In January, 2008 Travco joined forces with Air Arabia, a leading low cost airline in the Middle East, to establish a low cost carrier joint venture in Egypt. The low cost carrier has experienced running its current business using a business model that is similar to that of a European low cost carrier. Its current business operates nine leased Airbus A320 aircrafts and flies to more than 35 destinations in the MENA region and Indian sub-continent, leases one type of aircraft, flies point-to-point in a four-to-five hour flight range, targets a high utilization rate and price sensitive customers, and has a simple management structure. The joint venture partner serviced over 2 million passengers in 2006 up from 700,000 in 2004.

The joint venture will involve the operation of Airbus A320 aircrafts on a lease basis. The expected hubs are Cairo, Hurghada and Sharm El Sheikh. The joint venture is expected to be operational by mid-2008.