Today’s announcement of another major Airbus purchase demonstrates just how quickly the oil-rich emirate of Abu Dhabi is working to establish a world-class airline in the shape of Etihad Airways. Mark Pilling reviews its rapid progress with CEO James Hogan.
Etihad CEO James Hogan is asked one question more than any other: how can the fantastic growth plans of both Abu Dhabi and Dubai be achieved?
Critics doubt whether these Middle Eastern cities, which are only 100km or so apart, can sustain network carriers with the expansion ambitions of Dubai’s Emirates and Abu Dhabi’s Etihad Airways. For Hogan, who has been at the helm of Abu Dhabi-based airline for seven months, the question is not either/or, but both. “We can co-exist,” he says.
“What you see happening today in the Gulf is what was happening 25-30 years ago at the Asian hubs,” he explains, when airports like Hong Kong and Singapore grew as popular transfer points. The geographic location of the Gulf, where carriers will be able to connect any point on the planet with only one stop, make it a natural hub.cc
A domestic investment programme totaling $270 billion over the next decade, including $11bn for tourism, shows the extent to which the Abu Dhabi government, Etihad’s shareholder, is committed to delivering on its plan to position the emirate as a centre of commerce and culture.
Crude reserve
Abu Dhabi is implementing this extraordinary investment with the backing of the world’s fifth largest crude reserve. It also holds 94% of the proven oil and gas reserves in the United Arab Emirates. These are predicted to last another 100 years.
Industrial and real estate development is a key part of Abu Dhabi’s masterplan. An industrial zone covering 100km2 is taking shape in Khalifa Port while grand properties are sprouting up everywhere. Etihad is a key component in the Abu Dhabi government’s plan. “We will have 31 aircraft by year-end. Our development is the fastest ramp up of an international airline,” says Hogan.
Etihad only began operating in November 2003. It has added aircraft at a swift rate, with 23 in operation at the beginning of June. It currently operates a mix of Airbus A330s, A340s, Boeing 777s and 767s and three A300 freighters. During 2006 it brought in 15 widebodies alone, and at Le Bourget, the acquisition of more A340s and A330s was announced. Passenger numbers have soared, with 2.7 million carried last year.
“For the last three years the guys have done an incredible job,” says Hogan, who has intimate experience of the region having run Gulf Air for the past four years. “Over the next three years my objective is to build on what’s been achieved.”
Source: Flight Daily News
