Etihad Airways and Air Arabia are jointly setting up a low cost carrier in Abu Dhabi, they said on Wednesday.
Air Arabia Abu Dhabi will be an independent joint venture based at Abu Dhabi International Airport, the hub of Abu Dhabi state-owned Etihad, the two carriers said in a statement.
It will be the capital’s first budget carrier.
Tony Douglas, group chief executive officer of Etihad Aviation Group, said that the partnership will serve Abu Dhabi’s tourism goals and contribute to the emirate’s economic growth.
“With the emirate’s diverse attractions and hospitality offerings, 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,” he said.
Adel Ali, chief executive officer of Air Arabia, said the new carrier will “further serve the growing low-cost travel segment locally and regionally.”
The two airlines said more information on the joint project would be given in the near future.
Abu Dhabi Airports said the new low-cost carrier will cater to the growing low-cost travel market through its hub in Abu Dhabi International Airport, strengthening the city's air connectivity and accessibility.
"It is anticipated that the airline will greatly increase the number of destinations served from Abu Dhabi International Airport, offering new choices to passengers to travel directly to previously unserved destinations," it added.