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Etihad targets massive expansion, eyes India

Video wall in the relax and reline room in the Etihad First Class lounge Abu Dhabi

Etihad Airways targets massive expansion with a focus on India

Etihad Airways has laid out bold plans for the future. By the close of this decade, the airline aims to nearly double its fleet to 150 planes and triple its passenger count to a whopping 30 million.

To support that growth, the airline is expected to move into the $3 billion Midfield Terminal later this year. At 742,000 square metres with 65 boarding gates, it will be one of the largest terminal buildings in the world.

The driving force behind these ambitious plans is the new Group CEO, Antonoaldo Neves. He is changing the rules of the Gulf airline game.

Shifting strategy towards medium to long-haul routes

Neves elucidates a significant shift in Etihad’s operational strategy. The airline plans to pivot from ultra-long-haul flights, where competition is fierce, and profitability is a challenge, towards medium to long-haul routes. This shift will also reduce direct competition and open up new markets for Etihad to explore and exploit.

Etihad has already announced plans to add at least five medium to long-haul destinations to the airline’s network in 2023, including Lisbon, Copenhagen, Düsseldorf and Osaka.

Etihad expansion

India a top priority

Also, as part of this new strategy, India emerges as a priority market for Etihad. In fact, it is ranked among Etihad’s top three markets. As Neves puts it, the goal is to establish robust connectivity between places like China, Southeast Asia, India and GCC countries with Europe and the East Coast of the United States.

Etihad’s plans come under the leadership of Neves, who was appointed by Abu Dhabi’s sovereign wealth fund, ADQ, after it assumed full control of the airline. His mandate is explicit: focus on profitable routes. He firmly states, “We don’t fly to places where we don’t make money.”

Air travel in India is seeing a resurgence, with domestic passenger numbers returning to pre-COVID levels and international traffic gaining momentum. The country’s economy is also demonstrating strong growth, making it an ideal airline market.

Etihad, already serving major Indian cities like Delhi and Mumbai, has identified six more Indian cities for potential flight expansion. In March 2023, the airline started flying daily between Abu Dhabi and Kolkata.

Rising to the challenge of increased competition

These plans come at a time when competition in the Indian aviation market is heating up. Tata Group-owned Air India is charting an aggressive expansion with non-stop flights to Europe, and the U.S. budget carrier IndiGo is expanding its international network through a codeshare deal with Turkish Airlines. Despite the intense competition, Neves remains confident, believing there is room for everyone in this rapidly growing market.

An edge over rivals

One factor that gives Etihad an edge over its rivals is approximately 10,000 seats a week of unutilised flying rights between India and Abu Dhabi. This puts Etihad in a stronger position than rivals seeking greater access amid government restrictions on further opening up the skies.

Two Etihad Airways A320s on the tarmac at Abu Dhabi International Airport

Etihad’s organic growth strategy

Etihad plans to grow organically, focusing on expanding codeshare and interline agreements without resorting to mergers or equity partnerships. This cautious approach follows the airline’s previous experience with India’s Jet Airways, in which Etihad once held a stake and which is now bankrupt.

Nutshell

Etihad Airways, under its new leadership and with its new strategic direction, is gearing up for an ambitious expansion plan, positioning itself as a strong player in the global aviation market.

Abu Dhabi-based Etihad Airways is preparing for a remarkable expansion, planning to triple its passenger numbers and nearly double its fleet size by the end of this decade. The airline is pivoting its strategy towards medium to long-haul flights, with India emerging as a key market in these plans.

Despite rising competition, CEO Antonoaldo Neves is confident in Etihad’s strong position, helped by significant unutilised flying rights between India and Abu Dhabi.

1 thought on “Etihad targets massive expansion, eyes India”

  1. Pingback: Etihad Airways announces new route to Osaka - The Expat Flyer

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