CAIRO: Air Arabia, a low-cost carrier based in the United Arab Emirates, and Egypt’s Travco Group entered into a joint venture to launch a new budget airline.
The Egyptian carrier will be Air Arabia’s third hub – after the UAE and Morocco – serving Europe, the Middle East and Africa, the airline said in a statement.
Operations of the low-cost carrier will be managed by the Air Arabia Group.
The Arab world s largest listed airline by market value already flies to 57 destinations.
Air Arabia, said in August it planned to set up a new hub between its base at Sharjah, United Arab Emirates and North Africa to diversify its revenues and boost its catchment area, Reuters reported.
Egyptian tourist company Travco recently acquired Germany s Steigenberger Hotels as part of efforts to expand its international operations.
The company operates 146 hotels, resorts and cruises in Europe, Egypt and the Middle East, including the management of 81 Steigenberger and InterCity hotels.
Generating over ?1 billion in revenues, Travco has two real estate developments on Egypt’s North Coast and the Red Sea.
Air Arabia, which first launched in 2003, operates a fleet of 20 Airbus A320 aircraft and recently ordered 44 more.
The airline is facing growing competition from local rivals including Kuwait s Jazeera Airways and Dubai-owned flydubai, as well as from fully-fledged carriers such as Emirates, struggling to cope with a sharp drop in international passenger travel, Reuters reported. -Daily News Egypt
