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Dubai’s ruler has ordered the establishment of a budget carrier for the emirate to meet demands of increased passenger traffic to the United Arab Emirates. Sheikh Mohammed bin Rashid Al Maktoum says the airline will be aimed at lower-income passengers. It will be part of the Emirates Group whose main carrier, Emirates, is based at Dubai International Airport. Al Maktoum’s order states that the carrier will “enjoy the same privileges” under the group.

He has named Ghaith Saeed Al Ghaith as the new carrier’s chief executive. The airline’s name has yet to be isclosed.Creation of a new budget operator could place pressure on Sharjah-based Air Arabia – the UAE’s first low-fare carrier – as well as Jazeera Airways, which has operations out of Dubai. Al Maktoum’s decision follows the introduction of UAE scheduled charter services by Saudi Arabian budget carriers NAS Air and Sama.