Abu Dhabi's Etihad sets up low-cost airline with Air Arabia

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Abu Dhabi's Etihad sets up low-cost airline with Air Arabia
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Etihad Airways and Air Arabia are jointly setting up a low cost carrier in Abu D...

) are jointly setting up a low cost carrier in Abu Dhabi to tap into growing demand for budget travel from the United Arab Emirates’ capital, they said on Wednesday.

It is the first investment by Etihad in another airline since its ‘equity alliance’ strategy, which once saw it hold stakes in as many as eight other carriers, unravelled. “This exciting partnership supports our transformation program and will offer our guests a new option for low-cost travel to and from Abu Dhabi, supplementing our own services. We look forward to the launch of the new airline in due course,” said Etihad Group CEO Tony Douglas.

Under Douglas, who joined in 2018, Etihad has refocused on becoming a mid-sized carrier, while stepping away from its investments in some of the airlines it holds stakes in.

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