Market for world travel is still strong - Etihad chief

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FLYING HIGH: Etihad's Hogan sees consolidation among European carriers as a likely solution for their financial woes. (Getty Images)

The head of the Abu Dhabi-based Etihad Airways has said that the market for world travel is still strong and that the carrier’s first class and business class numbers are strong amid the downturn.

Speaking on the CNN International television channel’s Quest Means Business programme, James Hogan, chief executive at Etihad said, “In any crisis, [there is an] opportunity to re-engineer, to restructure. But more importantly, there's a market for world travel. And when - we're seeing it today. We're seeing our business cabins are strong. In fact, system-wide, the pressure isn't in the first class and the economy cabin in regard to yield.”

Hogan’s optimism comes in barely a few weeks after the Doha-based Qatar Airways confirmed that it will remove first class facilities on four A340-600 aircraft to accommodate more economy seats.

In a statement, the airline had told Arabian Business that first class lounges on the planes will be stripped out to make way for 40 economy seats from this September. The additional seats will boost capacity on each aircraft from 216 to 256 economy seats.

Akbar Al Baker, Qatar Airways’ CEO had said the decision to remove the lounges was taken following low interest in the service.

“We found that usage of the lounges was low,” he said. “The lounges provide passengers with a chance to sit and relax together on comfortable sofas during the flight in the ambience surroundings of a cocktail bar.

“However, our in-flight passenger surveys have shown that these lounges are not utilised as much as we had expected by passengers, who instead preferred to relax in our premium seats during their flight,” Al Baker had said.

Yet, despite the rejig, the Qatari carrier’s chief has been positive and informed that the airline plans to expand its operations.

On a similar note, Etihad’s Hogan told the CNN: “The Gulf region is the new crossroad of the world. And it's an environment if you look within three and a half hours flying time, with India, South Asia, North Africa, the Middle East, the Gulf, the population size of China, an environment where it's so regulated. We have markets that are still going to open up in the coming years.”

“And when you see the destinations like Abu Dhabi, where the major infrastructure projects are continuing, what the customers say, ‘we like the product. We like the convenience of one stop’. And whilst we're on a quite great challenge on the yields, the actual seat factor is strong.”

Hogan sees consolidation among European carriers as a likely solution for their financial woes.

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READERS' COMMENTS

yes true
Posted by sami, s on Monday 27 April 2009 at 12:00 UAE time


Too much busy airports but only on departure terminal side
People are leaving the country

Hogan should try turning right for a change
Posted by Geriant, Dubai, UAE on Friday 24 April 2009 at 15:11 UAE time


Ever the showman, Eithad's Hogan is missing the point. He should trying turning right for a change on his state-sponsored airliners. The economy sections are empty seats heavily discounted. First and business are always full on Gulf carriers, usually with annoying children it seems

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