Etihad and Air Arabia launch new low-cost airline carrier

Etihad Aviation Group, owner of the national airline of the United Arab Emirates, and Air Arabia, the Middle East and North Africa’s first low-cost carrier, today announced the signing of an agreement to launch ‘Air Arabia Abu Dhabi’, the capital’s first low-cost carrier, the WAM press agency reports.

Etihad and Air Arabia will establish an independent joint venture company that will operate as a low-cost passenger airline with its hub in Abu Dhabi International Airport. The new carrier will complement Etihad Airways’ services from Abu Dhabi and will cater to the growing low-cost travel market segment in the region.

No details about the new carrier, its fleet, or destinations have been disclosed.

The joint statement of Etihad and Air Arabia, cited by WAM, announces that more information will be disclosed in the near future.

The air transport sector in the UAE is blooming, but its companies have uneven results.

The largest company, Emirates, headquartered in Dubai, had an income drop of 69% to USD 237 million in the fiscal year which ended on March 31. Etihad has been piling up losses for four years after making risky investments in shares in problematic airline carriers.

Air Arabia, a low-cost company, had a deficit in 2018.

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Emirates Airline Dubai

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Etihad Airways

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Air Arabia Abu Dhabi

low cost airline carriers

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