Lufthansa to drop services to Abu Dhabi

German airline Lufthansa announced on Thursday (Oct 16) that it will pull the plug on its once-daily flights between Frankfurt and Abu Dhabi due to competition from its Gulf rival Etihad.

"Substantial capacity has arisen in recent years on services between Germany and the United Arab Emirates because state-subsidised Gulf carriers have massively increased their presence," Lufthansa complained in a statement.

"This development has been further exacerbated by the fact that Etihad Airways has unfairly been allowed to offer and market code-sharing flights with Air Berlin," the German airline continued.

"In face of huge over-capacity, the service between Frankfurt and Abu Dhabi has become increasingly uneconomical for us. We are now taking the consequences and will drop the service from our timetable starting from summer 2015," Lufthansa said.

The carrier complained that the unfair competition from state-subsidised airlines in the Gulf region puts jobs at risk in the German airline sector.

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Etihad Airways sees 29% revenue surge in Q3

Abu Dhabi's Etihad Airways said on Tuesday (Oct 14) it posted a 29 per cent surge in revenue to US$1.8 billion in the third quarter, thanks to rising numbers of passengers and cargo volume.

The fast-growing carrier said 3.9 million passengers flew with Etihad between July and September, a 30 per cent increase on the same period in 2013. Etihad cargo also transported 144,498 tonnes of freight and mail, a nine per cent rise on last year's third quarter last year. The government-owned carrier did not say whether it registered any profits or losses.

"We are confident about sustaining our profitability in 2014," Etihad chief James Hogan said in a statement. He said the carrier's codeshare partnerships and minority investments in other airlines have continued to produce strong results despite "industry challenges such as volatile oil prices, economic and political instability, overcapacity in the market, and access constraints".

The company is turning Abu Dhabi into a major travel hub between the West and Asia and Australasia. Etihad carried 11.5 million passengers last year, earning US$6.1 billion in revenue, of which it kept US$62 million as profit. The company agreed in June to acquire 49 per cent of Italy's debt-laden Alitalia, widening its reach into the European market.

Launched in 2003, Etihad is expanding rapidly and has bought minor shares in several smaller carriers around the world as it competes with larger Gulf rivals Emirates and Qatar Airways. Etihad owns 29 per cent of Air Berlin, 40 per cent of Air Seychelles, 19.9 per cent of Virgin Australia and three per cent of Irish carrier Aer Lingus. It also has a 24 per cent stake in India's Jet Airways.

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Etihad Airways to avoid Iraqi conflict airspace

Abu Dhabi's Etihad Airways announced on Saturday (Aug 9) that it will reroute flights over Iraq in the wake of US air strikes on Islamist State (IS) fighters there. "Etihad Airways has announced that it will reroute its flights to avoid conflict airspace in Iraq," a statement by the carrier said.

"The decision follows the deterioration of the security situation in parts of the country. The safety of Etihad Airways' passengers and staff is of paramount importance, and the airline will continue to monitor the security situation closely."

On Thursday, Etihad also said it was suspending flights to Iraqi Kurdistan's capital of Arbil because of fighting in northern Iraq. The first US air strikes on Friday struck IS positions and at least one convoy of vehicles carrying militants west of Arbil. However, "flights to Basra and Baghdad, which have a daily risk assessment, continue to operate as normal," Etihad said on Saturday.

Dubai's Emirates Airline also announced on Saturday that it has "immediately" suspended its flights to Arbil due to the "security situation there," in a statement carried by the UAE's official WAM news agency. Daily flights to Basra and four weekly flights to Baghdad will however continue, the airline said, adding that it is "closely following developments" in restive Iraq.

Emirates had already announced last month that it will no longer fly over Iraq.

The Federal Aviation Administration in Washington banned all US civilian flights over Iraq just hours after American warplanes on Friday bombed positions held by the jihadists, who have occupied swathes of northern Iraq.

British Airways has said it will no longer fly over Iraq, as have Lufthansa and its subsidiaries Austrian Airlines and Swiss - joining Air France, Emirates, KLM Royal Dutch Airlines and Virgin Atlantic, which quietly opted to do so over the past two weeks.

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Emirates airline says it will not fly over Iraq

Emirates will stop flying over Iraq due to concerns over missile attacks following the MH17 air disaster in Ukraine, the airline's president Tim Clark told The Times on Monday (July 28).

Almost 300 people aboard Malaysia Airlines flight MH17 died when it came down in eastern Ukraine nearly two weeks ago, with Washington and Europe claiming it was shot down by a Russian-made surface-to-air missile fired by pro-Moscow militants.

"This is a political animal but... the fact of the matter is MH17 changed everything, and that was very nearly in European airspace," Clark told The Times in an interview published on Monday. "We cannot continue to say, 'Well it's a political thing'. We have to do something. We have to take the bull by the horns."

Clark predicted other carriers would also decide to stop flying over Iraq, as the global airline industry reviews the risk of overflying combat zones.

Malaysia Airlines flight MH17, a Boeing 777 aircraft, was flying from Amsterdam to Kuala Lumpur with 298 people aboard on July 17 when it was downed close to the village of Grabove, in the rebellion-wracked region of Donetsk in east Ukraine.

"The horrors that this created was a kick in the solar plexus for all of us," Clark told the daily paper. "Nevertheless having got through it we must take stock and deal with it."

On Sunday meanwhile, the commercial director of Malaysia Airlines called for a complete overhaul of the way flight paths are deemed safe following the plane's downing by a suspected missile. Writing in the Sunday Telegraph, Hugh Dunleavy said the disaster would have "an unprecedented impact on the aviation industry", claiming that airlines can no longer depend on aviation authorities for reliable information about flying over conflict zones.

"For too long, airlines have been shouldering the responsibility for making decisions about what constitutes a safe flight path, over areas in political turmoil around the world," he wrote. "We are not intelligence agencies, but airlines, charged with carrying passengers in comfort between destinations."

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India's Jet eyes profit by 2017 with boost from Etihad

Jet Airways, India's second-biggest carrier, forecast Wednesday a return to profit in three years through cost-cuts, route-sharing with new partner Etihad Airways and restructuring of hefty debt. The publicly traded airline, which has not posted an annual profit since 2007, has been struggling in an overcrowded market beset by cut-throat fare wars, high fuel costs and shoddy infrastructure.

"The game plan is in place, it's now about delivery," Jet Airways' new chief executive Cramer Ball told reporters in New Delhi. "It's a three-year plan -- 2015 we will reduce losses, 2016 we will consolidate and 2017 we'll have profitability," he said.

Ball was speaking at the airline's first news conference with Etihad since India cleared in May the fast-growing Abu Dhabi airline's purchase of a 24-per cent stake in the Indian carrier for 21 billion rupees (US$330 million). Jet's shares jumped nearly six per cent on the turnaround plan before finishing up 3.5 per cent at 264.95 rupees. Ball, an Australian, said Jet was already profitable on international routes which contribute 43 per cent of revenues, a figure he projected would rise to 63 per cent by 2015.

All six major airlines, except leading carrier IndiGo, have been haemorrhaging money but analysts project a brighter future longer-term thanks to India's fast-growing growing middle class. India's carriers lost a total $1.3 billion in the financial year to March, the Centre for Asia Pacific Aviation consultancy calculates.

Jet's net loss in the last financial year ballooned to 41.3 billion rupees from a 7.8-billion loss the previous year. Debt stood at $1.8 billion.

Etihad's Jet stake enables it to compete better with regional rivals such as Qatar Airways and Emirates which transport a large slice of Indian passenger traffic to the Gulf and beyond. Etihad's purchase of a minority stake in Jet came after the government relaxed foreign ownership rules to allow overseas carriers to buy up to 49 per cent of local airlines.

Jet's hopes of returning to profit come as Indian skies are set to become more congested. Singapore Airlines and Tata Sons are due to launch a new carrier by October. Asia's biggest budget carrier AirAsia launched an Indian airline in June.

Ball said Jet would look at disposing of some planes to staunch losses. Etihad chief executive James Hogan called India one of the "most dynamic markets in the world" with 42 million passengers travelling annually internationally.

Jet and Etihad are using their alliance to increase their global reach through codesharing, selling tickets on each other's routes. Hogan in the last three years has piloted deals taking stakes in seven ailing carriers to help make desert-oil producer Abu Dhabi a thriving passenger hub.

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Etihad pushes to agree Alitalia deal this month: CEO

Etihad Airways chief James Hogan said on Wednesday he aimed to complete negotiations on buying 49 per cent of Alitalia by the end of the month but stressed the company had to be "right-sized" first.

"We're all focussed on the end of this month. With our agreement, more time is allowed but our focus is the end of the month," Hogan said during a visit to Italy, where he was launching a new Etihad route between Abu Dhabi and Rome.

"We are in the final stages of the negotiations. We do need to right-size the airline," he said, as Alitalia management continued talks with unions for around 1,600 job cuts.

"We don't step into these negotiations unless we're convinced the airline will move to profitability.

"If we complete, we'll complete with the right foundation. The key issue is getting the cost base right," he said.

Alitalia "needs to be re-energised and brought back alive," he continued, adding: "A re-energised Alitalia could be one of the most successful airlines in Europe but to achieve that we have to have the right starting point."

Alitalia said it had agreed a job cuts plan with unions representing 80 per cent of the workforce although Italy's biggest trade union, the CGIL, has not given its go-ahead.

It has also negotiated a deal with current stakeholders to renegotiate Alitalia's debt of about 565 million euros ($765 million).

Asked about the future role for Air France-KLM, an existing shareholder, Hogan said: "Air France and KLM and Delta are all very important partners. We expect that relationship to continue."

The Emirates national carrier -- based in Abu Dhabi -- is planning to buy a 49-per cent stake in the debt-laden Italian flag carrier, which currently employs 12,800 people.

Etihad's initial investment is expected to be around 560 million euros ($762 million), and 660 million euros more has been mooted in future to develop the airline.

Etihad has expanded hugely since it was founded in 2003 and now has stakes in India's Jet Airways, Air Serbia, Air Seychelles, Aer Lingus and Air Berlin.

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Etihad boss meets Italian PM with Alitalia deal close: Ansa

Etihad Airways boss James Hogan met with Italy's Prime Minister Matteo Renzi on Thursday, as his company nears a deal to purchase a stake in debt-laden Alitalia airline, Italian media reported.

The meeting took place in the prime minister's official residence with Renzi's right-hand man cabinet secretary Graziano Delrio also attending.

The Ansa news agency cited sources saying that a deal on could be in place "within hours".

On Tuesday, Italy's Transport Minister Maurizio Lupi told a Senate hearing that Abu Dhabi-based Etihad had completed its assessment on whether to purchase a stake in Alitalia and that a draft deal could be imminent.

Italian business daily Il Sole 24 Ore also on Tuesday said Etihad was planning to buy a stake of around 40 per cent, which would make it by far the biggest shareholder in the carrier and respect the 49.9-percent limit for non-European airlines.

It also said Etihad could invest between 300 million and 500 million euros ($414 million and $690 million) in return for a restructuring plan that would include up to 3,000 job cuts and an upgrade of infrastructure.

Alitalia in February reached a deal with trade unions for the equivalent of 1,900 job cuts and in September last year shareholders gave unanimous approval for a capital increase to save the airline from bankruptcy.

Etihad is expanding rapidly and has bought minor shares in several smaller carriers including Air Berlin and India's Jet Airways as it competes with larger Gulf rivals Emirates and Qatar Airways.

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Etihad Airways in discussions with debt-laden Alitalia

Emirati carrier Etihad Airways is in discussions with debt-laden Italian airline Alitalia, spokesman Tom Clarke said on Thursday, without elaborating.

"Etihad Airways is in discussions with Alitalia. We have no further comment at this time," Clarke said in a terse text message to AFP.

Reports have suggested that the Abu Dhabi-based carrier was preparing a big investment in Alitalia, which is in debt to the tune of 1.2 billion euros (US$1.6 billion).

In October, shareholders gave unanimous approval for a capital increase of up to 300 million euros to save Alitalia from bankruptcy

The carrier has been looking for a foreign partner to rescue it.

Earlier on Thursday, Italian media reported that Italy's postal service would take part in a capital increase for Alitalia and chip in 75 million euros.

But postal officials contacted by AFP did not confirm.

Another 225 million euros in the capital increase have already been contributed by Alitalia's existing private sector investors and by banks.

Air France-KLM, which was until now was the main shareholder with 25 percent, has declined to contribute and will see its share greatly diluted.

Alitalia has launched a vast restructuring plan with 300 million euros in budget cuts and the reduction of 1,900 jobs.

The capital increase plan was formulated in October and November under pressure from the Italian government but the postal service's participation has been widely criticised as a possible state subsidy.

Etihad is vastly expanding and has bought minor shares in several smaller carriers around the world as it competes with larger Gulf rivals Emirates and Qatar Airways.

Etihad owns 29 percent of Air Berlin, 40 percent of Air Seychelles, 19.9 percent of Virgin Australia and three percent of Aer Lingus.

In November, India's Jet Airways said it had completed the sale of a 24-percent stake to Etihad after obtaining regulatory approvals.

Analysts said that, for airlines such as Etihad, part of India's allure is the chance to swell passenger traffic on routes to North America, Europe, the Middle East and other parts of the world.

Etihad also announced in mid-November that it was acquiring 33.3 percent of Swiss carrier Darwin Airline, which it plans to rebrand as Etihad Regional.

The acquisition is awaiting regulatory approval.

Etihad is also due to acquire 49 percent of Air Serbia in January.

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India's Jet Airways closes stake sale to Etihad

India's Jet Airways has completed the sale of a 24 per cent stake to Abu Dhabi's Etihad, sealing the first deal with a foreign airline since New Delhi eased ownership rules, the carriers said on Wednesday.

Jet in April announced the US$335-million plan to sell the stake to Etihad, taking advantage of government moves a year ago to open up the aviation sector to foreign investment.

"All requisite Indian regulatory approvals" have been obtained, the airlines said in a joint statement, adding they had "closed the transaction".

"India is one of the largest and fastest-growing markets in the world and a key part of the Etihad Airways' growth strategy," James Hogan, Etihad's chief executive, said in the statement.

The sale by Jet, one of India's biggest publicly traded carriers, has been regarded as a key test of India's ability to attract foreign investors to its ailing airline sector.

Indian carriers need money to fund expansion and cut debt after years of losses caused by fierce fare battles and rising fuel costs.

The Congress-led government last year allowed international carriers to buy up to a 49 per cent stake in domestic airlines.

"The infusion of foreign direct investment in the aviation sector will result in economies of scale, grow traffic at our airports, and create job opportunities," said Naresh Goyal, a former travel agent who is Jet's founder and chairman.

The aviation sector, once vaunted as a symbol of India's economic vibrancy, has seen its fortunes stumble in the face of a slowing economy, over-expansion and rundown infrastructure.

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Etihad Airways International Cadet Pilot Programme 2013

Country:     UAE
City:     Abu Dhabi
Department:     Flight Operations
Closing date:     7 May 2013

Description   
Etihad is the fastest growing airline in commercial aviation history, with one of the youngest and fastest growing fleets of aircraft. Etihad is the commercial carrier of choice for the world’s best pilots, and to support our continual growth we are offering a unique opportunity for exceptional graduates of all nationalities to apply for our International Cadet Pilot Training Programme.

Over the course of the 72 week intensive programme you will be trained to the highest standards.

As a qualified First Officer, you will be part of the Etihad Success Story;

Our vision as an airline stretches beyond the average carrier, our business is key to the continual growth of Abu Dhabi and the United Arab Emirates. An exciting part of the world where East meets West, a broad mix of culture, the Arts and major international sporting events all blended with modern Arabic hospitality.

We are looking for more than just individuals with an aptitude to fly, we want individuals that represent the core values of our business and act as ambassadors for both Abu Dhabi and the UAE.

If that doesn’t excite you then it is worth mentioning we offer full sponsorship for your commercial pilot’s license, one of the most competitive packages available, including a tax free salary, comprehensive health care and a range of in house facilities and services.

An exciting challenge awaits you if you hold a BSc. degree, we are hiring now, deadline for closing is 8th May 2013.

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Your opportunity is here. Have a go if you fulfill all requirements set out for this programme. It will be highly competitive, so do all necessary preparation in order to stand out. Good luck!

Etihad Airways posts 200% rise in net profit

Etihad Airways, the fast-growing carrier of Abu Dhabi, posted a 200 percent rise in net profit in 2012 and a 17 percent increase in revenues, the airline said in a statement.

Etihad posted a net income of $42 million last year compared to $14 million in 2011 when it made its first ever profit, said the statement which attributed the rise to strong improvements in revenues, passengers and cost control.

The flag carrier of the Emirati capital Abu Dhabi said revenues increased to $4.8 billion in 2012 compared to $4.1 billion the previous year.

The number of passengers grew a healthy 23 percent to 10.3 million compared to 8.4 million in 2011, significantly boosted by Etihad's partnerships which delivered more than $600 million in total revenue.

"This has been a game-changing year for Etihad Airways," James Hogan, the airline's president and chief executive officer said.

"We have delivered improved net profit, the second consecutive year we have been in the black, a remarkable achievement given the youth, ambitious growth and ongoing investment made by this airline in a challenging global economic environment," he said in the statement.

Etihad said it succeeded in building the first "equity alliance" with investments of 40 percent in Air Seychelles, 29.2 percent in airberlin, 9.0 percent in Virgin Australia and about 3.0 percent in Aer Lingus.

"We have taken great strides in building the industry's first equity alliance ... which (is) contributing significant value to our business," Hogan said.

Earnings before interest and tax (EBIT) rose 24 percent to $170 million, while EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) rose to $753 million, up 16 percent, Etihad said.

Hogan said more than 50 institutions have provided around $6.8 billion in cumulative funding for the airline's ongoing expansion.

Planned fleet upgrades for 2013 include 14 aircraft, with 11 passenger aircraft deliveries and three freighter deliveries, Etihad said.

The orders are for nine wide-bodied Boeing and Airbus aircraft and five narrow-body Airbus aircraft. These will meet Etihad Airways' immediate growth requirements.

At the end of 2012, the company had 10,656 employees, 18 percent more than in 2011, representing more than 125 nationalities.

Etihad Airways, which began operations in 2003, serves 86 passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and the Americas.

It operates a fleet of 70 Airbus and Boeing aircraft, and over 90 aircraft on firm order, including 10 Airbus A380s, the world's largest passenger aircraft.

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The Middle East carriers are doing ever so well while the rest of the world is being crippled with high fuel costs and massive competition from low cost carriers.