Budget airline looks at Saudi Franchise deal
easyJet said today it was considering a franchise opportunity which would allow a Saudi-based carrier to use the airline’s brand name on flights around the Arabian Gulf.
The low-cost airline said it had been approached by Jeddah’s National Air Services (NAS) and Dubai-based private equity firm Abraaj Capital who have asked to use the easyJet name.
NAS is currently applying for a licence to operate domestic flights in Saudi Arabia and also plans to spread its wings across the Gulf – an area with few budget flights.
easyJet said a decision on whether to progress with the opportunity would now depend on NAS’s application for a licence, which may not be finalised until the end of the year.
The company insisted a deal – if it did happen – would not involve the airline investing any equity or cash. However, it did say it could deliver “significant shareholder value”.
A final decision is unlikely until early 2007. It is not yet known how much the deal would be worth to the Luton-based airline.
