Management and ownership
Air Arabia launched in October 2003 and was the second low-cost carrier in the Middle East.[8] The company reported more than AED 19 billion in Q4 2019.[12] The airline broke even in its first year of operation.[9] Air Arabia consists of a group of airlines and companies offering travel and tourism services across the Middle East and North Africa.[7]
As of March 2014, Annual General Meeting, the board members consisted of the following members:[13]
Headquarters
The headquarters is in the Sharjah airport Freight Center,[14] on the property of Sharjah International Airport. The airport is 15 km away from central Dubai.[15]
Subsidiaries
Abu Dhabi
Air Arabia Abu Dhabi (2020–present). The airline was launched on 14 July 2020 after the signing of an agreement between Etihad Aviation Group and Air Arabia.[16] Air Arabia Abu Dhabi will support the network of destinations and services provided by Etihad Airways, and in turn will meet the needs of the low-cost and growing travel sector in the region.[17]
Armenia
Fly Arna (2021–2024). In September 2021, Air Arabia announced a joint venture with the Armenian National Interests Fund (ANIF) to launch a new national airline called Fly Arna. Fly Arna operated as a low-cost passenger airline with Yerevan’s Zvartnots International Airport (EVN) as its base.[18] It ceased operations in 2024.
Abu Dhabi
Air Arabia Abu Dhabi (2020–present). The airline was launched on 14 July 2020 after the signing of an agreement between Etihad Aviation Group and Air Arabia.[16] Air Arabia Abu Dhabi will support the network of destinations and services provided by Etihad Airways, and in turn will meet the needs of the low-cost and growing travel sector in the region.[17]
Armenia
Fly Arna (2021–2024). In September 2021, Air Arabia announced a joint venture with the Armenian National Interests Fund (ANIF) to launch a new national airline called Fly Arna. Fly Arna operated as a low-cost passenger airline with Yerevan’s Zvartnots International Airport (EVN) as its base.[18] It ceased operations in 2024.
Egypt
Air Arabia Egypt (2010–present). On 9 September 2009, Air Arabia announced Air Arabia Egypt as a joint venture with Egyptian travel and tourism company Travco Group to be based in Alexandria, Egypt.[19]
Jordan
Air Arabia Jordan (2015–2018). In January 2015, Air Arabia announced the acquisition of a 49% stake in Petra Airlines.[20] The principal shareholder of Petra Airlines, the RUM Group, retains a 51% stake in the airline, which will be rebranded as Air Arabia Jordan in early 2015.[20] The first flights of the new airline took place during the week commencing 18 May 2015, with launch destinations being Kuwait, Sharm El Sheikh, Erbil, and Jeddah.[21] Air Arabia Jordan ended operations in 2018.[22]
Morocco
Air Arabia Maroc (2009–present). Air Arabia, in a joint venture with Moroccan investors, established Air Arabia Maroc and set up a secondary base in Morocco's largest city, Casablanca.[23] It began operations in May 2009, allowing Air Arabia to expand into Europe and Africa.[23][24]
Nepal
Fly Yeti (2007–2008). In 2007, Air Arabia opened a base in Nepal's capital Kathmandu to serve Asia and the Middle East, after signing a joint venture agreement with Yeti Airlines.[25] It established a low-cost carrier, Fly Yeti that provided service to international destinations.[25]
Pakistan
Fly Jinnah (2021–present). In September 2021, Air Arabia announced a joint venture with Pakistani conglomerate Lakson Group to launch a low cost airline called Fly Jinnah. This will be a budget carrier serving domestic and international routes from Pakistan.[26]
Service concept
Air Arabia does not provide free catering, but passengers can purchase catering onboard or in advance.[27] The airline does not, however, serve alcoholic beverages on its flights.[28]
Business trends
The key trends for Air Arabia over recent years are shown below (as at year ending 31 December):[29]
In June 2019, Air Arabia disclosed that it had an exposure of $336 million to Abraaj through funds and short-term loans. It had sued Abraaj founder Arif Naqvi in Sharjah Courts.[45][46] The airline took a AED 1.1 billion hit on their books in 2018 due to their exposure to Abraaj.[47]
As the pandemic hit airline services, Air Arabia reported a net loss of AED192 million ($56.2 million) in 2020. Also, the turnover for Q4 of 2020 was 53% below Q4 of 2019.[48] The airline’s net profits in Q1 of 2021 fell by 52% to AED 33.844 million. Also, revenue generated in Q1 of 2021 was AED 572.145 after witnessing major drop from AED 901.374 million in Q1 of 2020.
