UAE | General
Etihad Airways to invest Dh1b over next five years
November 5, 2003, was a red-letter day for Etihad Airways, the national airline of the UAE, when it made its debut with several top officials, VIPs and dignitaries on the inaugural flight from Abu Dhabi to Al Ain.
- By Stanley Carvalho, Staff Reporter
- Published: 00:00 November 7, 2003
November 5, 2003, was a red-letter day for Etihad Airways, the national airline of the UAE, when it made its debut with several top officials, VIPs and dignitaries on the inaugural flight from Abu Dhabi to Al Ain.
Dr. Sheikh Ahmed bin Saif Al Nahyan, Chairman of Etihad, seemed quietly happy as the first steps of a distinguished journey had just begun.
Positioned as the airline of the 21st century, Etihad is going to do things differently and those aboard the ceremonial flight got a taste of this first-hand.
From the spectacular laser show and fireworks to the plush interiors and efficient service on flight with a touch of class, Etihad was impressive in more ways than one.
"This is just the beginning. Wait and watch as we unveil many, many more things," hinted Sheikh Ahmed in his understated manner.
The airline plans to invest Dh1 billion over the next five years as well as support the tourism industry in the Arab region, and is ready to face competition.
It plans to acquire at least eight aircraft by the end of next year and also fly to 16 destinations.
Excerpts from an interview with Sheikh Ahmed bin Saif Al Nahyan in Al Ain.
Gulf News: Etihad Airways is going to be different from the others. How?
Sheikh Ahmed: Everything will be different. Only the passengers who fly on Etihad will experience the difference — from the start to the end, we are doing things differently, re-inventing the way an airline works.
Every airline says it is different.
That is true. We are different, too. But to give one example, in the last 25 or 30 years since the business class was started, there is very little to differentiate one from the other.
We are doing it differently and by experiencing it, you will see the difference. There is still a demand for top quality service, personal attention, class and style.
But, equally, budget airlines are becoming popular in this part.
Ours is totally the opposite way of thinking. We are going in a different direction. As I said there are people who want to travel in comfort and class.
So your rates will be higher?
Definitely higher than the no-frills airline. But our pricing will be determined by market forces. Our prices will also be determined by the services we offer to our customers.
We want to grow with Abu Dhabi. There is an airport, there is a market and we are confident of getting business.
What about market share?
I cannot talk about our market share now. We can talk about revenue and market share when we have 16 destinations by next year.
However, we are strictly against the idea of monopoly. We are in an open market and are not against fair competition.
To start with, Etihad is flying to Beirut, Damascus and a few other cities. What about the medium-term plans?
Yes, our immediate focus is the Middle East and the Indian Subcontinent. But later we plan to fly to the Far East and the UK. By the end of next year, we will be flying to 16 destinations. We are evaluating the new destinations.
We will support the tourism sector in the Arab world which is suffering from a low level of tourism. In the UAE, we have established a very advanced infrastructure for tourism, business and other services. We will try to support such services.
Will Etihad have code-sharing with other airlines?
Definitely. To start with we will soon be concluding a code-sharing agreement with Qatar Airways. We are also talking with other airlines.
Etihad will need financing for its new aircraft and expansion.
It is a government entity as you know. Initially, the Abu Dhabi government is investing until the revenues start coming. We will be running the airline on a commercial basis. The airline will invest at least Dh1 billion over the next five years.
Etihad now has two aircraft. Can you outline your aircraft acquisition plans?
We have two aircraft now and they will rise to eight by next year. The total number of aircraft we plan to acquire in future depends on market growth and the transport (route) rights that we obtain.
We will continue to rely on leased aircraft until we complete studies on our markets and future plans. So, currently, there is no plan to sign any contract for the purchase of new aircraft. And whether it will be aircraft from Boeing or Airbus, we will carry out a feasibility study on the operations of our flights and will take a decision on the basis of this study.
There are concerns about Gulf Air being impacted by the launch of Etihad?
The Abu Dhabi government is a partner in Gulf Air and it will stay and support Gulf Air. Gulf Air is an international airline, it is growing and expanding. We will cooperate with Gulf Air as and when the need and opportunity arises.
I cannot talk of the future. Let us focus now on Etihad.
Why has Etihad chosen Beirut as the first destination? Are you satisfied with the initial bookings?
There is no particular reason for choosing Beirut. After Beirut it will be Damascus.
Our plan is to start with the Middle East and these destinations have good traffic. It is too early to talk about the response to the bookings because we got into the system only on Tuesday.
Any plans to fly to Iraq?
Right now we do not have the energy to go everywhere.
Lastly, the airline industry went through its worst times in the last two years and airlines are just about limping back to normalcy. Is it wise to start an airline now?
Launching an airline when the travel industry as a whole is experiencing one of the most difficult periods in history may appear a very bold strategy, but we have done our homework. As I said there is definitely a market for a new carrier that provides top quality service with flair, imagination and personal service.
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