Air Arabia in $14 bn deal to buy 120 Airbus A320s

Air Arabia said Monday it would buy 120 Airbus A320s in a deal worth $14 billion that represents a major expansion for the United Arab Emirates' low-cost carrier. "The first delivery is expected to start in 2024," said Adel al-Ali, the CEO of Air Arabia, based in the emirate of Sharjah which borders Dubai.

Air Arabia currently operates a total fleet of 53 Airbus A320 and A321 aircraft. Last month it announced an agreement with Abu Dhabi-based giant Etihad Airways to launch a new low-cost airline based in the UAE capital.

The new carrier, Air Arabia Abu Dhabi, will be launched in "due course", Etihad said at the time. Etihad, established in 2003 by the oil-rich Gulf emirate's government, has faced stiff competition from Dubai aviation giant Emirates and Doha-based Qatar Airways.

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