Air Arabia

The UAE-based Air Arabia provides low-cost air transportation services for passengers and cargo. The company is also involved in aviation training, aviation IT equipment and tour operation.

Air Arabia began an expansion plan, in 2009, to establish several new hubs across the MENA region, through joint ventures, such as the formation of Air Arabia MarocAir Arabia Maroc with Regional Air Lines of Morocco, which launched in May; and the formation of Air Arabia Egypt with Travco GroupTravco Group, in September 2009. The expansion was complemented with a 31% increase in fleet size and a 34% increase in destinations.

Three of Air Arabia’s subsidiaries grew their revenues in 2009: the Sharjah Aviation Services CompanySharjah Aviation Services Company, in charge of the airline’s inspection services, cargo and passenger handling, grew its annual revenues by 26.83% to AED82 million (USD22.3 million); Alpha Flight ServicesAlpha Flight Services, which provides catering to the airline and other companies, earned AED27 million (USD7.3 million), an annual increase of 7.4%; and finally, the Sharjah Airport Travel Agency, earned AED11 million (USD3 million), an annual increase of 45.45%.

Air Arabia joined forces with RotanaRotana to establish Air Arabia Centro Hotel in Sharjah, a 306-room hotel, which is expected to begin operations in mid-2010.

Air Arabia underwent an IPO on March18, 2007 offering 55% of its shares, worth AED2.61 billion (USD713 million). The airline listed its shares on the Dubai Financial Market in July 2007 and became the third publicly listed airline in the MENA region, after Karthago AirlinesKarthago Airlines and TunisairTunisair.

Air Arabia plans to increase its fleet to over 50 aircrafts by 2015 and to establish additional hubs to link the Arab region to Africa and Europe.