Jordanian, Saudi investors mull low-cost airline

AMMAN – Jordanian and Saudi investors are considering a joint project to set up a low-cost airline company,  Saudi-Jordanian Businessmen Council Chairman Mohammad Al Audah said Monday. 

Businessmen from both countries held several meetings and agreed to establish a joint airline linking Jordan and Saudi Arabia, Audah told The Jordan Times, noting that a feasibility study for the project is currently under way. 

Investors will also consider operating regionally, he said, indicating that there are businesspeople in the field of aviation engaged in the talks. 

"Turning the project from an idea into reality may start in the first half of next year," Audeh added. 

Asked about the value of the project, he remarked that it would be determined once the feasibility study is ready. 

The head of the joint business council said that during his stay in Jordan last week, he discussed with Khaled Abu Rabei , head of the Jordan Investment Commission, ways to boost cooperation between businesspeople from both countries. 

According to Audeh, the council is working to organise a visit to Jordan for a delegation of Saudi businesspeople to explore available investment opportunities. 

Saudi Arabia is among the largest investors in Jordan as official figures estimate the volume of investments from the Gulf kingdom at around $10 billion in various sectors such as banking, energy, tourism and industry. 

According to official data released recently by the Department of Statistics, trade exchange between Jordan and Saudi Arabia reached over JD2 billion in the first half of this year. 

Jordanian exports to the Saudi market were around JD370 million while imports from the Gulf state, mainly oil, amounted to around JD1.7 billion. 

Jordan is also considered a preferred destination for tens of thousands of Saudi tourists, particularly during summer. 

Official figures estimate that there are over 300,000 Jordanian professionals based in Saudi Arabia.  

Tens of thousands of cars driven by tourists and Jordanian expats entered Jordan from Saudi Arabia in the past two months. 

In the Middle East, there are few low-cost air carriers such as Nass Air in Saudi Arabia, Fly Dubai and Air Arabia in the United Arab Emirates. 

During a regional conference held last year in Oman, experts said the aviation industry in the region has a big potential for further growth if Arab countries adopt the Open Sky approach between each other and encourage intra-regional tourism.