ABU DHABI - A new airline to be called Etihad will be launched in Abu Dhabi on Tuesday.
The new carrier, whose name means `unity', will make its first flight EY001 this evening from the Gulf Aircraft Maintenance Company (Gamco) runway to Al Ain International Airport, carrying VIPs and the UAE media.
The airline is a prestigious project of the Abu Dhabi government with a paid up capital of Dh500 million.
It will initially operate two leased Airbus A300 aircraft and another two Airbus A300's will be added later to the fleet.
Market sources and industry experts said the strong financial support of the Abu Dhabi government and the professional excellence of its aviation wing as also the supervision of the board of directors and the guidance of Dr Shaikh Ahmed bin Saif Al Nahyan will definitely help it carve out a niche of its own.
The airline, according to informed sources, will be operating its maiden commercial international flight on November 12, though the destination is yet to be confirmed.
Special attention has been given to the in-flight service requirements, the livery of the aircraft to keep it a cut above class. In course of time the route map of the airline is likely to extend to the principal destinations in the Indian subcontinent catering to discerning passengers.
Though considered as a modest start, with four aircraft, the airline has pitched its goals on long-term strategies for further expansion.
The Abu Dhabi-Al Ain flight will be seen off at the Gamco Tarmac amidst celebrations and a big red carpet will be rolled out at the Al Ain International Airport.
The creation of the Etihad Airways by Abu Dhabi government doesn't mean that the government will liquidate its shares in the operational Gulf Air; on the contrary the government will continue to maintain its equity being one of the founders of the GA," said a reliable source familiar with the development of the new airlines project.
He said: "The new airways has not yet chalked up its expansion plans, but such plans will be explored once it becomes operational."
"We are in the initial stage of thinking of any expansion programme which is an obvious step after the successful operations of any airline," said the source.
It is not known whether the creation of this new airline will result in expansion of the Abu Dhabi air terminal building at this time.
The launch of this new airline comes at a time of great expansion in Middle East aviation. Sharjah has just launched Air Arabia, the regions first low-cost carrier. Emirates, the leading airline in the region, announced plans for a massive $19 billion expansion project at this year's Paris Airshow and Qatar Air also spent about $5.5 billion on new aircraft for future route development.
Gulf Air has been facing some financial difficulties in recent times and the launch of separate airlines by Oman and Bahrain, the other partners who own Gulf Air, has led to speculation about that airline's future.