Etihad Airways

Background

The emirate of Abu Dhabi was a joint owner of Gulf Air along with Bahrain, Qatar, and the Sultanate of Oman. Zayed International Airport was one of Gulf Air's bases and hubs from the 1970s until 2005, when the UAE withdrew from the airline. Gulf Air would remain as a two-state carrier until Oman's exit in 2007 to focus on Oman Air and today, Gulf Air is solely owned by Bahrain.

Name

Etihad means "union" or "unity" in Arabic, and represents the unity of the seven emirates of the United Arab Emirates (Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah).

Foundation

In July 2003, future UAE president Sheikh Khalifa bin Zayed Al Nahyan, who wanted an airline for Abu Dhabi, issued an Amiri decree that established Etihad Airways as a national airline of the United Arab Emirates. Sheikh Ahmed bin Saif Al Nahyan founded the airline and utilised AED500 million of start-up capital. Services were launched with a ceremonial flight to Al Ain on 5 November 2003. On 12 November 2003, Etihad commenced commercial operations by launching services to Beirut, Lebanon.

In June 2004, the airline placed a US$8 billion aircraft order for six Boeing 777-200 and 24 Airbus aircraft, including 10 Airbus A380s. Etihad's first A380 was delivered in December 2014.

In June 2008, at the Farnborough Airshow, the airline announced an order for 35 Boeing 787s and 10 777s, options for 25 787s and 10 777s, and purchase rights for 10 787s and 5 777s. Etihad reported its first full-year net profit in 2011, of US$14 million, in line with the strategic plan announced by CEO James Hogan in 2006.

Equity Alliance

In December 2011, Etihad announced it had acquired a 29.21% stake in Air Berlin, Europe's sixth-largest airline, and Hogan was appointed Vice Chairman. It followed this up with minority stakes in other airlines—Air Seychelles (40%), Aer Lingus (2.987%), Virgin Australia (10%).

On 1 August 2013, the president of the company, Hogan, signed a deal with Aleksandar Vučić, the First Deputy Prime Minister of Serbia, in Belgrade, granting Etihad a 49% stake in the Serbian national carrier Jat Airways. The Serbian government retained 51% of the shares, with the company was rebranded as Air Serbia. In September 2012, the Indian government announced that foreign airlines could hold up to 49% stake in Indian carriers. On 24 April 2013, Jet Airways announced it was ready to sell a 24% stake to Etihad for US$379 million. The deal was completed on 12 November 2013.

At the 2013 Dubai Airshow, Etihad announced it was acquiring a 33.3% stake in the Swiss carrier Darwin Airline, which was rebranded as Etihad Regional in March 2014. Etihad sold its stake in Darwin in 2017.

On 1 August 2014, Etihad agreed to acquire a 49% stake in the Italian flag carrier Alitalia for an estimated €560 million. The deal was finalised on 8 August 2014. On 1 January 2015, Alitalia-CAI formally transferred its operations to Alitalia-SAI, a new entity owned 49% by Etihad and 51% by the Alitalia-CAI shareholders.

The airline established its airline alliance, Etihad Airways Partners, in October 2015. It ceased operations in 2018 after several of its members fell into financial difficulties. Etihad held minority investments in the participating airlines and previously had a stake in Virgin Australia until its insolvency in April 2020 with no return on investment. In May 2016, the management structure was reshuffled, as Hogan became CEO of the airline's parent company, Etihad Aviation Group. Peter Baumgartner, formerly the airline's Chief Commercial Officer, became chief executive officer of the airline, reporting to Hogan. In December 2016 Handelsblatt Global reported that Hogan was expected to be dismissed after a "failed spree of acquisitions in Europe."

On 24 January 2017, the Etihad Aviation Group Board of Directors announced that Hogan (along with Group CFO James Rigney) would be stepping down "in the second half of 2017". Peter Baumgartner, (former CEO of the airline), became the acting CEO as it faced mounting losses from its investments in Air Berlin and Alitalia. On 2 May 2017, Alitalia filed for bankruptcy. Hogan and Rigney left Etihad later that month. On 27 July, Etihad reported a loss of US$1.873 billion for 2016. On 15 August, Air Berlin filed for bankruptcy after Etihad withdrew its financial support.

As an interim measure, the board appointed Ray Gammell as CEO (previously Chief People and Performance Officer) while searching for a permanent replacement. On 9 January 2018, Etihad Airways appointed Mark Powers as Group CFO, replacing interim Group CFO Ricky Thirion. On 2 July 2017, the United States Department of Homeland Security lifted the electronics ban on Etihad Airways after the airline enhanced its passenger screening processes.

In June 2018, Etihad reported a net loss of US$1.52 billion for 2017.

In February 2019, Etihad announced large order cancellations for both Airbus and Boeing aircraft.