Etihad, Air Arabia launch new low-cost airline in UAE

Agencies
October 18, 2019

Sharjah, Oct 18: A new UAE budget carrier has been launched by Sharjah's Air Arabia and Abu Dhabi's Etihad Aviation Group, further increasing the competition in the aviation sector as well as giving UAE residents an additional economical option to choose from.

The new carrier - called Air Arabia Abu Dhabi - is the fifth airline to operate from the UAE after Emirates, Etihad, flydubai and Air Arabia, serving 9.5 million residents. Based out of Abu Dhabi International Airport, the new carrier will target the low-cost travel market segment in the Middle East region and complement Etihad Airways, said a Press statement released on Wednesday.

Etihad and Air Arabia currently operate a combined fleet of 162 aircraft, including 109 by the former and 53 by the latter. Air Arabia flies to 170 destinations across 50 countries through its Sharjah, Morocco and Egypt hubs while Etihad flies to 80 destinations.

Air Arabia Abu Dhabi has been launched against the backdrop of a tough aviation environment as 17 airlines have gone bust so far this year globally, including Jet Airways, Thomas Cook, Aigle Zur and XL Airways, Germania, Flybmi and Adria of Slovenia. But industry executives believe that the sector will pick up as global trade war eases ahead of elections in the US.

Tony Douglas, group CEO of Etihad Aviation Group, said the carrier will offer passengers a new option for low-cost travel to and from Abu Dhabi. "We look forward to the launch of the new airline in due course".

Adel Al Ali, group CEO of Air Arabia, said the UAE has developed over the years to become a leading travel and tourism hub and this partnership will further serve the growing low-cost travel segment locally and regionally.

However, the two UAE airlines didn't share the launch date as well as the destinations for the new carrier.

Abu Dhabi Airports said the new LCC will cater to the growing low-cost travel market through its hub in Abu Dhabi International Airport, strengthening the city's air connectivity and accessibility.

"It is anticipated that the airline will greatly increase the number of destinations served from Abu Dhabi International Airport, offering new choices to passengers to travel directly to previously unserved destinations," it said.

Aviation analysts say that the new carrier will first target Middle East and Asian markets which are underserved right now.

Mark D Martin, founder and CEO of Martin Consulting, said that the Air Arabia-Etihad model will cater to markets such as Pakistan, India, North Africa, Russia and the CIS and East Europe regions that have immense potential yet are under served.

Martin noted that Etihad's long-term strategy has always been with inorganic growth where it chose to expand by means of a merger or acquisition but this marks the first time where Etihad has chosen to co-venture with a successful partner and its proven model.

Saj Ahmad, chief analyst at StrategicAero Research in London, said as Etihad is in the midst of financial restructuring and unable to launch its own low-cost carrier, the move to work with Air Arabia will help it to tap into a market that they do not have a presence.

"If anything, there's a big risk that Air Arabia will cannibalise some traffic that would otherwise travel to its hub in Sharjah," he said, adding that Etihad may want to push some services regionally to places like Saudi Arabia or re-enter Iran too.

For the new carrier, Ahmad believes, the fleet will likely come from Air Arabia's existing inventory to ensure that operations can commence quickly. "It will also ensure that costs stay capped and that both airlines can pool resources rather than having to wait for new airplanes."

Air Arabia is expected to announce order for 100-plus aircraft by January 2020, its group CEO Adel Ali said earlier this week.

Saj Ahmad noted that passengers will gain from using Etihad's big footprint at Abu Dhabi International and save them having to travel out to Sharjah just to get cheap flights.

"For the here and now, it's a better move for Etihad than it is for Air Arabia - but passengers will reap rewards regardless. As the partnership expands, the potential for connectivity growth and new markets will ensure that the partnership mirrors that of Emirates and flydubai," he added.

The carrier's board of directors will be nominated jointly by Etihad and Air Arabia to steer the company's independent strategy and business mandate.

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News Network
January 12,2020

Tehran, Jan 12: Iranian police dispersed students chanting “radical” slogans during a Saturday gathering in Tehran to honour the 176 people killed when an Ukrainian airliner was mistakenly shot down, Fars news agency reported.

News agency correspondents said hundreds of students gathered early in the evening at Amir Kabir University, in downtown Tehran, to pay respects to those killed in the air disaster. The tribute later turned into an angry demonstration.

The students chanted slogans denouncing "liars" and demanded the resignation and prosecution of those responsible for downing the plane and allegedly covering up the accidental action.

Iran said Saturday that the Ukraine International Airlines Boeing 737 was “unintentionally” shot down on Wednesday shortly after taking off from Tehran's main airport. All 176 people on board died, mostly Iranians and Canadians, many of whom were students.

Fars, which is close to conservatives, said the protesting students chanted “destructive” and “radical” slogans. The news agency said some of the students tore down posters of Qasem Soleimani, the Iranian general killed on January 3 in a US drone strike on Baghdad.

Fars published pictures of demonstrators gathered around a ring of candles during the tribute and a picture of a torn poster bearing the image of a smiling Soleimani. It said that police "dispersed" them as they left the university and blocked streets, causing a traffic jam.

In an extremely unusual move, state television mentioned the protest, reporting that the students shouted "anti-regime" slogans.

A video purportedly of the protest circulated online showing police firing tear gas at protesters and a man getting up after apparently being hit in the leg by a projectile. It was not possible to verify the location of the video, or when it was filmed.

Iran's acknowledgement on Saturday that the plane had been shot down in error came after officials had for days categorically denied Western claims that it had been struck by a missile. The aerospace commander of Iran's Revolutionary Guards accepted full responsibility.

But Brigadier General Amirali Hajizadeh said the missile operator acted independently, shooting down the Boeing 737 after mistaking it for a "cruise missile".

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Agencies
April 8,2020

Riyadh, Apr 8: Saudi Arabia's health minister has warned the number of COVID-19 cases in the country could reach 200,000 in coming weeks.

As of Tuesday, the kingdom registered a total of 2,795 coronavirus infections, including 41 deaths.

"Within the next few weeks, studies predict the number of infections will range from a minimum of 10,000 to a maximum of 200,000," health minister Tawfiq al-Rabiah was cited as saying by the official Saudi Press Agency on Tuesday.

On Monday, Saudi Arabia extended the duration of daily curfews in four governorates and five cities to 24 hours.

The kingdom imposed round-the-clock lockdowns in the capital Riyadh, Tabuk, Dammam, Dhahran and Hofuf, the interior ministry said on Twitter.

The same measures were also imposed on the governorates of Jeddah, Taif, Qatif and Khobar, the ministry added.

Authorities had already sealed off the holy cities of Mecca and Medina, barring people from entering and exiting as well as prohibiting movement between all provinces.

Last month, Saudi Arabia suspended the year-round "Umrah" pilgrimage over fears of the coronavirus pandemic spreading to Islam's holiest cities.

Authorities are yet to announce whether they will proceed with this year's Hajj, scheduled for the end of July. Last week, authorities urged Muslims to temporarily defer preparations for the annual pilgrimage.

Last year, about 2.5 million people travelled to Saudi Arabia to take part in the Hajj, which all Muslims must perform at least once in their lives if able.

The Arab world's biggest economy has also closed down cinemas, malls and restaurants and halted flights as it steps up efforts to contain the virus.

King Salman has warned of a "more difficult" fight ahead against the virus, as the kingdom faces the economic double blow of virus-led shutdowns and crashing oil prices

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News Network
April 24,2020

Dubai, Apr 24: The UAE reported 525 new COVID-19 cases on Friday. The Ministry of Health and Prevention said the total number of confirmed cases in the UAE is now 9,281.

MOHAP reported 8 deaths taking the total number of deaths in the country to 64. 123 recoveries have also been announced.

According to the Ministry of Health and Prevention, the latest cases were detected through its intensified investigation and examination procedures.

The ministry conducted over 32,000 additional COVID-19 tests among citizens and residents.

The ministry offered its sincere condolences to the families of the deceased. It also wished a speedy recovery to all patients and called upon the general public to strictly adhere to preventative measures out of concern for the health and safety of all.

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