x Abu Dhabi, UAEMonday 24 July 2017

Air Arabia to launch Alexandria hub in new year

The carrier, the Arab world's largest listed airline by market value, announced last month that it was launching a new budget airline.

AL AIN // The Alexandria, Egypt, hub of budget carrier Air Arabia should start operations in the first quarter of 2010, its chief executive said on Monday. The carrier, the Arab world's largest listed airline by market value, announced last month that it was launching a new budget airline in a joint venture with Egypt's Travco Group and establishing a third hub in Alexandria. "We are hoping to start operations in the first quarter of 2010," Air Arabia chief executive Adel Ali told reporters at a conference in Al Ain on Monday. The International Air Transport Association (IATA) trade group said last month that the outlook for global airlines this year had worsened, projecting US$11 billion (Dh40bn) in losses amid weak passenger and cargo demand. "Generally there is at least 18 per cent yield dilution in the Middle East because capacity is more than demand because of the recession," Ali said, adding that globally yield dilution was 12 per cent. Ali added he expected Air Arabia's passenger load factor ? a measure of how successful airlines are in filling seats ? would stand at 80 per cent by year-end. "We have taken an approach ....to make sure our growth is not aggressive. The market is not short of aircraft."

*Reuters