Etihad is getting tight-fisted as profit margin dwindles

ETIHAD Airways is to open up its lounges to economy class passengers for a fee and will start charging for chauffeur services that had been complimentary as it joins rivals in looking for new ways to boost revenues.

The changes, announced yesterday, come amid a strategy review at the Abu Dhabi carrier as once rapidly expanding Gulf airlines face tighter profit margins amid overcapacity in the market and tighter corporate travel budgets.

The fee for economy passengers to access the business class lounge at Abu Dhabi International Airport will start from 370 dirhams (R1 320) and will depend on how much time is spent in the lounge, an Etihad spokesperson said. It will also offer economy class passengers paid access to its lounges at other airports around the world.

The changes, effective on July 3, will also allow business class passengers to pay to use the first class lounges, whilst a previously complimentary chauffeur for business and first class passengers will become a paid for service outside of Abu Dhabi.

Etihad will also open up the service to economy passengers.

Will Horton, senior analyst at Australian aviation consultancy Capa, said chauffer services have always been a high-cost for airlines so to start charging for them was “not surprising.” – Reuters