Foreign airline stake deals fuel Etihad growth
EXPANSION OF FREIGHTER FLEET CAPABILITY ALSO PLAYED KEY ROLE LAST YEAR
Etihad Airways’ growth strategy to expand its global network by purchasing equity stakes in foreign airlines received a boost yesterday. The Abu Dhabi- based carrier said in a statement that its equity and codeshare partners delivered 1.8 million passengers onto Etihad flights in 2013, 38 per cent higher than the 1.3 million the previous year.
Last year, Etihad took a 24 per cent equity stake in Indian carrier Jet Airways and 49 per cent in Air Serbia, formerly Jat Airways.
It also signalled its intent to take a 33.3 per cent stake in European carrier Darwin Regional that will be rebranded Etihad Regional following regulatory approval.
“If you take the Darwin Airline investment in isolation that would appear to be an experiment in competing with its Middle East rivals by offering designed connections via Etihad routes to and from smaller cities in Europe where the others do not fly,” David Bentley, Principal at UK- based Big Pond Aviation, told Gulf News in an e- mailed statement.
The longevity of these investments is unclear. However, Etihad, who Bentley stated is possibly the most innovative airline in the world today in eq- uity partnerships, is driving its own growth.
In 2013, the airline carried nearly 12 million passengers on its fleet, nearly 16 per cent greater than the 10.3 million in 2012. And with that it carried 73 per cent of the 16.4 million passengers who passed through Abu Dhabi International Airport. Add the equity partners and that rises to 79 per cent.
Bentley said Etihad’s organic growth, which is impressive in its own right, will remain the primary factor in the immediate future over the equity partnerships.
And by growing its own network, the airline also added six new destinations to its network last year, with new services launched to Washington DC, Amsterdam, Sao Paulo, Belgrade, Sana’a and Ho Chi Minh City.
Commenting on the airline’s growth, James Hogan, Etihad Airways President and Chief Executive Officer, in a statement called 2013 “another game- changing year. I am excited about what the future holds and look forward to working with all our partners to maximise the return for our shareholders, enable the continued growth and the evolution of Abu Dhabi as an aviation hub,” he said.
Cargo growth
Etihad Cargo also grew in 2013. A 32 per cent year- onyear increase in cargo volumes saw 486,753 tonnes of freight and mail flown by the airline last year.
And of total cargo imports, exports and transfers at Abu Dhabi International in 2013, Etihad accounted for 89 per cent.
Etihad said that China, Hong Kong and India were its top cargo markets while expanding markets in the United States and the Netherlands also contributed.
“Bellyhold freight capability plays a key role when you have dedicated hub complexes set up for passengers as every small consignment or parcel is bonus additional income for relatively little handling cost,” Bentley said.
That airline said that its volumes were boosted by enhancements to its freighter fleet capability and greater cargo in the bellyhold of passenger aircraft.
It added two Boeing 777 freighters, a leased 747- 8 freighter and an Airbus A330 freighter to its fleet in 2013. Its passenger fleet expanded with four A320s, one A321, two A330- 200s and six 777300ERs.
Flying high 12m Number of passengers in 2013 on Etihad.