Blog 83: Fleet Analysis ~ Etihad Airways
Welcome back to Brooke In The Air! This week we’re analyzing a major Middle East carrier, Etihad Airways!
One of two primary carriers of the United Arab Emirates, the other being Emirates Airlines, Etihad is based in Kalifa City in Abu Dhabi, UAE. Etihad is translated as “Unity” or “Union” in Arabic. Named for thr Union of the seven Emirates of three United Arab Emirates- Abu Dhabi, Dubai, Sharjah, Umm Al Quwain, Ras Al Khaimah, and Fujairah.
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 85 Airbus and Boeing aircraft as of January 2024. Its main base is at Zayed International Airport also known as Abu Dhabi International Airport.
In addition to its main activity of passenger transportation, Etihad also operates Etihad Holidays and Etihad Cargo. The airline established its airline alliance, Etihad Airways Partners, in October 2015. It ceased operations in 2018 after several of its members fell into financial difficulties. Etihad held minority investments in the participating airlines, and previously had a stake in Virgin Australia until its insolvency in April 2020 with no return on investment.
HISTORY
The Emirate of Abu Dhabi was a joint-owner of Gulf Air along with Bahrain, Qatar, and the Sultanate of Oman. Zayed International Airport was one of Gulf Air's bases and hubs from the 1970s until 2005, when the UAE withdrew from the airline. Gulf Air would remain as a two-state carrier until Oman's exit in 2007 in order to focus on Oman Air and today, Gulf Air is solely owned by Bahrain.
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 a national airline of the United Arab Emirates. Sheikh Ahmed bin Saif Al Nahyan founded the airline and utilised AED500 million of start-up capital. Services were launched with a ceremonial flight to Al Ain on 5th of November, 2003. On 12th of 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 6 Boeing 777-200 and 24 Airbus aircraft, including 10 Airbus A380s. Its first A380 was delivered in December 2014.
GROWTH
In June 2008 at the Farnborough Airshow, the airline announced an order for 35x Boeing 787s and 10x 777s, options for 25x 787s and 10x 777s, and purchase rights on 10x 787s and 5x 777s.
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.
In December 2011, Etihad announced it had taken a 29.21% stake in Air Berlin, Europe's sixth-largest airline, and Hogan was appointed Vice Chairman. It followed this up with minority stakes in other airlines—Air Seychelles (40%), Aer Lingus (2.987%), Virgin Australia (10%). On 1 August 2013, the president of the company, 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. The Serbian Government retained 51% of the shares, with the company being rebranded as Air Serbia.
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. Etihad sold its stake in Darwin in 2017.
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. 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.
In May of 2016, the management structure was reshuffled, as 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. In December 2016 Handelsblatt Global reported that Hogan was going to be dismissed after a "failed spree of acquisitions in Europe."
On 24th of January of 2017, the Etihad Aviation Group Board of Directors announced that Hogan (along with Group CFO James Rigney) would be stepping down "in the second half of 2017". Peter Baumgartner, (former CEO of the airline), became the acting CEO of the airline as it faced mounting losses from its investments in Air Berlin and Alitalia.
In May of 2017, Alitalia filed for bankruptcy. Hogan and Rigney left Etihad later that month.
On 27th of July, Etihad reported a loss of US$1.873 billion for 2016. On 15th of August, Air Berlin filed for bankruptcy after Etihad withdrew its financial support.
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. On 9 January 2018, Etihad Airways appointed Mark Powers as Group CFO, replacing interim Group CFO Ricky Thirion.
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.
In February of 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.
On 1st of May of 2021, it was announced Etihad Airways sold its 40% stake in Air Seychelles back to the Government of Seychelles.
COVID-19 RESPONSE
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 canceling 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's CEO Tony Douglas said that Etihad's A380 fleet was very likely not to fly again in passenger service, and therefore are likely to be withdrawn after only 7 years in service. This move would make Etihad the third Airbus A380 operator to retire its Airbus A380 fleet, following Air France-KLM and Hi Fly Malta. 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 had no plans to ditch its Airbus A380 fleet into early retirement unlike Air France, despite the COVID-19 pandemic.
However, as of October 2020, some sources stated that the Etihad Airbus A380 still had a potential possibility of early retirement due to the aircraft market changes and demand caused by the COVID-19 pandemic as Douglas referred to the Airbus A380 as a heavily inefficient handicapped behemoth by two engines too many. 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.
In February of 2021, Etihad Airways vaccinated all its operating pilots and cabin crew against COVID-19, the first airline to vaccinate all its operating pilots and cabin crew.
Since most of Etihad's flights were grounded between March and June 2020, the airline's passenger traffic dropped by 76% to 4.2 million in 2020.
Throughout 2020, due to the COVID-19 pandemic, Etihad Airways laid off over 1,000 cabin crew and pilots.
Although the airline had grounded their fleet of 10 A380-800 aircraft with no initial plans to redeploy the aircraft, it was decided that they would return to service. In 2023 Etihad redeployed 4 of their 10 jumbo jets onto their London Heathrow service, with later announcements that an A380 would also return to their New York JFK route in April 2024.
SPONSORSHIPS
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. and in November 2018 its first episode featured high fashion model Xiao Wen Ju as she travelled to Dubai.
In March of 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.
CARGO
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 777Fs. 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. In August 2018, it was announced that all five A330 freighters had been sold to DHL Aviation.
UPDATED DESTINATIONS
As of June 2023, Etihad serves 81 passenger and cargo destinations across Africa, Europe, North America, Asia and Australia from its hub at Zayed International Airport. 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.
Etihad Airways operates a fleet of both narrow body and wide-body aircraft from four aircraft families Airbus A320 family, Airbus A350-1000, Airbus A380-800, Boeing 777 and Boeing 787 Dreamliner totalling 84 aircraft. Initially during the Pandemic Etihad Grounded their fleet of 10 Airbus A380-800 aircraft and initially had no plans to return them to service post pandemic. However, it was decided that the airline would redeploy 4 aircraft in 2023 on their London Heathrow route.
OFFERINGS
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 (787-9 only), 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 on any airline when it was introduced in December 2014.
The Residence
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 en-suite 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 formerly included a personal butler.
First Class suites are offered on Airbus A380s and are named "The Apartment". 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 innovation. It has lost this title to Singapore Airlines’ first class on their A380 superjumbos, and neighbor Emirates Airlines’ Game Changer first class on their A380-800, A350-1000, A350-900s, Boeing 777-300ER, and Boeing 787-9 Dreamliner aircraft.
First Suite (Boeing 787–9 only)
Some Boeing 787-9s offer eight First Suites. 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 designed by Poltrona Frau, the upholstery makers of Porsche. There is a personal wardrobe, along with total privacy with high sliding doors.
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. 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 787s and 19-inch (48 cm)-wide seat on the Airbus A380s, 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. It uses a 3-4-3 seating style on the Airbus A380s, and 3-3-3 seating style on the Boeing 787s.
The fleet itself!
Etihad Airways operates a fleet of both narrow body and widebody aircraft from five aircraft families; Airbus A320 family, Airbus A350-1000, Airbus A380 (mega jumbo jet), Boeing 777 and Boeing 787 Dreamliner totaling 89 aircraft as of March of 2024.
Narrow-body:
Airbus A320-200: 14 in service
Airbus A321-200: 9 in service
Wide-body Long-haul:
Airbus A350-1000: 5 in service, 15 on order
Airbus A380-800: 4 in service
Boeing 777-300ER: 9 in service
Boeing 787-9 Dreamliner: 33 in service, 8 on order
Boeing 787-10 Dreamliner: 10 on service, 20 on order
——————————————————————
This is current as of 2024.
