Etihad Airways

Etihad Airways (Arabic: شَرِكَة ٱلْاِتِّحَاد لِلطَّيْرَان‎, romanized: sharikat al-ittiḥād li-ṭ-ṭayarān) is the second flag carrier of the United Arab Emirates. Its head office is in Khalifa City, Abu Dhabi, near to Abu Dhabi International Airport. Etihad commenced operations in November 2003.[3] It is the second largest airline in the UAE after Emirates.

"Etihad" redirects here. For other uses, see Etihad (disambiguation).

Etihad Airways
IATA ICAO Callsign
EY ETD ETIHAD
FoundedJuly 2003 (2003-07)
Commenced operationsNovember 2003 (2003-11)
HubsAbu Dhabi International Airport
Frequent-flyer programEtihad Guest
Fleet size104
Destinations81[1]
Parent companyEtihad Aviation Group
HeadquartersKhalifa City, Abu Dhabi, United Arab Emirates[2]
Key people
Revenue US$6.1 billion (2017)
Net income −US$870 million (2019)
Employees17,500 (October 2020)
Websitewww.etihad.com

The airline operates more than 1,000 flights per week to over 120 passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia, and North America, with a fleet of 102[4] Airbus and Boeing aircraft as of February 2020. In 2015, Etihad carried 14.8 million passengers, a 22.3% increase from the previous year,[5] delivering revenues of US$9.02 billion and net profits of US$103 million.[6] Its main base is Abu Dhabi International Airport.[7]

In addition to its core activity of passenger transportation, Etihad also operates Etihad Holidays and Etihad Cargo.[3] Etihad established its airline alliance, Etihad Airways Partners, in October 2015[8] which was disbanded in 2018 after several of its members fell into financial difficulties.[9] Etihad Airways holds minority equity investments in the participating airlines, as well as holding a stake in Virgin Australia, which is not officially listed as an Etihad Airways Partner. Booking for these airlines is consolidated under one network.

History
A now-retired Etihad Airways Airbus A340-500 wearing the first livery (with the older UAE Coat of Arms)
A now-retired Etihad Airways Airbus A340-600 in the Abu Dhabi Grand Prix livery

The emirate of Abu Dhabi was a joint-owner of Gulf Air along with Bahrain, Qatar, and the Sultanate of Oman and was based at Abu Dhabi International Airport from the 1970s until September 2005,[10] when Abu Dhabi withdrew from the airline, leaving it an Oman and Bahrain-owned airline until Oman's withdrawal in 2007 to focus on Oman Air.

In July 2003, future UAE president Sheikh Khalifa bin Zayed Al Nahyan, who wanted an airline for Abu Dhabi, issued a Royal (Amiri) Decree that established Etihad Airways as the second flag carrier of the United Arab Emirates. Fellow Al Nahyan family member Sheikh Ahmed bin Saif Al Nahyan founded and started with an initial paid-up capital of AED500 million. Services were launched with a ceremonial flight to Al Ain on 5 November 2003. On 12 November 2003, Etihad commenced commercial operations with the launch of services to Beirut, Lebanon.

In June 2004, the airline placed a US$8-billion aircraft order for five Boeing 777-300ERs and 24 Airbus aircraft, including four Airbus A380s. Its first A380 was delivered in December 2014.[11]

The airline announced what was the largest aircraft order in commercial aviation history at the Farnborough Airshow in 2008, for up to 205 aircraft—100 firm orders, 55 options, and 50 purchase rights.

Etihad reported its first full-year net profit in 2011, of US$14 million, in line with the strategic plan announced by CEO James Hogan in 2006.[12]

In December 2011, Etihad announced it had taken a 29.21% stake in Air Berlin,[13] Europe's sixth-largest airline, and James Hogan was appointed Vice Chairman. It followed this up with minority stakes in other airlines—Air Seychelles (40%),[14] Aer Lingus (2.987%),[15] Virgin Australia (10%).[16] On 1 August 2013, the President of the company, James Hogan, signed a deal with Aleksandar Vučić, First Deputy Prime Minister of Serbia, in Belgrade, giving Etihad a 49% stake in the Serbian national carrier Jat Airways.[17] The Serbian Government retained 51% of the shares, with the company being rebranded as Air Serbia.[18]

In September 2012, the Indian government announced that foreign airlines could take a stake of up to 49% in Indian carriers. On 24 April 2013, Jet Airways announced that it was ready to sell a 24% stake in the airline to Etihad for US$379 million. The deal was completed on 12 November 2013.

At the 2013 Dubai Airshow, Etihad announced that it was acquiring a 33.3% stake in the Swiss carrier Darwin Airline. Darwin was rebranded as Etihad Regional from March 2014.[19] Etihad sold its stake in Darwin in 2017.[20]

On 1 August 2014, Etihad agreed to take a 49% stake in the Italian flag carrier Alitalia for an estimated €560 million. The deal was closed on 8 August 2014.[21] On 1 January 2015, Alitalia-CAI formally passed its operations to Alitalia-SAI, a new entity owned 49% by Etihad and 51% by the Alitalia-CAI shareholders.[22]

In May 2016, the management structure was reshuffled, as James Hogan became CEO of the airline's parent company, Etihad Aviation Group. Peter Baumgartner, formerly the airline's Chief Commercial Officer, became Chief Executive Officer of the airline, reporting to Hogan.[23]

In May 2017, a week after Alitalia collapsed into administration, Etihad Aviation Group suddenly announced that CEO James Hogan and CFO James Rigney would leave the group on 1 July 2017. As an interim measure, the board of directors appointed Ray Gammell as CEO (previously Chief People and Performance Officer) while searching for a permanent replacement.[24] On 9 January 2018, Etihad Airways appointed Mark Powers as Group CFO, replacing interim Group CFO Ricky Thirion.[25]

On 2 July 2017, the United States Department of Homeland Security unbanned Etihad Airways and exempted Etihad Airways from the 2017 electronics ban after the airline enhanced its passenger screening processes.[26]

In February 2019, Etihad announced large order cancellations for both Airbus and Boeing aircraft. The airline terminated contracts for all 42 Airbus A350-900s, 2 A350-1000s and 19 of 24 ordered Boeing 777X.[27]

In May 2020, shortly after Air France retired its entire Airbus A380 fleet due to the COVID-19 pandemic, there were rumors that Etihad Airways was considering cancelling all its remaining Airbus A350 orders and retiring its entire Airbus A380 fleet due to more financial losses caused by the COVID-19 pandemic. Etihad plans to a make a final decision very soon. If Etihad confirms a final decision to permanently remove all Airbus A380s, it will become the second Airbus A380 operator to retire its Airbus A380 fleet as Air France-KLM is the first Airbus A380 operator to retire its Airbus A380 fleet.[28] However, by 26 May 2020, Etihad confirmed that the airline will not cancel its remaining Airbus A350 orders and plans to proceed with them. The airline also confirmed that it has no plans to ditch its Airbus A380 fleet into early retirement unlike Air France, despite the COVID-19 pandemic.[29]

However, as of October 2020, some sources stated that the Etihad Airbus A380 is still has a potential possibility of early retirement due to the aircraft market changes and demand caused by the COVID-19 pandemic as Etihad Airways CEO Tony Douglas referred to the Airbus A380 has a heavily inefficient handicapped behemoth by two engines too many. Tony Douglas also said that smaller long-range twin-jet aircraft such as the Boeing 777X, 787, and Airbus A350 can do the job far more efficiently and sustainably than that of the A380.[30]

Company slogans
  • From Abu Dhabi to the World
  • The World Is Our Home, You Are Our Guest
  • Flying Reimagined
  • Choose Well

Corporate Affairs

Head Office

Etihad has its head office, in Khalifa City, Abu Dhabi,[31] near Abu Dhabi International Airport.[32] Etihad spent 183.6 million UAE dirhams (US$50 million) in 2007 to arrange to have its new head office and training center built. The new head office was scheduled to be finished by the end of 2007.[33]

Structure
Etihad Stadium, the home ground of Manchester City Football Club.

Etihad is governed by a board of directors chaired by H.E. Mohamed Mubarak Al Mazrouei and operates in terms of its founding legislation and the Article of Association of the company. The Board consists of seven independent non-executive members and has two sub-committees, being an Executive Committee and an Audit Committee, each with its charter and chairman. Other members of the board include: H.E. Ahmed Ali Al Sayegh, H.E. Mohamed Khalifa Al Mubarak, H.E. Mohamed Hareb Sultan Al Yousef, H.E. Hamad Abdulla Al Shamsi, H.E. Khalifa Sultan Al Suwaidi, H.E. Ahmed Ali Matar Al Romaithi.[34]

The airline was led previously by James Hogan (formerly CEO of Gulf Air) who was appointed as president and Chief Executive Officer on 10 September 2006 until January 2018. The current CEO of Etihad Group is Tony Douglas who was appointed as Chief Executive Officer in January 2018.[35]

Etihad Airways equity alliance

Etihad's equity alliance is composed of airlines in which Etihad has minority shareholdings:[36]

The incorporated airlines were also part of the now-disbanded Etihad Airways Partners alliance between 2015 and 2018.

With Virgin Australia’s bankruptcy and subsequent restructuring, the company’s shareholding in the airline ended in its entirety.

In late December of 2020, the government of Serbia recapitalized Air Serbia and thus increased its stake to 82% thus decreasing Etihad’s stake to 18%.

The key recent trends for Etihad Airways are shown below (as at years ending 31 December):

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Turnover (AEDb) 5.8 9.2 8.4 11.0 15.0 ↓
Turnover (US$b) 1.6 2.5 2.3 3.0 4.1 4.8 6.1 7.6 9.0 8.4 6.1 5.9
Profits* (EBITDAR) (US$b) n/a n/a n/a n/a n/a 0.7 0.9 1.1 1.4 n/a
Profits* (EBIT) (US$m) n/a n/a n/a n/a 137 170 208 257 259 n/a
Net profit/loss (US$m) n/a n/a n/a n/a 14 42 48 73 103 −1,873 −1,520 −1,280
Number of employees 5,563 7,058 7,828 7,855 9,038 10,656 13,535 17,712 26,566 26,229 24,558 21,855
Number of passengers (m) 4.6 6.0 6.3 7.1 8.3 10.2 11.5 14.8 17.6 18.4 18.6 17.8
Passenger load factor (%) 69 75 74 74 76 78 78 79 79 79 78.5 76.4
Cargo carried (000s tonnes) 175 194 219 263 310 368 486 569 592 596 552 682
Number of aircraft (at year end) 37 42 53 57 64 70 89 110 121 119 115 111
Notes/sources [37] [37] [38][39] [39] [40] [41] [42] [6][43] [44] [45] [46][47]
[48]		 [49]

Profits*: Earlier profit/loss figures do not appear to have ever been published; the company announced, however, that it became profitable as from 2011.[50]

Current team sponsorship deals
Team Sport Located Commenced sponsorship Notes
Anorthosis Famagusta FC Association Football Larnaca, Cyprus November 2013 Cyprus First Division side
Capital City Go-Go Basketball Washington, DC, USA August 2018 NBA G League Subsidiary of Monumental Sports & Entertainment
Harlequins Rugby Union London, United Kingdom 30 July 2007 The sponsorship also includes renaming the East Stand at the Twickenham Stoop (the home of Harlequins) to the Etihad Stand. Etihad's logo is painted on the roof of the stand which is under the flight path to London Heathrow Airport.[51]
Harlequins RL Rugby league
Manchester City F.C. Association Football Manchester, England, Great Britain May 2009 Part of the deal now includes the renaming of Manchester City's home ground as "Etihad Stadium".
Melbourne City FC Association Football Melbourne, VIC, Australia May 2014 Home kit resembles that of sister club Manchester City.
Mumbai Indians Cricket (Indian Premier League) Mumbai, India April 2014 to 2016 Back sponsor
New York City FC Association Football New York, United States of America 13 November 2014 Home kit resembles that of sister club Manchester City.
Scuderia Ferrari Formula 1 motor racing Maranello, Italy 2008 For the 2007 season, Etihad was one of the title sponsors for the Etihad Aldar Spyker F1 Team. Because the team was purchased by the chairman of another airline (Vijay Mallya, of India's Kingfisher Airlines), Etihad switched to Scuderia Ferrari.
Washington Capitals Ice Hockey Washington, D.C, USA 11 May 2015 NHL Subsidiary of Monumental Sports & Entertainment
Washington Mystics Basketball Washington, D.C, USA 11 May 2015 WNBA Subsidiary of Monumental Sports & Entertainment
Washington Wizards Basketball Washington, D.C, USA 11 May 2015 NBA Subsidiary of Monumental Sports & Entertainment
Al Nassr FC Association Football Al Riyadh, Saudi Arabia. August 2018 One of the biggest clubs in Saudi Arabia.

Event and organisations
Etihad Airways is the sponsor of Manchester City F.C.. One of their Boeing 787-9s (A6-BND) is adorned in a special Manchester City livery.
  • On 18 December 2007 Etihad announced that it would become the title sponsor for the 2009 Abu Dhabi Grand Prix to be held on Yas Island, the F1 logo and the words "Formula 1 Etihad Airways Abu Dhabi Grand Prix" appeared on the aircraft for one month before the race.
  • In October 2008, it was announced that Etihad would take over sponsorship of the Docklands Stadium in Melbourne, Australia (previously known as the Telstra Dome). The name change to Etihad Stadium took effect on 1 March 2009.
  • On 19 March 2008, it was announced that Etihad Airways would become a main sponsor for the All-Ireland Senior Hurling Championship from 2008 to 2010, which was later extended until 2012. On 12 April 2012, the Gaelic Athletic Association signed a new five-year sponsorship deal with Etihad.[52]
  • On 25 March 2014, Etihad announced a partnership with Major League Soccer (MLS) in the United States to become the Official Airline Partner of MLS, in a multi-year deal.[53]
  • Eithad Airways were the main sponsor for the 2015 Eithad Airways GAA World Games held in Abu Dhabi[54] and the 2016 Etihad Airways GAA World Games held in Dublin. The sponsorship has since ceased.[55]
  • In 2017 it was announced that Etihad Airways would collaborate with IMG Models, on a show called Model Diaries, showcasing models in high fashion as they travel to fashion shows around the world.[56] and in November 2018 its first episode featured high fashion model Xiao Wen Ju as she travelled to Dubai.[57]

Former sponsorships
  • Etihad was a sponsor of UAE sports clubs, including the Abu Dhabi Rugby Union Football Club, the Abu Dhabi International Sailing School and the Abu Dhabi International Marine Sports Club (ADIMSC), as well as the Al-Jazira Club.
  • It also had sponsored the two Arena Football League teams, the Baltimore Brigade & Washington Valor, before the league went bankrupt & dissolved in 2019.

Cargo
An Etihad Cargo Boeing 777F

Etihad Cargo, formerly Etihad Crystal Cargo, is the dedicated freight operations branch of Etihad. The carrier refreshed its brand image in June 2012 dropping the "Crystal" part, with full Etihad Cargo titles now applied billboard-style in line with the airline's current corporate design.

Etihad Cargo operates six Boeing B777Fs. It has previously operated a Boeing 747-400F and Boeing 747-8F, both leased from Atlas Air but operated in full Etihad Cargo colours. In January 2018, Etihad announced it would retire and either sell or lease out its five relatively new Airbus A330-200F freighters due to a change in strategy and reduction of freight capacity.[58] In August 2018, it was announced that all five A330 freighters had been sold to DHL Aviation.[59]

Etihad Cargo delivered 368,000 tonnes of cargo in 2012, a tonnage growth of 19 percent on the back of a capacity increase of 14 percent in available tonnage kilometres. Etihad's new facility at Abu Dhabi International Airport is equipped to handle more than 500,000 tonnes annually.[60]

In September 2018, Etihad Cargo announced a revised and heavily downsized network of cargo destinations to reflect the reduced fleet and a focus on core freight operations.[61]

Destinations
Main article: List of Etihad Airways destinations

As of June 2019, Etihad serves 81 passenger and cargo destinations across Africa, Europe, North America, Asia and Australia from its hub at Abu Dhabi International Airport.[62] Until terminating the São Paulo service in late March 2017, Etihad Airways was one of the few carriers to have passenger services to all six inhabited continents.[63][64]

As of the end of 2020, the airline will suspend its flights to South Africa as a part of its ongoing review of network performance. Flights to this destination will be suspended until 28 March 2021.[65]

Codeshare agreements

Etihad Airways has codeshare agreements with the following airlines:[66]

Fleet
Main article: Etihad Airways fleet

Etihad Airways operates a fleet of both narrow body and widebody aircraft from four aircraft families Airbus A320ceo family, Airbus A380, Boeing 777 and Boeing 787 Series totaling 102 aircraft as of 10 November 2020.[78]

Livery

Current livery

The current livery was unveiled in September 2014 on the first of the airline's new A380s.[79] It features a golden and silver triangular tessellation on the vertical stabilizer and rear fuselage. A golden Etihad logo and a UAE emblem over the windows, with the UAE flag painted on the front door. The background was painted in light beige and the wingtip also has a UAE emblem. The golden colour was inspired by the colour of the Arabian desert.[80]

Former livery

The former livery features a UAE flag and emblem on the vertical stabilizer and a golden Etihad logo on the windows. Red and golden stripes were painted on the fuselage. The former livery was phased out in 2017.[81]

Services
The Pearl Business Class cabin on a former Etihad Airbus A340-500
Economy Class seats on an Etihad Boeing 777-300ER
Etihad Airways offers their The Residence product on their Airbus A380-800s. The Residence apartments are equipped with a bedroom, living room and an en-suite shower room.
The Etihad First Apartment on Airbus A380-800
The Etihad Business Studio on Airbus A380-800

New cabins (from December 2014)

With the introduction of the Airbus A380 and Boeing 787, new cabins were introduced, their names being: The Residence (A380 only), the First Apartments (A380 only), First Suite (787), Business Studio and Economy Smart seat. The rest of the fleet will gradually be retrofitted with these cabins except for the Residence and First Apartment cabins, which are exclusive to the Airbus A380. The Residence was the only three-room cabin in the sky when it was introduced in December 2014.[82][83]

The Residence (Airbus A380 only)

The Residence accommodates one or two people, in a space of 125 square feet (11.6 m2). It features a private living room, bedroom, and bathroom. It features a 60.6-inch (154 cm)-wide two-seater reclining sofa and 32-inch (81 cm) TV monitor in the lounge; an ensuite bathroom with shower, an 82-inch (210 cm)-long, 47.5-inch (121 cm)-wide double bed in the bedroom which also includes a 27-inch (69 cm) TV monitor, and a personal butler.[83]

First Apartment (Airbus A380 only)

First Class on Airbus A380s was overhauled with the "First Apartments". There are nine in total, configured 1-1 across a single aisle, and take up a total area of 39 square feet (3.6 m2) each. It features a 30.3-inch (77 cm)-wide reclining chair; a full-length ottoman which can be transformed into a bed; a 24-inch (61 cm) TV monitor which can swing to align itself to the ottoman so that it can be viewed from the bed; a vanity cabinet; and a bar with assorted chilled drinks. In 2015, this class was named the world's best first class due to its luxurious innovation.[84]

First Suite (Boeing 787-9 only)

Select Boeing 787-9s feature eight First Suites to accommodate the narrower aircraft. The service includes a 26-inch (66 cm)-wide reclining lounge chair (which converts into an 80.5-inch (204 cm) fully flat bed); dining table; and a 24-inch (61 cm) TV monitor. All covers are tailored by Poltrona Frau. There is a personal wardrobe, along with total privacy with high sliding doors.[85]

Business Studio

The "Business Studio" is on both models, with 70 seats on the Airbus A380s, 28 on the Boeing 787-9s, and 32 on the Boeing 787-10s. The studio seats include a 22-inch (56 cm)-wide reclining chair, which converts into a fully flat bed, and an 18-inch (46 cm) TV monitor. All have leather covers tailored by Poltrona Frau.[86] It is featured in a 1-2-1 seating style so all seats have direct aisle access.

Economy Smart Seat

Economy Smart seats feature a 17-inch (43 cm)-wide seat on the Boeing 787 and 19-inch (48 cm)-wide seat on the Airbus A380, with a 31-to-33-inch (79 to 84 cm) pitch and 6-inch (15 cm) recline. There is also an 11-inch (28 cm) touch screen fitted with Etihad's entertainment system.[87] It is featured in a 3-4-3 seating style.

Choose Well

Since 2018, Etihad Airways has announced its new brand platform named "Choose Well" which allows guests to make choices about how they travel in terms of airport services, luggage allowance, seats and the addition of Buying On Board service.

In-flight entertainment

Etihad uses both the Panasonic eX2 and the Thales TopSeries i5000[88] in-flight entertainment system with AVOD (audio-video on demand) system on its new long-range aircraft and on some of its new A320-200 aircraft. Etihad brands this system as the "E-box". International destination fleets have a plug-and-play system which works on USB technology, that allow passengers to play their own audio, video and picture media. The Airbus A330s and Boeing 777-300ER all have in-flight telephone facility.

On 28 April 2019 Etihad announced that it will remove seat-back screens in the economy section of 23 of its narrow-body Airbus A320 and A321 aircraft, aircraft that are to be used for flights up to 5 hours long.[89]

Etihad signed a new 10-year agreement with Panasonic Avionics Corporation in 2011 for the provision of in-flight entertainment including broadband internet and live TV.[90]

Atlas is the official in-flight magazine of the airline.[91]

Loyalty program

Etihad Guest is the airline's frequent flyer program, launched on 30 August 2006. It offers a discount web shop for members and multiple benefits and perks such as extra baggage and priority check-in for frequent fliers. Points may also be redeemed for tickets or class upgrades. As part of an agreement between Etihad and the United Arab Emirates Ministry of Community Development, senior Emirati citizens get instant access to Etihad's loyalty programme and enjoy perks of more air miles, discounted tickets, priority check-in, and extra baggage.[92]

As part of a partnership with American Airlines, American Airline loyalty program AAdvantage may be redeemed for tickets on Etihad.[93] Similar partnership exists for the Scandinavian Airlines loyalty program Eurobonus, where members can earn and spend bonus points on selected flights.[94]

Etihad guest loyalty members are rewarded with Etihad miles when they book accommodations through booking.com as a result of a deal inked between booking.com and Etihad airways in 2019.[95]

Accidents and incidents

Etihad Airways has not suffered any fatal accidents or injuries during passenger operations.

  • 15 November 2007 – A new A340-600, registration A6-EHG, due for delivery to Etihad Airways was damaged beyond repair during ground testing at Airbus' facilities at Toulouse Blagnac International Airport in France. During a pre-delivery engine test, multiple safety systems had been disabled by engineers, leading to the non-chocked aircraft accelerating to 31 knots (57 km/h) and colliding with a concrete blast deflection wall. Severe damage was inflicted on the aircraft and nine people on board were injured, four of them seriously. The right wing, tail, and left engines made contact with the ground or wall, leaving the forward section of the aircraft elevated several meters and the cockpit broke off.[96]

Alternative propulsion

Etihad Airways flew the world's first Boeing 787 commercial flight using locally produced jet fuel derived from salicornia plant on 16 January 2019. The aviation biofuel was researched and developed by Sustainable Bioenergy Research Consortium (SBRC), a non-profit entity established by Masdar Institute, part of the Khalifa University of Science and Technology. The 787 engine was powered by General Electric's next-generation 1B engines and flew for more than seven hours, taking off from Abu Dhabi and arriving in Amsterdam.[97]

See also

Notes

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