27 Jun 2013 10:30
Etihad Airways, the national airline of the United Arab Emirates (UAE), has hosted its latest financial roadshow for Australian bankers in Sydney, following editions held earlier this year in London and New York.
Attracting 70 bankers
from many of the world’s largest financial institutions, the roadshow offered
an ideal opportunity to deepen the strong ties between the Abu Dhabi-based
airline and Australia’s financial community.
The Etihad Airways
delegation was led by James Hogan, President and Chief Executive Officer, and
included James Rigney, Chief Financial Officer, and Ricky Thirion, Vice
President and Group Treasurer.
briefed bankers on the airline’s achievements in 2012 and outlined its strategy
to achieve consistent, sustainable profitability, as well as updating them on
the expansion of Etihad Airways’ equity alliance.
Mr Hogan said “Etihad
Airways continues to expand its flight network, fleet of aircraft, and
passengers carried, and the banking community around the world, and in
Australia, play a key role in helping ensure this successful growth is
institutions view Etihad Airways as a financially sound company with a strong
track record in safety and we are always eager to spend time with them to
communicate the latest developments at the airline.”
In 2012, Etihad
Airways earned total revenues of US$4.8 billion and had a net profit of US$42
million and this strong financial portfolio, built up during the previous six
years, has allowed it to gain more than US$7.1 billion in funding from more
than 60 financial institutions.
In addition to gaining
the finance required for new aircraft and engines, Etihad Airways closely
manages major financial market risks such as fuel, FX, interest rates and
This has enhanced the
airline’s reputation for successful fiscal discipline and cost control.
Mr Hogan and his team
discussed Etihad Airways renowned hedging strategy with the bankers in Sydney.
The airline’s jet fuel is hedged at 81 per cent for the remainder of 2013, 62
per cent for 2014, 33 per cent for 2015, and nine per cent for 2016.
During the past 12
months Etihad Airways has continued to expand its three pillared strategy of
organic growth, codeshare and interline partnerships, and equity alliance of
minority stakes in other airlines.
The most recent to
join the equity alliance of airberlin, Aer Lingus, Air Seychelles, and Virgin
Australia is the Indian carrier, Jet Airways. Subject to Indian government
approval, Etihad Airways will invest US$379 million for a 24 per cent stake in
Following the Jet
Airways announcement on 24 April 2013, Etihad Airways agreed an initial
memorandum of understanding with the Government of Serbia to explore equity
opportunities in its national carrier, JatAirways.
During the last 12
months Etihad Airways has also taken the first step in creating a global
loyalty management platform. This began with the integration of Seychelles
Plus, the Air Seychelles frequent flyer program, into the Etihad Guest loyalty
In December 2012
Etihad Airways took a 70 per cent stake in topbonus, airberlin’s loyalty
program, and created a new company that will eventually include the Etihad
Guest program and those of other airlines.