Are we witnessing a standardisation in the management of Gulf companies ? Emirates had just announced his renunciation of Airbus A380 abandoning its status as a carrier equipped only with wide-body aircraft, theEtihad has also announced the cancellation of an aircraft order. TheAbu Dhabirival Emirates, has indicated that it is in talks with Airbus to cancel 42 of the Airbus A350 that it had ordered from the European aircraft manufacturer. A massive cancellation, since Etihad had originally placed an order for 62 devices - 40 A350-900s and 22 A350-1000s. The company told Reuters that all A350 900 models and two 1000 models would be cancelled.
In the same interview, the Abu Dhabi carrier did not rule out the possibility of cancelling other orders. Back in January, Etihad announced the cancellation of ten Airbus A320neo aircraft, which were destined for its European subsidiary. Air Serbia. Boeing could be the next victim of Etihad's austerity programme, with the airline indicating that it plans to put only six Boeing 777-9 aircraft into service, whereas it has ordered 25 B777 models 8 and 9.
A critical financial situation
In fact, the Abu Dhabi carrier, which has grown so rapidly since the beginning of the 2000s, is facing a critical financial situation. It has been accumulating losses since 2016: two billion dollars in 2016; 1.5 billion in 2017 and again losses last year, which, again according to Reuters, would be described as " significant "in 2018 in an internal memo. For 2019, the company is still forecasting losses.
What does this mean for passengers? After having drastically reduced its network over the last two years with some fifteen destinations eliminatedThe airline has also reviewed its range of services. Free limousine transfers for business passengers have been abolished, catering has been reduced, hairdressing areas in the lounges have been closed and Christian Lacroix pyjamas have become chargeable, sold in both economy and business class for 35 dollars. In economy class, passengers must also pay to reserve their seat. The search for new revenue sources the fact that economy class passengers can also purchase access to the business lounge on arrival.
As for the network, the company is not announcing no openings for summer 2019 and continues the readjustment of its network. It is Düsseldorf which will be the worst affected airport in Europe, with one daily flight instead of 12 to 13 weekly flights previously. Los Angeles will now only be served 4 times a week instead of 7. The carrier is also reducing its capacity on Sydney from an Airbus A380 to a Boeing 777. On the other hand, the carrier is increasing its frequencies to Barcelona, Dublin and Rabat, and switching to a daily Airbus A380 service to Seoul.
These adjustments in service, these reductions in orders, prove that the company has become fragile. In the long run, we may well wonder whether it will simply manage to survive, or whether it will eventually have to - as has often been suggested - "make do" with its own resources. merge with rival Emirates...
