Etihad looks at RoI in India
Leveraging the networks and connections of its partner, Etihad Airways is slowly building its competency in India to ensure a good return on its investment in due time.
Etihad Airways has been making the headlines in Indian newspapers and for all the good reasons. As its longterm plan for India begins to unfold, it is clear that the airline had done its homework and loosened its purse strings before making its way to India.
And its timing couldn’t be better. Jet Airways, despite having strong branding, had been recording massive losses for a fifth quarter straight.
Neerja Bhatia, General Manager ( India), Etihad Airways, tells us how the airline plans to leverage Jet’s market competency in the months to come. “Etihad Airways and Jet Airways will work in collaboration to strengthen competition and bring greater customer choice to India. Jet Airways undoubtedly has a strong brand and an established and loyal customer base. Together, we will be able to respond to customer demand more effectively with a broader network, improved connections and, where appropriate, upgraded product. The winner is the traveller,” she says.
Together, we will be able to respond to customer demand more effectively with a broader network
Etihad Airways posted third consecutive year of net profit, up 48% to US$ 62 mil- lion in 2013 on revenues up 27% to US$ 6.1 billion.
A whole lot of sharing
Bhatia adds that her airline intends to build on Jet’s network in India and strengthen their commercial collaboration. A whole lot of codesharing has already (see box) happened and more is in the pipeline.
Plans are underway to double services to Kochi, Bengaluru, Chennai, Kozhikode and Hyderabad this summer due to strong demand. Etihad will not only introduce more flights, but larger aircraft on selected routes.
Etihad’s Boeing 787 aircraft that it has recently introduced will be first deployed between Abu Dhabi and Düsseldorf in December. “Services to Washington DC and Mumbai will commence only in January 2015. Flights to other cities in the world will be confirmed in 2015 as more Boeing 787 aircraft enter the fleet,” Bhatia reveals.
With the recent restructuring within the group, it has appointed James Hogan as the group President and CEO of Etihad Aviation Group. He summed up accurately when he said, “Ten years ago, we started as a small regional carrier, but with global ambitions. Since then, we have grown to become one of the world’s leading passenger and cargo airlines, laying the foundations to become one of the leading aviation and travel groups in the world. It is important that this exciting new approach and philosophy is reflected in the way we organise ourselves.”
Ball’s in Etihad’s court
Meanwhile, to address the top-line ‘exodus’ that Jet has been experiencing this year, Etihad has brought in Cramer Ball from Seychelles, who on its behalf, has taken charge at its partner airline Jet.
Ball has earned himself something of a reputation, having turned a loss-making Air Seychelles around during his two- year stint at the helm. His current task in Mumbai is on similar lines but bigger in scope – like everything Etihad does.