Lebanon's MEA to launch budget airline as govt plans Beirut airport expansion

Lebanon’s flag carrier plans to launch a low-cost subsidiary to meet growing demand for cheaper flights, the company’s chairman has revealed, alongside plans to expand the Beirut airport.

Discussions are happening in Middle East Airlines (MEA) to establish a low-cost carrier to serve Middle East and Europe cities, with the market being studied to pick destinations, Mohammad al-Hout told The National newspaper in a recent interview.

The new, budget airline would be a wholly owned subsidiary of the wider MEA group but fully independent, Hout told the Emirati publication, adding that the project could see light within two years, beginning with four aircraft.

When asked by The New Arab, an MEA spokesperson said the company could not give further details at this time as the project was "still in the very early stages".

Commenting on MEA itself, Hout said the airline is continuing to grow despite the situation in Lebanon, still reeling from last year’s conflict with Israel and a crushing years-long financial crisis.

MEA was the only company serving Beirut’s international airport during the war, despite Israeli strikes hitting very close in the city’s southern suburbs, earning it the title as "the most badass airline on the planet" by some global publications as it continued to operate despite the threats.

The company’s chairman said the airline is forecasting year-on-year growth of 10 to 15 percent in the second half of 2025.

He added that MEA has ordered nine additional aircraft, six of which are scheduled to be delivered next year – including four of the extra-long-range Airbus A321 XLR – two in 2027, and one in 2028.

The airline had to move much of its fleet abroad during the cross-border hostilities between Israel and Hezbollah.

Lebanese expatriates have long complained of the expensive ticket prices at MEA, which still holds a monopoly on the airline industry in Lebanon.

The airline is mostly owned by Lebanon’s Central Bank.

Wizz Air’s Abu Dhabi subsidiary started flying to Beirut this month.

Second terminal and airport

Hout also revealed that plans are underway to build a second terminal at the Beirut airport, Lebanon’s only civilian airport to date.

The terminal would serve up to five million additional passengers, in light of the crowding witnessed at the airport during peak seasons, especially in summer.

It would cost between $400 million and $500 million, and if the security situation improves in Lebanon and the country receives more visitors, the capacity could increase to 8 million travellers, the chairman said.

The second terminal, which Hout said will be built with state-of-the-art technology, should meet Lebanon’s air travel needs for the next 10 to 15 years.

Hout added that the masterplan is complete and will go on to the next stage, which is issuing requests to developers interested in the project.

It would be developed through a public-private partnership.

Lebanon’s government has carried out some expansion works in the airport in recent years, such as increasing the number of personnel at passport control and adding more facilities to ease travel, but many say this is not enough.

In 2023, a plan to begin construction on a second terminal was scrapped weeks after it was announced over corruption allegations.

As well as expanding Beirut’s airport, north Lebanon lawmakers and residents have for years lobbied to resume operations at another airport in the region.

Earlier this month, Prime Minister Nawaf Salam said that a plan on transforming the Rene Mouawad Airbase into a civilian airport would be ready "within weeks."

Since becoming premier, Salam vowed to prioritise the project, and earlier this year paid a visit to the facility in Qleiaat, a town in the Akkar district, close to the Syrian border.

Successive governments have failed in meeting their promises to reopen the airport, which was briefly used for flights to connect the north to Beirut during the Lebanese Civil War between 1975 and 1990.

It is now used as a military base, but experts say it doesn’t require much to begin operating.

Lebanon’s Public Works and Transport Ministry confirmed to The New Arab that the project was "still on track."