Tag Archives for etihad.
Etihad has talked up a strategy of linking up with several Star Alliance airlines saying that since they are no longer ‘their own alliance’ this isn’t in conflict with Star rules.
Etihad isn’t the only Gulf carrier pursuing closer ties with the Star Alliance though. Gulf Air says this is their objective as well.
A roundup of the most important stories of the day. I keep you up to date on the most interesting writings I find on other sites – the latest news and tips.
Perhaps most notable to me is that Pakistan International Airlines flies London Heathrow – Lahore non-stop three times a week, flies London – Karachi (and on to Lahore) and offers connections from various cities in Europe — in addition to flying Abu Dhabi – Lahore.
Yet the former Prime Minister of Pakistan chose not to fly PIA for his return to the country, preferring Etihad’s business class instead. No doubt he’s well aware that PIA is the worst airline in the world. If you’re going to get arrested, you want to be well-rested.
A roundup of the most important stories of the day. I keep you up to date on the most interesting writings I find on other sites – the latest news and tips.
A roundup of the most important stories of the day. I keep you up to date on the most interesting writings I find on other sites – the latest news and tips.
Etihad is in the midst of re-organizing its business. The airline that launched after Gulf Air eliminated its Abu Dhabi hub by hiring away Gulf Air’s CEO adopted a strategy of buying stakes in troubled airlines around the world and redirecting their connecting traffic through Abu Dhabi. But that didn’t work out very well — the available carriers were in some cases real basket cases and not candidates for turning around with new uniforms and group purchasing agreements.
When energy prices dropped the Al Nahyan family’s appetite for absorbing losses in exchange for growing an international hub airline ran out.
Etihad has been pulling back from the U.S., just as they’ve been pulling back from investments in foreign airlines. They decided to stem their losses in air berlin and Alitalia. They’ve cut routes around the world as their appetite for growth at the expense of their balance sheet has subsided.
They eliminated their Dallas Fort-Worth flight after American severed its codesharing relationship. They eliminated their San Francisco flight after Air India starting San Francisco – Delhi.
Over the past three years Etihad has devalued its program several times. That’s to be expected because it was so much better than others in the region. Qatar Airways caught me by surprise over the last month first announcing booking fees for awards – just a straight-up tax on redemptions – and then increasing the price of most awards about 60% overnight without notice. The earn and burn program went from middling to terrible overnight.
And now Etihad is making changes again. They’re only describing the changes in broad strokes, even though they’re going to be implemented in a month.
Etihad was an airline that started when Gulf Air eliminated its Abu Dhabi hub and the ruling Al Nahyan family sought to preserve and grow the capital of the UAE as a center of aviation.
But cash and ambition was never going to be enough to turn around carriers like Alitalia and air berlin. They were basket cases. And the ruling Al Nahyans finally decided to stop lighting money on fire as the price of energy fell. They axed the CEO of their airline who, ironically, they had poached in the first place from Gulf Air.
Etihad’s CEO says they plan to remain a global player rather than shrinking to become a premium boutique airline, even as he spurs further speculation about a merger or other close cooperation deal with UAE rival Emirates which is based just over an hour away.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
