Air Arabia in JV for Egypt-based LCC
10 Sep 2009
Saudi low cost carrier, Air Arabia, has signed a joint venture agreement with Egyptian travel and hospitality conglomerate, the Travco Group, to launch an Egypt-based low-cost carrier that will serve destinations in Europe, the Middle East and Africa.
The carrier did not say where the new LCC will be based or provide details on specific routes or a timeline for launch. The new Egyptian base of operations will be Air Arabia's third after Sharjah and Casablanca.
The carrier said the operations of the new carrier "will follow the successful low-cost model pioneered in the Middle East and North Africa by Air Arabia."
The venture will have start-up capital of $50 million with Air Arabia Group holding 40% stake, according to reports in the media.
As with Air Arabia Moroc, a JV with Morocco's Regional Air Lines, the Egyptian carrier will be managed by Air Arabia Group.
Chairman Abdullah bin Mohammed Al Thani said the carrier will "continue to move forward with our strategic expansion strategy" despite the industry downturn.