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19 May 2013 09:30

Etihad Airways, the national airline of the United Arab Emirates, has finalised the agreement to acquire three airport services companies which will accelerate and consolidate the development of in-flight catering services, ground handling and cargo operations at Abu Dhabi International Airport. 

Formerly part of Abu Dhabi Airports Company (ADAC), the three companies, Abu Dhabi Airport Services (ADAS), Abu Dhabi In-Flight Catering (ADIFC), and Abu Dhabi Cargo Company (ADCC), are being incorporated, subject to receipt of regulatory approvals, into Etihad Airport Services, a wholly owned subsidiary of Etihad Airways.

The companies, which employ more than 4,000 people, are being integrated into the airline’s existing organisational structure to maximise synergies and operational scale. The re-engineered business units will continue to provide the full range of ground handling, catering and cargo services to Etihad Airways and other airlines at Abu Dhabi International Airport, dedicated to customer excellence and commercial viability.

James Hogan, Etihad Airways’ President and Chief Executive Officer, said: “This acquisition follows international best practice and is critical to the continued growth of the airline, and more importantly to the sustained growth and development of Abu Dhabi’s aviation industry in general as envisioned in the Abu Dhabi Plan 2030.

“It is once again in line with our strategy of working closely with our partners and service providers to achieve greater organisational and commercial alignment and a more consistent delivery of products and services along the entire value chain of the customer’s experience. Airline and cargo customers will also benefit from enhanced service levels and greater integration across hub operations.”

The acquisition will provide significant incremental revenue opportunities, cost savings, and operational efficiencies across the various business entities.

Mr Hogan added: “We are delighted to welcome employees from ADAS, ADIFC and ADCC to the growing Etihad family. The acquisition is a very positive development for the airline, for the three subsidiary companies, and for their employees, who will have access to increased benefits, career enhancement opportunities and training as the organisation continues to grow.”

A transition process is in place and it is ‘business as usual’ as Etihad continues to work closely with its new and existing employees and customers, ensuring that there is no disruption to existing services during the integration period while benefits are delivered immediately.

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