Business | Aviation
Air Arabia seals deal to launch budget carrier
Air Arabia Wednesday said it has signed a 40:60 joint venture with Egyptian travel and tour operator Travco Group to launch a low-cost airline in Egypt.
- By Saifur Rahman, Business Editor
- Published: 23:49 September 9, 2009
- Image Credit: Supplied picture
- With the launch of the new hub in Egypt Air Arabia will be able to operate flights to major European cities and spread its wings further in the Arab world.
Dubai: Air Arabia Wednesday said it has signed a 40:60 joint venture with Egyptian travel and tour operator Travco Group to launch a low-cost airline in Egypt that will help the Sharjah-based budget carrier to compete in the European budget aviation market dominated by Ryanair and Easyjet.
Gulf News last week reported Travco was finalising the deal with a UAE-based budget airline.
This is the airline's third hub after Sharjah and Morocco, where it operates a subsidiary with a joint venture.
Air Arabia Egypt will be launched with a start-up capital of $50 million (Dh183.5 million) and Air Arabia will deploy a fleet as soon as the company starts operating commercially, which could take a few months. The airline has 20 aircraft on the fleet with 44 on order.
"With the joint venture, Air Arabia now becomes a true Pan-Arab airline covering the entire Arab world and stretched its operations from Morocco to South Asia," Adel Ali, Board member and chief executive of Air Arabia, said.
He added that, after strengthening the Middle Eastern network, his airline will begin serving the European market in a bigger way.
"I do not see Europe as a battleground. But definitely there are lots of opportunities that we want to tap," he said.
Will this move boost the aviation industry? Would you take a low budget airline to travel long distances?
Your comments
flights from the UK to Tangier were a real first with Easyjet and Ryan air avoiding many direct flights to Morocco, well done Airarabia
Richard Chapman
Leicester,UK
Posted: September 10, 2009, 12:58
We already travelled with Air Arabia a number of times to Bangladesh. The best about Air Arabia is cheap ticket ensured with full safety and no delay in flights. So I think definitely there is a possibility for a boost in the aviation industry.
Shamida Yousuf
Abu Dhabi,UAE
Posted: September 10, 2009, 10:18
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