Europe remains Etihad focus as aviation group formed
Guest Writers are not employed, compensated or governed by TD, opinions and statements are from the specific writer directly
Europe will remain as a ‘very important’ region for Etihad Airways as the airline announced a new group for its global aviation strategy.
During a press conference for its 2013 financial results today, James Hogan, president and CEO of Etihad said the airline’s equity partnerships with Aer Lingus, airberlin, Air Serbia and Darwin Airlines have already reaped their benefits, with the airberlin even putting the German market ahead of the UK as Etihad’s strongest European passenger base.
The airline is in the final stage of due diligence with struggling Italian airline Alitalia, with Hogan explaining its partnership decisions are made based on network, whether the cost base can be restructured and the management team.
“We take out partnerships where we can see an opportunity to collectively improve our network,” he explained. “Our current partnerships have delivered value to each other and our equity alliance allows us to make cost efficiencies.”
Zurich and Rome are amongst the carrier’s new destinations in the pipeline this year, as well as Dallas, Los Angeles, Medina, Armenia, Japiur, Phuket and Perth.
Its partnerships, along with tour operations, will soon form under the Etihad Aviation Group, which Hogan said will mark the step in its global structure.
The new group, led by James Rigney as group chief financial officer, will include a division for the airline and another for equity partners, with a search currently underway for a new chief operating officer equity partners.
The Hala Group will also fall under the new Etihad Aviation Group combining Hala Travel Management and Etihad Holidays.
“The new Etihad Aviation Group structure reflects this diversification and is a natural development to deliver continued and sustainable success for Etihad Airways and its partners,” said Hogan.
“It will ensure that we work more closely than ever before to maximise the tremendous opportunities and deliver a sustainably profitable future for Etihad Airways and wider Etihad Aviation Group members, while ensuring we meet ambitious targets relating to revenue, cost, and synergy benefits.”
Etihad today posted its third consecutive year of growth, with net profit up 48% to US$62m and EBITDA up 30% to US$979 million.
Revenue for the airline was up 27% to US$6.1 billion, with its alliance partnerships seeing revenues increase 30% to US$820m.
Comments are closed.