 "Air Arabia confirms interest in FlyEasy")
Air Arabia is evaluating an investment opportunity in Bengaluru-based upcoming regional airline FlyEasy, say sources.
The latter airline is expected to begin operations with two or three Embraer E-190 jets and is awaiting a permit from the civil aviation regulator.
Air Arabia is Sharjah-based and operates 112 weekly flights to 13 destinations in India. It runs airlines in Egypt and Morocco. Earlier this year, it acquired 49 per cent in Petra Airlines of Jordan.
Sources say Air Arabia has been exploring investment opportunities in new Indian airlines. Growth in domestic traffic and ability to feed passengers to a network are seen as triggers for investment. About 70 per cent of Air Arabia passengers from India fly to Sharjah and the rest travel onwards to other Gulf states and Russia.
An Air Arabia spokesperson said: “We are always open to examine new business opportunities (and) one has arisen with FlyEasy in India, which we are evaluating...We believe in the potential the Indian aviation market represents." In February, Air Arabia's chief executive, Adel Ali, had told the Business Standard the airline was open to investing in India, due to the big opportunities.
Last year, Air Arabia was designated the official carrier of the emirate of Ras Al Khaimah, one of the seven which constitute the United Arab Emirates, after the collapse of RAK Airways.
RAK flew to 10 destinations in India. Air Arabia sought additional traffic rights to India as the designated airline of Ras Al Khaimah, but the civil aviation ministry rejected the demand.
"We do not know the reason why our request was rejected," Adel Ali had said.
