Etihad Airways finally turns a profit

For the first time in its eight-year history, Etihad Airways, the national carrier of the United Arab Emirates turned a profit: $14 million. The company’s operations in Pakistan for a big part of its financial success, accounting for between 10% and 12% of its global revenues.

“This is an historic day for the airline and an amazing achievement for an airline just eight years old. Five years ago, we said we would be profitable by 2011,” said James Hogan, President and CEO of Etihad Airways at a press conference in Abu Dhabi on Thursday.

Etihad is the third largest global airline in Pakistan, according to the International Air Transport Association (IATA), bested only by UAE rival Emirates and Saudi Arabian Airlines. Meanwhile, Pakistan is one of the top ten revenue generating countries for Etihad.

“The annual growth rate of Pakistani passengers for Etihad Airways is in double-digits,” said Amer Khan, the airline’s general manager for Pakistan, Bangladesh and Nepal.

Etihad operates 23 flights every week from Pakistan to Abu Dhabi, with daily flights from Karachi, Lahore and Islamabad and two flights a week from Peshawar. This is the maximum number of flights currently allowed to the airline by the government of Pakistan.

It is unclear whether the airline will be requesting permission for more flights from Pakistan over the coming year, though officials at Etihad suggested that Pakistani routes are amongst the airline’s highly profitable ones. Many Pakistanis use Etihad to travel to Europe and North America, via Abu Dhabi. In addition, the large Pakistani expatriate population in the UAE also travel frequently on Etihad.

Etihad flew 8.3 million passengers in 2011, up 17% from the previous year. The airline is now targeting reaching 10 million passengers, according to its CEO.

Etihad Airways continues Africa expansion with new flights to Lagos, Nigeria

Etihad Airways today announced the launch of flights to Lagos, the airline’s first destination in West Africa, from July 1, subject to regulatory approvals.
The direct flights will link Abu Dhabi and Lagos six times a week and will be operated by a two class A330-200 aircraft with 22 Pearl Business class and 240 Coral Economy seats.

Lagos becomes the 83rd destination in Etihad Airways’ global network and the return flights will create a new link between Nigeria, Africa’s third largest economy, and the United Arab Emirates.

Following the launch of services to the Seychelles in November 2011, Tripoli last month and Nairobi in April, the addition of Nigeria marks another milestone in Etihad Airways’ African expansion plans.

James Hogan, Etihad Airways President and Chief Executive Officer, said: “The launch of flights to Lagos is consistent with our strategy of targeting areas of strong growth in emerging markets.

“The United Arab Emirates is a major trade partner of Nigeria, which has a population of more than 150 million people, the largest in Africa and the seventh biggest in the world.

“The country is rich in natural resources, such as oil and natural gas. Our new point-to-point services will strengthen the oil and gas links between the UAE and Nigeria and facilitate further growth in these industries.

”The country is also enjoying strong economic growth driven by significant foreign investment, particularly from China, which means there is increasing demand for travel between Lagos and other emerging economies.

“The Lagos schedule will provide seamless connections over Abu Dhabi to key North and Southeast Asian destinations and markets in the India Subcontinent and Australia.”

Etihad dials-up in-flight connectivity

Etihad Airways the Abu-Dhabi carrier officially launched its first aircraft equipped with in-flight connectivity this week, allowing passengers to receive calls and message on their mobiles.

Hooked up to the carrier’s three Airbus A330-300 and one A320 and expected to be available on their second A320 from March this year, the carrier said the system will give passengers full mobile connectivity.

On top of the international roaming rates of the traveller's mobile network provides, the carrier will also charge US$10 for inflight mobile and tablet connection as well as US$20 for laptop Wi-Fi internet.

Etihad Airways chief commercial officer Peter Baumgartner said in an online statement that the launch of in-flight connectivity was the carrier’s first step in a long-term strategy of in-flight connection solutions.

“The modern traveller is increasingly reliant on mobile devices and the internet, not only to plan travel, but also to stay in touch throughout their journey,” he said.

The carrier’s A320 is often used to service short-haul service across the Middle East while the A330-300 is used for longer flights to London, Frankfurt, Paris, Geneva, Casablanca and Seoul.