirut on June 1. By the end of that first month, flydubai was also flying to Amman, Damascus and Alexandria and after just three months, the airline had already flown 100,000 passengers.
“Our highs included watching our planes take to the skies, launching new routes and returning customers booking new flights,” Al Ghaith said, adding that the lows were any periods of crisis that impacted the global aviation industry.
Opportunities abound
As 2009 ended, flydubai had already added another seven routes to its portfolio, and by the summer of 2010, the airline achieved a major milestone when it officially carried its one millionth passenger.
Five years after its inaugural commercial flight, flydubai was making more than 1,400 flights a week with over 500 pilots and 1,000 cabin crew.
“Aviation will continue to be one of the most important and interesting fields for people in the coming years,” Al Ghaith said. “The budget travel segment will continue to grow in the next few years and this puts us in the perfect position in the region.”
Speaking on the airline’s growth plans for the future, Al Ghaith added: “As a player, you always have to find new opportunities in the market, especially when it comes to new routes and destinations.”
Frequent flyers, he noted, will always ask about new destinations and why the airline hasn’t launched any route to them yet.
Focus on your cost
Al Ghaith also noted that every business owner wants to be successful, but many times they will all make a mistake that stems from not doing their research, or not properly understanding their main customer base.
“Everything you do has to make financial sense, so it is critical that you focus on your costs,” he explained. “I can’t count the number of times I have seen someone make the mistake of not understanding their customers and how much they can spend. Also, you must understand that there is no one-product-that-fits-all approach or formula in this industry.”
Different demographics will have different preferences and spending power, especially in a country like the UAE, which is home to several different nationalities.
Customer experience
A company that looks after its customers and sees that their needs are met is a company that can do no wrong in Al Ghaith’s books.
“The culture of the airline has to always be about looking after the customer, and this is not always easy,” he noted. “The relationship that you have with your customers is very important, so you have to go the extra mile to earn their loyalty.”
This is doubly important in an era, when a single negative tweet or damaging video has the power to negatively impact your business.
Al Ghaith reminisced that in the early months of the airline’s launch, a lot of residents were eager to hear what a traveller’s experience was like when they chose to book with flydubai. It took many years for the company to build a solid reputation and reach where it proudly stands today with its customers.
Interact and learn from other people and professionals. Have people in your company who know more than you do
Dubai has the infrastructure and resources that make everyone want to come and work here
The culture of an airline has to be about looking after the customer
Our highs included watching our planes take to the skies and returning customers booking new flights
Dubai’s Emirates and flydubai complement each other
The budget travel segment will continue to grow in the next few years and this puts us in the perfect position in the region
We were very blessed to have an airline with the name ‘Dubai’ in it because this has helped us in our growth
Strong leadership
“Dubai has the infrastructure and resources that makes everyone want to come and work here,” Al Ghaith said.
As the city has grown, so too has the airline along with it, he said. “Dubai as a world class tourism destination has made great strides in recent years in attracting a greater number of visitors. This increase has meant that we are also attracting a greater number of customers.”
“I always say we are really blessed with the visionary leadership that we have in this country, and all the support they have of- fered us,” Al Ghaith said, adding that success comes when a vision is set at the top and everyone at a company believes in it.
— rohma@khaleejtimes.com