Sharjah-based Air Arabia, the largest Middle East budget carrier, announced on Wednesday a joint venture with a hospitality group, Travco Group, to launch an Egypt-based low-cost carrier.
The new airline will serve Europe, Middle East and Africa, said Air Arabia in a statement, making Egypt its third hub after the May launch of a hub in Casablanca, Morocco, that serves 11 destinations across Europe and North Africa. The statement did not name the new carrier.
"At a time when the global aviation industry is witnessing serious challenges as a consequence of the worldwide financial crisis, we continue to move forward with our strategic expansion strategy," said Air Arabia's chairman, Sheikh Abdullah bin Mohammed al-Thani.
Air Arabia was the first no-frills carrier to be launched in the Middle East in October 2003. Despite a slowing global travel market, Air Arabia's net profits for the first half of this year increased some 21 percent to 52.6 million dollars compared to the same period of 2008. Air Arabia operates a fleet of 20 new Airbus A320 aircraft and serves 57 destinations from its hubs in the United Arab Emirates and Morocco.