New Destinations for Etihad Airways

In just six years Etihad Airways, based in Abu Dhabithe infrastructure projects have continued. Fifty per
has managed to fly to 60 destinations worldwide. Thecent of Etihad traffic comes out of Abu Dhabi. So that
following articles is about the success and plans ofis certainly a plus. What is also positive is India and
Etihad Airways. James Hogan, the Chief ExecutiveChina. While China has certainly come back strong on
Officer of the Abu Dhabi-based carrier says: "No airlinecargo volumes, and India is coming back strongly, too.
in the history of aviation has achieved that. TheOil Prices:
advantage we have compared to a legacy carrier isJames advised that Etihad are hedged moving
that we are just six years old." Talking to Theforward and have a three-year rolling hedging
Emirates Business Newspaper, he discussed keyprogramme which is continually reviewed with the
challenges that the airline needed to tackle in 2010,board.
besides the steps being planned to make it break-evenNew Aircraft:
in 2011 and move into profitability.Etihad announced they will introduce the Boeing 787s
Budget Carriers:and Airbus A380s over the next three to five years,
Etihad confirmed they have no plans yet to launch awhich provides enough aircraft to 2018-2020.
budget carrier.Also, Etihad took delivery of 11 aircraft in 2009, opened
Etihad had recently introduced the A320 (single-aisleup new destinations, during a very tough competitive
plane typically operated by a low-cost carrier) aircraftperiod. Etihad id due to receive their first Airbus A380
to give greater frequency, and that feeds well into thein 2013 and the first Boeing's 787 in 2014 and
long-haul aircraft.confirmed they have 35 firm orders for the 787s and
Biggest challenges for 2010:10 firm orders for the A380s.
James confirmed that the challenge for Etihad in 2010New Routes:
is to manage yields. What we have seen in 2008 isEtihad plan to launch two new destinations this year
that the airline industry worldwide saw yields– Sri Lanka and Japan (Nagoya and Narita).While
depressed.Looking at the first six months of 2010, theNarita would be a direct flight from Abu Dhabi – five
airline has a seat factor target for each month. Whentimes a week, Nagoya will operate via Beijing.
we see the seat factor that we would expect in theAnother thing we have done is work with other
first six months of this year – the economy trafficcarriers – out of America, with American Airlines,
layering is strong. The business and first class traffic isout of Australia, Qantas. And just before Christmas,
not where we would like it to be yet in regards to theEtihad signed an agreement contract with Al Italia,
yields, but a part of it is a slowdown due to Europeanwhich gives us Rome.
cold snap. And these factors impact on yields. But theEtihad Airways in 2010:
aviation industry will see yields moving back to 2008James advised that Aviation has always been a tough
levels this year because there was heavy discountingbusiness but the Gulf airlines still have a fantastic
in 2009. Besides, we have to now continue to focusopportunity to move share from the European hubs
on our customer, focus very hard on our costs, ourand the Asian hubs over the Gulf for the customer as
ratios, our efficiencies and our utilisation of resources.one stop versus two stops. He does not believe this
James added that if you look at Iata statistics, theyear will be as hard as 2009, in respect of issues such
Middle East was the only region that was positive inas Swine Flu and The Financial Crisis. James added
2009. And Etihad outperformed those statistics inthat he is a huge believer in the Abu Dhabi story, and
passengers. But what that meant is that European,that includes the Grand Prix, Yas Islands and others.
Southeast Asian carriers put more capacity, or,So as Etihad Airways builds its story and the other
diverted capacity, into the Middle East, and pushedprojects of Abu Dhabi come online, that gives us a
down prices.very positive view for 2010.
In 2009, the Middle East, which is our highest yieldingJames Hogan CEO, Etihad Airways - joined Etihad
market, was down 45 per cent over the previousAirways in September 2006 and was instrumental in
year. People did not travel due to the flu concernsadding 13 new destinations and 21 new aircraft to the
besides the global financial crisis. But looking into thisAbu Dhabi-based airline that more than doubled the
year, we are seeing positive signs. The advancednumber of passengers carried. With some 30 years of
sales are stronger compared to the same months lasttravel industry expertise, Hogan has overseen the
year. The issue is just getting that corporate trafficrapid growth of UAE's national airline.
moving.Under his stewardship, the airline made history in June
Premium Traffic:2008 with one of the largest orders of passenger jets
Going back to the customer, the economy traffic is– 205 aircraft worth approximately $43 billion
there, which is good. We are layering the business(Dh158bn) at list prices. James was named 'Aviation
over the next six months. It is the premium traffic,CEO of the Year' by CEO Magazine in November
which is key, and the cold snap in Europe has not2008.
helped at the start. But what we do see out of EuropeBook your apartments, villas and holiday rentals in Abu
and Australia is strong business cabin traffic. TheDhabi now and see the stunning Burj Khalifa, the tallest
advantage we have in Abu Dhabi and Saudi Arabia,tower in the world!