DUBAI: The Dubai government is holding talks with both Airbus and Boeing to buy aircraft for its proposed budget airline. Emirates airline is involved in setting up the new company.

"We are talking to both Airbus and Boeing to decide on what type of aircraft we are going to have and what will be available in one year's time from now," the Gulf News quoted Shaikh Ahmad Bin Saeed Al Maktoum, president of Dubai Civil Aviation Authority and chairman and chief executive of Emirates Group, as saying.

The budget carrier is expected to start operations within one year and will serve destinations within four and half hours of flying distance from Dubai.

Airbus Middle East president Habib Fekih told the newspaper that the new airline could buy between 50 to 70 aircraft in the next five years.

"That is my expectation," he said.