Airline News
Etihad to buy stake in SAA?
December 16th 2014
Etihad Airways has the option of taking a minority stake in loss-making South African Airways (SAA), said acting SAA chief executive officer (CEO) Nico Bezuidenhout. Etihad CEO, James Hogan, categorically denied this, and said saying he was “quite surprised” given that “[the two carriers] haven’t had talks on this matter”. Read More » In the past three years, Etihad has acquired equity stakes in struggling carriers to boost its geographic footprint and connectivity while providing financial support, economies of scale and managerial advice for members of its newly established equity alliance. The Abu Dhabi heaequartered carrier has holdings in Aer Lingus, airBerlin, Air Serbia, Air Seychelles, Alitalia, Etihad Regional (formerly known as Darwin Airline), Jet Airways and Virgin Australia. Etihad’s strategy has helped it to expand its wider network to more than 400 destinations.
A potential investment in SAA could add up to 42 destinations to Etihad’s network, particularly in southern and central Africa, which are currently underserved markets with immense growth potential.
In other news, Etihad last week launched a daily San Francisco service, its fifth destination in the U.S. Speaking at a launch event in San Francisco, Hogan said Etihad supported more than 200,000 jobs in the U.S. with the 115 Boeing orders exceeding $36 billion it placed since 2006. The airline announced this week it had ended its fuel hedging programme after oil prices dropped at the fastest pace in two years.
