What about an offer to buy Air Arabia? Yes, shares of Air Arabia is available at rock bottom price! Its closing price yesterday was AED 1.00 which was its issue price on July 2007. Two and half years later, you are getting an opportunity to buy at same price.
For year 2008 it declared 10% cash dividend. It gives a 10% dividend yield which is very rewarding. At market price of 1.00, its price to book value is 0.90 and price to earning ratio of 8.90.
The current sluggishnes in the aviation industry may last for another one or two quarter. But generally aviation sector in the Middle East has been resilient to the recession. Having two hubs and third one announced recently, Air Arabia has bright long term prospects!
Air Arabia is the first & largest low cost carrier (LCC) to operate in the Middle East and North Africa. It commenced operations in October 2003 and has safely transported more than 11 million passengers since inception. It has main hubs at Sharjah, UAE and Casablanca, Morocco. Air Arabia (Maroc) took off on May 6, 2009 serving mass European market from Morocco. It announced the establishment of third hub in Egypt recently. It operates a total fleet of 20 new Airbus ‘A320’ aircraft and has signed agreement with Airbus to acquire 44 A320 aircraft. It currently fly to over 47 destinations from Sharjah and 11 destinations from Casablanca. It became profitable from first year of operation and it is the first airline to go public in the Middle East with shares traded in the Dubai Financial Market.