Showing posts with label Etihad Airways. Show all posts
Showing posts with label Etihad Airways. Show all posts

Thursday, 2 May 2019

INDIA: Bad Times For Jet Airways, Will They Fly Again?

After stopping operations earlier this month, Jet Airways technically isn’t gone forever. There are still some who want to see the airline gain additional financing in order to resume operations.

While there are some indicators Jet Airways could fly again, it seems unlikely given the current situation.

Jet Airways had a lot of debt and very little cash. India’s all out price war, with fares as low as a few cents, meant that there was an incredibly slim margin for profit.

Unfortunately, the market just didn’t work for Jet Airways. They invested in new aircraft, including the 737 MAX, and broadened their international partnerships. With a robust route network, Jet Airways thought they could be India’s top carrier.

Also burdening Jet Airways were high fuel costs and high taxes. Jet Airways simply could not make a profit. They teetered and tottered for months before finally seeing their fleet depleted.

In the days prior to their official suspension, only a handful of aircraft were operating and zero international routes were scheduled.

There has been a movement to resurrect Jet Airways. Former Jet Airways staff engaged in protests to get the airline up and running again. Jet Airways had a sizeable staff who are now faced with major uncertainty.

While some crew members went off to rival carriers, like SpiceJet, others are still looking for opportunities.

Jet Airways relied heavily on Etihad Airways for investment. Etihad itself faces significant financial concerns, yet somehow found Jet Airways worth sustaining. Over the years, they have put millions of dollars into the airline.

However, after the collapse of the airline and Etihad’s ongoing losses, it doesn’t seem like Etihad would want to resurrect the carrier before they get on solid financial footing themselves.

Etihad could always partner with an Indian conglomerate as Singapore Airlines did with their investment in Vistara. This could give Etihad some additional security since they wouldn’t necessarily be the ones pumping in funding for Jet Airways.

Jet Airways seems to be running out of luck and time for a new investor. With rival carriers descending on Jet’s valuable assets such as planes and the valuable slots at crowded airports, Jet Airways would face significant headwinds if they restarted operations.

This would definitely worry investors, especially as Indian airlines continue to miss out on record profits that other carriers see.

This is the question that aviation analysts and investors are grappling with. Jet Airways has a lost a lot in terms of positive name recognition, reputation, and key assets.

A new Jet Airways would have to reassure travelers that they can trust the carrier with their travel plans.

India’s aviation market is already quite crowded. State run Air India doesn’t seem to need to focus on turning a profit and low-cost carriers account for a significant market share.

As a result, it would be necessary for Jet Airways to define themselves as something different to what India already has. The problem is that Jet Airways doesn’t really have anything new and unique to offer travelers that current carriers cannot provide.

Delta Airlines recently announced a return to India. Though still vague on a few details, Delta plans to fly from New York to Mumbai. Mumbai was a major hub for Jet Airways. Thus, it made sense for Delta to connect the cities since there would be strong connecting opportunities.

Jet Airways has closely worked with Delta and KLM.

In the aftermath of Jet’s collapse, it seemed highly unlikely that Delta would return to Mumbai. Previously, it was reported that Delta may have some interest in Jet Airways and had a codesharing partnership with the carrier.

However, now that Delta is returning to Mumbai, it could be possible that they will have a role in resurrecting Jet Airways. Now, while there are no official reports or even rumors indicating Delta is seriously considering this.

While many would like to see Jet Airways resume operations, it seems highly unlikely, it may be the end of Jet Airways forever.


Tourism Observer

Monday, 31 December 2018

INDIA: Jet Airways Wants Short-term Loan From State Bank Of India

Jet Airways, which is struggling to keep its fleet running and has fallen behind on salary payments, is now looking to secure a short-term loan.

The full-service carrier is in talks with the country’s largest lender State Bank of India (SBI) to raise 15 billion rupees (US$214.9 million) to meet its working capital requirements and fulfill some payment obligations.

Jet’s strategic partner, Etihad Airways of Abu Dhabi, which holds a 24% stake in the airline, is likely to serve as a guarantor for the loan.

Interestingly SBI, which is the lead lender of the airline, had a fortnight ago ordered Ernst & Young to conduct a forensic audit of the airline’s books.

Jet Airways has posted three consecutive quarterly losses of more than 10 billion rupees since March 2018, and as of September 30 had 80.52 billion rupees of debt on its books.

Jet Airways has a backlog of more than two months in unpaid salaries to its senior staff, including pilots and engineers.

The airline is also negotiating with overseas lenders to raise $350 million with Etihad again acting as guarantor.

The airline’s founder, Naresh Goyal, is looking to infuse capital in such a way that he does not have to lose control of Jet Airways, which he set up 25 years ago.

Earlier, the salt-to-software conglomerate Tata Sons had expressed a desire to acquire the airline, but wanted Goyal to relinquish his controlling stake, which was not acceptable to the airline’s founder.


Tourism Observer

Monday, 18 June 2018

UAE: Etihad Airways To Increase Flights And Fly Boeing 787-9 Dreamliner On Cairo Route

Etihad Airways has announced that they will operate a fourth daily service between Abu Dhabi and Cairo using one of their Boeing 787-9 Dreamliners.

The current three daily flights are operated by Airbus A320s and A321s, citing increased demand on the route.

The schedule that is on offer from Cairo is used to offer seamless East-bound connections through AUH onwards into the Gulf, Indian Subcontinent, North and Southeast Asia as well as Australia.

Mohammad Al Bulooki, Etihad Airways Executive Vice President Commercial, said: Etihad Airways has been serving Cairo since 2004 and today it is one of the largest point-to-point markets on our global network.

This bolstered by the hugely important historic, economic, and cultural ties existing between the UAE and Egypt, and by the large Egyptian community in the Emirates, which numbers over 750,000.

In 2017 Etihad carried almost half a million guests on our multiple daily flights to and from Cairo.

The introduction of the state-of-the-art 787 Dreamliner on the popular morning service from Abu Dhabi will provide guests with the latest innovation and technology, award-winning cabins, genuine hospitality and greater choice.

These upgrades out of Cairo come following a partnership that was signed in April 2018 between Egyptair and Etihad which expanded their codesharing arrangements to include several African destinations.

These such as Ndjamena, Khartoum, Entebbe as well as Dar es Salaam with other destinations such as Abuja, Kano and Asmara all waiting to be approved by the respective governments.

Egyptair places its ‘MS’ code on EY flights operating from Abu Dhabi to Seoul, Brisbane, Melbourne and Sydney, and hopefully subject to governmental approval, on flights to China.

The 787-9 in question features a two-class configuration, offering 28 Business Class studios as well as 271 Economy Seats. The route changes will be in effect by October 28th, 2018. They are as follows:

With Etihad Airways currently hemorrhaging money after the demise of Alitalia and Air Berlin, Etihad is now bringing their costs down even more by reducing flights to Dhaka and other destinations and repositioning aircraft on the more popular routes.

However, this may be something that the carrier might not do for long as the more routes they cut, the more aircraft they are either going to have to reposition or put in storage/sell in order to keep their operations efficient and successful.

Lack of investment that Etihad is now placing into carriers and just focusing on the codesharing agreements is possibly the better solution for the airline to take.

Establish partnerships rather than acquisitions, and Etihad can then further connect Abu Dhabi with other destinations across the world without having to spend even more money trying to acquire majority stakes in an airline.


Tourism Observer

Thursday, 21 December 2017

UAE: Etihad Airways To Stop Flights To Tehran January 2018

The airline has asked affected passengers to switch to an alternative travel date between December 25 and January 23, or be refunded.

Etihad Airways will scrap flights to Tehran on January 24, the latest route to be dropped as the Abu Dhabi airline pursues a strategy review.

The airline launched the review in 2016 that has also seen it sell or step away from investments in foreign carriers.

Etihad's five weekly flights to Iran's capital will be reduced to two a week between December 25 and January 23, before it suspends the route entirely on January 24, an airline spokeswoman said.

She declined to say why the route was being suspended, but said in a statement that affected passengers could switch to an alternative travel date between December 25 and January 23, or be refunded.

Since launching the strategy review, Etihad has said it would cut flights to San Francisco and Dallas-Fort Worth in the US.

The airline has regretted for inconvenience caused to passengers with existing bookings.

Passengers holding bookings for travel up to January 23 and affected by the schedule change will be re-booked with an alternative travel date subject to availability or offered the choice of a full refund.

Passengers with bookings from January 24 will be offered a full refund.

Britain's top defence buyer Tony Douglas will join Etihad next month as its new group chief executive, as the airline rethinks its rapid expansion strategy.

Two of Etihad's major foreign investments, Air Berlin and Italy's Alitalia, filed for administration this year.

Douglas, who joins Etihad from Britain's Ministry of Defence, has previously served as chief executive of Abu Dhabi's airport company.

Etihad has made few details public about its strategy review, which since being launched has seen the departure of its James Hogan, its group chief executive who led the airline for a decade.



Tourism Observer

Wednesday, 20 September 2017

TURKEY: Somalia “one of our most profitable destinations worldwide " Turkish Airlines

In five years, Turkish Airlines has nearly tripled the number of destinations it flies to in Africa.

Turkish Airlines operating out of Istanbul on the edge of the Middle East, isn’t the only carrier in the region looking to find gold on the continent.

By the end of October, Flydubai, will operate 14 flights a week to Zanzibar and Tanzania, increasing capacity to East Africa by 133 percent. Since 2014, it has added 12 destinations to its network in Africa offering 80 flights per week.

Also during October, Etihad Airways has announced it will add seven weekly flights to Egypt as well as an additional one to Nigeria.

Emirates too is considering restoring capacity to Nigeria after cutting its four times weekly service last year, owing to a decline in the value of the Nigerian Naira.

Meanwhile, outside of the UAE, Oman Air has signed a codeshare agreement with Kenya Airways after curtailing weekly services to the country in 2004.

Resurgent economies across the continent are the primary factor in the increase in demand for travel across Africa.

Nigeria’s GDP growth rate for instance is expected to double this year, while weaknesses seen in the Egytian pound owing to a contraction in the supply of the dollar are also being seen to abate.

Currency weaknesses across Africa were cited as a key factor toward Emirates curtailing frequencies in Nigeria last year, according to president Tim Clark.

This year, tourist arrivals from Cairo, Abu Dhabi’s largest traffic market, are scheduled to increase to 6 million passengers in 2018 from 5 million in 2016.

And demand for air travel across Africa is expected to increase well beyond IATA’s estimated global traffic growth rate of 4.7 percent.

The trend has allowed a Turkish Airlines spokesperson to claim Somalia “one of our most profitable destinations worldwide,” . Almost a tenth of Turkish’s global passenger and cargo revenues now come from Africa.



Tourism Observer

Tuesday, 12 September 2017

GERMANY: Airberlin Stops All Caribbean Long-Haul Flights

airberlin, which filed for bankruptcy last month, is to close all of its long-haul routes to the Caribbean from Sept. 25 because of cuts to its long-haul fleet.

On Sept. 11, the oneworld member said its entire Caribbean network will be closed, including flights from Dusseldorf to Curacao (Dutch Antilles), Cancun (Mexico), Havanna and Varadero (Cuba), as well as Punta Cana and Puerto Plata (Dominican Republic).

Airberlin has already announced plans to close all of its long-haul routes from Berlin Tegel – including Berlin-Abu Dhabi – as well as cuts to its Dusseldorf network.

Berlin-Los Angeles and Berlin-San Francisco will now stop four weeks earlier than originally planned, from Oct. 1. Dusseldorf-Boston Logan will also close earlier than expected, on Oct. 1.

Airberlin, which is Germany’s second largest carrier, filed for insolvency Aug. 15 after 29.2% shareholder Etihad Airways withdrew financial support.




Tourism Observer

Sunday, 3 September 2017

ARGENTINA: Etihad Airways and Aerolíneas Argentinas Sign Codeshare Partnership

Aerolineas Argentinas and Etihad Airways have signed a codeshare agreement, which will provide their customers with more convenient connections via Rome and Madrid to Buenos Aires and onward to nine other popular destinations in Argentina.

More specifically, the new connections will enable travelers to reach Cordoba, Mendoza, Rosario, Iguazu, Salta, Mar del Plata, Bariloche, Trelew, and Ushuaia.

Furthermore, Aerolíneas Argentinas’ guests will be able to access Etihad Airways’ network of over 100 destinations from its Abu Dhabi hub via the Italian and Spanish capitals.

This codeshare demonstrates the importance of Argentina as a vital travel market for Etihad Airways in Latin America, given the growing tourism, cultural and business opportunities that exist between the UAE and Argentina,Mohammad Al Bulooki, Etihad Airways executive vice president commercial said.

The agreement also foresees that Etihad Guest members and Aerolíneas Plus members will be able to earn and redeem miles on codeshare flights.
This is a very good opportunity to consolidate and increase our offer to one of the most important hubs in the Middle East.

It also allows us to improve our load factors, optimize the use our fleet and strengthen the image of Aerolineas Argentinas in the Asian market, Diego Garcia, Aerolineas Argentinas chief commercial officer said.

Based in Abu Dhabi, Etihad Airways flies to, or has announced plans to serve, more than 110 passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and the Americas.

From its headquarters in Buenos Aires, Aerolineas Argentinas flies to 24 international destinations in America and Europe. Together with Austral Lineas Aereas, Aerolineas Argentinas operates flights to 37 destinations in the country. Discover the World is the carrier’s General Sales Agent (GSA) in Greece and Cyprus.



Tourism Observer

Sunday, 27 August 2017

GERMANY: Air Berlin May Soon Cancel Flights As Cash Crunch Looms

Despite a government guarantee of EUR150 million, Air Berlin (AB, Berlin Tegel) may soon find itself having to cancel flights, according to German newspaper Suddeutsche Zeitung.

Citing insider information, the news site says that Air Berlin will be unable to maintain parts of its network as it does not have access to revenue generated by ticket sales.

With that revenue in escrow, the troubled carrier is unable to pay suppliers and airports which are asking for upfront payment.

The airline is currently undergoing restructuring in German bankruptcy courts, following the decision by its largest shareholder, Etihad Airways (EY, Abu Dhabi Int’l), to stop funding its operations.

Air Berlin’s Austrian subsidiary Niki (HG, Vienna) is expected to be sold to Air Berlin rival Lufthansa (LH, Frankfurt Int’l), which is also interested in picking up LGW – Luftfahrtgesellschaft Walter (HE, Dortmund), or alternatively to easyJet (U2, London Luton) or Condor (DE, Frankfurt Int’l).

easyJet (U2, London Luton) in particular is eyeing Dusseldorf slots according to the report.

Chief executive of Ryanair (FR, Dublin Int’l), Michael O’Leary, has also thrown his hat in the ring to buy the German carrier.

While it maintains normal operations, Air Berlin is currently still serving fifty-four destinations across twenty-two countries with its mixed fleet of 114 aircraft.




Tourism Observer

Thursday, 3 August 2017

AUSTRALIA: Etihad Flight To Abu Dhabi Was Target Of Plane Terror Plot

Etihad Airways said Tuesday it was helping Australian police with their investigation into an alleged plot to bring down a plane, as authorities sifted through evidence from counter-terrorism raids.

Four men were arrested in Sydney on Saturday evening, with security tightened across all major Australian domestic and international airports as investigators search several homes across the city.

Local media on Monday reported that the men, who have not yet been charged, planned to use poisonous gas or a crude bomb disguised as a meat mincer, although details of the alleged plot have not been confirmed by police.

"The Etihad Airways aviation security team is assisting the Australian Federal Police with its investigation and the matter is ongoing," the Abu Dhabi-based carrier said in a statement.

"Etihad is complying fully with the enhanced security measures at airports in Australia and monitoring the situation closely. Safety is the airline's number one priority."

Etihad flight to Abu Dhabi, which could have carried up to 500 people, was the target.

Australian Federal Police Commissioner Andrew Colvin said on Sunday an improvised explosive device was involved.

Unidentified officials told the Australian Broadcasting Corporation the suspects reportedly Lebanese-Australian might have links to the Islamic State (IS) group in Syria.

Justice Minister Michael Keenan told the national broadcaster he would not comment on the IS links, but stressed the significance of the attack if it had taken place.

What is very clear is that, if these allegations were to have gone ahead, it would have been just an enormously dreadful thing to have happened to our country, he said late Monday.

"It's clear that this has been inspired by radical Islamic ideology.

We're obviously looking at the links that they have to the organisation within the Middle East, but there's nothing further that I can say about that at this stage, he added.

Australia's national terror alert level was raised in September 2014 amid concerns over attacks by individuals inspired by organisations such as IS.

A total of 12 attacks, before the latest one, have been prevented in the past few years and 70 people have been charged.

Several terror attacks have taken place in Australia in recent years, including a Sydney cafe siege in 2014 which saw two hostages killed.



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Saturday, 29 July 2017

USA: Enforce Open Skies Agreements House Committee Urges Trump Administration

House Appropriations Committee approved the annual Transportation, Housing, and Urban Development (THUD) funding bill and report, which urges the Trump administration to explore the subsidization of three state-owned Gulf carriers – Emirates, Etihad Airways and Qatar Airways – by the governments of the United Arab Emirates (UAE) and Qatar.

The bill also calls on the Trump Administration to work with these countries to properly enforce their Open Skies agreements with the United States.

In response to the committee’s approval, the Partnership for Open & Fair Skies released the following statement:

“The House Appropriations Committee has sent a strong and clear message that the Gulf carriers’ government subsidies threaten American workers, undermine the U.S. aviation industry’s ability to compete and should not be ignored,” said Jill Zuckman, chief spokesperson for the Partnership for Open & Fair Skies. “For years, the Gulf carriers have received over $50 billion in subsidies from their government, distorting the aviation market and threatening over 1.2 million American jobs in the process. We are proud to stand with members of Congress in asking the Trump administration to enforce our Open Skies agreements and level the playing field in the aviation industry.”

In its report, the committee urges the administration to engage with the UAE and Qatar to address airline government subsidies and ensure that U.S. airlines and their workers have a fair and equal opportunity to compete.

The report also directs the administration to provide regular updates to the committee on their efforts. The text reads:

“the Department began an interagency process to solicit comment and explore whether foreign government subsidies received by some international carriers were resulting in market distortions. While the previous Administration initiated informal discussions with some foreign governments to address these subsidies, no conclusion was reached prior to the end of the Administration. The Committee strongly urges the Department to continue discussions to ensure that U.S. airline carriers and their workers have a fair and equal opportunity to compete in accordance with open skies agreements. The Committee directs the Department to provide regular updates to the Committee.”



Tourism Observer
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UAE: Etihad Made A Loss Of $2 Billion Although It Received $1.7 Billion In Subsidies

An analysis from forensic accountants on behalf of the Partnership for Open & Fair Skies has revealed that Etihad Airways suffered a $2.06 billion operating loss in 2015, even as the airline received $1.7 billion in new subsidies from its government.

The accountants also discovered that Etihad had an operating loss of $1.4 billion in FY2014, demonstrating a continuing pattern of significant losses that would have driven a non-subsidized airline out of business.

In April 2016, Etihad Airways announced that it earned a $103 million profit in FY2015.


Over the years, Etihad has avoided transparency by not releasing its financial statements to the public.

Forensic accountants recently uncovered the FY 2015 financial documents, and they show that the airline received significant new subsidies from the government of Abu Dhabi in FY2015, without which it is doubtful the airline could have funded its operations.

The financials reflect:

- Etihad received another $1.4 billion cash injection from the government of Abu Dhabi in 2015, on top of the government’s contribution of $2.5 billion in 2014

- Etihad received another $270 million interest-free government loan, with no obligation to repay the loan in the foreseeable future

- Etihad recorded a $1.9 billion gain by selling its loyalty program and cargo related subsidiaries to a related party. However, as of December 31, 2015, it had not received any cash in respect to these transactions.

The UAE continues to prop up Etihad Airways despite devastating financial losses, said Jill Zuckman, chief spokesperson for the Partnership for Open & Fair Skies.

Without its annual allowance from its government owners, Etihad Airways would not be able to exist.

It is time for the Gulf carriers to stop relying on their governments’ treasuries and to start competing fairly with the rest of the world.

The $1.4 billion cash injection is the latest evidence of the UAE’s massive subsidization of its state-owned airlines, Etihad and Emirates Airways.

To date, the UAE government has provided over $26 billion in government subsidies to its airlines.

Etihad’s financial statements come just weeks after accountants analyzed Qatar Airways’ FY2017 annual report and discovered a $703 million operating loss despite the airline’s public claim that it generated a profit of $540 million during FY2017.

The accountants’ analysis also found that Qatar Airways received almost $500 million in additional government subsidies, a blatant action to cover significant losses.

These massive government subsidies allow the three Gulf carriers to distort the global aviation industry and operate with a significant market advantage.

Due to these subsidies, Gulf carriers are able to aggressively expand into new markets and start new routes without having to consider issues of profit or demand.

This has resulted in a trade cheating scheme that threatens the jobs of more than 1.2 million American workers and critical airline services that communities across the country rely on.



Tourism Observer
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Tuesday, 11 July 2017

UAE: Etihad Airways Introduces Changes to Ground And Inflight Services

In an effort to offer ground and inflight services of increased value and flexibility, Etihad Airways announced it is gradually proceeding with a series of changes, based on customer feedback.

According to an announcement, the airline’s complimentary chauffeur service is retained at Etihad Airways’ Abu Dhabi hub and has been replaced – as of July 3 – in all other cities with a paid option at specially negotiated rates.

The airline will also extend the paid airport transfer option to all guests across all cabins and allow Etihad Guest members to accrue miles on their chauffeur bookings.

The decision by Etihad Airways to change its offering has been taken to provide increased choice and to ensure fares remain as low and as competitive as possible, while retaining best-in-class service for all guests, in all cabins,” said Mohammad Al Bulooki, Etihad Airways Executive Vice President Commercial.

Guests travelling in “The Residence”, Etihad’s 3-room suite onboard the flagship Airbus A380 fleet, will continue to receive complimentary chauffeur services at all A380 destinations, specifically in Abu Dhabi, London, Paris, Sydney and New York.

First and Business Class tickets issued prior to 3 July 2017 will not be affected by these changes and will receive complimentary chauffeur service across destinations where the service is currently offered.

Furthermore, guests travelling on Etihad Airways Business Class tickets can now pay and upgrade to the airline’s luxurious flagship First Class Lounge & Spa when flying from, or transiting through Abu Dhabi.

Paid Access to Lounges for Economy Class Passengers

Etihad Airways will also offer Economy Class guests paid access to its growing portfolio of dedicated lounges around the world, including its premium lounges in Abu Dhabi, London, Manchester, Dublin, Paris, Washington D.C., New York JFK, Sydney, Melbourne and Los Angeles.

Moreover, the airline introduced an innovative new ‘Neighbour-Free Seat’ option in Economy Class, which provides guests with the opportunity to bid for up to three empty seats next to their original seat, thus enjoy more space, comfort and privacy, at an affordable price.


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Tuesday, 20 June 2017

QATAR: Emirates And Etihad Gain From Gulf Airspace Shut On Qatar

Besieged by a lack of airspace after being shut out of neighbouring Gulf countries last week, Qatar Airways is having to take unsustainably long routes to continue on long-haul network commitments.

Flight radar graphics show its B777s enroute to Sao Paolo stopping in Athens because they can’t carry enough fuel to fly nearly 17 hours in a single trip; the airline now needs to bear Northwest, deep into Iran before crossing into Europe.

Challenging for the Doha-based airline will be the loss of nearly 52 Gulf flights every week, accounting for 30 percent of its revenue.

The airline derives 18 percent of its capacity from feeder markets in the UAE, Bahrain and Saudi Arabia, before ferrying them to long-haul destinations throughout its network.

For an industry that celebrates when it manages a profit margin of 7 percent over costs, the weekly loss of contribution puts it at a big disadvantage compared to Emirates’ and Etihad’s gain as they look to recoup traffic from home markets looking for shorter long-haul flights which Qatar was expanding aggressively on.

Until March, Qatar Airways’ traffic to the US was growing at 45.6% compared to Emirates’ 15.4% and Etihad’s 6.6%.

The laptop ban derailed that growth.

Emirates–which reported an 84% loss in revenue this year–has yet to find routes for the 13 airlines it has pulled from US routes.

If we do not find homes for them, we’ll put them on the ground,CEO Clark had earlier said.

Etihad, beleaguered after souring investments in struggling European carriers, will also be grateful about retaining its crucial top-tier service advantage which Qatar Airways was bent on under cutting.

Among the airline’s more promising investments was its stake in Indian Airline Jet Airways–an airline that had been growing increasingly mortified at the prospect of Qatar Airways’ impending investment in the country following India’s relaxation of foreign direct investment airline rules.

Thursday, 8 June 2017

GULF REGION: Uncertainty In Gulf Aviation, Over 100 Planes Grounded Or Delayed, Passengers Stranded

Dozens of Qatar Airways flights grounded as four nations close airspace, triggering fears for future of Gulf aviation.

Saudi Arabia, the United Arab Emirates, Bahrain and Egypt have closed their airspace to Qatari aircraft on Tuesday amid a deepening diplomatic row, forcing Qatar's flag carrier to re-route its flights over Iran, Turkey and Oman.

The decision by the four Arab nations to sever diplomatic ties and cut off sea and air links with Qatar has caused major disruptions to air travel across the Gulf and raised fears for the future of aviation in the region - home to several of the world's major long-haul carriers.

The countries that launched the measures against Qatar have accused it of supporting terrorism, a claim Qatar has called unjustified.

More than 70 flights were grounded across the region on Tuesday, according to data from scheduling firm OAG. A majority of the flights belong to Qatar Airways.

Other airlines affected include Dubai's Emirates, Abu Dhabi's Etihad Airways, Saudi Arabia's Saudia, and Bahrain's Gulf Air, which have all cancelled flights to and from Doha.

Alexandre de Juniac, the director general of the International Air Transport Association (IATA) has expressed concern over the blockade and called for more openness.

We would like borders to be reopened, the sooner the better, he told reporters at the group's annual meeting in the Mexican city of Cancun on Monday. Aviation is globalisation at its very best.

The departure terminal at Doha's Hamad International Airport was virtually deserted early on Tuesday. More than 30 flights were shown as cancelled on airport television screens.

Qatar Airways, in a statement on its website, said passengers holding a confirmed ticket to any of the four Arab nations between June 5 and July 6 are permitted to rebook their flights up to 30 days after their current departure date.

The airline said its offices would continue to operate as normal in affected countries.

Saudi Arabia's General Authority of Civil Aviation, however, revoked the airline's license on Tuesday and ordered its offices to be closed within 48 hours.

Qatar Airways could not be reached for comment.

Meanwhile, many of the airlines' passengers were complaining online of delays in rebooking and obtaining refunds.

Analysts said the altered routes for Qatar Airways flights will lead to longer flying time, lowering demand, thus affecting the airline's profits.

An image posted online by flight tracking group Flightradar24 showed the restricted routes Qatar Airways flights were taking because of the blockade. The aircraft were being forced to take a single flight path in out of Doha.

Many of Qatar Airways' flights to southern Europe and Africa pass through Saudi Arabia. Flights to Europe will most likely be rerouted through Iran and Turkey, Flightradar24 said. Flights to Africa may route via Iran and Oman and then south.

The CAPA Centre for Aviation in Melbourne, Australia, in a report on Monday, said the Gulf diplomatic crisis has dealt a blow to public confidence in aviation and may have a far-reaching impact on the region's airlines.

There can be few winners, the group said, adding that the crisis has already created wider uncertainty for Gulf aviation and passengers whose bookings are months away.

The row between Gulf states is a fresh challenge for the region's airlines at a time when US President Donald Trump is trying to restrict the travel of passengers to the US from some Muslim-majority countries.

US authorities have also banned the use of most electronic devices on board aircraft from some Gulf countries.

Amidst growing security concerns and the existing laptop ban, passengers are unlikely to dig in to the reason for this ban. Gulf aviation becomes less attractive for all, CAPA said.

IATA's De Juniac meanwhile said profits and passengers have fallen sharply in the Middle East in recent months.

There is growing evidence that the ban on large electronic devices in the cabin and the uncertainty created around possible US travel bans is taking a toll on some key routes, he said.

Kuwait is trying to mediate a regional crisis in which Arab countries have cut diplomatic ties with Qatar and moved to isolate the energy-rich, travel-hub nation from the outside world, Qatar's foreign minister said.

Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed diplomatic relations with Qatar on Monday in a coordinated move, accusing the peninsula of supporting terrorists and Iran.

Yemen's internationally recognised government also cut ties with Qatar, accusing it of working with its enemies in the Iran-aligned Houthi movement.

The Maldives and Libya's out-of-mandate Prime Minister Abdullah al-Thinni later joined the Arab nations in saying they too would cut ties.

Sanctions include shutting down transport links, including closing borders, airspace and maritime territories, which led to fears of supply shortages.

Foreign Minister Sheikh Mohammed bin Abdulrahman Al Thani said Kuwait's ruler, Sheikh Sabah Al Ahmad Al Jaber Al Sabah, had asked Sheikh Tamim bin Hamad Al Thani, Qatar's ruling emir, to hold off on giving a speech about the crisis late on Tuesday night.

He received a call from the emir of Kuwait asking him to postpone it in order to give time to solve the crisis, Sheikh Mohammed said.

Sheikh Sabah called on Qatar's ruler to focus on easing tension and advised against making decisions that could escalate the situation.

Still, the Qatari foreign minister struck a defiant tone, saying his nation rejected those trying to impose their will or intervene in its internal affairs.

There are many analysts who believe that a potential break-up of the GCC has to be considered right now.

He added that if tension escalates, some have warned of a military confrontation.

If these countries fail to resolve their issues and such tensions reaches new heights, we have to be very open to the possibility of these six Arab countries no longer being able to unite under the banner of one council.

The dispute between Qatar and the Arab countries escalated after a recent hack of Qatar's state-run news agency. It has spiralled since.

As it cut ties on Monday, Saudi Arabia charged that Qatar was embracing various terrorist and sectarian groups aimed at destabilising the region, including the Muslim Brotherhood, al-Qaeda, the Islamic State of Iraq and the Levant, ISIL also known as ISIS and armed groups supported by Iran in the kingdom's restive east.

Egypt's Foreign Ministry accused Qatar of taking an antagonist approach towards Cairo and said all attempts to stop it from supporting terrorist groups failed.

Qatar denied the allegations, with a Foreign Ministry statement describing them as "baseless" on Monday.

The group issuing sanctions on Doha is clearly the imposition of guardianship over Qatar, which is in itself a violation of its sovereignty, and is rejected outright, the statement said.

The move came just two weeks after US President Donald Trump visited Saudi Arabia and vowed to improve ties with both Riyadh and Cairo to combat terrorism and contain Iran.

US Secretary of State Rex Tillerson said the move was rooted in long-standing differences and urged the parties to resolve them.

Wednesday, 7 June 2017

ITALY: Alitalia To Be Taken By ‘highest bidder,’ No State Rescue

Italy’s center-left government said that Alitalia would be sold to the “highest bidder,” once again ruling out a state rescue as fears mounted that the troubled airline was plummeting toward bankruptcy.

Prime Minister Paolo Gentiloni said he had been disappointed by staff’s rejection of a rescue plan involving deep job and salary cuts, and reiterated that the state could not and would not step in.

The truth is what I said before the vote and what I say again today: The conditions are not there for Alitalia to be nationalized, he said.

Transport Minister Graziano Delrio meanwhile said the company would be “sold to the highest bidder” and the government made favorable noises about the mooted possibility of a partial takeover by Germany’s Lufthansa.

The loss-making national carrier’s future is up in the air after its workforce rejected a restructuring plan that management had presented as the only alternative to bankruptcy.

Etihad Airways, which owns a 49 percent stake in Alitalia, and other shareholders had made staff acceptance of the plan a precondition for their participation in a 2-billion-euro recapitalization plan involving a combination of loans and new shareholder financing.

But despite earlier proposals being watered down in negotiations with unions, over two-thirds of staff voted to reject them in a ballot Monday, in which more than 90 percent of employees took part.

The latest draft of the restructuring plan involves eliminating 1,700 jobs from a global headcount of 12,500, along with wage cuts of up to 8 percent for some of the remaining staff.

The company’s board Tuesday asked the government to either appoint administrators to find a purchaser or to organize the winding up of the company.

“The most plausible outcome is that we are moving to a brief period of extraordinary administration which could conclude in six months with a partial or total sale of Alitalia’s assets,” Economic Development Minister Carlo Calenda said.

Delrio, the transport minister, added that the business will be sold to the highest bidder but Alitalia has been weakened by the outcome of the ballot and its competitors will not give it any gifts.

Monday, 5 June 2017

QATAR: Egypt,Saudi Arabia,Bahrain,UAE Cut Ties, Etihad Stops Flights And Qataris Given 2 Weeks To Vacate

Egypt,Saudi Arabia,Bahrain,and United Arab Emirates have announced sutting ties with Qatar on Monday, accusing it of supporting terrorism, opening up the worst rift in years among some of the most powerful states in the Arab world.

The coordinated move dramatically escalates a dispute over Qatar's support of the Muslim Brotherhood, the world's oldest Islamist movement, and adds accusations that Doha even backs the agenda of regional arch-rival Iran.

Announcing the closure of transport ties with Qatar, the three Gulf states gave Qatari visitors and residents two weeks to leave their countries.

Qatar was also expelled from a Saudi-led coalition fighting in Yemen.

Economic disturbances loomed immediately, as Abu Dhabi's state-owned Etihad Airways said it would suspend all flights to and from Doha from Tuesday morning until further notice.

Saudi Arabia accused Qatar of backing militant groups and broadcasting their ideology, in an apparent reference to Qatar's influential state-owned satellite channel al Jazeera.

Qatar embraces multiple terrorist and sectarian groups aimed at disturbing stability in the region, including the Muslim Brotherhood, ISIS (Islamic State) and al-Qaeda, and promotes the message and schemes of these groups through their media constantly, Saudi Arabia said.

The statement accused Qatar of supporting what it described as Iranian-backed militants in its restive and largely Shi'ite Muslim-populated Eastern region of Qatif and in Bahrain.

Qatar had no immediate reaction to the announcements, and Qatari officials could not be reached for comment, but it has denied supporting terrorism or Iran in the past.

The measures are more severe than during a previous eight-month rift in 2014, when Saudi Arabia, Bahrain and the UAE withdrew their ambassadors from Doha, again alleging Qatari support for militant groups.

At that time, travel links were maintained and Qataris were not expelled.

A split between Doha and its closest allies can have repercussions around the Middle East, where Gulf states have used their financial and political power to influence events in Libya, Egypt, Syria, Iraq and Yemen.

The diplomatic broadside threatens the international prestige of Qatar, which hosts a large US military base and is set to host the 2022 World Cup.

It has for years presented itself as a mediator and power broker for the region's many disputes.

Qatar's land borders and air space were closed for any length of time it would wreak havoc on the timeline and delivery of the World Cup.

US Secretary of State Rex Tillerson told reporters in Sydney on Monday that the spat would not affect the fight against Islamist militants and that Washington has encouraged its Gulf allies to resolve their differences.

The announcements come 10 days after President Donald Trump visited Riyadh to call on Muslim countries to stand united against Islamists extremists, and singling out Iran as a key source of funding and support for militant groups.

It seems that the Saudis and Emiratis feel emboldened by the alignment of their regional interests toward Iran and Islamism with the Trump administration, said Kristian Ulrichsen, a Gulf expert at the U.S-based Baker Institute.

Qatar has used its media and political clout to support long-repressed Islamists during the 2011 pro-democracy "Arab Spring" uprisings in several Arab countries.

Muslim Brotherhood parties allied to Doha are now mostly on the backfoot in the region, especially after a 2013 military takeover in Egypt ousted the elected Islamist president.

The former army chief and now president, Abdel Fattah al-Sisi, along with the new government's allies in Saudi Arabia and the UAE, blacklist the Brotherhood as a terrorist organisation.

Egypt, the Arab world's most populous nation, said on its state news agency that Qatar's policy threatens Arab national security and sows the seeds of strife and division within Arab societies according to a deliberate plan aimed at the unity and interests of the Arab nation.

Oil prices rose after the moves against Qatar, which is the biggest supplier of liquefied natural gas (LNG) and a major seller of condensate - a low-density liquid fuel and refining product derived from natural gas.

Friday, 19 May 2017

MONTENEGRO: Montenegro Airlines And Etihad Airways Sign Codeshare

Etihad Airways, the national airline of the United Arab Emirates (UAE), and Montenegro Airlines, the flag carrier of the Republic of Montenegro, have signed a codeshare agreement that provides travellers with enhanced connectivity when flying between Southeast Europe and the Middle East.

Etihad Airways, the national airline of the United Arab Emirates (UAE), and Montenegro Airlines, the flag carrier of the Republic of Montenegro, have signed a codeshare agreement that provides travellers with enhanced connectivity when flying between Southeast Europe and the Middle East.

The agreement will see Etihad Airways placing its “EY” code on Montenegro Airlines’ flights between Belgrade and two destinations in Montenegro – its capital Podgorica and the attractive town of Tivat on the Adriatic coast.

Montenegro Airlines will, in return, enhance access to Etihad Airways’ network by placing its “YM” code on the airline’s daily flights between Belgrade and Abu Dhabi.

The agreement will offer Montenegro Airlines’ passengers greater convenience and flexibility of travel to the UAE and beyond via the Serbian capital, and contribute to an increased inflow of business and leisure travellers to Montenegro.

Gregory Kaldahl, Etihad Airways Senior Vice President Network, said: We are pleased to sign a codeshare agreement with Montenegro Airlines, which is advantageous for both our airlines and guests. Travellers in Montenegro can now reach our Abu Dhabi hub with a convenient one-stop connection in Belgrade, from where they can access key destinations in our global network with greater ease.

In turn, Etihad Airways will expand its travel offer to Montenegro, an increasingly popular business and tourism destination.

Daliborka PejoviC, President of the Board of Directors of Montenegro Airlines, said: For us at Montenegro Airlines it is clear that such forms of collaboration with Etihad Airways, a global leader in the aviation industry, are very important for our airline and our country.

The codeshare agreement will strengthen our connections to Etihad’s network and consequently enhance the global profile of Montenegro Airlines.

As a result, travellers from across the world will now be able to access Montenegro with greater ease and convenience, which will contribute to our inbound tourism figures, a vital component of our national economy.

Flights under the codeshare agreement are bookable via travel agents, online via etihad.com or montenegroairlines.com, or by phoning the airlines’ contact centres. Guests can travel on the codeshare services.

*Subject to Government Approval

Monday, 15 May 2017

MALAYSIA: Malaysia Customs Impounds Smuggled Tortoises Enroute From Madagascar, Worth $300,000

Malaysian customs foiled an attempt to smuggle hundreds of the world's most endangered tortoises into the country from Madagascar, a senior official said Monday.

The 330 ploughshare and radiated tortoises seized at Kuala Lumpur International Airport Sunday were worth $276,784, Abdul Wahid Sulong, deputy director of the customs department said.

All of the reptiles were found alive, he added.

"It is a big haul. It could be for the local market or for re-export. We are investigating," the enforcement agency said in a statement.

"Based on public tip-off, customs officials raided the cargo area of the airport and found five suspicious crates," the statement added.

"It had arrived at KLIA on an Etihad Airways flight from Antananarivo airport in Madagascar."

The golden-domed ploughshare tortoise is native to Madagascar and due to poaching is the most endangered tortoise on the planet.

Madagascar's radiated tortoise considered one of the most beautiful species of the animal is also rapidly nearing extinction due to rampant hunting for its meat and the illegal pet trade.

Abdul Wahid said the contents of the crates were labelled as stones and the address of the recipient was found to be false.

Malaysia bans the import of critically endangered animals. Anyone found guilty of the offence can be jailed for up to three years and fined.

Elizabeth John, senior communications officer of the Wildlife Trade Monitoring Network (Traffic), said the tortoise haul followed on the heels of other busts of animal products originating from Africa, including rhino horn and pangolin scales.

"With the string of recent seizures of wildlife from Africa, Malaysian enforcement agencies are sending a strong warning to smugglers that they mean business," she said.

John said the routes used by traffickers in recent cases point to a need for greater scrutiny of airports in the Middle East

The radiated tortoise (Astrochelys radiata) is a species in the family Testudinidae. Although this species is native to and most abundant in southern Madagascar, it can also be found in the rest of this island, and has been introduced to the islands of Réunion and Mauritius.

It is a very long-lived species, with recorded lifespans of at least 188 years. These tortoises are classified as Critically Endangered by the IUCN, mainly because of the destruction of their habitat and because of poaching.

Growing to a carapace length of up to 16 in (41 cm) and weighing up to 35 lb (16 kg), the radiated tortoise is considered to be one of the world's most beautiful tortoises.

This tortoise has the basic "tortoise" body shape, which consists of the high-domed carapace, a blunt head, and elephantine feet. The legs, feet, and head are yellow except for a variably sized black patch on top of the head.

The carapace of the radiated tortoise is brilliantly marked with yellow lines radiating from the center of each dark plate of the shell, hence its name. This "star" pattern is more finely detailed and intricate than the normal pattern of other star-patterned tortoise species, such as G. elegans of India.

The radiated tortoise is also larger than G. elegans, and the scutes of the carapace are smooth, and not raised up into a bumpy, pyramidal shape as is commonly seen in the latter species. There is slight sexual dimorphism. Compared to females, male radiated tortoises usually have longer tails and the notches beneath their tails are more noticeable.

The species is very long-lived. The oldest radiated tortoise ever recorded with certainty was Tu'i Malila, which died at an estimated age of 188.A tortoise named Adwaita is widely believed to have been even older at its death in 2006.

Radiated tortoises occur naturally only in the extreme southern and southwestern part of the island of Madagascar. They have also been introduced to the nearby island of Reunion. They prefer dry regions of brush, thorn (Diderae) forests, and woodlands of southern Madagascar.

As the radiated tortoises are herbivores, grazing constitutes 80–90% of their diets, while they also eat fruits and succulent plants. A favorite food in the wild is the Opuntia cactus.

They are known to graze regularly in the same area, thus keeping the vegetation in that area closely trimmed. They seem to prefer new growth rather than mature growth because of the high-protein, low-fiber content.

Males first mate upon attaining lengths of about 12 in (31 cm); females may need to be a few inches longer. The male begins this fairly noisy procedure by bobbing his head and smelling the female's hind legs and cloaca.

In some cases, the male may lift the female up with the front edge of his shell to keep her from moving away.

The male then proceeds to mount the female from the rear while striking the anal region of his plastron against the female’s carapace. Hissing and grunting by the male during mating is common.

This is a very dangerous procedure and cases have been recorded where the female's shell has cracked and pierced the vaginal and anal cavities. Females lay from three to 12 eggs in a previously excavated hole 6-8 in (15–20 cm) deep, and then depart.

Incubation is quite long in this species, lasting usually between five and eight months. Juveniles are between 1.25 and 1.6 inches (3.2 to 4 cm) upon hatching. Unlike the yellow coloration of the adults, the juveniles are a white to an off-white shade. Juveniles attain the high-domed carapace soon after hatching.

These tortoises are critically endangered due to habitat loss, being poached for food, and being over exploited in the pet trade. It is listed on CITES Appendix I, commercial trade in wild-caught specimens is illegal,permitted only in exceptional licensed circumstances.

However, due to the poor economic conditions of Madagascar, many of the laws are largely ignored.

No estimates of wild populations are available, but their numbers are declining, and many authorities see the potential for a rapid decline to extinction in the wild. In the North American studbook, 332 specimens are listed as participating in captive-breeding programs such as the Species Survival Plan.

Captive breeding has shown great promise as in the captive breeding program for the radiated tortoise at the New York Zoological Society's Wildlife Survival Center. In 2005, the Wildlife Survival Center was closed,and the radiated tortoise captive-breeding program was continued with the inception of the Behler Chelonian Center.

In March 2013, smugglers were arrested after carrying a single bag containing 21 radiated tortoises and 54 angonoka tortoises (Astrochelys yniphora) through Suvarnabhumi International Airport in Thailand.

On 20 March 2016, the Custom officials at Mumbai airport seized 146 tortoises from a mishandled baggage of a Nepal citizen. This bag was said to belong to a transit passenger, who arrived from Madagascar and flew to Kathmandu leaving this bag behind.

Out of the 146 tortoises, 139 were Radiated tortoises (Astrochelys radiata) and seven were angonoka tortoises (Astrochelys yniphora), both critically endangered tortoise species of Madagascar. Two radiated tortoises were found dead with broken shell.

On 12 June 2016, it was reported that 72 radiated tortoises and 6 angonoka tortoises had gone missing from a breeding facility in Thailand.

Sunday, 7 May 2017

SAUDI ARABIA: Saudi Arabian Airlines (SAUDIA) Sign Codeshare Agreement With China Southern Airlines

Saudi Arabian Airlines (SAUDIA) has announced a codeshare agreement with China Southern Airlines, enabling travellers to conveniently access additional domestic and international routes across both carriers’ portfolios.

Passengers flying to Guangzhou Baiyun International Airport with the Saudi carrier will be able to connect to further Chinese itineraries, such as Beijing, Shanghai and Wuhan.

Meanwhile, the guests of the Chinese airline will benefit from the access to SAUDIA’s network from the Chinese hub with the option of transiting through Dubai International.

The new partnership follows SAUDIA’s network expansion with two new destinations this year, Multan and Port Sudan, and demonstrates the carrier’s commitment to offer improved travel options and flexibility to its passengers.

Saudia Airlines has announced the expansion of its fleet with the addition of a new Boeing 787-9, the first of 15 jets awaiting delivery, bringing the current number of Boeing aircraft to seven.

Purchasing the state-of-the-art aircraft from major global producers is the carrier's strategy to constantly modernise its fleet, according to the requirements for different types and sizes of the aircraft, reflecting its operational strategies for domestic, regional and international flights.

Presently, the Saudi national airline boasts 129 jets, including the market's latest Boeing and Airbus wide-body aircraft.

airBaltic launched its direct route linking Riga and Aberdeen on May 02, offering convenient travel options for travellers from the UK and Baltic states.

The schedule will operate three times weekly on board a Boeing 737 aircraft.

Carol Benzie, managing director, Aberdeen International Airport, commented, "The route will provide Aberdeen holidaymakers with easy access to a number of increasingly popular destinations in the Baltic states, such as Tallinn, Palanga and Vilnius, which was one of the most requested destinations in a leisure survey we undertook with our local community in 2016."

Qatar Airways has been named the official airline partner of the Paris ePrix, an electric street race, as well as sponsor of the 2017 Qatar Airways Paris ePrix, which will take place in the French capital on May 20.

The carrier has also been named the official airline partner of the first-ever New York City ePrix taking place in Brooklyn on July 15 – 16.

Commenting on the partnership with Formula E, H.E. Akbar Al Baker, group chief executive, Qatar Airways, said, "We are very pleased to be able to support this environmentally-friendly sport that promotes the latest technological innovations in producing alternative energy solutions for electric cars.

Qatar Airways is committed to promoting the importance of sports in bringing people together through our many partnerships

On May 01, Oman Air celebrated its inaugural flight from Muscat International Airport to Manchester Airport.

The daily flight to Manchester, operated by an A330-200, represents the carrier’s third daily frequency to the UK and is expected to further boost the already strong political, economic and social links between the two countries.

Additionally, the direct flight will open up easy access to the carrier’s outstanding range of destinations from both Muscat and Manchester with over 27 locations having connectivity within three hours in both directions.

The launch of the new route is in response to significant customer demand and also demonstrates Oman Air’s commitment to continuing its ambitious and dynamic programme of fleet and network expansion.

Celebrating 10 years of services to Kerala, Etihad Airways has launched a fourth daily nonstop schedule from Abu Dhabi International Airport to Calicut International Airport, bringing the total number of weekly schedules to the state to 63.

The extra itinerary makes Kerala one of the carrier’s most frequent Indian destinations, where the airline flies to the gateways of Kochi, Kozhikode and Thiruvananthapuram, representing more than 30 percent of all Indian frequencies.

Neerja Bhatia, vice president, Indian subcontinent, Etihad Airways, commented, “With our multi-frequency scheduled flights to and from Kerala, Etihad Airways has demonstrated a commitment to this vibrant state by offering convenient global access and boosting the domestic tourism industry.”

Wednesday, 3 May 2017

ITALY: Alitalia Shareholders Unanimously Decide To File For Insolvency Administration.

Italy’s flag carrier Alitalia started bankruptcy proceedings for the second time. Shareholders voted unanimously to file for insolvency administration.

Etihad Airways said today it was disappointed that despite its significant investments in Alitalia, the Italian airline had today entered extraordinary administration.

The Italian government approved the start of special administration and appointed Luigi Gubitosi, Enrico Laghi and Stefano Paleari as administrators. The government also approved a 600 million-euro ($655 million) bridge loan that will last for six months.

James Hogan, President and Chief Executive Officer of Etihad Aviation Group, said, “We have done all we could to support Alitalia, as a minority shareholder, but it is clear this business requires fundamental and far-reaching restructuring to survive and grow in future.

Without the support of all stakeholders for that restructuring, we are not prepared to continue to invest. We therefore support the necessary decision of the Alitalia Board to apply for extraordinary administration.

“We are disappointed that despite Etihad’s significant investments in Alitalia, alongside those of the other shareholders, the airline was unable to proceed in its current form.

“The initial strategy developed by Alitalia at the time of Etihad’s investment and implemented from 2015 delivered significant improvements.

However, new marketplace challenges, including greater low cost carrier competition and the impacts of terrorist events on tourism demand, meant further, deeper change was required.

“As a supportive investor, we have delivered on our commitments since taking our minority share. Our investment, alongside the other shareholders, has helped to protect thousands of jobs over the last three years.

We would like to thank the other shareholders, and the Italian Government, for their commitment as we have worked together since we took our shareholding.

“Italy remains an important market for us and we will continue to work with Alitalia as a commercial partner alongside our own presence in Italy.”

Etihad Airways and Alitalia signed a transaction implementation agreement in August 2014, which resulted in a €1,722 million investment by Etihad and other Italian shareholders to restructure the Italian airline.

The airline said all guests with Etihad bookings on Alitalia, or vice versa, should proceed with their travel plans as normal, as it is expected that Alitalia will proceed with flight operations.

Etihad will communicate promptly and directly with its affected guests if that situation changes.