28-Oct-2010 4:08 PM
Air Arabia CEO expects carrier to grow by 7-8%; Lonrho shares fall by 3.2%
Analysis
Air Arabia (-1%) CEO Adel Ali stated he expects the airline to grow by 7% to 8% in the UAE over the next two years, and growth of 30% at its new hubs in Egypt and Morocco. Mr Ali stated the airline's aim to operate multiple hubs is to connect the Middle East region in one service, through one airline.
- Fleet: The LCC plans to take delivery of seven new aircraft by the end of 2011, with "three or four" to be based in Morocco. Mr Ali stated the has no plans to order further aircraft on top of its order for 44 A320s.
- New base: Air Arabia will launch operations from Alexandria a few weeks after the opening of the new terminal at Borg El Arab Airport. The carrier is in talks to operate to African destinations, but has so far been unsuccessful overcoming "traffic rights and aero-political" issues.
- Sharjah Airport: Mr Ali also stated the airline is "very happy" operating from Sharjah Airport, stating it is "the true airport for a low-cost business model".
Meanwhile, Lonrho's shares gained by 3.2% on Wednesday (28-Oct-2010) while 1time (-1.1%) shares dropped.
Selected African and Middle Eastern airlines share price movements: (% change) 27-Oct-2010
