Etihad Aviation Group a 'vital driver of prosperity' in Abu Dhabi

Dublin - Airline to pitch in Dh35.2b to economy, will transport 19m passengers in 2016

Etihad Aviation Group has become a "vital driver of prosperity" in Abu Dhabi as its contribution to the economy would reach Dh35.232 billion in 2016, says a study by Oxford Economics Group.
The group and its partners will deliver a core economic contribution of $7.4 billion and a tourism contribution of $2.2 billion, said the report. In turn, they will support 62,100 jobs through core operations, with another 29,600 jobs supported through the tourism contribution, the study said.
The air connectivity offered by Etihad Airways and its equity airline partners will boost Abu Dhabi productivity by $17 billion in 2016. This constitutes 5.9 per cent of Abu Dhabi's gross domestic product and is equivalent to 195,600 jobs in the emirate.
By 2024, it is expected to reach up to $18.2 billion, including a core contribution of $12.6 billion and a tourism contribution of $5.6 billion. The productivity boost from air connectivity impact will reach $27.1 billion. In 2008, the airline contributed Dh10.89 billion to Abu Dhabi's economy, which now has multiplied to Dh35.23 billion, growing 223 per cent. The airline earned $103 million in profits in 2015, rising 41 per cent year-on-year.
According to the study, Etihad Airways will transport 19 million passengers in 2016, 7.95 per cent higher than in 2015 when it ferried 17.6 million people.
"Etihad's impact in Abu Dhabi is a vital driver of prosperity for the emirate, the importance of which is set to grow in the next decade as the airline expands its service, bringing more visitors to the region," says the report. The man behind these numbers and successful strategies, James Hogan, president and CEO of Etihad Aviation Group, said: "Success for Etihad Airways translates directly into success for Abu Dhabi - and success for the wider group and its partners boosts that impact even further. As our equity airline partners continue to expand their connectivity with Abu Dhabi, we are seeing even greater impacts on the local economy."
Etihad Aviation Group was established in 2014, as a key step towards the goal of becoming a wider travel and aviation group, beyond Etihad Airways itself. It comprises four business divisions - Etihad Airways, Etihad Engineering, Hala Group and Airline Equity Partners.
In 2015, all these major business streams experienced growth, further contributing to the development of Abu Dhabi.
In 2011, Etihad Airways made its first strategic minority investment in another airline, in airberlin. It now has minority stakes in seven airlines in total. These investments have made a significant impact on Etihad Airways' business; partnerships delivered five million passengers in 2015, contributing $1.4 billion in revenues.
Hogan said: "Our two-pronged approach is delivering results for Etihad Aviation Group and it is delivering results for Abu Dhabi. At a strategic level, our equity partners to bring network connectivity, generate additional revenues and create economies of scale. Every one of our partners is delivering on this level."
"Each partner also has its own business goals, which are the responsibility of their own management and boards of directors. Many of these, such as Air Serbia, Air Seychelles, Jet Airways and Virgin Australia, are now delivering profitably on this level."
- haseeb@khaleejtimes.com