Etihad Readies for Major Expansion

posted: 21 February 2008 ET

: Fast-growing Etihad Airways now operates a fleet of 35 passenger jets and three freighters, but expects its fleet to grow to 53 jets by 2011. It then expects to take dleivery of up to 100 new jets from 2013 to 2020. The airline has recently received five Boeing 777-300ERs. Credit: Etihad Airways

Fast-growing Abu Dhabi airline Etihad Airways will move this year to secure up to 100 new jets to allow large-scale growth as it seeks to turn its home base into a major global hub.

Established in 2003, Etihad Airways already operates 35 passenger jets -- most of them long-haul widebodies -- and three Airbus A300-600RF freighters, operated by its Etihad Crystal Cargo division. Its passenger-jet fleet now includes five Boeing 777-300ERs, one Boeing 767-300ER, 16 Airbus A330-200s, eight A340-500/600s, and five A320 narrowbodies.

Additionally, the airline is due to receive three more Airbus A320s and two more A340-600s this year, seven more A330-200 medium-sized widebodies in 2009 and 2010, and four A380 super-jumbos, which have delivery dates starting in 2013.

But James Hogan, Etihad Airways' CEO, told reporters in Beijing today that the airline is in talks with Airbus and Boeing over orders for up to 100 new widebody and narrowbody aircraft for delivery in the years from 2013 to 2020, and that it may announce its orders at the Farnborough Air Show in July.

Hogan also reportedly said the new orders would include A380s. Since Etihad already has four of the super-jumbos on order, this may mean the airline is considering adding to the size of its original order. Among the jets Etihad is studying are the Airbus A320 and A350, and the Boeing 737 and 787, according to Bloomberg, quoting remarks Hogan made in November.

After Hogan spoke in Beijing, Etihad Airways released an official statement which confirmed most of what he had told reporters.

"Etihad expects to make a significant aircraft order later this year, for between 50 and 100 aircraft, a mixture of narrow body and wide body (jets)," the statement said.

"We are currently talking to both Airbus and Boeing and considering a range of narrow body and wide body aircraft to meet the short haul and long haul needs of our growing global network," it continued. "We are still going through the process, and once we agree with the board and the government, then we will make an announcement."

According to Bloomberg, Etihad plans to be operating 53 jets by the end of 2011. Since the airline currently operates 38 jets and has commitments to receive 12 more by the end of 2010, this suggests that Etihad Airways expects to order or lease more aircraft for delivery by 2011.

Should Etihad complete negotiations over a 50-to-100-aircraft buy in the near future, its medium-term growth strategy looks set to emulate those of Emirates Airlines and Qatar Airways, both based near Etihad and both of which can be considered strong future competitors to Etihad as all three airlines strive to develop their respective global hubs.

These still-young airlines have grown rapidly since they were founded, Emirates particularly so. Dubai-based Emirates is now considered one of the largest long-haul airlines in the world and a serious threat to long-established carriers on prime long-haul routes from Europe to the Far East and Oceania, and from the Middle East and southwest Asia to the Americas.