Etihad to launch China service in 2008

Dubai: Etihad Airways has set its sights on China as its major new destination for 2008, with plans to launch commercial service to Beijing or Shanghai in the first quarter.

Chief executive James Hogan told Gulf News the Abu Dhabi carrier is in the process of selecting one of the two Chinese cities and expects to make a formal announcement soon.

"Its no secret we're looking at China. Our goal is by the end of the first quarter, and hopefully we will achieve what we working for," he said.

According to the International Air Transport Association, China along with India represents "massive opportunities" with air traffic growth rates far higher than more mature markets.

Among Gulf airlines, Emirates and Qatar Airways both fly to Beijing and Shanghai. Each has said they hope to add new destinations and frequencies soon.

The Etihad CEO said the airline is well advanced in discussions with Chinese authorities. In the months leading up to the launch, Etihad is developing its marketing strategy, signing up corporate accounts, and selecting firms for ground handling and related services.

Hogan did not say which aircraft Etihad would use for the route, but the airline is due to receive several new planes in the coming months. An Airbus A330 arrives next week, and two A340s will be delivered by the end of the year, in addition to several narrow-bodied aircraft it will use on Gulf routes.

China will likely serve as its only major launch of 2008 unless Etihad is granted additional rights to fly to India, which it is lobbying for. The carrier is otherwise focusing on consolidating its network by adding frequencies to existing routes, Hogan said.

A total of six narrow-bodied A320s will be used to develop its Gulf network and feed traffic to long-haul routes from Abu Dhabi.

Frequency gap

"We saw a gap of frequencies in the GCC and Middle East in our schedule, and wide-bodied aircraft aren't suitable for short-haul cities," he said.

Hogan would not give a set date for the China launch other than its first quarter target. But when hundreds of thousands of tourists flock to China for the 2008 Olympics, some of them will fly Etihad, he promised.

"It's very important that we look at the right date based on the awareness of the brand proposition,' he said. "It's such a huge market, we want to start off the right way."