A new air travel service has been launched in Dubai with plans to replace the airline with one based in the UAE.
Air Arabia is set to fly from the capital Abu Dhabi to Dubai in 2019.
Dubai International Airport is a hub for airlines around the world.
AirAsia is the largest in the world with a network of more than 1,600 flights a day.
Its current fleet of Boeing 787 Dreamliners has been operating since 2003, but the airline plans to add a new fleet of Dreamliners and Boeing 767-300ER jets in 2019 to meet demand for its popular daily services.
Its new fleet is expected to increase to over 2,500 planes, with an added focus on domestic routes and a new airline in Dubai, the airline’s head of marketing and communications, Ahmed al-Sheikh said.
The new airline is due to open in 2020, although no exact dates have been set.
Air Arabia has already been offering domestic flights from Abu Dhabi, and its new route will add to the number of international routes it offers to the world’s most populous country.
The company plans to expand its services to other countries in the Middle East and Africa.