Gulf's skies are set to be busier as a new Abu Dhabi-based low-cost airline has been planned which would be the third budget airline of Emirates. The move is aimed to tap the huge potential of the low cost segment of the market in tandem with the growth of Gulf's premium airlines.

David J Bentley, Joint Managing Director of Big Pond Aviation added, "The Middle East is still playing 'catch up' with the rest of the world as far as LCCs (Low Cost Carriers) go."

Bentley, however, said that that there would be stiff competition on inter-regional routes among low costs carriers such as Air Arabian, Kuwaiti Jazeera Airways and Saudi Arabian Sama Airlines which have been introduced just few years back.

Aviation Expert Christian Lambertus, however, warned against rise in oil prices in future in line with upward trends in the economy which would make a challenging environment to bear cost pressure by low cost carriers.

Meanwhile, Gulf based premium airlines such as Etihad from Abu Dhabi, Dubai based Emirates and Qatar Airways have set new standards of growth for becoming market leaders in last 10-15 years.