DUBAI- The Armenian National Interests Fund and Middle East budget carrier Air Arabia said on Wednesday they planned to launch a new budget airline with Armenian capital Yerevan as its base.
The new carrier will operate as a joint venture between the pair, they said in a statement, adopting the low-cost model operated by Air Arabia.
"We see tremendous potential for Armenia in building its airline sector, which will add sustained value to the economy through job creation and the development of travel and tourism sector," Air Arabia's group chief executive, Adel Al Ali, was quoted as saying.
Air Arabia operates five hubs in Sharjah, Abu Dhabi, Ras Al Khaimah, Egypt and Morocco, and its shares are listed on the Dubai Financial Market.
Air Arabia has been pushing ahead to expand in the wake of the coronavirus outbreak last year as low cost carriers bet on a post-pandemic surge in travel.
Its joint venture with Abu Dhabi state-owned Etihad Airways, Air Arabia Abu Dhabi, began operations last year and has since expanded its network to 15 destinations to meet growing demand for budget travel from the capital.
(Reporting by Hadeel Al Sayegh; Editing by Kirsten Donovan and Steve Orlofsky) ((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))