Etihad Airways expects its revenues to rise by 24% in 2009 with fleet expansion

Etihad Airways, based in Abu Dhabi in the United Arab Emirates (UAE), expects its revenues to go up by 24% to $3.1 billion in 2009 with the addition of 11 new aircraft to its fleet, notwithstanding the current economic recession worldwide.

The airline, which had earned revenues of $2.5 billion in 2008, said it would, besides taking delivery of 11 aircraft, give a fillip to passenger numbers by adding at least 6 new routes.

The media quoted James Hogan, chief executive of Etihad Airways, as declaring at the Aviation Outlook Middle East 2009 summit in Abu Dhabi that “we are taking a bullish approach in 2009 regardless of tough market conditions.” Despite risks and the global recession, weakening currencies and softening demand worldwide, Etihad Airways would continue to grow in 2009 and 2010, Hogan added.

It may be noted that the International Air Transport Association (IATA) had said a month ago that, after many years of rapid growth, airlines based in the Middle Eastern were likely to double their losses to $200 million in 2009. However, the IATA had also predicted that total passenger traffic and cargo traffic in the region would grow by around 1.2% in 2009.

Etihad Airways, its chief executive said, was planning to increase its fleet of aircraft to 152 by 2020 from 42 at the end of 2008 and expected to fly 25 million passengers by 2020.

In 2009, Etihad’s load factor (an indication of seats sold as a percentage of capacity) is projected to go up to 77%.

Revenue from sales of airline tickets is projected to rise by 8% mainly after Etihad Airways adds new routes in 2009 – including to Melbourne, Athens, Istanbul, Chicago, Larnaca and Hyderabad. Etihad would try to enter into code-sharing agreements with airlines like Aer Arana, Bangkok Airways and Kuwait Airways with a view to augmenting its network without flying to destinations directly, according to James Hogan.

He also announced the carrier’s plan to jack up frequencies of flight to Amman, Beirut, Brussels, Cairo, Geneva, Manila, Milan and Moscow.

Etihad Airways had, in 2008, finalised an order for 51 aircraft from Airbus at a cost of $10 billion. The delivery of 10 Airbus A330 planes, ordered in June 2007, started in January 2009.

By the end of 2009, Etihad’s fleet strength will be 53 planes.

According to Etihad’s chief executive, the airline would have 60 more aircraft added to its 152-strong fleet beyond 2020, with the delivery of 35 Boeing 787 planes starting from 2015 and 25 Airbus A350 planes beginning 2017.
In 2008, Hogan said, Etihad Airways flew over 6 million passengers, had 9 new aircraft added to its fleet, and added new destinations –Beijing, Moscow, Almaty, Chennai, and Kozhikode.

Etihad plans to start its flights to South America within five years, Hogan added, as a part of the carrier’s “strategic role in developing Abu Dhabi as a world-class city and also to help increase tourist arrivals from 1.8 million in 2008 to 7.9 million in 2030.”