Air Arabia in talks on order for 34 planes
DUBAI: Air Arabia, a United Arab Emirates-based low-cost carrier planning an initial public offering, aims to order 34 short-haul aircraft worth $1.7 billion to $2.38 billion, its chief executive said on Tuesday.
The three-year-old carrier, which is owned by the government of the emirate of Sharjah, is in early talks with plane-makers Airbus and Boeing Co about buying their respective A320 and 737 aircraft models as it seeks almost to quadruple its fleet, CEO Adel Ali told Reuters by telephone.
The carrier, which made a profit of $8 million in 2005 and flies to 32 destinations in the Middle East and south and central Asia, operates a fleet of nine leased A320s.
ââ¬ÅNow is the time in our business to move to the next stage, expand and add assets,ââ¬Â Ali said, adding he expected 2006 profit to exceed $8 million.
Gulf Arab economies are surging on oil prices that hit a record high last year, boosting demand for leisure and business travel.
About a quarter of the oil-producing countriesââ¬â¢ combined 35 million population consists of expatriates from nations such as India, Pakistan and the Philippines, who travel to their home countries.
Air Arabiaââ¬â¢s IPO planned for March will be the first by a Gulf Arab airline. Sharjah, a neighbour of Dubai, is the third-largest member of the UAE federation.
The airline carried 1.7 million passengers last year, 54 per cent more than in 2005, Ali said. It expects to carry 2.2 million this year as it boosts frequency to existing routes and add new ones, Ali said.
The carrier is seeking more flying rights in the Middle East, Kazakhstan and South Asia, including to Riyadh, Jeddah and the Qatari capital, Doha, Ali said.
The airline will probably decide before July which aircraft type to buy and then make the order, Ali said, declining to be more specific.
The planes, priced at between $50 million and $70 million each, will also go towards replacing the leased aircraft, he said.
The carrier will sell new shares equivalent to 55 per cent of its capital in the IPO and list the stock either in the Dubai Financial Market or the Abu Dhabi Securities Market, Ali said.
http://www.thenews.com.pk/daily_detail.asp?id=40089
DUBAI: Air Arabia, a United Arab Emirates-based low-cost carrier planning an initial public offering, aims to order 34 short-haul aircraft worth $1.7 billion to $2.38 billion, its chief executive said on Tuesday.
The three-year-old carrier, which is owned by the government of the emirate of Sharjah, is in early talks with plane-makers Airbus and Boeing Co about buying their respective A320 and 737 aircraft models as it seeks almost to quadruple its fleet, CEO Adel Ali told Reuters by telephone.
The carrier, which made a profit of $8 million in 2005 and flies to 32 destinations in the Middle East and south and central Asia, operates a fleet of nine leased A320s.
ââ¬ÅNow is the time in our business to move to the next stage, expand and add assets,ââ¬Â Ali said, adding he expected 2006 profit to exceed $8 million.
Gulf Arab economies are surging on oil prices that hit a record high last year, boosting demand for leisure and business travel.
About a quarter of the oil-producing countriesââ¬â¢ combined 35 million population consists of expatriates from nations such as India, Pakistan and the Philippines, who travel to their home countries.
Air Arabiaââ¬â¢s IPO planned for March will be the first by a Gulf Arab airline. Sharjah, a neighbour of Dubai, is the third-largest member of the UAE federation.
The airline carried 1.7 million passengers last year, 54 per cent more than in 2005, Ali said. It expects to carry 2.2 million this year as it boosts frequency to existing routes and add new ones, Ali said.
The carrier is seeking more flying rights in the Middle East, Kazakhstan and South Asia, including to Riyadh, Jeddah and the Qatari capital, Doha, Ali said.
The airline will probably decide before July which aircraft type to buy and then make the order, Ali said, declining to be more specific.
The planes, priced at between $50 million and $70 million each, will also go towards replacing the leased aircraft, he said.
The carrier will sell new shares equivalent to 55 per cent of its capital in the IPO and list the stock either in the Dubai Financial Market or the Abu Dhabi Securities Market, Ali said.
http://www.thenews.com.pk/daily_detail.asp?id=40089
