Thursday, December 18, 2014

After a shopping spree, Etihad focuses on its offer – Echoes

After a shopping spree, Etihad focuses on its offer – Echoes

The Company of Abu Dhabi, has acquired stakes in eight airlines, wants to now focus on organic growth and its upmarket, illustrated by amenities unmatched in its first A380

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After three years marked by stakes in eight airlines around the world, Etihad now wants to concentrate on his own growth. Company of Abu Dhabi, which recently received the green light from Brussels to become the largest shareholder of Alitalia, has no new acquisition projects, said its chief executive, James Hogan, during the presentation press the first A380 and the first 787 equipped with new cabins. “Our priority is organic growth. We do not have a shopping list, he said. And we have not discussed with any company or for possible acquisition. The only current projects focus on code-sharing agreements, such as the one we have just signed with Hong Kong Airlines. “

Leverage notoriety new

Rather than continue to increase partnerships, Etihad now wants to capitalize on its new reputation and its brand. With the ambition to not be the biggest international companies – the neighboring Emirates has ten times more traffic – but the “best” in terms of quality of service. As evidenced by the new cabins equivalent of its new A380, the only airliner with a mini-suite suite consisting of a living room, a bedroom and a bathroom. Unveiled Thursday in Abu Dhabi, at the same time that his first 787, the new flagship of Etihad will enter service on the line to London on 27 December.

Similarly, if the extension of the strategic business alliance with Air France-KLM remains current, the passage of mere agreement of “code-share” present to a joint venture as that between Air France-KLM and Delta does not appear tomorrow. “Our teams are still working on it, says James Hogan. If we can develop the right formula, I’d love to move to the next step. But we’re not there and we did not set any deadline for doing so. “

Digesting acquisitions

For now, the priority of Etihad in Europe seems being rather digest its latest acquisitions. Starting with Alitalia, for which the company Abu Dhabi will spend a total of € 560 million. “The transaction will be finalized by the end of the month,” says James Hogan, who has already started to multiply the lines of code-share to Italy. Or Air Berlin, in which Etihad has already invested more than 300 million, but still in the red. The company Abu Dhabi has even had to face a series of investigations of the German authorities, may also Swiss and even European, who suspected the exercise de facto control over its European partners, while the European regulations prohibit foreign investors to control a European airline. Berlin, probably anxious not to cause the disappearance of Air Berlin, eventually concluded innocence Etihad, as the Swiss authorities about the regional company Darwin, yet renamed Darwin Airline. As for the Eu ropean Commission, it has validated his entry into Alitalia. Etihad remains under surveillance, including the requirement to maintain a European management at the head of his “partners” European and transmit the minutes of the boards to national authorities.

Nothing to James Hogan doubt the soundness of its strategy of acquisition. “I could have bought a hundred more planes, but I decided to invest in airlines,” he argued. “This is what distinguishes us Gulf of our competitors. This gives us privileged access to different markets, a single loyalty program, a much higher purchasing power and that also explains why we are less attacked than others. Through our investments, we have secured about 20,000 jobs in Europe “ concludes the boss of Etihad.

More photos via tweets from our reporter

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