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etihad airways

This tag is associated with 5 posts

Ethiopian Airlines is and always had been, what the CEO calls a “strategic asset and a policy instrument” for the government. Its key role in logistics is designed to aid the country’s industrialisation. Today, the company is busy exporting its model across Africa, buying stakes in existing airlines in Djibouti, the Democratic Republic of Congo, Eritrea and Equatorial Guinea, as well as setting up new ones in Chad, Ghana, Guinea, Mozambique, Nigeria and Zambia. Not all governments are fully on board with the company’s pan-African vision, a vision which led it to take a key role in pushing for the African Union’s single market for air transport launched earlier this year. “The main challenge is the lack of proper attention given to aviation by African countries,” Tewolde says. “At the policy level, African governments, unintentionally, consider aviation a rich man’s means of transport. They don’t consider it as an essential public service for the average person.”

    https://www.linkedin.com/in/tomas-chlumecky-aviation-doctor-3200a021/     Posted on Friday, 16 November 2018 Tewolde GebreMariam, Chief Executive Officer, Ethiopian Airlines   By Tom Gardner in Addis Ababa     http://www.theafricareport.com/East-Horn-Africa/itv-tewolde-gebremariam-chief-executive-officer-ethiopian-airlines.html   Tomas’s Comment:   There is no doubt that today Ethiopian Airlines is Africa’s dominant airline, the only African Airline that can compete with the likes of Turkish, … Continue reading

SUMMARY: The Etihad Airways “Equity Alliance Strategy” was a disaster just like the 1990’s Swissair “Hunter Strategy” which bankrupted Swissair in 2001, now Etihad has to dig itself out of a mess and right size its business, which means less aircraft, which is bad news for Boeing’s B777X order book, but with just 25 orders out of a total of 326 its a small hit, the big hit will be on Etihad which now has to be thinking of joining Emirates and flyDubai under one Group ownership, that will take some soul searching and loss of pride in Abu Dhabi, but it makes sense for the future of Etihad.

SEE:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/   Etihad B777-300ER     $6 Billion Order Loss For Boeing? Jun.18.2018 – Seeking Alpha -Dhierin Bechai         Tomas’s Comment: Etihad Airways has 8 x $394.8 million B777-8’s on order and 17 x $425.8m B777-9’s on order since November, 2013 when life was good for Etihad Airways, and ordering 25 … Continue reading

SUMMARY: The good airline news out of Europe is that TAP Portugal is finally 61% privatized and in good hands for the future while the Irish Government gives the go ahead for IAG’s buyout of Aer Lingus. The bad news is that Lithuania’s small national airline, Air Lituanica becomes the 5th European airline this year to shutdown (27 in 2014), while Croatian Airlines and Adria Airways nervously wait for their privatization as it is “swim or sink” time for them and others like LOT, TAROM, Estonian Air, Czech Airlines, AirBaltic, etc. as they have all taken or will take their last “one time” EU allowed state aid packages, and from now on for most, if they run out of money, they have NO choice but to file for bankruptcy. The low cost carriers (LCC) in Europe continue to grow at a fast pace and challenge the existence of national carriers as incumbents cannot muster any significant competitive response against the LCC onslaught in Europe. Meanwhile, fully government owned AirBaltic of Latvia becomes the launch customer for Bombardier’s CS300 (20 on order, 13 + 7 options), the $US 1.44 billion aircraft cost and launch customer designation is not realistic from an airline based in Latvia that lost $US 220 million since 2010, bailed out by the Government in 2011 and has made only $US 11 million in net profit in the past 2 years on revenues of $US 688 million (a slim 1.6% net profit margin), it is a barely a financially viable carrier without the new and expensive CS300’s. The airline has 24 aircraft today (B737-300/500, Q400’s) making it the 36th largest airline in Europe (following ‘big’ names like Onur Air and Norwind Airlines ?) is this a joke ? Bombardier has NO “better” customer for the launch of the CS300 ? the quality of its current customer order book is sad indeed after Lufthansa and Korean. It reminds me of the Sukhoi SSJ-100 tragic launch customer Armavia (of Armenia), which was an absolute PR and marketing disaster, as it accepted the 1st aircraft, could not finance the 2nd aircraft, and then went bust. Anyway, the plight of the small/medium government owned and private airlines in Europe continues, what is their future ? or is there one ? Air Serbia pulls off an incredible corporate turnaround in 1 year under its “white knight” equity partnership with Etihad Airways, but other airlines may not be so lucky, time to look at new business models for survival before the wave of European bankruptcies begins as surely 50 European countries cannot all have a national airline !

The European airline industry is tough, unstable and very dynamic, the latest casualty is little known Air Lituanica of Lithuania, which is the 5th European airline victim in 2015 (not counting Russia), following Cyprus Airways, EuroLot (Poland), Tend Air (Romania) and Wizz Air Ukraine into the history books. The European airline industry is in trouble … Continue reading

ABSTRACT: IAG (International Airline Group) acquires Ireland’s Aer Lingus and gains 23 valuable slots at Heathrow, while oneworld partner Qatar Airways buys 10% of IAG, Europe’s highly fragmented airline industry with 200+ airline groups where the top 5 airlines by traffic have a 46% market share compared to 87% in the highly consolidated and concentrated US market, and a new stage of European consolidations will soon begin, as state aid is all but gone now, and already in 2015 both Cyprus Airways and EuroLOT are shut down, Lufthansa Group and Air France-KLM Group both struggle with sustainable profitability and many of the remaining small carriers are waiting for a “white knight” before they go bankrupt, meanwhile most of the recent European airline acquisitions have been from outside of Europe, the industry is changing, and many airline bankruptcies are expected as there are no more “white knights” around like Etihad Airways to rescue the weak and struggling airlines.

The Irish national carrier, Aer Lingus is being acquired by IAG (International Airline Group, LSE:IAG), the 6th largest airline group in the world with revenue of $US 24.7 B (billion) and the parent of British Airways, Spain’s Iberia and LCC Vueling, valuing the airline at Euro 1.36 billion (+/- $US 1.53 billion). Under current CEO … Continue reading

Mega Canadian Airline Merger in the Works as Canadian North and First Air Start Discussions

It was announced yesterday that Makivik Corporation, the owner of First Air and NorTerra Inc. the owner of Canadian North started to talk about merging the two northern Canadian airlines, which will create a single airline entity that builds on the strengths and identities of the two airlines. They say no lay offs are planned, … Continue reading