Abu Dhabi's giant Etihad Airways and Sharjah's low-cost carrier Air Arabia announced Wednesday an agreement to launch a new low-cost airline based in the United Arab Emirates capital.

 

Etihad Airways posted a loss in 2018 for the third year running, it said earlier this year, blaming investment losses and challenging market conditions.

 

The new Air Arabia Abu Dhabi will be launched in "due course", Tony Douglas, CEO of Etihad Aviation Group, said in a statement issued by the two Emirati carriers.

 

"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," he added.

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