Ras Al Khaimah: The RAK Airways was launched yesterday in Ras Al Khaimah with a total capital of Dh 1.5 billion of which Dh850 millions is paid-up capital.

According to Shaikh Salem Bin Sultan Al Qasimi, Chairman of Board of the emirate's Civil Aviation Department the first flight for the RAK Airways will reach its destination before the end of this year.

"The aim of setting up the RAK Airways is to put Ras Al Khaimah on the international civil aviation map and to develop the emirate's aviation and tourism sectors" he said.

Shaikh Salem said Shaikh Saud Bin Saqr Al Qasimi, Ras Al Khaimah Crown Prince and Deputy Ruler, has officially recommended setting up of the RAK Airways to His Highness Shaikh Saqr Bin Mohammad Al Qasimi, Member of the Supreme Council and Ruler of Ras Al Khaimah.

He added that Shaikh Saqr issued an Emiri Decree officially setting up the RAK Airways as a national airway with a paid up capital of Dh850 million.

Shaikh Salem said the UAE Cabinet has later issued its official approval for setting up the RAK Airways as a national carrier in its decision No. 328/4 for 2005.

He added that the Ras Al Khaimah Government gives the UAE nationals only the right to subscribe to the shares new airways by a private placement for a minimum of Dh400,000 per participant.

The RAK Airways proposes to raise an initial capital of Dh850 million through private placements, the subscription of which will start from today onwards.

The value of the shares has been fixed at Dh1 per share in addition to an expense allowance of 2 fills. The Ras Al Khaimah Government will have the biggest stake in the company.

Shaikh Salem said interested nationals can deposit their subscriptions at RAK Bank or the Commercial International Bank in which the RAK Airways has opened two accounts. "The private placement will be opened for two weeks starting from today to deposit their subscription after which the management of the new airway will announce dividing the shares" he said.

Massaad who is also the CEO of the Investment Authority said officials from the Ras Al Khaimah Government have already started negotiations with Airbus and Boeing to purchase the necessary aircraft for the new airline.

RAK Airways will purchase two aircraft on the spot and two new aircraft on monthly basis until the company owns a total of 20 planes, along with 2 to 3 aircraft in Sudan.