Etihad Airways has been flying to Australia for six years and will introduce new aircraft and routes and airport facilities as well as add additional flights in Australia. James Hogan, the airline’s President and Chief Executive Officer shared this today at the CAPA Australia Pacific Aviation Summit in Sydney.
- Australia has been a key and long-term market for the airline. Plans for the airline’s expansion plans in Australia include:
- Airbus A380 aircraft from Sydney and Melbourne to Abu Dhabi
- Premium lounges will be introduced in Sydney and Melbourne airports from 2014
- Additional flights from Melbourne and Brisbane to Abu Dhabi
- Introduction of non stop flights between Perth and Abu Dhabi
Mr Hogan also shared that Etihad Airways is already moving to increase its equity in Virgin Australia after the recent approval by the Foreign Investment Review Board to increase from a 10% shareholding to 19.9%.
The airline has 28 weekly departures, annual expenditure of over US$100 million, direct employment of 106 staff and engagement of 415 local contractors. The Virgin Australia partnership allows Etihad Airways to connect with 45 destinations in Australia, New Zealand and South-East Asia. Virgin Australia also enjoys connection via Etihad Airways’ hub to destinations in Europe, UK, Ireland and Africa.
Mr. Hogan also shared that the airline’s equity alliance initiatives are an alternative to legacy airline alliances. Etihad Airways has five such alliances including its latest deal with Air Serbia. The airline is awaiting approval for investment in the sixth airline – India’s Jet Airways. These six alliance partners offer a combined total of more than 420 destinations, 500 aircraft and more than 96 million passengers annually.
Costs can also be reduced for participating carriers of the equity alliance through joint procurement of assets, services and supplies including aircraft, engines, fuel and insurance as well as cooperation on maintenance, crew training and sales activities.
