Etihad, airberlin create new FFP company
Etihad Airways has purchased a majority stake in a new entity, which forms part of airberlin’s topbonus frequent flyer programme.
The new programme, which Etihad called “the first step in the establishment of a global loyalty management platform”, will aim to offer different ways for topbonus members to collect and redeem miles, including the ability to use convert miles into cash payments.
Abu Dhabi-based Etihad has taken a 70% holding in the new company, with airberlin taking the remaining 30%. The total transaction value is EUR200 million (US$263m), which is being financed by an equity injection of EUR50m and debt financing of EUR150m.
The entity will become part of a new loyalty management company being established by Etihad, which it said will target “high-spending consumers”. It is planned that Etihad Guest, which recently merged with Air Seychelles’ FFP, will cooperate with the new company.
“This new investment creates an excellent growth opportunity for us to capitalise on the loyalty management market, while offering a greater range of benefits to passengers from multiple partner airlines,” said James Hogan, Etihad’s President & CEO. “The acquisition of a stake in the new topbonus company is part of our strategic evolution to create a ‘house of brands’ loyalty management company, with global scale.”
Etihad, which was 1.8m frequent fliers, and airberlin which was 3.1m, already offer reciprocal FFP benefits