Etihad alliance stands to benefit from ban on Emirates flying Milan-New York

A potential ban stopping Emirates Airline flying between Milan and New York opens up a lucrative gap for Etihad’s new equity alliance partner Alitalia to fill with the launch of more long-haul flights to the US, analysts said.

Emirates awaits a final judgement on the operation of its Milan-JFK route before the end of this year, after the Rome-based Lazio Regional Administration Court moved to block the route in April.

The route is an example of usage of the “fifth freedom”, which dates back to the 1940s “Freedoms of the Air” agreed by the industry in Chicago. The fifth freedom is the ability for a carrier to fly between two foreign countries on a flight originating or ending in one’s own country.

Currently Emirates operates about 15 of these routes, mainly in Australia and Asia.

However, the flights are also subject to the agreement of the local authorities — in the case of the Milan-JFK route, both Italy and the US would need to approve it.

The court in Lazio ruled that a non-EU carrier cannot operate to a third destination from Milan — especially if the airline does not originate from the point of departure or the point of destination.

The Milan-New York route is important for both business and economy travellers. Around 70,000 passengers have booked to travel on this route between April and August, according to Emirates.

The carrier had identified it as a potentially lucrative route as many passengers are connecting via another European destination and Emirates is also able to offer the only true first class cabin.

However, analysts expect that Etihad could leverage this opportunity if Emirates can no longer operate the route thanks to the Abu Dhabi carrier’s €560 million (Dh2.75 billion) investment in debt-laden Alitalia this month.

“I think it would be naive to believe that Etihad wasn’t going to try and synchronise feeding traffic to the Milan hub,” said Peter Morris, the chief economist at Ascend Flightglobal Consultancy, an aviation firm.

“Various innovative operating or franchise arrangements on long haul might be developed between the two airlines to fulfil the important EU-US Open Skies regulatory criteria,” Mr Morris added.

Will Horton, a senior analyst at Sydney-based Centre for Aviation (Capa) said: “Etihad via its [49 per cent] Alitalia stake could potentially benefit.

“But the market Emirates is targeting is more Milan-New York local and not originating from the UAE.”

Etihad’s investment in the Italian carrier included a three-year plan to turn Alitalia’s operations around to focus on long-haul flights. Ten long-haul routes will be introduced as part of the Italian carrier’s five-year plan, which will seek to develop Rome’s Fiumicino Airport as an intercontinental hub, while Milan’s Malpensa Airport will get more long-haul flights.

But Mr Morris warned of potential hurdles that could face carriers flying to the US, referring to the case of Norwegian Airlines, which faced a ban flying to the US after operating on a licence from Ireland.

“It is notable that Norwegian [Airlines], seeking a flexible type of arrangement for Ireland based operations, have so far ended up frustrated by a law change by the House of Representatives, under pressure from US airline interests,” said Mr Morris.

The US airline industry is facing tough competition from foreign carriers including from Europe and the Middle East.

Any flights operated out of Italy including to the US via Etihad’s equity alliance with Alitalia would not be classified as fifth freedom routes. Currently, Etihad operates only a small number of such routes, including flights from Singapore to Brisbane and Beijing to Nagoya.

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Etihad Airways promises to restructure Alitalia

Abu Dhabi-based airline buys 49 per cent stake in Italy's loss-making national carrier.

Fast-growing Gulf airline Etihad Airways is to inject 560 million euros ($750 million) into Italy’s loss-making national carrier Alitalia, in a move that will see it gain access to one of Europe’s major markets.

Etihad, which is buying a 49 per cent stake in the Rome-based carrier, said on Friday it will restructure Alitalia and even laid out the hope of returning it to profitability by 2017.

Etihad Airways CEO James Hogan announced the three-year plan to completely reboot the Alitalia brand at a Press conference at a Rome hotel, saying it was a strong airline but “a poor business financially” that needed to be turned around.

“If we didn’t believe Alitalia could restructure and win we wouldn’t be here,” he said alongside his Alitalia counterpart, Gabriele Del Torchio. “The sexiest airline in Europe should be Alitalia.”

The two signed the deal after months of negotiations over debt restructuring, proposed job cuts and other issues that sparked fierce opposition from Italian unions. Airline workers have staged wildcat strikes at Rome’s main airport this week to protest the deal.

The deal adds one of Europe’s most recognisable aviation brands to Etihad’s growing collection of foreign investments that also includes AirBerlin, Air Seychelles, Virgin Australia, Aer Lingus, Air Serbia and Jet Airways.

Hogan said the new airline would be able to capitalise on Etihad’s growing conglomerate to reduce overhead and expand reach. Plans call for beefing up Rome’s Leonardo da Vinci airport as a hub, adding more long-haul routes and trimming back less-performing shorter routes.

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Etihad Takes Delivery of its 100th Aircraft

Etihad Airways, the national airline of the United Arab Emirates, last week celebrated a major milestone when it took delivery of its 100th and 101st aircraft on the same day.

The one hundredth aircraft, a new Airbus A321-231 (registration A6-AEC), was delivered from the Airbus Finkenwerder facility in Hamburg.  On arrival in Abu Dhabi, the aircraft was welcomed by over 500 Etihad Airways employees at a specially organised photo-shoot to mark the occasion.

James Hogan, President and Chief Executive Officer of Etihad Airways, said: “This is an important day for an airline which launched operations just over ten years ago. Etihad Airways continues to grow, to prosper and to lead the way in innovation and service.  Today, we fly the most technologically advanced and fuel efficient aircraft available, setting new standards in comfort and reliability.”

The airline now operates three Airbus A321, with seven more on order.  This A321 delivery is joined by the airline’s 101st aircraft, an Airbus A320-200 (registration A6-EIX).  Both aircraft are equipped with sharklets, which are blended winglets at each wingtip, designed to enhance the payload-range performance, allowing a significant reduction in fuel-burn.

In November 2013, Etihad Airways placed its largest ever aircraft order at the Dubai Airshow with a value of US$67 billion for up to 199 aircraft and 294 engines.

The airline will take delivery of its first Boeing 787-9 and Airbus A380 aircraft in October and December of this year respectively.  These aircraft will feature Etihad Airways’ revolutionary new cabins, which were unveiled on May 4, 2014, including for the first time in the airline industry, a luxurious self-contained three room cabin on the A380 known as ‘The Residence’, featuring a separate living room, bathroom and double bedroom.

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Etihad announces second crew recruitment drive this year

Etihad Airways is to run a second cabin crew recruitment drive in the UK this year. The UAE carrier is holding a recruitment day in London on Tuesday (June 3) to help support the airline's expansion. The successful candidates will be based in Abu Dhabi in company accommodation. More than 1,200 British nationals currently work for Etihad Airways, including 690 core staff, 360 cabin crew and 167 pilots.

The airline's guest services vice president, Aubrey Tiedt, said: "In London we will be inviting up to 200 of the strongest candidates who meet our stringent criteria to attend the recruitment day."

"To support the rapid, dynamic expansion of Etihad Airways, we are pleased to return to London to host our recruitment drive.

"Our previous recruitment drive in London was a great success. More than a third of the applicants were successful and have already started flying after their seven-week safety and service training at Etihad Airways' state-of-the-art training academy in Abu Dhabi. We look forward to finding more incredible talent in London.

"Our team hails from more than 110 nationalities and enjoys great career development opportunities commencing as cabin crew, inflight chefs or food and beverage managers; progressing to onboard leadership and management roles."

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Etihad increases presence in Mediterranean with holiday season flights

Etihad Airways, the national airline of the United Arab Emirates, has announced it will boost frequency and capacity to Athens and Larnaca, adding depth to its expanding network, while enhancing connectivity over its Abu Dhabi hub.

Peter Baumgartner, Etihad Airways chief commercial officer, said: “These increases in frequency and capacity demonstrate our commitment to build a global, connected network.

“In the case of Athens, our new flights will offer guests the choice of two different departure times to and from Abu Dhabi, and in the case of Larnaca, the additional flights will provide more choice and flexibility, as well as better connectivity over Abu Dhabi.

“The additional services will also support the growth of business and leisure traffic over Abu Dhabi, and offer travellers greater choice of destinations across the Gulf region, Indian Sub-continent, Asia and Australia.

“It also means that by July 2014, nearly 90 per cent of Etihad Airways’ global passenger network will be served by a daily flight.”

From July 2nd 2014, Etihad Airways will increase frequency on the Abu Dhabi-Athens route from seven to ten flights per week with the introduction of three new flights, which will provide passengers travelling to and from Athens with more choice and greater flexibility.

The new flights will also provide additional connecting opportunities with codeshare partner Aegean Airlines, which has separately announced that it will be commencing a direct service between Athens and Abu Dhabi from May 28th 2014. Beyond Athens, Etihad Airways places its EY flight code on Aegean-operated flights to 16 destinations in Greece including popular islands such as Crete, Rhodes and Santorini, and to Larnaca, Madrid and Sofia in Europe. 

Aegean Airlines places its A3 flight code on Etihad Airways beyond Abu Dhabi to Sydney, Melbourne, Perth, Bahrain, Kuwait and Johannesburg. The new flights will enable Etihad Airways to place its flight code on Aegean-operated flights beyond Athens to Barcelona, subject to regulatory approval. In addition, between June 1st and September 30th, Etihad Airways’ daily EY090/EY091 flights will be upgraded from the current 174-seat Airbus A321 operation to a 254-seat Airbus A330-200 aircraft.

Flying 18 guests in the award-winning Pearl Business Class and 236 guests in Coral Economy Class, the larger aircraft is being deployed on the route to meet the expected increase in summer traffic. Etihad Airways will also increase its base frequency on the Abu Dhabi-Larnaca route from three to five flights per week. Etihad will also operate Larnaca as a daily service during the peak summer period from July 1st to September 30th 2014. All services to and from Larnaca will be operated by a two-class Airbus A320 aircraft configured to carry 16 guests in Pearl Business Class and 120 in Coral Economy Class.

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Alitalia-Etihad deal to close this week, minister says

A deal between struggling Italian carrier Alitalia and Abu Dhabi-based Etihad Airways should go through this week, Italian Transport Minister Maurizio Lupi told the Lower House on Wednesday. "I think this week, as announced, the work carried out in the past few months will reach a conclusion," he said. Lupi said last week that Etihad would shortly decide whether to buy a stake in Alitalia. Talks are ongoing over whether the Gulf carrier, which is vying to broaden its network in Europe, could buy up to 40% in the troubled Italian airline. 

In early February, Etihad and Alitalia issued a joint statement saying they were in the "final phase" of negotiations for a deal that would see the Abu Dhabi carrier buy as much as a 40% stake in its Italian counterpart, the equivalent of a much-needed capital injection of 350 million euros. But the arrangement, as well as other plans to bring Alitalia back to profitability, have been controversial.

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Etihad Airways reportedly will raise its share in Airberlin to 49.9%, could it be merged with Alitalia?

Ailing German airline Air Berlin, almost 30 percent owned by Abu Dhabi-based Etihad Airways, will be delisted and Etihad will raise its stake to 49.9 percent, a German weekly reported, possibly as a prelude to combining it with Alitalia. Citing company sources, WirtschaftsWoche magazine said a group of German shareholders, among them former and current company executives, would raise their stakes to hold more than 50 percent between them, preserving the carrier's German status.

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UAE’s Etihad Airways Removes Israel From Flight Map, Won’t Serve Israelis

An airline owned by the United Arab Emirates has refused to allow Israelis on board and has removed Israel from its in-flight map.

On Etihad Airways flights, a map of the official travel route shows Jordan, Iraq, Egypt, Syria, Lebanon and other countries, but leaves out the Jewish state and its major cities. Etihad is the sole airline that provides service between Abu Dhabi and U.S. cities and is a partner of American Airlines.

In 2010 the carrier even began teaching its flight agents how to identify Israeli travelers by their “accents and traits,” the BBC reported.

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Etihad CEO gives 50-50 chance for Alitalia deal

Etihad Airways' talks on investing in struggling Italian carrier Alitalia could swing either way and hinge on terms laid down by the Abu Dhabi-based airline, Etihad's chief executive said on Monday.

Talks between the airlines intensified last month and sources close to the matter said Etihad might be interested in buying a stake of up to 40 percent in the Italian carrier.

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Etihad completes Air Serbia takeover

Etihad Airways has officially completed its 49% takeover transaction of Air Serbia. The takeover agreement  as signed by Etihad Airways CEO James Hogan and the Serbian Minister for Transport, Aleksandar Antić, in Belgrade on Tuesday, away from the media spotlight, presumably so as to avoid calls for the secretive deal to be made public.

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