Troubled regional carrier Gulf Air has jumped onto the bandwagon for cheap, no-frill airlines by launching a subsidiary, Gulf Traveller. Gulf Traveller's inaugural flight between Abu Dhabi and Jeddah took place on Sunday.
The cost-cutting airline is aimed at the region's many South Asian workers, and will fly to Nepal, Pakistan, Bangladesh, India and Sri Lanka.
The airline is also seeking permission from the US to fly to Baghdad.
"Gulf Traveller is the shape of things to come," said Gulf Air chief executive James Hogan.
The budget airline is financed by its parent company, and is currently operating six Boeing 767-300 aircraft out of Abu Dhabi.
But Gulf Air, jointly owned by the states of Bahrain, Oman and Abu Dhabi, is plagued by debt and has continually needed bailing out since Qatar withdrew from the joint venture.
The airline is aiming to break even in 2004, after estimated losses of $111m in 2002.
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