For the past year and a half, Etihad has looked more and more like a normal" companyi.e. for which the profitability is the key criterion of its business. After years of unbridled expansion in terms of network and fleet, and after the unsuccessful entry into the capital of European airlines Alitalia and AirberlinEtihad has drawn the consequences of these events errors.
In addition, Etihad's difficulties have been exacerbated by the falling oil prices which have depressed business and leisure markets in the Middle East. After losing $1.87 billion in 2016 - prompting the departure of Etihad's flamboyant CEO James Hogan - Etihad is therefore seriously considering further restructuring.
The new CEO of Etihad, Tony Douglastalks about a possible refocusing on the main lines the network in order to capture the most lucrative market, that of the business travellers. The least profitable routes, which are usually opened to affirm the carrier's "global" character, should gradually disappear. Tony Douglas even hopes to strengthen cooperation with the eternal rival Emirateswhose hub in Dubai is some 120 km from Etihad's headquarters in Abu Dhabi.
Among the victims of the Abu Dhabi carrier's restructuring since the beginning of the year are Jaipur in India, Tehran and Dallas. Ho Chi Minh City, Edinburgh and Perth will follow by the end of the year. The South Vietnamese metropolis has already seen a reduction in the number of Etihad flights, from one daily flight to three weekly frequencies since April. But at the end of August, Etihad will suspend this route for good.
While Edinburgh - suspended from October - is of lesser importance for the French market, the discontinuation of flights to Perth will deprive the market of a possible route via Abu Dhabi. Etihad will stop its daily service to the Western Australian metropolis at September 30th from Abu Dhabi and on 1 October from Perth.
In French-speaking markets, Etihad continues to offer two daily flights on Paris as well as a daily flight to Brussels and Geneva.
For its part, Emirates, the Dubai-based carrier, has announced reductions in frequencies on several routes, but a spokesman says that these are seasonal adjustments. The routes affected are BangkokFort Lauderdale, Kuala Lumpur, London Heathrow, Munich, Orlando and Phuket.
