United Arab Emirates budget carrier Air Arabia is to establish a new low-cost airline division in Egypt, in co-operation with travel company Travco Group.
The new carrier is to be branded as Air Arabia Egypt and will give the UAE airline its third base after Sharjah and Casablanca.
Air Arabia confirms the plan and says the new airline will "contribute to the ongoing development" of Egypt's tourism sector.
The airline will operate to destinations in Europe as well as on regional African and Asian routes.
"We look forward to replicating the success Air Arabia has already achieved from its existing hubs," says Air Arabia chairman Sheikh Abdullah bin Mohammed Al-Thani.
Travco Group is based in northern Egypt's 6th of October City and oversees an extensive tourism and travel operation including hotels and cruises. It is also linked with aviation services and aircraft handling activities.
Chairman Hamed El Chiaty highlights the "enormous commercial success" of Air Arabia as demonstrating the "strength of its business model".
Details of the ownership structure, routes and the scale of the fleet have yet to be disclosed. But Air Arabia exclusively operates Airbus A320 aircraft.
Its Moroccan joint operation, Air Arabia Maroc, was established in Casablanca in co-operation with Regional Air Lines, and serves 11 destinations.