Etihad Airways has welcomed the turnaround of equity partner Air Seychelles which has posted a profit following three years of losses.
A net profit of $1m was achieved just one year after Abu Dhabi-based Etihad acquired a 40 percent stake in Air Seychelles along with a five-year management contract to provide strategic support and management expertise in reshaping the airline.
The result marks a dramatic change of fortune for the Indian Ocean carrier which had made heavy losses for past three years.
James Hogan, Etihad Airways' president and CEO, said: "The challenges in the global economy mean it is still a very tough environment for airlines. Against that backdrop, this is an impressive result."
He added: "This performance validates the strength of our equity alliance proposition in which closer committed commercial collaboration drives revenue growth, and the integration and consolidation of key functions, achieves economies of scale and cost savings."
Nineteen new codeshare destinations with Etihad Airways will open up key European markets.
Leveraging synergies and economies of scale arising from its relationship with Etihad Airways, Air Seychelles has been able to achieve substantial savings and cost reductions in aviation insurance, international catering and ground handling and inflight entertainment.
The conclusion of joint contracts for fuel, uniforms and stationery supplies, all contributed to significantly reduced costs.
During 2012 Air Seychelles carried 144,450 passengers on its domestic network and 103,300 passengers on its international network. This included a record number of passengers carried on its flights to South Africa.