Abu Dhabi: Etihad Airways is in discussions to change its partnership with equity stake partner, Air Berlin, according to the airline’s top executive.
“We are in the final stages of negotiating the next stage of that partnership,” said James Hogan, President and Chief Executive Officer of Etihad Airways, who was speaking at the invitation-only Global Aerospace Summit in Abu Dhabi on Monday. Etihad Airways is reportedly in discussions to increase its stake in the German carrier from almost 30 per cent to 49.9 per cent. Air Berlin will reportedly delist from the London Stock Exchange as part of the deal.
Etihad Airways has previously declined to comment on the reports.
Hogan said that entering into a minority partnership with Air Berlin had given Etihad access to Germany.
Etihad holds minority stakes in a number of European airlines including Air Serbia and Aer Lingus, and is awaiting approval for its 33.3 per cent investment stake in Swiss carrier Darwin Airline [rebranded as Etihad Regional]. It is also reportedly in due diligence talks with the troubled Italian carrier, Alitalia, to pick up an equity stake.
Etihad Airways lifted its profit by 48 per cent last year with its strategy of adding capacity through equity alliances. In 2013, partnership revenues increased by 30 per cent to $820 million (Dh3,012 million), representing 21 per cent Etihad’s total passenger revenues.
