An investment company plans to launch the third low-cost carrier in the United Arab Emirates in 2010, a newspaper reported on Sunday, quoting unnamed aviation sources.

 

The airline, which will be based in the capital and flying out of Abu Dhabi, will start operating in mid-2010, daily al-Khaleej said. The newspaper did not identify the investment company.

The new budget carrier will face growing competition from two UAE low-cost carriers, Air Arabia and flydubai, as well as a number of regional operators.

Kuwait's Jazeera Airways said on Wednesday it was cutting services on certain routes to weather difficult times with no improvement in sight next year.