The Middle East’s world’s largest listed airline by market value said on Wednesday it had set up the joint venture firm with Egypt’s Travco Group, driving shares 4 percent higher on the news. “The new carrier will serve Europe, Middle East and African markets and will represent Air Arabia’s third hub after UAE and Morocco,” Air Arabia said in a statement.
The airline is facing growing competition from local rivals including Kuwait’s Jazeera Airways (JAZK.KW) and Dubai-owned flydubai, as well as from fully-fledged carriers such as Emirates [EMAIR.UL], struggling to cope with a sharp drop in international passenger travel.
