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Etihad achieves success by ‘rewriting the rulebook’

Abu Dhabi, August 7, 2013

Etihad Airways has become the fastest-growing carrier in commercial aviation history, and one of the most successful, by “rewriting the rulebook”, said the airline’s president and CEO James Hogan.

Hogan’s keynote address at the 2013 CAPA Australia Pacific Aviation Summit in Sydney came just days after Etihad announced a deal with the Government of Serbia to buy 49 per cent of Air Serbia, the country’s national airline, and a five-year management contract to run it.

Hogan presented the strategy of building the carrier through organic growth, codeshare partnerships and minority equity investments in other carriers, as against the traditional airline model and legacy alliances.

“There is ample evidence to show that the traditional airline model and legacy airline alliances are no longer relevant to today’s operating environment and that progress for the industry is unlikely without radical change,” Hogan said.

“A sustainable future for global aviation relies on a bold vision and a willingness to break with tradition and past practices.”

Global reach was beyond the capability of any single airline and that progress would come only through partnerships, he said.

“Including Jet Airways, where we’re still going through the regulatory process, Etihad Airways will have six equity and 46 codeshare partners, offering a pool of over 96 million guests and a choice of more than 410 destinations on six continents, serviced by a fleet of approximately 500 modern aircraft,” said Hogan.

“Cooperation includes joint procurement of assets, services and supplies such as aircraft, engines,fuel and insurance, as well as cooperation on issues such as maintenance, crew training and sales activities, which reduces costs for all participating carriers,” Hogan said.

“We are delighted to welcome Air Serbia to our equity alliance, and look forward to receiving final approvals from regulators in India of our investment in Jet Airways,” he added.

Hogan also added that broader changes were required by governments and regulators including workforce deregulation, reform of airspace management, technology innovation, more investment in infrastructure and greater collaboration with industry.

He also pointed out the continuing issue for the air transport industry was constrained access to major airports, many of which were now at maximum capacity and could not be expanded, or would take many years to upgrade.

Hogan said one option which should be considered was selective easing of noise curfews at major airports. In some cases, he said, curfews were introduced up to 50 years ago to mitigate the noise of 1950s-era jets. However, regulators did not consider the billions of dollars invested by airlines on low noise, low emission aircraft such as today’s Airbus A380s and Boeing 787s, which remain constrained by the same noise curfews as the very first jet airliners.

“Perhaps, to ease airport congestion, there should be curfew relief for next-generation, low-noise aircraft,” he added. - TradeArabia News Service




Tags: Etihad | Hogan | success | James | Air Serbia |

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