Moroccan Mortgage

Air Arabia to open second hub in Rabat, Morocco to
serve Europe, Middle East and Africa

Recently name “Low-Cost Carrier of the Year” Air Arabia is investing in Morocco, which will give access to European destinations

• The Sharjah-based carrier dramatically expands its geographic reach through agreement with Regional Air Lines of Morocco
• Air Arabia intends to assume management rights for Morocco-based carrier
• Air Arabia and Ithmaar Bank provide capital injection for Regional Air Lines

Sharjah - United Arab Emirates, November 7, 2007: Air Arabia, the first and largest low-cost carrier (LCC) in the Middle East and North Africa, announced today that it will establish its second hub in the Moroccan capital, Rabat, providing the Sharjah-based LCC with a platform from which to reach into the wider Europe, Middle East and Africa (EMEA) market. This announcement follows the signing of a management agreement between Air Arabia and Regional Air Lines, the leading private carrier in Morocco.

Air Arabia intends to assume management control of the Morocco-based carrier. Air Arabia will apply its successful low cost business model to the management Regional Air Lines.

Together with Air Arabia,a Bahrain-based investment bank , will provide a significant capital injection for the Morocco-based carrier and join Air Arabia and Regional Air Lines as partners in the newly created company.

Sheikh Abdullah Bin Mohammed Al Thani, Air Arabia Chairman said: “This agreement provides us with the opportunity to reach into fast-growing markets in North Africa and across the Mediterranean into southern Europe. ”