Dubai/New Delhi: Air Arabia PJSC said it’s considering a deal with India’s FlyEasy, suggesting the Gulf discount specialist may become the latest Middle Eastern operator to invest in one of the world’s fastest-growing aviation markets.
“A new opportunity has arisen with FlyEasy in India, which we are currently reviewing and evaluating,” Air Arabia said in an emailed statement to Bloomberg. FlyEasy, which is awaiting regulatory approval to start flying, didn’t respond to messages seeking comment.
Air Arabia, the only listed carrier in the UAE, said it’s attracted by the growth of Indian aviation and will disclose any updates in due course. An investment would be the second in India by a Gulf operator after Etihad Airways PJSC bought 24 per cent of Jet Airways India Ltd. Singapore Airlines Ltd and Malaysia’s AirAsia Bhd have also started local ventures.
“We believe in the potential that the Indian aviation market represents and we will continue to evaluate opportunities that can positively contribute to the Indian aviation sector, as well as Air Arabia’s customers and shareholders,” Air Arabia said.
Provincial taxes
Air travel in India is expanding as a fast-growing middle-class increasingly shifts to planes from trains and long-distance buses. Turning a profit is still a struggle as provincial taxes make jet fuel the most expensive in the region and below-cost fares mean most carriers lose money.
Air Arabia in January bought a 49 per cent stake in Jordan’s Petra Airlines, making the capital Amman a fifth hub after its home base of Sharjah, Ras Al Khaimah in the UAE, Alexandria in Egypt and Casablanca in Morocco. It’s also mulling an aircraft order before 2017.
