Global crisis continues to impact Etihad Airways

zoom

ETIHAD AIRWAYS: CEO hopes consumers return to the market. (Getty Images)

Abu Dhabi's Etihad Airways said on Wednesday it may not be able to break even by 2010 because of the global economic crisis.

CEO James Hogan told reporters that while the airline is aiming to break even by 2010 there is a huge pressure on yields and it will have to see month by month, quarter by quarter, whether consumers return to the market.

He added: "The aviation industry is facing its toughest challenge for many years as a result of the current global economic crisis but Etihad Airways will seek to continue its expansion plans during 2009 in a measured, considered and controlled manner.''

Indeed, having achieved more than $2.5 billion in revenues in 2008, Etihad is targeting $3 billion in 2009, an increase of 20 per cent.

The airline said it is aiming for 16.6 percent passenger growth to 7 million this year. And with the addition of new aircraft, seat capacity will be increased by 18 percent.

Last year the Government-owned airline flew 6 million passengers on 50 routes, using a fleet of 42 aircraft. An additional 11 aircraft are earmarked for this year as the company plans to launch services to Melbourne, Istanbul, Athens, Larnaca and Chicago.

Currently Etihad has a fleet of 44 narrow and wide-body aircraft which will rise to 52, with one aircraft retiring recently from the current fleet, by the end of 2009. The new additions consist of two Airbus A330-200s, one A330-300, two A340-600s, five A320-200s and one Boeing 777-300ER.

Hogan also told reporters that the company is eyeing acquisitions. "We continue to look at opportunities. European airlines have a number of difficulties, even the Middle East, and we will look around the world. It could be an era of further consolidation in Europe and the US," he said.

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Misleading headline?
Posted by K Thakar, Bangalore, India on Thursday 19 March 2009 at 11:38 UAE time


It's hardly as if Etihad is alone in facing the global crisis? Tell me one airline that isn't - the key point here is surely the point that the carrier is expanding destinations and taking on new aircraft (like the other airlines in the region) while everyone else is mothballing aircraft, slicing capacity and reducing frequencies. A sense of the global aviation picture is needed.

High Fares
Posted by Tahir Rao, Abu Dhabi, UAE on Thursday 19 March 2009 at 07:47 UAE time


As per CEO, Etihad Airways profitability is greatly dependent on customer return, I think very high fares charged by Aithad Airways will be main hurdled in bringing back the customers, in these financial crisis as peeple will be ready to compromise on quality of service but very hard to may more. For example Return flight from Abu Dhabi to Toronto costs 6500 AED, while in British Airways in Cost 4200 AED and even it can cost as low as 3400 AED if conecting flight with combination of Air Canada is taken. It means Ethihad Airways fare cost a duble to any pessanger, I do not that any wise person will travel, unless it is extermely important and if people are going on vacations, pleople prefer stop overs.

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM