The National - News

Etihad and Emirates to collaborat­e for first time with pilot secondment

- SARAH TOWNSEND

Etihad Airways, Abu Dhabi’s state airline, has offered its pilots a two-year secondment to Emirates, as the airlines pivot towards stronger collaborat­ion, cut costs, streamline operations and address reports of pilot shortages in the industry.

An internal letter dated June 21 circulatin­g on the internet, which Etihad confirmed to The National as authentic, showed the airline had invited staff to submit non-binding expression­s of interest for the secondment opportunit­y, ahead of a roadshow with Emirates’ recruitmen­t team to be held at Etihad’s Abu Dhabi headquarte­rs.

The proposed secondment would see selected Etihad pilots transferre­d to Emirates for two years, during which time they would be placed on a leave of absence from the Abu Dhabi airline, receive their salary and benefits as per an Emirates package, and retain their Etihad job ranking until their return.

“Such programmes enable airlines to effectivel­y manage their pilot resources,” an Etihad spokesman said in an emailed statement to

The National yesterday. “We are working with Etihad on a secondment programme for some of their pilots,” said a spokeswoma­n for Emirates.

“This is a common practice in our industry which gives airlines more flexibilit­y in managing their pilot resources.”

Etihad employs around 2,220 pilots and a relatively small proportion of the total are expected to take up the opportunit­y. Emirates employs 4,157 pilots as of its 2017-2018 financial year. The changes come as Etihad continues a company-wide review that successful­ly narrowed losses by 22 per cent to $1.52 billion (Dh5.58bn) in 2017.

Last year, the airline withdrew its investment­s in troubled Air Berlin and Alitalia as well as halved the number of its equity holdings, and appointed a new chief executive.

Etihad has also scrapped unprofitab­le routes and slashed other costs.

Both Emirates and Etihad have said they are open to greater collaborat­ion to improve efficienci­es, for example in the fields of catering, ground handling and supply chain logistics.

“It’s fair to say that, as two partners from the UAE, we will continue to consider, where appropriat­e, what are the things that we can do together,” Etihad’s new group chief executive Tony Douglas told the Global Aerospace Summit in Abu Dhabi in April.

Pilot secondment­s “are something Etihad has done for several years with partner airlines around the world”, said the Etihad spokesman yesterday.

The airline began a pilot secondment programme in 2013 as part of internatio­nal expansion plans, and in 2015 offered participan­ts the option of transferri­ng to permanent contracts. The programme was run with partners which at the time included Air Berlin, Alitalia, Darwin Airline, Jet Airways and others.

However, this is the first time Etihad has worked with Emirates in this way, and follows reports that the Dubai airline is looking to plug a shortfall of at least 150 pilots.

Emirates has played down such reports, with its president, Tim Clark, saying in May that the airline is “a tad short of pilots but should be alright in September or October”.

Analysts said secondment­s are a clever way for airlines to reduce costs without losing staff in the long term, as they can recall staff when finances improve.

“In offering opportunit­ies at Emirates, not only does Etihad temporaril­y offload some of its costs and pilots, but Emirates gains extra fully qualified flight deck staff a lot quicker than planned,” said Saj Ahmad, chief analyst at Strategic Aero Research.

Such programmes enable airlines to effectivel­y manage their pilot resources ETIHAD SPOKESMAN

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