Etihad Airways may charge fees for second piece of baggage

Etihad Airways, the flag-carrier airline of the United Arab Emirates (UAE), may charge passengers for a second piece of baggage as a part of the airline’s efforts to maximise its revenues.

According to James Hogan, chief executive officer of Etihad Airways, “depressed yields” continue to “put pressure on the bottom lines” of the carrier.

Many airlines in the United States and in Europe, James Hogan said, are now charging passengers for the second piece of luggage, adding that he expects “to see a similar move” by carriers based in the Persian Gulf region and that Etihad Airways itself might consider such a move.

Etihad Airways, based in Abu Dhabi, the capital of the United Arab Emirates, was launched in November 2003.

At present, it has a fleet of 52 planes, flying to 60 destinations. The size of the fleet is expected to reach 100 planes in another 5 years.

In 2004, Etihad Airways had placed orders for 29 Boeing and Airbus aircraft – the largest-ever number of orders placed by a startup commercial airliner. And, in 2008, the airline placed orders for 205 planes, worth over $43 billion (Dh157.81 billion) at list prices.

The airline has so far flown over 17 million passengers.

About 50% of the traffic of Etihad Airways is through Abu Dhabi. The current development and construction works in Abu Dhabi have led to increased traffic to the United Arab Emirates’ capital, according to the chief executive officer of Etihad.

Etihad Airways took delivery of 11 aircraft in 2008 and it will get 3 planes in 2010, including one cargo plane, James Hogan said. With the addition of 3 destinations, the airline hopes to carry over 7 million passengers in 2010.

Hogan said Etihad Airways expects to get its first Airbus A380 Superjumbo in 2013 and the first of the 35 Boeing 787 Dreamliner jetliners in 2014.

James Hogan had joined Etihad Airways from Gulf Air in 2006, pledging to make the national carrier of the United Arab Emirates profitable by 2010.

In an interview, Hogan said responsible pricing by airlines will go a long way in increasing yields, which will, in turn, help the aviation industry worldwide cut losses. (‘Yield’ is the revenue that an airline earns on each passenger for every mile/kilometre travelled.)

The International Air Transport Association (IATA) had said in December 2009 that the global aviation business is expected to incur net losses worth $5.6 billion in 2010 – up from the earlier forecast $3.8-billion in net losses.