Abu Dhabi: Etihad Airways Chief Executive Officer James Hogan said on Tuesday that the Abu Dhabi-based airline has been approached by “all Indian carriers” for the possibility of buying stake.
“All the Indian carriers have approached us and we continue to evaluate the impact of FDI [Foreign Direct Investment],” Hogan told reporters Tuesday on the sidelines of a conference in Abu Dhabi.
When asked how many airlines, Hogan said, “quite a number.”
Last month, the Indian government lifted a ban on foreign airlines investing in its carriers, allowing them to invest up to 49 per cent. The lifting of the ban is expected to help the domestic airline industry in India.
Etihad has been on an acquisition drive in recent months, taking minority equity stakes in Virgin Australia and Aer Lingus, in addition to raising its stake in Air Berlin, Europe’s sixth largest airline, and Air Seychelles.
Hogan had previously said that the airline would look into further investments if the right opportunity arises.
When asked about Aer Lingus, Hogan said that the airline would consider buying the Irish government’s 25 per cent stake in Aer Lingus if the government approaches the carrier.
“If the Irish government approached us to look at the stake, then we would do so. But they have still not approached us,” he said.
When asked, Hogan said the airline had no interest in Portugal’s TAP. “We are a codeshare partner already with TAP,” he said. “Strategically, we do not see the value of investing in TAP.”
When asked if the airline would be interested in owning a majority stake in the companies in which it has minority stake at the moment, Hogan said that majority ownership is not the airline’s intention.
“Everything we do is a minority stake. What we don’t want to do is take control,” he said.
Speaking at the IATA World Passenger Symposium, Hogan said that the focus is shifting from the traditional, more established markets to the emerging economic powerhouses in the Middle East, Asia, South America and Africa. “In an uncertain world, the Middle East is one of the “strong pockets” for growth in aviation,” he said.
The airline, which had revenues of $4.1 billion in 2011, generated $281 million in revenues from partnerships in the first half of 2012. The airline expects to cross the $5 billion mark in revenues this year.
Next year, Etihad is expected to take delivery of 13 aircraft, a mixture of Boeing 777 and A320, A321. The carrier currently runs a fleet of 57 aircrafts.
