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Etihad CEO discusses new model for airline competition

Published: 22/04/2016 - Filed under: Home » News »

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Etihad Airways President and CEO James Hogan today, recently addressed the Wings Club in New York.  He proposed the partnership approach, which Etihad has adopted as a new model in airline continuity. 

After discussing the high barriers to entry in the airline market, he stated, “That’s where partnership comes in.  From day one, we’ve taken an open partnership approach, working with scores of airlines on codeshare agreements.  Then we took that a step further with minority equity investments in strategically important airlines.” 

Mr. Hogan goes on to discuss the equity investments they have made in the airline. 

“We have a two-pronged approach.  From a strategic level, we are looking for the equity partners to bring network connectivity, generate additional revenues and create economies of scale.  All our partners are delivering on this level. That has helped to create the seventh largest airline group in the world and is delivering hundreds of millions of dollars to our business.”

He goes onto discuss partnerships in the US that have helped create the success of Etihad Airways.  “We’ve also been a close business partner with US corporations – most obviously with Boeing and other aerospace suppliers, but we’ve also created major partnerships with Sabre, Honeywell, IBM, Adobe and many others.” 

While they are a growing airline, he states they only have 0.01 per cent of the daily international departures in the US air travel market.  However, their small impact has a large ripple impact on the US economy.  Mr. Hogan estimates, Etihad airways has a  “total impact on the US economy is more than US$ 440 million a year.”

It’s clear partnerships are key to doing business in 2016 for airlines and other businesses.  As our world becomes smaller, partnerships across platforms will increase to serve customers all over the globe. 

By Elizabeth Atkinson

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