Dubai plans low-cost airline

The Dubai Government has unveiled plans to launch a low-cost carrier to cater to the growing budget travel market in the U.A.E., according to state-owned Emirates News Agency (WAM).

The airline, which as yet has no name, will be initially supported by Emirates Group during the set-up period and will serve destinations within four and a half hours of Dubai.

The new carrier will be headed by Sheikh Ahmed bin Saeed Al-Maktoum, chairman of Emirates Group, and is expected to start operations within a year.

The U.A.E. already has one low-cost airline, Sharjah-based Air Arabia.