(MENAFN- Khaleej Times) Air Arabia has bought a 49 per cent stake in Jordan's Petra Airlines to create a regional hub for the Levant from the Jordanian capital of Amman, it was announced on Monday.
The value of transaction of the deal wasn't disclosed. Petra Airlines' principle shareholder RUM Group will maintain a 51 per cent share in Air Arabia Jordan.
Petra Airlines will be rebranded as Air Arabia Jordan and the low-cost carrier will begin operations at Amman's Queen Alia International Airport within three months.
Amman will become the Sharjah-based airline's fifth hub in the Arab world. Last year, the low-cost carrier began operating from Ras Al Khaimah following the closure of RAK Airways and it also runs hubs in Casablanca in Morocco and Alexandria in Egypt.
It's interesting that Air Arabia has opted to take a 49 per cent stake to set up and rebrand Petra as Air Arabia Jordan, according to a senior aviation analyst.
"Air Arabia Jordan provides a good competitor to Royal Jordanian in the absence of any real low-cost airline in the country," Saj Ahmad, chief analyst at London-based StrategicAero Research, told Khaleej Times.
'Air Arabia Jordan' will provide direct service to a range of destinations across the Europe, Middle East and North Africa region from Queen Alia International Airport.
Two Airbus A320 aircraft will initially be based at Amman Queen Alia International Airport and the fleet will grow as the business demands. Launch routes will be announced in the coming weeks.
"Partnering with an established airline like Petra Airlines provides this agreement with an advantageous position in terms of operational and commercial support, which will enable Air Arabia Jordan to reach its full potential in a shorter time span," said Shaikh Abdullah bin Mohammad Al Thani, chairman of Air Arabia.
"The establishment of a new hub in Jordan extends Air Arabia's operational footprint into the heart of the Levant and brings us a step closer to achieving our stated goal of connecting the entire Arab world," Al Thani added.
Riad Khashman, chairman of RUM Group and Petra Airlines, said: "Our partnership with Air Arabia represents an important next phase in the progression of Petra Airlines and will be the catalyst for a new era of growth for the low cost aviation sector in Jordan and the wider Levant region."
Air Arabia, listed on the Dubai Financial Market, launched service from Sharjah in October 2003. Today, the carrier provides service to 100 destinations, spanning Europe, the Middle East, Africa and Asia, from its four existing hubs in the UAE, Egypt and Morocco.
Petra Airlines is founded in Jordan in 2005 by RUM Group, Jordan's leading travel and transport group - listed on the Amman Stock Exchange.
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