Air Arabia, the first and largest low-cost carrier (LCC) in the Middle East and North Africa, and the Travco Group, the Middle East’s largest travel and hospitality group, announced today the signing of a joint venture agreement to launch a new low-cost carrier based in Egypt.

The new carrier will serve the Europe, Middle East and Africa (EMEA) markets, and will represent Air Arabia’s third hub after the UAE and Morocco.

Building upon Air Arabia’s existing service to 57 destinations across Europe, the Middle East, Africa and Asia, the new airline will contribute to the ongoing development of the Egyptian travel and tourism sector as well as offer a larger base of customers the best value-for-money air travel options.

“The enormous commercial success of Air Arabia in the six years since the carrier was launched makes clear the strength of its business model, which we are confident will allow Air Arabia ‘Egypt’ to reach new heights,” said Hamed El Chiaty, Chairman and CEO of the Travco Group. “As the country’s most qualified tourism and hospitality group, the Travco Group will provide its own keen insights into the European and Egyptian markets as well as the wider region.”

“On behalf of the Air Arabia Group, I am delighted to announce this new partnership with the Travco Group, which will expand Air Arabia services in Egypt and across the wider Europe, Middle East and Africa region,” said Sheikh Abdullah Bin Mohammed Al Thani, Chairman of Air Arabia. “At a time when the global aviation industry is witnessing serious challenges as a consequence of the worldwide financial crisis, we continue to move forward with our strategic expansion strategy, as demonstrated by this important announcement. Through this new partnership, we look forward to replicating the success Air Arabia has already achieved from its existing hubs”

The new carrier, whose operations will be managed by the Air Arabia Group, will follow the successful low-cost model pioneered in the Middle East and North Africa by Air Arabia. Further information regarding the new joint venture will be communicated in the near future.

Air Arabia, which currently operates a total fleet of 20 new Airbus A320 aircraft, launched service from Sharjah, UAE, in October 2003. In May this year, the airline launched its second hub at Mohammed V International Airport in Casablanca, currently providing service to 11 destinations across Europe and North Africa. The airline has a confirmed order with Airbus for the purchase of 44 A320 aircraft.

The Travco Group, a leading travel and hospitality group, employs over 24,000 professionals, generating over €1 billion in revenues. The Travco Group operates an extensive collection of 146 hotels, resorts and cruises in Europe, Egypt and the Middle East, including the management of the prestigious 81 Steigenberger and InterCity hotels; two mega-real estate developments on Egypt’s North Coast and the Red Sea; a large fleet of 1,200 tourist transport vehicles; and a full range of aviation services, including the nationwide presence of ticketing offices and aircraft ground handling services.

The Travco Group operates through its head office in Egypt in coordination with its international network of offices in the UAE, Oman, Qatar, Syria and representative offices in the UK and Germany, with further expansion fully underway.