Eight Arab carriers will launch the region's first airline alliance in December to improve services and raise profits in an increasingly competitive industry, the Arab Air Carriers Organisation said on October 12.
"This is the first alliance of its kind among Arab carriers. We have reached a deal which will be signed during a meeting in Cairo on December 17-18," said Manal Diab, acting head of administration at the Beirut-based AACO.
"It is good for the airlines to be part of such an alliance. This way they have a better negotiating stance when dealing with other international alliances or airport service providers for example."
Arab carriers are facing stiff competition with international airlines and alliances such as One World or Star Alliance and another challenge posed by soaring oil prices, especially for non-producing countries like Jordan and Lebanon.
The new alliance among the state-owned airlines, dubbed Arabesk, includes Egypt Air, Gulf Air, Lebanon's Middle East Airlines, Oman Air, Yemen Air, Tunis Air, Royal Jordanian Airlines, and Saudi Arabian Airlines.
The eight airlines are members of the AACO, which was established in 1965 within the framework of the Arab League.
The AACO said it expects the alliance to increase regional flight activity and consolidate the airlines' market share. It is also expected to cut costs by rationalising routes.
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