IT has been a challenging 12 months for Etihad Airways which has seen the airlines deal with various challenges including the volcano ash disruption, unrest in Bangkok, the continued effects of the global financial crisis, airport strikes and snow storms that paralysed operations in Europe. However, the airline has continued to show maturity and adaptability in its efforts to expand its global flight network, take delivery of new aircraft, and win new business. 2011 will see Etihad continue to fulfil its ambitions to add depth to its global network and ensure that business and leisure passengers have the best possible flight connections and schedules. According to CEO James Hogan, 2011 will see the airline in a strong position of breaking even and moving into a position of sustainable profitability.
The airline experienced strong load factors across all markets in 2010, averaging 75 per cent, but according to Hogan, “There’s little point operating flights that are full and not making any money.” Etihad stuck to its decision to not drop fares during the financial crisis and this has put them in a stronger position to move forward.
“Today, I strongly believe we offer the best product and service in the industry and it was important that we protect that position as the market leader,” said Hogan.
While many airlines were removing first class cabins from their fleet Etihad continued to maintain premium cabins on routes that showed demand. “We did however demonstrate our adaptability by introducing our first all-economy A320 aircraft in 2010 which are deployed on routes that do not have demand for our premium offering,” he added.
The airline is nearing the end of its wide-body retrofit programme which has seen major enhancements to the First, Business and economy Class product. Within the Economy cabin the major area of focus has been the introduction of our ‘Inspired Service’ -offering customers a more tailored experience. ‘Inspired Service’ provides economy class customers with a more tailored experience, including greater choice of food and beverage, menus of up to three courses with hot desserts and café-style hot and cold beverages; a more personalised service from cabin crew members; larger, high-comfort pillows; travel packs with comfort items for guests travelling on overnight flights; and special support for families and children, including kids’ entertainment packs.
The airline currently has a fleet of 57 narrow and wide body passenger and freighter aircraft and this will increase to 97 aircraft by 2015. This year, Etihad will take delivery of three A330-300 and two B777-300ER passenger aircraft as well as one B777-300 freighter aircraft.
“In terms of industry trends I believe that there will be greater emphasis on enhancing the customer experience through digital technology. This will enable customers to control their travel itineraries and choices through the internet, mobile and smart phone devices,” added Hogan. Etihad expects to unveil new and exciting innovations in this area in 2011.