Etihad’s performance has been very promising this year so far, with record profit levels in the first quarter of the year. In addition, the company’s revenue also increased, reflecting its growing popularity with customers. However, Etihad, unlike its fellow Emirati airline Emirates, is a relatively young airline. Nevertheless, like Emirates has been heralded for boosting Dubai’s economy, Etihad is credited with doing the same for its parent city, Abu Dhabi. It has effectively put Abu Dhabi, the capital of the United Arab Emirates, on the tourist map.
The Past and Present
The United Arab Emirates is a federation of seven states (known individually as an emirate). Each emirate has its own ruler, all of whom work together in matters concerning the nation as a whole. Abu Dhabi is the largest of these states and is known for its immense oil wealth. Abu Dhabi’s sovereign wealth fund was valued at more than 1.4 million US dollars per Emirati citizen. The city of Abu Dhabi also serves as the capital of the country as a whole.
When it came to aviation, however, the emirate of Dubai first took the initiative. Dubai, a successful port city, started the airline Emirates 40 years ago, thereby starting its global influence as a trade centre early on. Recognising this, the Emirate of Abu Dhabi took on the challenge over 20 years ago to start its airline, Etihad (the Arabic word for Union).
In November 2003, the airline began its service with a single aircraft flying from the city of Abu Dhabi to Al Ain, another city within the same emirate, 145 km away. Soon afterwards, it added an international destination, Beirut, the capital of Lebanon. In its first year of operations, the airline mostly served destinations in the same region, catering to about 340,000 passengers. Within three years, the airline acquired 24 new aircraft and was serving 40 destinations.
Over the past 20 years, the company writes that it has soared beyond imagination, turning bold visions for global travel into extraordinary experiences for its guests worldwide. The airline also continues to expand with 16 new routes planned for this year. As one can see, therefore, Etihad’s performance and influence are still growing.
A Personal Experience
I have been fortunate enough to have flown both of the United Arab Emirates’ airlines, Emirates as well as Etihad. The experience of Etihad and Emirates was broadly similar to the modern entertainment systems, as well as the excellent food and service, which were present when I flew in the economy class section pre-COVID.
In terms of Etihad’s performance, the one time I did travel with them, there was a slight blip. This occurred when travelling with a friend to Malaysia for a wedding back in 2015. There was a stopover in Abu Dhabi, from where we had to take another Etihad connecting flight to continue to Kuala Lumpur (the capital of Malaysia and final destination). However, when we reached Abu Dhabi, and we were approaching the departure gate where buses were waiting to take people to the plane, the doors suddenly slammed and we could not get in. We were then told that the airline had overbooked. This meant that there was a delay in getting there, as we had to take another connecting flight. Other people also missed out, and the situation became a bit rowdy!
Nevertheless, the airline did give us a complimentary voucher so we could have a meal in McDonald’s while waiting approximately 5 hours for the connecting flight. In addition, we were compensated when we got back. Fortunately, we did not miss the wedding!
However, apart from occasional personal mishaps, Etihad has performed well over the years, and its financial performance with record profits, as well as its contribution to Abu Dhabi, is a testament to this. We hope to see Etihad continue to perform well. We will wait to see how this progresses.
So on the whole, leaving personal experiences aside, Etihad’s performance has been promising over the years. What are your views on Etihad’s performance?
