Etihad success pinned on Alliances

Etihad success pinned on Alliances

Etihad’s partnership strategy has been a core element of the growth of the business, President and Chief Executive Officer James Hogan has revealed.

Delivering a keynote at the 19th Annual Global Airfinance Conference in Dublin, Hogan said the strategy, which resulted in 5.5 million guests connecting onto the Etihad Airways network from codeshares and partners in 2016, had delivered revenue and synergy benefits.

“Our investments had an immediate impact on the revenue side, delivering hundreds of millions of dollars in additional revenues and allowing us to fill our onward connecting flights.  Those benefits have been replicated in all our minority investments – in airberlin, Alitalia, Jet Airways, Virgin Australia, Air Serbia, Air Seychelles and Etihad Regional.”

“We also believed our minority investments would unlock an additional advantage that the global alliances were simply unable to use.  Because we had ’skin in the game’, we could work on joint procurement and other business synergies which would save us – and our partners – hundreds of millions of dollars. Again, we have seen similar benefits from each of our investments, with those synergies being shared by all the partners.”

Hogan said the third goal of the equity investments, to allow the management of these airlines to reshape their businesses into sustainable profitable operations, required a longer term view.

“Of course, their business strategies remained in the hands of the local management in each case.  We are pleased to support management, and to advise where requested, but the plans and implementation are in their hands.”

“In this third area, we have had some strong results but we also face some significant challenges.  Jet Airways, Air Serbia, Air Seychelles, Virgin Australia and Etihad Regional have all used our capital investments to help structure their businesses into more efficient and profitable operations. In those cases, our long term investments are already delivering a return.

 

Hogan said its approach has helped the airline grow from a $300 million a year business to a diversified aviation group delivering revenues of more than $26 billion.

 

Latest News

  • Hotels

Minor Hotels announces a new luxury Anantara on Bali’s Seseh Beach

Minor Hotels has signed an agreement to manage a new-build Anantara resort and branded residences on Seseh Beach in Bali, opening in 2027. The news Anantara Dragon Seseh Bali Resort will be the first luxury beachfront resort on Seseh Beach and the third Anantara Hotels & Resorts property in Bali. The Anantara Dragon Seseh Bali […]

  • Aviation

Solomon Airlines fills Air Vanuatu gap with flights from Port Vila to Auckland

Solomon Islands’ national carrier will commence direct flights between Port Vila and Auckland from 27 May, using Solomon Airlines aircraft to continue air services linking Vanuatu and New Zealand. Solomon Islands officials together with the Vanuatu Government has worked closely with relevant New Zealand authorities to continue interim flights servicing Auckland from Port Vila. This included […]

  • Aviation

Board Air Canada in Sydney’s CBD via a sleek Light Rail

Visitors flocking to Vivid Sydney will glide through the CBD in the newest addition to the Air Canada fleet – a sleek Light Rail tram wrapped in the airline’s unique livery. The Air Canada-themed tram is part of a new marketing campaign designed to put Air Canada in lights during the Vivid Sydney festival (25 […]

  • Cruise
  • News

Carnival Splendor to the rescue of Aussies and Kiwis left stranded in Vanuatu

Carnival Cruise Line’s Carnival Splendor has come to the aid of a group left stranded in Vanuatu, following the collapse of Air Vanuatu. The group, eight Australians and one New Zealander, were visiting the island of Santo when Air Vanuatu cancelled all flights, leaving them without a way home. Carnival Cruise Line responded by offering […]

  • Hotels

QT Singapore set to open in heritage Eastern Extension Telegraph building

Bookings open today for QT Singapore, in the historic former Eastern Extension Telegraph building along Robinson Road, the first property from QT Hotels & Resorts to open outside Australian and New Zealand. Previously Accor’s So Singapore, then the Hotel Telegraph, QT Singapore will officially launch on September 16 and will feature 134 rooms, ranging in […]

  • Hotels
  • News

Minor Hotels’ Anantara group reimagines the brand as its portfolio surpasses 50 properties

Anantara Hotels & Resorts is marking a significant milestone with a reimagined brand identity as recent openings across Europe, Middle East and Asia have propelled the brand portfolio beyond 50 properties. Part of the Minor Hotels group, the Anantara visual refresh takes an elegant, pared-back approach that enables each hotel’s unique character to shine – […]