Etihad, Air Arabia to Launch Abu Dhabi Low-Cost Carrier

UAE airlines Etihad Airways and Air Arabia are setting up a low cost carrier to cater for the growing leisure travel segment in the region.

Based at Etihad’s Abu Dhabi hub, the new budget airline will be called Air Arabia Abu Dhabi.

“Abu Dhabi is a thriving cultural hub with a clear economic vision built on sustainability and diversification,” Etihad group chief executive Tony Douglas said.

“Travel and tourism play a vital role in the economic growth of the capital and the UAE. By partnering with Air Arabia and launching Abu Dhabi’s first low-cost carrier, we are serving this long-term vision.”

Air Arabia group CEO Adel Al Ali said the joint venture airline will serve the growing low-cost travel segment locally and regionally and capitalize on the expertise the parent airline groups will provide.

Air Arabia Abu Dhabi will be Etihad’s first airline investment since a series of investments earlier this decade including a stake in failed Italian carrier Alitalia.