May 14 - Etihad Airways will no longer provide accommodation allowance to new staff choosing to live outside Abu Dhabi, a media report said on Thursday. The new policy gives the staff a grace period of 12 months to move to the UAE capital, was conveyed to them by the Vice President of facilities, Frank Dwyer.

The move is expected to affect the 8,500 people working for the airline who live in Dubai at the moment because of low rents there as compared to Abu Dhabi (about 40 per cent more than Dubai). “Following an in-depth review of Etihad’s accommodation assistance policy, it has been decided that the company will now only provide housing allowance to those members of staff living in the emirate of Abu Dhabi,” said Frank Dwyer in his email. “This decision is based on the operational, welfare and financial requirements of the company as well as our responsibility to Abu Dhabi, which provides enormous support for Etihad and its people. Previous accommodation shortages in Abu Dhabi have now been addressed and it is important that we support the investment that has been made, especially at Etihad-owned facilities.”

Meanwhile, the policy is effective immediately for the new staff but old employees have been given a 12-month period starting from May 13.