Dubai: Travco Group, an Egyptian travel and tour operator with a strong presence in the UAE, will launch a new budget carrier soon, the company said in a statement.
"It's going to be a joint venture with another UAE-based budget airline and we will soon announce its launch," Osama Bushra, Chief Operating Officer of Travco, told Gulf News.
"Both parties are working on the details and we hope to launch it later this year."
An airline will help Travco, which runs three hotel chains, a fleet of cruise vessels, ground handling and a massive tour operation, to offer complete travel and tourism solutions to travellers and tourists.
Depending on the launch timing, this could be the seventh low-cost airline in the region where the aviation sector is still growing amid the global downturn.
Air Arabia's CEO Adel Ali earlier said his company was negotiating with a regional partner to launch a third hub, after Sharjah and Morocco.
The Sharjah-based airline has recently launched a new airline in Morocco with two Moroccan partners, a move that will help the Middle East's first budget carrier to penetrate North Africa and West Europe.
Such a strategic move could help airlines such as Air Arabia gain a solid foothold in Europe and strengthen their grip on northern African markets.
When contacted, an Air Arabia spokesperson said, "We have not yet finalised a third hub yet. As soon as it's finalised, we will announce it.
"This depends on the regulatory and government approval as well as bilateral traffic rights. It's too early to comment as nothing has been finalised so far. However, our intention is to launch it in the Levant region."
The history of low-cost aviation in the Middle East started with the launch of Air Arabia in October 2003, followed by Jazeera Airways, Sama Airlines, Nasair and flyDubai.
The Middle East is the only region where civil aviation is growing this year amid the global recession which is expected to cost the industry $9 billion in losses, according to the International Air Transport Association (IATA).
Travco Group, owned by Egyptian tycoon Hamad Al Chiaty and his family, has assets of more than 1.25 billion euros and 18,000 people on its payroll.
In 2008 it posted consolidated revenues of 600 million euros.
Travco's portfolio of 43 hotels is operated by Travco's hospitality brands Jaz, Iberotel and Soly Mar in Egypt and the UAE where it operates the Miramar Al Aqah, Fujairah, a five-star resort with 321 rooms.
It has nine hotels in the pipeline, including two with investments of about $170 million.
Will this encourage you to travel to regional areas? Will this make other budget airlines decrease their fares?
