Business | Aviation
Etihad Airways will require $18b funding for new aircraft
Etihad Airways contributes 6.8 per cent to Abu Dhabi's non-oil GDP and 2.8 per cent to its total GDP, according to the airline's officials.
- By Saifur Rahman, Business Editor
- Published: 23:43 November 4, 2008
- "We utilise a diverse funding source. We are currently finalising deals with a consortium of banks to finance two A340-600s," says James Hogan.
- Image Credit: Supplied Picture
Dubai: Etihad Airways contributes 6.8 per cent to Abu Dhabi's non-oil GDP and 2.8 per cent to its total GDP, according to the airline's officials.
The airline, which has placed orders for 205 aircraft worth $43 billion (Dh158 billion) including 100 jets on firm order in July this year, will require $18 billion to fund the expansion in the next 12 years.
The airline's funding requirements will be a little more than $800 million this year, and by next year-end will fall to between $600-$700 million.
"We utilise a diverse funding source. We are currently finalising deals with a consortium of banks to finance two A340-600s that are to join our fleet this month and in December," James Hogan, the airline's chief executive, told Gulf News.
"Etihad has a commercial mandate from the Abu Dhabi government to operate efficiently. We are not subsidised. Neither do we utilise government guarantees for borrowing. We have excellent relations with the banking and finance community."
The airline, which has flown nearly 14 million passengers on more than 87,000 flights to 48 destinations in the Middle East, Africa, Australia, Europe, North America and Asia, plans to fly 25 million passengers a year and more than double the number of cities in its network to 100 by 2020. To support this steady growth, Etihad's workforce is expected to grow to 27,000 by 2020 from its current figure of 6,700.
"Since its launch in 2003, Etihad Airways has experienced remarkable growth and we're pleased to count them as a valued customer in the region," said Marty Bentrott, Boeing's vice-president of sales for the Middle East and Africa.
"Etihad's operation of Boeing 777s and the airline's order for the 787 will continue to enhance the fuel efficiency of Etihad's twin-aisle operations. On the occasion of the airline's fifth anniversary, we would like to wish Etihad and all its employees all the best for continued success and a prosperous future."
The airline's fleet has grown to 39 aircraft and will reach 42 by the end of the year, within a span of five years, making it the fastest start-up airline in the world.
The airline is growing in line with the Abu Dhabi government's economic diversification plan to develop the UAE capital as a cultural tourism destination in which, Etihad will play a major role in bringing passengers.
"We are closely working with the Abu Dhabi government and our growth is in line with the government's growth plans," Hogan said.
Critical component
Ricky Thirion, vice-president for treasury, says, "Etihad Airways is seen as a critical component to the successful delivery of Abu Dhabi's future plan. Our planning process is in sync with Abu Dhabi's 2030 vision and other Abu Dhabi entities."
Abu Dhabi International Airport is currently undergoing major expansion, to accommodate the growth pressure of Etihad. It's midfield terminal, Terminal 3, will be dedicated to Etihad.
"The Abu Dhabi airport's expansion is in line with Etihad's planned growth. We are also closely working with them," Hogan said. "We are really excited about it."
The terminal had a soft opening in September. It will have its formal opening next month.
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