Etihad tells Qantas chief to stop complaining
Matt O'Sullivan
February 8, 2011
ETIHAD'S chief executive, James Hogan, has told Qantas's management to focus on their own business instead of complaining about the threats posed by Middle Eastern and Chinese airlines.
In a warning about the viability of its full-service international operations without a change of direction, Qantas's boss, Alan Joyce, last week blamed foreign airlines for flooding the market with extra capacity.
The Abu Dhabi-based Etihad and Emirates have both said they will not be lobbying the federal government to increase their quota of flights to Australia for the next two years.
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Mr Hogan disputed Mr Joyce's claims that the foreign airlines were ''simply taking existing demand'', saying that Etihad had opened up new markets in Europe, India and the Middle East.
''I have been hearing this for a long time from my mates in Australia. [But] we have opened up the market,'' he said yesterday. ''They should get back and fight and let the customer decide who wins. I can't sit here and complain about capacity and people moving into my market.''
A week after gaining clearance from regulators for its alliance with Virgin Blue, Etihad has signed a codeshare agreement with Air New Zealand for flights across the Tasman. It will need regulatory approval.
Mr Hogan said the latest deal meant that it could now focus on using the existing air rights to Australia and building its codeshare network with Virgin Blue. However, Etihad still has plans to fly to Perth within the next few years.
Emirates also said it would not be seeking any additional air rights at the next round of bilateral negotiations because it had adequate capacity for the next two years.
The airline was rebuffed by the federal government last year after it lobbied for a ''reasonable'' increase in the number of flights to Australia from its cap of 84 a week.
In contrast, Etihad was last year awarded seven additional flights a week to Australia.
It also won the right for a further seven flights between Australia and Abu Dhabi on the proviso that flights be to or via regional airports.
Qatar Airways also has a daily service between Melbourne and Qatar's capital, Doha, but is yet to begin flights between Sydney and the Middle East despite plans to do so last year.
This article in today's SMH seems to confirm that AJ's all talk, no action!