By Rory Jones
DUBAI--Low-cost carrier Air Arabia said it has bought a 49%
stake in Jordan's Petra Airlines to create a regional hub for the
Levant from the Jordanian capital of Amman.
Petra Airlines will be rebranded Air Arabia Jordan and the
low-cost carrier will begin operations at Amman's Queen Alia
International Airport in the first quarter, according to a
statement posted on the Dubai Financial Market.
The Jordanian capital will become the Sharjah-based carrier's
fifth hub in the Middle East and North Africa. Last year, Air
Arabia began operating from the emirate of Ras Al Khaimah following
the closure of RAK Airways and it also runs hubs in Casablanca in
Morocco and Alexandria in Egypt.
Petra's principle shareholder RUM Group will maintain a 51%
stake in Air Arabia Jordan, the statement said. A transaction
amount for the deal wasn't revealed.
Two Airbus A320 aircraft will initially be based at Queen Alia
International Airport to support the new operation and the fleet in
Jordan will grow "as the business demands," the statement said.
Air Arabia is currently evaluating the purchase of a new batch
of aircraft as the airline will receive the last of its current
order for 44 A320 single-aisle jets toward the end of 2016.
Air Arabia will consider buying new narrow-body aircraft from
Boeing Co., the world's largest plane maker, Canada's Bombardier
Inc., and incumbent Airbus, the airline's Chief Executive Adel
Abdullah Ali said in an interview in November. The fleet decision
could come in the first half of 2015, he added.
Write to Rory Jones at rory.jones@wsj.com
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