ETIHAD's Version of Low Cost !!

Etihad is ready to lunch its first "All Economy" flights on a 162 passengers all economy A320, starting with 2 and going up to 10 aircraft (click here to read full story).

This model was tried earlier this decade, when Gulf Air converted several B767 into all economy aircraft and based them in Abu Dhabi. The idea then was to placate Abu Dhabi and stop them from pulling out of Gulf Air.

This time is Etihad trying to ward off the Low Cost Carriers from encroaching on its turf. For the last 18 months rumors had it that a Low Cost Carrier is about to be launched in Abu Dhabi. The new entity was going to be managed by a UK carrier probably Flybe using EMBRAER 175/195.

Is this positioning for an independent low cost carrier spin off similar to Emirates Flydubai or just another product to be competitive on certain routes. So far, Etihad has maintained it is just a product to cater for routes that have very little premium passengers.

In any case this is a new product that will definitely add competition to an already competetive and already crowded UAE market