Air Arabia eyes acquisitions
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Air Arabia eyes acquisitions
"Dubai: Air Arabia has earmarked up to Dh1.5 billion to acquire another airline in the region, according to an analyst's report".
http://archive.gulfnews.com/articles.../10137250.html
Has anyone heard anything more about this? I wonder which airline?
http://archive.gulfnews.com/articles.../10137250.html
Has anyone heard anything more about this? I wonder which airline?
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EFG-Hermes said Air Arabia would seek an airline with a strategic location, high potential for growth and a large addressable market. The target airline could include a full-service airline to be converted to the low cost model.
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Very interesting. I always figured that at some point, with the overcapacity, there will be some sort of industry consolidation here in the region, as we are starting to see in India.
I just didn't think that with the government largess that is so obvious in most of the Gulf states, as well as the relative infancy of privately funded LCC's, that it would happen so early.
It brings about an question though. Outside of the UAE, to what extend can a private airline like Air Arabia take over a foreign company? For example, if Air Arabia were to try to take of Jazeera Airways in Kuwait or Sama in Saudi Arabia, would foreign ownership laws allow them to take 100% ownership of the carrier or would they be limited to 66% or 49%?
As far as taking over a "full-service airline," the only ones that I aware of are Government-owned at this time. Perhaps with Gulf Air going to be the first one to be privatised and made public, it would be a potential target of a take-over bid (friendly or hostile) by another private entity, however, we return then to the other question of what the extend of foreign ownership (and control) can be.
So it may be that that are interested in buying, but unless Emirates, Etihad, or RAK Airways is available for the taking, there might be nothing for them to buy.
I just didn't think that with the government largess that is so obvious in most of the Gulf states, as well as the relative infancy of privately funded LCC's, that it would happen so early.
It brings about an question though. Outside of the UAE, to what extend can a private airline like Air Arabia take over a foreign company? For example, if Air Arabia were to try to take of Jazeera Airways in Kuwait or Sama in Saudi Arabia, would foreign ownership laws allow them to take 100% ownership of the carrier or would they be limited to 66% or 49%?
As far as taking over a "full-service airline," the only ones that I aware of are Government-owned at this time. Perhaps with Gulf Air going to be the first one to be privatised and made public, it would be a potential target of a take-over bid (friendly or hostile) by another private entity, however, we return then to the other question of what the extend of foreign ownership (and control) can be.
So it may be that that are interested in buying, but unless Emirates, Etihad, or RAK Airways is available for the taking, there might be nothing for them to buy.
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Emirates should buy BA as the whole of the UK is 100% up for 100% foreign ownership....but do not try for a French yougourt maker as they will not sell it to you.
Last edited by scanscanscan; 10th Jul 2007 at 19:32.
