Joint venture expected to be established next month to launch services by March between Beirut and Damascus
A low-cost air shuttle service between Beirut and Damascus is being launched by a joint venture between Lebanon's Middle East Airlines (MEA) and Syrianair - Syrian Arab Airlines, using 50-seat turboprops.
The new company, which will have initial capital of $1.8 million and private sector involvement, should be established in September. The airline is still evaluating 50-seat turboprop types, including the Antonov An-140, but expects to begin services by next March.
A feasibility study prepared by the London office of New York-based SH&E International Air Transport Consultancy envisages 170,000 passengers in the first year, rising to 340,000 in the third and 500,000 in the fifth. Services could later be expanded to include destinations in eastern Europe and the Caucasus and regional destinations such as Amman, Baghdad and the Egyptian Red Sea resort of Sharm el Sheikh. In Damascus, the services will operate from the city's old airport at Mezzeh, which is undergoing refurbishment.
Revenues are forecast at $4 million initially, growing to $6 million by the end of the second year. Profits are expected to reach $2 million in the third year and then $4-5 million a year.
Lebanon's transport minister, Najib Mikati, and his Syrian counterpart, Makram Obeid, have signed a memorandum of understanding on the scheme and the two governments will now seek to attract private investors.
ALAN GEORGE / LONDON
Source: Flight International
