Dubai launches budget airline

The Gulf emirate of Dubai announced on Monday the launch of its first budget airline called flydubai, despite the global financial crisis.

Flydubai will start with flights to the Lebanese capital of Beirut on June 1 and to Jordan's capital Amman on June 2, chairman Sheikh Ahmed bin Saeed al-Maktoum told reporters.

Flydubai will operate two next-generation Boeing 737-800 aircraft on both routes, he said.

Dubai first announced the establishment of flydubai in March 2008, with a start-up capital of 250 million dirhams (67 million dollars).

The emirate owns the largest Middle East carrier, Emirates, and has the busiest airport in the region which handled more than 37 million passengers in 2008.