flynas clarifies details of new Syrian unit

One of Flynas' aircraft

flynas Co. signed a joint venture agreement with the Syrian Civil Aviation Authority to establish and operate a new low-cost airline headquartered in Syria under the flynas brand, according to a Tadawul statement.

As part of the agreement, flynas will initially hold a 49% stake in flynas Syria, while the Syrian Civil Aviation Authority will own the remaining 51%.

Work is currently underway to complete all required licenses, regulatory approvals and operational arrangements in coordination with the relevant authorities.

The duration of the joint venture will be set in the new company's incorporation documents upon completion of the establishment procedures, the statement noted, adding that there are no related parties to the deal.

The financial impact of the new airline is expected to be reflected in flynas’ financials through its share of profits or losses once operations commence.

The volume and timing of the impact cannot be determined at this stage, as it depends on the completion of incorporation procedures and the start of actual operations, the statement added.

Any material developments related to the proposed joint venture will be announced in due course.

All arrangements, including licensing, regulatory and operational requirements, are still being completed and subject to approval by the competent authorities, the statement said.

According to Argaam data, flynas signed an agreement, on Feb. 7, to establish flynas Syria, as part of new investment agreements signed between Saudi companies and the Syrian government in Damascus.