Air Arabia to launch Egyptian LCC

Air Arabia signed a joint venture agreement with Egyptian travel and hospitality conglomerate Travco Group to launch an Egypt-based low-cost carrier that will serve Europe, the Middle East and Africa.

The new base will be Air Arabia's third after Sharjah and Casablanca. It did not say where the new LCC will be based or give details on specific routes or a timeline for launch. The venture will have startup capital of $50 million with Air Arabia Group holding 40% stake, according to several press reports.

As with Air Arabia Moroc, a JV with Morocco's Regional Air Lines, the Egyptian carrier will be managed by Air Arabia Group and its operations "will follow the successful low-cost model pioneered in the Middle East and North Africa by Air Arabia," it said.

Chairman Abdullah bin Mohammed Al Thani said the carrier will "continue to move forward with our strategic expansion strategy" despite the industry downturn.

by Cathy Buyck

Originally published 11 Sep 2009 at: http://feeds.atwonline.com/~r/AtwDailyNews/~3/5yz_IisZ-Lo/story.html