Etihad eyes further investments as revenue to top €5bn

Etihad Airways — the Abu Dhabi-based carrier which has been on a recent acquisition spree — is eyeing further investments if the right opportunity arises, its chief executive said yesterday; adding 2012 revenue could top $5bn (€3.89bn) for the first time.

“We see further equity investments only if it’s the right opportunity, right partner, right market and right price,” James Hogan, Etihad’s chief executive said at an aviation conference in the capital of the United Arab Emirates.

Unlisted Etihad has been on an acquisition drive in recent months, taking minority equity stakes in Virgin Australia and Aer Lingus and raising its shareholding in Air Berlin and Air Seychelles.

Any future acquisitions would follow the same theme, with Etihad not interested in majority ownership, Mr Hogan said.

He said that the airline will continue to extend its code-share (different airlines offering seats on the same flight) network, which contributes around 20% of its revenue.

“Our equity model is about growth, not control,” Mr Hogan said.

“Through partners, we stretch our reach and it gives us the ability to compete with our immediate neighbours,” he said, in a reference to major rivals, Dubai-based Emirates and Qatar Airways.

Etihad’s revenue this year is expected to pass the $5bn mark for the first time, despite the wider aviation sector being under pressure from the global downturn and high fuel costs, Mr Hogan added.

The airline, which had revenues of $4.1bn in 2011, generated $281m in revenues from partnerships in the first half of 2012, he said.

— Reuters