ETIHAD Airways has formed a joint venture with China Eastern Airlines under which the carriers will coordinate flights and share revenues on selected routes, as the Abu Dhabi flag carrier looks to boost growth, its CEO told Reuters.
Under the joint venture, the airlines will together manage flight capacity on chosen routes, coordinate schedules and share revenues but it will involve no equity investment or cost-sharing, Antonoaldo Neves said in Dubai.
“In a defined geographic scope we will work together as if we were a single entity. That provides us the ability to give customers more alternatives,” Neves said, adding that the joint venture will come into effect from 2025 once both airlines secure all regulatory approvals.
Such joint ventures are common between European and American airlines but this is the first such partnership between the Middle East and China, Neves said, adding that Etihad is actively seeking more such opportunities globally.
“This is the way to go in the future. This is how we’re going to leapfrog the development of airlines in the region,” he said.
There has been a surge in air travel since the end of the pandemic, overwhelming airports and helping airlines turn profitable. China, which was one of the biggest outbound travel markets prior to Covid, has been slow to come back.
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Neves says relations between the Middle East and China are good and that will help travel between the two regions.
“The Chinese are coming back. If you see the demand today, it is better than one year ago,” he said, adding that Etihad’s planes to the Asian country are pretty full.
Owned by Abu Dhabi wealth fund ADQ, Etihad posted net profits in 2022 and 2023, ending years of losses amid a shift in strategy that involves scrapping unprofitable routes, focusing on medium and long-haul destinations and returning grounded aircraft to service.
The airline has also decided to not place large plane orders, unlike other rivals, and instead focus on opportunistic plane purchases.
The airline has agreed with lessors to take 16 new planes – deliveries of which will start from 2026.
The new planes will help Etihad boost its network and flights and support the growth it expects from its joint venture with China Eastern, Neves said.
Etihad has a fleet of about 90 planes – up from 70 a year ago – and plans to add six aircraft this year including an Airbus A380 widebody jet which was in storage. It will add another 10 planes in 2025, he added. REUTERS
