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Abu Dhabi’s Etihad, Air Arabia to set up low-cost carrier

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Sharjah’s Air Arabia and Abu Dhabi’s Etihad Airways said on Wednesday that they agreed to set up a low-cost carrier based in the United Arab Emirates’ capital.

The joint airline, which will be named “Air Arabia Abu Dhabi,” is set to operate from Abu Dhabi International Airport where state-owned Etihad is based.

Sharjah-based Air Arabia, the UAE’s only listed airline, has operating bases in Morocco, Egypt, and UAE’s Ras Al Khaimah.