My news files

1. Tuesday, April 26, 2016
FE Report
PARTNERSHIP APPROACH OFFERS NEW MODEL FOR AIRLINE COMPETITION,
SAYS EITHAD AIRWAYS PRESIDENT AND CEO
The partnership approach was adopted by the Etihad Airways on Tuesday to offer a new model
for airline competition in the industry.
Delivering the keynote address at the monthly Wings Club meeting at New York, the President
of Etihad Airways James Hogan said in an industry dominated by legacy airlines, and with such
high barriers to entry, no new network carrier could hope to compete effectively in its own. Yet
without new competition, consumers around the world would suffer not just in terms of cost, but
in market access, infrastructure requirements and the challenge of competing against such
entrenched mega-carriers, said a press release.
Mr Hogan said Etihad Airways’ entry into the United States market had also brought major
benefits to the country.
“The highest barrier is network. You can’t build a global network overnight – in fact, you’d need
decades and billions of dollars, to build networks that could compete against the major airline
group that’s where partnership comes in. From day one, we’ve taken an open partnership
approach, working with scores of airlines on code share agreements. Then we took that a step
further with minority equity investments in strategically important airlines, he added.
Together, the airlines were able to create a new competitive choice for air travelers in key
markets around the world. That’s good for consumers, good for tourism and good for trade,” he
added.
The equity investment strategy was a key element of that approach. We have a two-pronged
approach. From a strategic level, we are looking for the equity partners to bring network
connectivity, generate additional revenues and create economies of scale. All our partners are
delivering on this level. That has helped to create the seventh largest airline group in the world
and is delivering hundreds of millions of dollars to our business.

2. Each partner then has its own business plan, which is the responsibility of their own management
and Boards of Directors. Many of these, such as Air Serbia, Air Seychelles, Jet Airways and
Virgin Australia, are now delivering on this level too. We are supporting the restructuring of
businesses that require it, such as Alitalia and Airberlin, added a press release.
Etihad is a tiny player in the US air travel market, with less than 0.01 per cent of daily
international departures. However, we have been able to offer major benefits to the United
States.
Etihad connects the US, through our hub in Abu Dhabi, with scores of markets which are simply
not served by other carriers. That means we are feeding hundreds of thousands of travelers,
leisure and business, into the US. Hundreds of thousands of those get fed onto the US carriers.
That’s where our unique partnership model comes in.
momentumpl@gmail.com
End/Sanwar Hossain.