DUBAI, 19 March 2008 — Sheikh Mohammed ibn Rashid Al-Maktoum, vice president and prime minister of the UAE and ruler of Dubai, has ordered a new low-cost airline to serve the growing number of passengers traveling through Dubai, state news agency WAM said yesterday.

The new airline will be an integral part of the Emirates group and Emirates airline will run it. The carrier, that plans to lease or buy single-aisle aircraft and will begin operations within a year, will fly to destinations between four to four-and-a-half-hours away from Dubai.

The new airline, to be based in Dubai, will compete with Air Arabia, a low-cost airline from the neighboring Sharjah, to attract budget travelers from the Arab world and the Indian subcontinent, sources said.

According to a statement, Emirates Commercial Operations Director Ghaith Al-Ghaith will be the CEO of the new airline.

“Sheikh Mohammed envisages the new aviation company as a bridge for love and interaction between the UAE and other sisterly and friendly countries,” WAM said. The airline’s fares will take into consideration the economic and financial conditions of its passengers and will accommodate their incomes.