Emirates, the largest Middle Eastern airline, will manage a low-cost carrier to be established by Dubai’s government in a bid to tap soaring demand for travel in the Gulf region. The new budget airline, to be based in Dubai and operating to destinations up to 4.5 hours flying time, will compete with carriers including Kuwait based Jazeera Airways KSC and Air Arabia PJSC, a low cost airline in the neighboring emirate of Sharjah, to attract budget travellers from the Arab world and the Indiansubcontinent.