Etihad not planning to use cash pile for new planes

Dubai - Etihad said last month that some of the cash raised from institutional investors would go on investment in fleet for itself and the string of partner airlines in which it has acquired share stakes.

Etihad Airways CEO James Hogan on Tuesday dashed Boeing and Airbus's hopes of a spending spree by the Abu Dhabi airline following its success in raising $700 million in investment capital.
Etihad said last month that some of the cash raised from institutional investors would go on investment in fleet for itself and the string of partner airlines in which it has acquired share stakes.
But it now seems that meant investment of the kind Alitalia is now undertaking to fit out its first class cabins with leather from luxury furniture maker Poltrona Frau - rather than new planes.
Hogan told a Press conference in Rome that the company was focusing on ensuring its own and its partners' fleets were used as efficiently as possible.
And he dismissed speculation about possible deals at next month's Dubai Air Show.
"We are not doing any deals on aircraft at the airshow," Hogan said on the sidelines of a Press conference called to reassure an Italian audience that Etihad's plans for reviving Alitalia remain on track, despite disappointing first-half results and the shock departure of its chief executive last month.
$700 IT deal with IBM
Also on Tuesday, Etihad on Tuesday announced a 10-year $700 million agreement with IBM for a range of information technology services and infrastructure.
The deal, which was signed last month, will provide access to the latest cloud-based technologies and services for the airline, its group companies and equity partners.
IBM will deliver a range of secure and efficient technology services, allowing Etihad Airways and its partners to transform their IT infrastructure into global, flexible and agile cloud-based platforms to better serve their guests and employees.
Calls for airberlin codeshare
Meanwhile, the UAE has called on Germany to hold talks this week on gaining approval for codeshare flights operated by airberlin and Etihad, a shareholder in airberlin.
The UAE wants to hold talks on Thursday or Friday, according to a letter seen by Reuters.
The German government approved the code shares for last winter and this summer, but has previously said that should remain an exception.
With inputs from agencies
- business@khaleejtimes.com

• Abu Dhabi