Air Arabia, a leading low-cost carrier, has bought a 49 per cent stake in Jordan's Petra Airlines, the UAE-based carrier said on Monday.

Petra Airlines will be rebranded as Air Arabia Jordan and the UAE carrier will establish a hub at Amman's Queen Alia International Airport, with operations to commence under the new name in the first quarter, according to a statement to Dubai's bourse.

Petra Airlines' main shareholder, RUM Group, will maintain a 51 per cent stake in the airline. – Reuters