Monday, May 20, 2013
DUBAI (Zawya Dow Jones)--Air Arabia, the low-cost carrier based in the United Arab Emirates, has signed a $350 million financing agreement to help buy 10 new aircraft from Airbus.
The deal, signed with Qatar National Bank and Commercial Bank International, will support the purchase of 10 A320 planes, part of the carrier's order for 44 A320s signed in 2007 and due for final delivery in 2015.
Adel Ali, chief executive at Air Arabia, told Zawya Dow Jones earlier this month that the carrier is in talks with both Boeing Co. and Airbus to place a new bulk order for aircraft as the low-cost carrier reviews its five-year strategy. He didn't disclose the number of planes the airline was considering, but said it was in talks on the Airbus A320neo and the Boeing 737 MAX.
Air Arabia, which has hubs in Sharjah, Alexandria and Casablanca, said net income amounted to 59 million U.A.E. dirhams ($16 million) in the three months ending March 31., up from AED49 million in the year ago quarter.
Air Arabia shares closed trading Monday down 1.8% at AED1.12.
Write to Rory Jones at rory.jones@dowjones.com
Copyright (c) 2013 Dow Jones & Co.
(END) Dow Jones Newswires
20-05-13 1314GMT
