by pna
Amid ongoing global economic uncertainty, the civil aviation industry in the Gulf Arab region shall grow in the future by partnering up with other airlines rather than buying planes in masses, said Etihad Airways CEO James Hogan Sunday in Abu Dhabi.
Delivering his keynote speech on the first day of the 18th civil aviation congress "World Routes Strategy Forum", Hogan said that "global civil aviation is challenged by the rising fuel costs, global economic volatility and consolidation. This is why the future belongs to those who seek partnerships rather than rivalry, " said Hogan.
The Gulf Arab region has planes for 119 billion U. S. dollars on order, representing a quarter of the global order volume. But Hogan believes partnerships is the key for future growth.
"Our partnerships with Germany's Air Berlin, Virgin Australia, Aer Lingus in Ireland and Air Seychelles demonstrate that the global aviation industry still offers chances for partnerships across the globe, despite many mergers and bankruptcies having occurred in recent years," said Hogan, who has been leading Etihad as CEO since 2006 after he stepped down from Bahrain's Gulf Air.
Etihad, which flies with 67 planes from its home airport Abu Dhabi to 86 direct destinations globally, bought 29 percent stake in loss-making low-budget carrier Air Berlin in December 2011.
At Etihad Airways, managers and pilots know how tricky the way to green figures can be. In 2011, Etihad (the Arabic word means unity) swung into profitability for the first time since its inception ten year ago, reporting a net profit of 14 million U. S. dollars amid revenues of 4.1 billion U. S. dollars." A fifth of our revenues are generated today through partnerships with other airlines," said Hogan.
In total, Etihad, owned 100 percent by the oil-rich emirate of Abu Dhabi, so far entered into code-sharing agreements with 36 airlines worldwide, creating a network of virtually 315 destinations.
Etihad's domestic rival Emirates Airline from Dubai, the fastest growing airline in the world, opted likewise for a partnership, when the Dubai government-owned carrier announced on September 6 to join forces with Australia's largest carrier Qantas. Both carriers will start code-sharing from April 2013 on, but refrained from buying into each other.
In May this year, Emirates reported in June a 72 percent drop in profits for the fiscal year 2011/2012 and blamed rising jet fuel costs for the sharp decline.
Nevertheless, regarding inter-regional competition, Hogan said he was convinced that the Gulf Arab region and the Middle East will continue to outperform other regions in the world. According to the latest monthly figures released by the International Air Transport Association, known as IATA, the Middle East achieved the highest passenger growth in August, up 16.7 percent year-on-year. But analysts said that the growth was the result of the Islamic fasting month Ramadan, which usually witnesses more travelling activity in Muslim countries.
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