Alliance partner Etihad to grow fleet

Etihad Airways group chief James Hogan, who is standing down as the Gulf carrier grapples with losses at European partners, detailed growth plans for 2017, while defending his strategy as one that was attracting passengers.

Etihad will add 12 wide-body aircraft including two A380 superjumbos, swelling capacity in what will be “another challenging year”, the carrier said on Tuesday. That follows the addition of 10 planes in 2016, three of them A380s.

Hogan said that the aim was to expand “prudently and efficiently”, adding: “We remain optimistic and have every belief that our robust business model will succeed and … stand the test of time.”

Etihad’s customer tally increased 6% in 2016 to 18.5million. Passenger traffic advanced 8%, just shy of the 9% hike in capacity, so seat occupancy levels held steady at 79%.

The bigger challenge has been to shore up the so-called equity alliance of carriers in which Etihad holds minority stakes, with two companies, Air Berlin and Alitalia, continuing to bleed cash despite restructuring efforts. The German carrier is shrinking operations, while Rome-based Alitalia is set to undergo another revamp.

The alliance, which had a combined 705 aircraft and 126.6-million passengers in 2016, remains a source of vital feeder traffic for Etihad.

Equity and code-share partners delivered 5.5-million passengers to its flights during the year, an increase of 9% compared with 2015.