Etihad CEO Calls for 'Balanced Analysis' From Western Rivals
Etihad CEO James Hogan has reaffirmed the airline is on course to break-even in 2011 while calling on rivals to reassess the competitive environment they operate in.
He told Arabian Business: “Despite the value to travellers offered by the Middle East aviation industry, additional pressures are still experienced here such as accusations of receiving fuel subsidies, restricted landing rights around the world, and debate around the availability or otherwise of export credits guaranteed finance.
“We hope 2011 will see a fairer, more balanced analysis of the competitive landscape.”
Etihad and the other Gulf carriers have had a largely successful but controversial 2010. Over the course the year, Hogan has repeatedly denied that Etihad receives any fuel subsidies after accusations that it does by CEO’s of rival airlines. Etihad and Emirates are also involved in what has escalated into a diplomatic row with Canada over landing rights there. And in recent months, European carriers have complained Gulf airlines have unfair advantages when it comes to debt financing for purchasing aeroplanes in Europe.
Etihad, which was set up in 2003, had targeted break even for 2010, but the global financial crisis and cost of dealing with the volcanic ash cloud in Europe in May made this impossible.
“Etihad’s key goal for 2011 is to break-even, leading to sustainable profitability from 2012 onwards. All indicators show that we will hit these targets. Etihad will focus on increasing revenue growth and the quality of its revenue to help achieve profitability,” Hogan said.
Damian Reilly
Arabian Business