Air Arabia Is Said to Seek State Aid and Delay New Venture - Bloomberg:
Air Arabia PJSC has joined airlines globally in seeking state support and plans to delay the launch of a new low-cost carrier as the Covid-19 outbreak continues to wreak havoc on the aviation industry, according to people familiar with the matter.
The airline has asked the United Arab Emirates government for financial assistance, said the people, who asked not to be identified as the matter hasn’t been made public. Details of the magnitude of the package haven’t been disclosed.
Air Arabia Abu Dhabi, a joint venture with Etihad Airways slated to start flying by the end of June, has been put on hold, said the people. The two airlines intend to revive the plan when demand for global travel recovers from the impact of the pandemic, they said.
In a statement, Air Arabia called the report “baseless and speculative.” It said that preparatory work for the launch of the low-cost carrier “remains in motion and will progress as the market situation improves.”
Air Arabia PJSC has joined airlines globally in seeking state support and plans to delay the launch of a new low-cost carrier as the Covid-19 outbreak continues to wreak havoc on the aviation industry, according to people familiar with the matter.
The airline has asked the United Arab Emirates government for financial assistance, said the people, who asked not to be identified as the matter hasn’t been made public. Details of the magnitude of the package haven’t been disclosed.
Air Arabia Abu Dhabi, a joint venture with Etihad Airways slated to start flying by the end of June, has been put on hold, said the people. The two airlines intend to revive the plan when demand for global travel recovers from the impact of the pandemic, they said.
In a statement, Air Arabia called the report “baseless and speculative.” It said that preparatory work for the launch of the low-cost carrier “remains in motion and will progress as the market situation improves.”
No comments:
Post a Comment