Thursday, July 26, 2012

Etihad on buying spree

Neelam Mathews
July 26, 2012

Etihad Airways says it has welcomed the decision by the Australian Government to allow the airline to increase its equity stake in Virgin Australia Holdings to a maximum of 10 percent.

Etihad Airways currently has a 4.99 percent stake in Virgin Australia, acquired earlier this year, and had applied to the Foreign Investment Review Board (FIRB) to raise the level of its investment.

The purchase was made following the development of a highly successful multi-tiered partnership.

Etihad Airways and Virgin Australia currently operate 24 flights per week between Australia and Abu Dhabi offering Australian travellers and visitors to Australia greater choice and access to a combined network of more than 285 global destinations.

The strategic partnership has already delivered significant revenues to each airline. It is expected that the equity stake in Virgin Australia will lead to further revenue generating opportunities.

The first Etihad Airways flights from Sydney to Abu Dhabi took place in March 2007 and since then it has started flights from Brisbane and Melbourne, with plans for services from Perth in future.

In total, nearly two million passengers have flown with Etihad Airways between Australia and its Abu Dhabi hub.

Etihad Airways has three regional offices and a line maintenance facility in Australia, and now employs more than 300 Australian members of staff who are based in Australia, Abu Dhabi and at stations around the world.

The airline's aircraft, office, marketing and selling costs have directly contributed more than AUD$ 540 million to Australia’s GDP.

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