Very interesting. I always figured that at some point, with the overcapacity, there will be some sort of industry consolidation here in the region, as we are starting to see in India.
I just didn't think that with the government largess that is so obvious in most of the Gulf states, as well as the relative infancy of privately funded LCC's, that it would happen so early.
It brings about an question though. Outside of the UAE, to what extend can a private airline like Air Arabia take over a foreign company? For example, if Air Arabia were to try to take of Jazeera Airways in Kuwait or Sama in Saudi Arabia, would foreign ownership laws allow them to take 100% ownership of the carrier or would they be limited to 66% or 49%?
As far as taking over a "full-service airline," the only ones that I aware of are Government-owned at this time. Perhaps with Gulf Air going to be the first one to be privatised and made public, it would be a potential target of a take-over bid (friendly or hostile) by another private entity, however, we return then to the other question of what the extend of foreign ownership (and control) can be.
So it may be that that are interested in buying, but unless Emirates, Etihad, or RAK Airways is available for the taking, there might be nothing for them to buy.