Recently, many flight companies are facing stiff competition from rival companies and finding it difficult to sustain their direct flights to Dubai amid mounting competition. Some flight companies have decided to axe their direct route to Dubai due to fierce price competition. There is now a high level lobbying war between the airlines operating the routes to and from Dubai.
Travellers in the UAE are now reaping the benefits from this price war among the major Gulf airlines who are fighting for regional market share. They are increasingly competing head to head on many of the Middle Eastern routes with their hubs only a short distance from each other. The falling oil price has also helped cut fares with fuel which is the single largest operating cost of carriers worldwide.
Many of the Gulf airlines have launched promotions and there has been a drop by more than 10 per cent on some of the Middle East routes from the Emirates. Due to the drop in the price of crude oil in global markets, all airlines have reduced their fares. Airlines wanting to secure more bookings earlier are adjusting their pricing strategy. Many travellers and UAE nationals are taking advantage of the cheaper flights from Dubai to London and other Europe countries.
Other airlines are reducing their fuel surcharge which ultimately reduces their overall air fare pricing. Even though there is an increase in air fare demand such as from Dubai to India, air fares are dropping due to aggressive pricing strategy by low cost carriers and etc.
India is a major market for Gulf carriers, as many of their citizens are working in the Gulf, and there is a high percentage jump in the passenger numbers between the Gulf and India. The low or cheaper fare are benefiting the travellers but it is putting a strain on the airlines servicing the routes between the Gulf and other countries such as Europe, United States, the United Kingdom, and the Asian countries.
Travellers wanting to enjoy and take advantage of the current cheap flight rates are placing their bookings in advance. That means many are planning their travelling and holidays plans in advance to enjoy the discounted rates.