Low cost carriers (LCC) have been able to build themselves a niche during the global economic downturn compared to traditional airlines based on findings of the Center for Asia Pacific Aviation (CAPA). “Stormy conditions in 2008 have already helped the low-cost segment gain a larger share of global aviation,” according to the CAPA report. “Now predicted tougher economic conditions and lower fuel prices will give the sector a major advantage in 2009.” Adel Ali, chief executive officer of Air Arabia, the region's first and largest LCC, said that the appeal for LCC's has greatly grown over the past year because the low cost business model is “uniquely attractive in these challenging economic times.” In the UAE, where Air Arabia is headquartered, a recent survey of business and leisure travellers also points to significant opportunities for LCCs like Air Arabia. According to the survey, which was carried out by YouGovSiraj, the number of UAE-based leisure travellers who said they will shift from premium to economy increased by seven per cent between October 2008 and January 2009. During the same period, the number of UAE-based business travellers who said they expected to fly economy increased by 12 percent. __
