|
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. |
Not fail - think about mergers. It won't be comfortable [KLM/AF!] and we won't get back to the Gulf Air of the 1970s and 80s but along those lines.
|
Etihad is backed by Abu Dhabi's treasury and is a matter of national pride for the emirate, so the same rules don't really apply. Conventionally, Etihad would never have been launched in the first place with Emirates providing such fierce competition nearby.
Having said that, the new EY has essentially folded their hand and they focusing less on a hub model now. |
I can see a more protectionist future where the Gulf 3 with unlimited funds find previously open doors start getting shut.
|
Originally Posted by chuboy
(Post 10392970)
Etihad is backed by Abu Dhabi's treasury and is a matter of national pride for the emirate, so the same rules don't really apply. Conventionally, Etihad would never have been launched in the first place with Emirates providing such fierce competition nearby.
. Don't forget the government of Abu Dhabi is already propping up Dubai (really Emirates) with cubic $$$$. Tootle pip!! |
airplanes are old toys, dont want to play with those anymore, now we want museums, then....then....then....lots of money, short attention span..
|
Will a some English Premier League football clubs soon find themselves sellers rather than buyers of players? And will naming rights for a couple of stadia be on the market?
|
Museums, airlines, hospitals, universities, research centres etc etc in the end it doesn’t really matter to the ruling families of Abu Dhabi. They will do what they want to do and my guess is that Etihad is not going anywhere anytime soon. ”Sheikh Khalifa Bin Zayed Al Nahyan has an estimated personal net worth of around $18 billion. However, the Al Nahyan family may have a net worth around $150 billion plus. Sheikh Khalifa is the current Emir of Abu Dhabi and the president of the United Arab Emirates.”
|
exactly - they run the country it's all smoke and mirrors
The airline brings them status and real power in that Airbus and Boeing have a lot of political clout Plus there is face of course - there is no way on this earth that Abu Dhabi will let Dubai have bragging rights over this just look how Gulf Air was kept going in the teeth of problems that would have killed any commercial western airline |
Well, clearly AUH tired of throwing good money after bad which is why Hogan got the boot along with all the stakes in the "Equity Partners." So who knows what the future will hold. When is the midfield terminal opening?
|
Etihad will continue to exist after a spell of "right sizing", and fleet rationalization, Im betting 60-80 aircraft and a 320/787 fleet after the dust settles
|
Midfield opening about October I believe. Many 350/779 orders still exist, just deliveries deferred indefinitely.... not ideal but not cancelled either ... which would be bad news for A/B. |
I thought Etihad discussion was prohibited on this forum? :}:}:}
|
| All times are GMT. The time now is 12:10. |
Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.