26 Mar 2014 15:00
Etihad Airways, the national airline of the United Arab Emirates, has hosted the latest edition of its highly successful financial roadshows in New York and London, attracting a record number of guests.
Led by James Hogan, Etihad Airways’ President and Chief Executive
Officer, and supported by James Rigney, Chief Financial Officer, and Ricky
Thirion, Group Treasurer, the roadshows welcomed more than four hundred
representatives from many of the world’s largest financial institutions, lessors
and other partners.
The roadshows are conducted annually in major global and regional
financial centres including New York, London and Sydney, and offer an ideal
opportunity for the airline to brief the world’s leading financiers about its
expansion strategy as well as deepen existing ties.
The airline is looking to raise US$2 billion to finance its fleet deliveries
in 2014 which will include its first A380 and Boeing 787 aircraft.
James Hogan said “Etihad Airways continues to expand its
relationships with financial institutions in markets around the world, which in
turn play a crucial role in the expansion of the airline’s global network and
fleet of aircraft.
“The financial institutions view Etihad Airways as a strong
counterparty, that is financially stable with a strong track record in safety,
and we are always eager to spend time with them to communicate our latest
Earlier this month Etihad Airways announced a record net profit of
US$62 million in 2013, up 48 per cent, marking the third successive year of net
profitability. The airline also generated revenues of more than US$6 billion
Etihad Airways has raised more than US$8 billion in funding from
68 financial institutions during the past 10 years to finance aircraft and
In addition to expanding the relationships with lessors and
lending institutions, Etihad Airways has an efficient risk management policy to
manage the financial risks related to fuel price, foreign exchange, interest
rates and emissions. This has enhanced the airline’s reputation for successful
fiscal discipline and cost control.
Etihad Airways’ hedging strategy has received widespread praise
from the financial community. Currently it is hedged at 76 per cent for 2014,
48 per cent for 2015, 15 per cent for 2016, and 3 per cent for Q1 2017.
During the past 12 months Etihad Airways has continued to expand
its four pillared strategy of organic growth, codeshare and interline
partnerships, equity alliance in other airlines and aviation related
businesses, and franchise partners.
In addition to the four existing equity partners – airberlin, Air
Seychelles, Virgin Australia and Aer Lingus – Etihad Airways announced
investments in three additional carriers in 2013.
Stakes were acquired in Jet Airways, Air Serbia (formally Jat
Airways) and Darwin Airline, a regional carrier based in Switzerland which has
become a new sub-brand called, Etihad Regional (subject to regulatory approval).
Etihad Airways made the largest aircraft order in its history in
2013, with orders, options and purchase rights for up to 199 Airbus and Boeing
aircraft, valued at up to US$67 billion.
The airline will take delivery of 18 aircraft in 2014: 3 x A320; 3
x A321; 2 x A330-200; 1 x A330-200 freighter; 1 x A380; 2 x B787-9; 1 x
B777-300ER; 5 x B777-200LR.
Etihad Airways also recently unveiled a new structure moving it
from a single entity airline to a wider global aviation group.
The new Etihad Aviation Group distinguishes the functions relating
purely to Etihad Airways and those related to the airline’s subsidiaries, joint
venture companies and equity partners.
The airline has announced
nine new destinations for 2014, Medina, Jaipur, Los Angeles, Zurich, Yerevan,
Perth, Rome, Phuket, and Dallas-Fort Worth.