With the retrenching of airlines in Europe, will Etihad be the next domino to fall?
With the retrenching of airlines in Europe, will Etihad be the next domino to fall?
http://newsinflight.com/2019/02/17/etihad-confirm-taking-deliveries-of-only-5-airbus-a350-and-just-6-boeing-777x-jets-out-of-119-jets-on-order/
Etihad Airways deferred A350 and B777x orders with Airbus and Boeing as part of restructuring the airline.
The airline confirmed to take delivery of only 5 Airbus A350 XWB and just 6 Boeing 777x jets out of 119 jets were on order with both plane makers.
Until June 2018, Etihad had 165 aircraft on order including 62 Airbus A350s, 52 Boeing 787s, 26 Boeing 777s, 26 Airbus A321neos, and 10 Airbus A320neos.
By December 2018, order commitments with Airbus was 22 A350-1000s, 40 A350-900s and cancelled an order for 10 A320neos it had placed for its investment on Air Serbia.
Last week, the UAE’s second largest airline reported, the carrier will take delivery of only 11 aircraft on order with Airbus and Boeing – representing just 8% of its total order commitment.
Etihad, which reported $1.52 billion in losses in 2017 and $1.95 billion in losses in 2016 and expected to continue making losses through to 2022, according to a ratings agency Fitch.
As part of restructure programme, airline cut 4,150 job for the past 28 months, closed down lounges in many Airports, and give pilots a voluntary transfer to another airlines.
Airline also faces law suit from Air Berlin insolvency administrators actively seeking €500 million on damages. Law suit claim that the withdrawal of funding led to the collapse of AirBerlin. Etihad owned a 29 percent stake in Air Berlin and in April 2017, Etihad sent a letter of support to Air Berlin, saying it would continue to provide funding for the next 18 months. But just months later, Etihad said it would no longer provide funding, saying Air Berlin’s business had deteriorated at an unprecedented pace.