Etihad Aviation Group, the parent company of Etihad Airways, announced on Wednesday it is joining forces with a local airline Air Arabia to launch the first budget operator in the United Arab Emirates.
The new joint venture will be called Air Arabia Abu Dhabi and it will "complement" Etihad Airways in the region's "growing low-cost travel market," the company's statement said.
Air Arabia's CEO Adel Al Ali commented: "Home to the first low-cost carrier in the MENA region, the UAE has developed over the years to become a world-leading travel and tourism hub. We are thrilled to partner with Etihad to establish Air Arabia Abu Dhabi that will further serve the growing low-cost travel segment locally and regionally while capitalizing on the expertise that Air Arabia and Etihad will be providing."