News
Etihad unveils new alliance model
November 1st 2014
Etihad Airways continues to the surprise the industry. Its latest development is Etihad Airways Partners, which aims to save members money through joint procurement and equipping while offering its member passengers improved networks, schedules and enhanced frequent flyer benefits. Read More »
The founder members are all airlines in which Etihad holds equity: airberlin, Air Serbia, Air Seychelles, India’s Jet Airways and Swiss-based regional carrier, Darwin Airline (now Etihad regional). The other carriers in which the Abu Dhabi-based operator has an investment, Virgin Australia and Alitalia, have not signed up.
Etihad chief executive, James Hogan, said the new group differs from legacy airline alliances such as oneworld, Star Alliance and SkyTeam by offering benefits beyond commercial cooperation.
“We’re aiming to deliver a consistent experience for frequent flyers when they travel, as well as a consistent framework for earning and using their miles.” That will include standardized mileage and tier benefits across all partners with no blackout periods.
“The Etihad Airways Partners logo is a seal of excellence and global cooperation. It will be displayed on aircraft and on branded materials by a group of airlines working together to connect travellers around the world, and increasingly to harmonize standards in the air and on the ground,” he said.
Hogan said Etihad Airways Partners is open to any airline, even if it is a member of an existing alliance. For example, airberlin is a member of oneworld. Analysts said that invitation may attract airlines to its fold. Even existing global alliance members are pragmatic about partnerships and co-operation with carriers outside their grouping if it suits them.
Etihad and its equity-linked group offer an impressive global network, particularly across Europe, India and Asia. If other carriers see benefits in tapping into that network or gaining economies of scale and cost savings from joint procurement Hogan’s invitation may be hard to ignore.
Air France executive, Bruno Matheu, has joined the airline as chief operating officer, equity partners, to run the new division. He will spearhead efforts to optimize business performance, revenue and cost synergies between Etihad and its partner airlines. Etihad, which has more than 200 jets on order, has signed aircraft order deals that allow its partners to take part.
