Air Arabia Abu Dhabi is an Emirati low-cost airline. It was established in October 2019 through an independent joint-venture agreement between Etihad Aviation Group and Air Arabia to expand into the growing low-cost market, it launched operations in July 2020. The airline is based in Zayed International Airport in Abu Dhabi.
History
In October 2019, Etihad announced it would set up its own low-cost carrier in partnership with Sharjah-based Air Arabia. To that date the airline was the fifth in the UAE, and the first low-cost carrier in Abu Dhabi. The announcement was given during a period in which when Etihad posted a third consecutive year of losses and after pursuing a strategy of investing in failing airlines and after the government owned Etihad began a five year transformation plan in 2017.
Initially, Air Arabia Abu Dhabi was supposed to launch operations in March 2020, with plans to fly to about a dozen destinations in Saudi Arabia, Kazakhstan, Georgia, Armenia, India, Pakistan and Bangladesh.
In April 2020, Air Arabia Abu Dhabi received its air operator certificate from UAE's General Civil Aviation Authority. To that date the airline was yet to commit to a firm launch date due to the travel restrictions during the pandemic.
On July 14, 2020, the airline was launched after the signing of an agreement between Etihad Airways and Air Arabia.[3]