Etihad and its plans

Hogan is a smart operator and always has been. British Midland was at its peak when he was there and he left it in excellent shape.

Air Berlin leaving oneworld would be no surprise and nor would the purchase of a stake in Alitalia. Combine the two using the business model of Air Berlin and you might have a central European carrier to be reckoned with.

Should this be the case it will again emphasise how OW operates on the margins of Europe with AY, BA and IB. Sadly for them there is no where to go in terms of trying to break into the centre of Europe which would become even more *A and ST dominated and given that both LH and AF have better on board products in premium classes than the OW carriers have you can only really see them in a downwards slide.

Others will of course disagree and maintain something different but you just need to look at the positions now and recognise that LH & AF will consolidate further leaving nothing much for other European players except west bound traffic.

As Etihad moves towards operating the A380, its expansion plans will be closely monitored.

Is there room for two global hubs in the Emirates?

I’m sure there will be enough traffic to sustain both models for the foreseeable future.

Domestic GDP growth of between 4% and 5%, the Expo, close ties to India and Africa and freight traffic will all continue to fuel flows through the hubs. Plus ever growing route networks funnelling the people in.

I flew Etihad return to Sydney, returning two weeks ago. I travelled LHR-AUH sector in business class, and the other 3 sectors AUH-SYD, return, and AUH-LHR in their First Suites. I first flew them 8 years ago, not long after they were established.
Their First was superb, individual suites, chef, complete privacy, and the best flights i have Ever taken. They match the service of more than a 5 star hotel, equal to that of the Jumeirah at Etihad Towers in Abu Dhabi. (I completed a review of the First Suite AUH-SYD).

It leaves other Airlines way behind, their business class was also way ahead of its time, and remains one of the best.
A la Carte 5 star restaurants at AUH, and fine lounges at LHR with full excellent foods and buffet, Chauffeur cars, and free night stopovers in top Gulf hotels. Who matches this with the same cost?

All flights were full in Business Class, and half in First, and economy 80-90%occupied. they enable a bidding system to upgrade a week before, so no need for upgrades and fiddling about like some Airlines at the gate. (Many grumbling on here about BA upgrading 70 people at the gate for a US-LHR flight some weeks ago, people not paying but in their cabin).
A clever and strategic method of maximising revenue and lessening administration at the gate, and happy passengers.

Their philosophy of a “Guest” mentality, shows. they are different, and the whole approach is that of a hotel in the air.

In respect of their investments and placed gained on Boards, is also strategically clever, and a successful strategy of expansion through investment, and co-operation. They build up this, worldwide, not just in Europe. They signed codeshare agreements with Air New Zealand, a big one coming with Singapore expanding even more soon to be revealed. Of course they own a fair amount of Virgin Australia, who also fly to AUH as well as 40% of Australia’s domestic market, and increasing. Qantas is in serious trouble for their International network, which many Australians are turning away from and using The Gulf Airlines.

They are also rapidly expanding their networks, and are increasing their flights into Australia. The A380 will run to LHR and to Sydney from AUH. Be very interesting to see what they do on board.

As far as KLM Air France is concerned, a 10 year agreement was signed with them over a year ago, and codeshares and co-operation is enabled already. they do not compete but work together, so the point about them being challenged, does not apply. Etihad have an excellent network into Europe with KLM and Air France. Alitalia could be on their horizons. They have a small Regional Airline having acquired Darwin Airline, now known as Etihad Regional, who also fly Cambridge to Amsterdam.

At AUH, the new Airport or extension will be ready in 2017, and seeing the area it is several times the size of LHR! They have a superb Premium terminal recently opened, with the best lounges of any Airline i have seen in 20 years, matched by their chauffeur car service. they have some of the best ground services and hubs worldwide.

The staff are superb, the planes relatively new, no legacy Airline burdens such as pensions or staff pay and conditions as other Airlines are fighting against. they negotiate, co-operate, and work With other Airlines, they do not push themselves in like Emirates do, causing conflict.

Their future is one of agreement and expansion in a unique way, with plenty resources, and one of the fastest expanding and newest Airlines in the World. They really do treat you differently in All classes on board, and as a guest. Their FFP Etihad Guest is simple, and generous. You have the same benefits at Silver level of membership, as you do in Gold of any European Airline.

Other Airlines are cutting back, reducing what we experience when we travel with them, arguing with staff, and the small things we notice when we travel get cheaper and worse. Etihad strives forwards, developing, expanding, investing, and are here to stay.

Ironic they are only 50 minutes drive from Dubai and EK’s hub. But they are making good profits, and are here to stay. If they would be unable to survive, they would not be doing so well already and be beaten down with EK, and they are far from it. It is the European Airlines, and especially the Asian Airlines who are losing business to them, as European travel to Oceania, more of us are switching to go via The Gulf, than Asia these days.

They will be here, and see many other Airlines out, and their investments alone will sustain them for a long time, where other Airlines have no such income. I have certainly switched my business for long haul to them going East, as many others, along with a Gold Etihad Guest membership already.

Whilst they CEO has declared they have no intentions of joining an Alliance, and he stated that he thought Alliances were rather out of date and had their time, they have indeed built up their own network. However, it is true to say, that they lean towards many co-operations with Skyteam members far more than any other Alliance.

Overall, they are unique, a vast array of influence, income, and resources, and are here to stay. perhaps they are even carving out something different from an Alliance, but a network in a different form, pioneering in the way they do best.

Totally agree Hippocampus – German efficiency and Italian flair.

What could possibly go wrong 🙂

What is surprising is that only two weeks after pulling the plug on all their remaining Cambridge flights, Ethiad Regional have just announced a new Saturday only service from CBG to Verona from May. I would not have thought this would bring them much feeder traffic.

Here’s the piece we ran re the suspension of the Cambridge route:

http://www.businesstraveller.com/news/100327/international-flights-to-cambridge-suspended

In fact Amsterdam will soon lose another UK route. News is breaking today that KLM is poised to withdraw from Manston.