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A new low-cost UAE airline Air Arabia Abu Dhabi will be launched by Air Arabia and Etihad that will provide passengers with a budget-friendly alternative to fly to the Middle East.

Following Emirates, Etihad, flydubai and Air Arabia, serving 9.5 million people, the new carrier Air Arabia Abu Dhabi will be the fifth airline to operate from the UAE.

The new airline will target the low-cost travel market segment in the Middle East region based on Abu Dhabi International Airport and complement Etihad Airways ‘ network.

Adel Al Ali, Air Arabia’s Group CEO, said this partnership will continue to serve UAE’s growing low-cost travel segment locally and regionally as it has developed a lot over the years to become a leading tourism hub.

Etihad Aviation Group’s Group CEO Tony Douglas said a new low-cost travel option to and from Abu Dhabi will be offered by the carrier.

The two UAE airlines, however, still have to share the new airline’s launch date and destinations.

“The carrier is set to dramatically increase the number of destinations served from Abu Dhabi International Airport, giving passengers new options to fly directly to previously unserved destinations.”

Aviation analysts say the new carrier will target the Middle East and currently underserved markets in Asia for the first time.

Etihad and Air Arabia will jointly nominate the carrier’s board of directors to steer the independent strategy and business mandate of the company.