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Etihad and Air Arabia to Launch Air Arabia Abu Dhabi

Etihad Aviation Group, owner of the national airline of the UAE, and Air Arabia, the Middle East and North Africa’s first and largest low-cost carrier, announced the signing of an agreement to launch Air Arabia Abu Dhabi, the capital’s first low-cost carrier.

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.

Based in Abu Dhabi, the new company will adopt the low-cost business model. Its board of directors, consisting of members nominated by Etihad and Air Arabia, will steer the company’s independent strategy and business mandate.