Egypt News

The carrier, the Arab world's largest listed airline by market value, announced last month that it was launching a new budget airline in a joint venture with Egypt's Travco Group and establishing a third hub in Alexandria.

"We are hoping to start operations in the first quarter of 2010," Air Arabia CEO Adel Ali told reporters at a conference in the UAE city of al-Ain on Monday.

The International Air Transport Association (IATA) trade group said last month that the outlook for global airlines this year had worsened, projecting $11 billion in losses amid weak passenger and cargo demand.

"Generally there is at least 18 percent yield dilution in the Middle East because capacity is more than demand because of the recession," Ali said, adding that globally yield dilution was 12 percent.

Ali added he expected Air Arabia's passenger load factor -- a measure of how successful airlines are in filling seats -- would stand at 80 percent by year-end.

"We have taken an approach ....to make sure our growth is not aggressive. The market is not short of aircraft."

EGYPT NEWS

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