Low-cost carrier Air Arabia, has abandoned plans to establish a hub in Jordan due to the continued political unrest in the region and higher fuel prices.
“We felt there was no point and shelved it for the time being,” said Adel Ali, chief executive officer. “As soon as the situation is clearer we will look at it again.”
Air Arabia, which is based in Sharjah in the UAE and currently has secondary hubs in Alexandria in Egypt and Casablanca in Morocco, will focus growth on routes to Russia, India and parts of North Africa, Ali said.
The carrier, which operates a fleet of Airbus narrowbody aircraft, is reported to be “very interested” in buying the A320neo aircraft but it is also considering the 737.
Air Arabia has 44 A320s on order to be delivered from last October schedule to 2015-2016. The airline is in talks with export credit agencies and international banks to secure $160 million in financing for four aircraft remaining for delivery this year. A mandate is expected to be awarded by the end of the month.
