SHARJAH: Abu Dhabi´s giant Etihad Airways and Sharjah´s low-cost carrierAir Arabia announced Wednesday an agreement to launch a new low-costairline based in the United Arab Emirates capital.
Etihad Airways posted a loss in 2018 for the third year running, it saidearlier this year, blaming investment losses and challenging marketconditions.
The new Air Arabia Abu Dhabi will be launched in “due course”, TonyDouglas, CEO of Etihad Aviation Group, said in a statement issued by thetwo Emirati carriers.
“This exciting partnership supports our transformation programme and willoffer our guests a new option for low-cost travel to and from Abu Dhabi,supplementing our own services,” he added.
Etihad, which has been undergoing restructuring since late 2017, said ithad narrowed its losses in 2018 to $1.28 billion, from $1.52 billion theprevious year.
Along with its 2016 losses, that adds up to total losses of $4.67 billionover three years, prompting the company to scrap dozens of orders onaircraft.
Read Top Stories
Established in 2003 by the oil-rich Gulf emirate´s government, the airlinehas faced stiff competition from regional rivals Dubai aviation giantEmirates and Doha-based Qatar Airways.
Etihad invested heavily in carriers around the world including Alitalia,airberlin, Air Seychelles, Virgin Australia and India´s Jet Airways, someof which have faced financial difficulties, causing Etihad heavy losses.
In late 2017, the company appointed Douglas, a former British defenceofficial, as its chief executive officer and launched a five-yearrestructuring process.
Airlines in the Gulf have faced a double hit from oil price fluctuationsand regional political tensions. -APP/AFP
