Egypt's Nile Air will kick-start operations with nine Airbus A321 aircraft in the first quarter of 2008, said chairman of the Al Tayyar Travel Group, the owner of the airline.
The Saudi Arabia-based Al Tayyar Travel Group yesterday signed a memorandum of understanding with Airbus for nine aircraft at a total value of $792 million (Dh2.9bn) at list prices.
Dr Nasser Al Tayyar said: "We will be signing a firm agreement with Airbus for these aircraft before the end of this month.
"Of the nine planes, three will be leased while we will purchase the rest. We are still talking to various aircraft leasing companies on this.
"In future, however, the airline will purchase a majority of its fleet and lease the rest." The Cairo-based airline with a start-up capital of $25m (Dh91.78m) will start flying between Egypt and the Saudi cities of Riyadh, Jeddah, Madina and Dammam. It will later expand routes to Dubai, Kuwait, Doha and Bahrain, with passenger, freight and airmail services.
"We are looking to start Dubai operations six months after we launch operations," said Al Tayyar.
He plans to launch an initial public offering next year for a 30 per cent stake to fund the airline's expansion.
Al Tayyar said the company would list its shares in Cairo at first and then consider listings on other exchanges in the region, including Dubai.
"We are looking for strategic investors at the moment.
And if things go well, we will look at Dubai bourses also in the future," Al Tayyar told Emirates Today.
By Shweta Jain
© Emirates Today 2007
