Airlines competing in what could be $200b Islamic travel market

Rayani Air had its maiden flight on Dec. 20, becoming the fourth carrier to follow Islamic tenets after Saudi Arabian Airlines, Royal Brunei Airlines and Iran Air. The airline, which doesn’t serve alcohol, offers halal food and requires Muslim female cabin crew to cover their heads, services five domestic destinations and has plans to fly overseas by 2017, said MD Jaafar Zamhari. It may seek loans or bring other investors on board and would eventually like to list on the stock exchange, he said. The company will compete for a portion of a Muslim $145b travel market that could expand to $200b by 2020, according to Singapore-based travel consultancy CrescentRating. That provides opportunities for financiers, with Saudi Arabian Airlines considering an IPO, while carriers including Emirates and Garuda have sold $12b of sukuk since 2008. “Muslim travelers are indeed looking for services and experiences which take their needs into account,” said Fazal Bahardeen, CEO at CrescentRating in Singapore. “There’s definitely growth potential for airlines” that prohibit alcohol, have halal food and provide prayer facilities, he said.<br/>