RAK announces launch of RAK Airways

H.H. Sheikh Saqr bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, upon the proposal of H.H. Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah, has issued Emiri Decree No: 3/2006 for the creation of the new airline.

Making the announcement at a press conference held at Hotel Al Hamra Fort, Sheikh Salem bin Sultan al Qasimi, Chairman of RAK Civil Aviation and Vice Chairman of the company, said that RAK Airways will be a private joint stock company incorporated in the RAK Free Zone at Jazirat Al Hamra with an authorized capital of AED 1.5 billion.

The company proposes to raise an initial capital of AED 850 million through private placements, the subscription of which will start from today onwards. The value of the shares has been fixed at AED 1 per share in addition to an expense allowance of 2 fils.

UAE nationals are entitled to subscribe to the shares of RAK Airways at the branches of National Bank of Ras Al Khaimah (RAK BANK) and Commercial Bank International (CBI) with a minimum share subscription of AED 400,000. The UAE Council of Ministers has also approved the formation of the national carrier as per decree No 328/4.

Sheikh Salem said that the move to launch the airline is part of the ambitious vision H.H. Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah, has for the development of the emirate. The new airline of Ras Al Khaimah is viewed as a key economic development project of the Emirate which has been implementing an developmental strategy focused on tourism and industrial investments.
The Government of RAK will have the biggest stake in the company

The press conference was attended by Jihad Quzmar, Legal Advisor, Government of Ras Al Khaimah and Mazen Hajjar, Member of the Board of Directors of the new company

The airline would initially operate a fleet of 8 aircrafts and negotiations are going on with Airbus Industries and Boeing for acquiring the aircrafts. RAK Airways propose to undertake flights to India, Bangladesh, Philippines, Sri Lanka, Pakistan, Iran, Egypt, Lebanon and GCC countries initially.

Sheikh Salem pointed out that the RAK International Airport will witness substantial up gradation of facilities as part of the launch of the new airline.

Dr. Khater Massaad, CEO of RAK Investment Authority and Managing Director of RAK Airways said that the prospects for the new airline appeared bright on account of the developmental wave currently witnessed in RAK.

"We are on moving on a high growth track and are launching new developmental projects in the tourism and industry sectors on a regular basis",

he said.

The company's objectives would include setting up and carrying out business activities related to aviation and tourism development including passenger airlines and cargo transportation, air freight and passenger flight charter, private airline aero plane charter, freight clearing services, development of tourism facilities including establishment of hotels, duty free market management and operation and other related activities.

The Board of Directors of the company include Sheikh Omar bin Saqr Al Qasimi as Chairman and Sheikh Salem bin Sultan Al Qasimi as Vice Chairman. The other members are Dr. Khater Massaad, who is the Managing Director of the company and Mazen Hajjar, Board member.