Pakistan Times, 08 Dec. 2007

WASHINGTON (US): AirBlue, Pakistan's fastest growing private airline has signed an agreement for support of its expansion plans with IFC, a member of the World Bank Group.

The investment from IFC will increase the number of reliable domestic and international flights available to travelers, addressing a key constraint to economic growth and

international competitiveness in the country.

The expansion will promote trade, business and tourism in Pakistan. airblue aims to make air travel more affordable to a greater share of the population through discounted fares. Offering safe air travel with modern latest technology planes, airblue’s presence in the Pakistani airline market has increased consumer choice and promoted competition.

As one of the fastest-growing companies in Pakistan over the past two years, the airline also serves as a model for smaller businesses: over 40 percent of the company’s employees are female, an unusually high percentage for the country.

IFC’s investment consists of a $22 million loan for the financing of pre-delivery payments towards the purchase of an additional six A320s.

The acquisition of these new aircraft will enable the airline to increase the frequency of flights and introduce new international destinations in Europe, Middle East, India, Bangladesh, Malaysia and Thailand.

AirBlue was represented by Mr. Ali Siddiqui, Member of the Board and Syed Nasir Ali, Managing Director, at the signing ceremony in Washington DC.

The Ambassador of Pakistan Mahmud Ali Durrani attended the signing and said “We are very proud of what airblue is doing; it proves that the private sector can do wonders”.

Rashad Kaldany, IFC Director for Infrastructure said, “The World Bank Group has targeted transport as one of the key sectors for improvement in Pakistan.

By supporting airblue’s growth, we hope to communicate the availability of financing for young private companies that are expanding to encourage private sector participation in the sector.”

IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments.

IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives.

In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries.

IFC also provided advisory services in 97 countries. Airblue was launched in June 2004 and currently operates a fleet of six Airbus A320 aircraft in Pakistan.

Over the past three years, it has grown to be the second-largest airline in the country, introducing innovations for greater customer convenience such as e-ticketing, wireless mobile check-in and self check-in kiosks.

It currently has Flights to 7 major domestic cities in Pakistan; 3 daily Flights to Dubai in the United Arab Emirates and daily Flights to Manchester in the United Kingdom.

airblue is also inducting turboprop aircraft in its fleet in the near future.

With the induction of turboprop aircraft, airblue will also be able to provide better travel facilities to the people living in small towns and cities of Pakistan.