Etihad looks for new partnerships
Abu Dhabi-based Etihad Airways says it is looking to invest in more airlines to continue to increase its global presence through a mix of organic growth and strategic partnershiops.
President and CEO James Hogan said: "Global reach is beyond the capacity of any single airline and progress must come through partnership."
Etihad is currently engagedin three transactions – the acquisition of 24% of India’s Jet Airways, a 49 per cent stake and management contract in Air Serbia and increasing equity in Virgin Australia from 10% to a target of 19.9%.
"The investments we are making are delivering significant benefits not only to the airlines but to our passengers and freight customers," added Hogan. "We will consider more strategic partnerships if they add value."
Etihad Airways launched its equity investment strategy in 2011 with the purchase of a 29% stake in airberlin, followed by a 40% investment in Air Seychelles, which included a five year management contract. This was followed last year by the investment in Virgin Australia and a 3% stake in Ireland’s Aer Lingus.
"Equity investments deliver synergy benefits which cannot be achieved through legacy airline alliances," Hogan added.
"Legacy alliances are focused largely on network and revenue benefits. Our equity alliance delivers much broader benefits for all of the partners including opportunities to reduce costs through resource sharing and joint procurement.
"Our equity alliance is a new business model for the airline industry."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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