Etihad Reports 52% Jump in Net Profit, U.S. Legacies Respond With “Unprecedented” Allegations
Joe Cortez May 29, 2015
Etihad claims a net profit of $73 million in 2014, but U.S. legacy carriers call the authenticity of the figure into question.
Etihad Airways claims 2014 was its best year to date, but U.S. legacy carriers are calling on the UAE flag carrier to prove its impressive figures through transparency.
In a press release issued Thursday, Etihad announced a total profit of $73 million in 2014, up 52.1 percent year over year, marking the carrier’s fourth consecutive year of profit. The airline claims to have carried upwards of 14 million passengers last year, a 22.3 percent increase from 2013.
Etihad credited its year-over-year improvement to organic growth and global partnerships, as well as partnerships formed through its own airline alliance, Etihad Airways Partners.
“Our performance in 2014 has cemented Etihad Airways’ position as a best-in-class, profitable and self-sustaining international airline,” said James Hogan, Etihad president and CEO . “We have continued to grow, not just in size, reputation and performance, but also in maturity, evolving from an airline to a diverse global aviation and tourism group.”
In light of the recently released figures, U.S. legacy carriers American Airlines, United Airlines and Delta Air Ways have accused Etihad of continuing to hide proof of illegal subsidies received from their government. The Partnership for Open and Fair Skies, the consortium of American legacy airlines and labor unions, claims Etihad has received over $17 billion in illegal government subsidies.
“Etihad continues to claim that it is profitable, but it refuses to open its books because it knows the subsidies it receives from the treasury of the United Arab Emirates are in direct violation of Open Skies policies,” Jill Zuckman, chief spokesperson for the Partnership for Open & Fair Skies, stated in a press release issued shortly after the figures were made public. “These types of subsidies disrupt the entire international aviation market and destroy any semblance of fair competition.”
Hogan called these allegations “unprecedented external challenges” but said Etihad will continued to grow in 2015 despite being “targeted” by certain airlines, the U.S. and Europe.
[Photo: Etihad Airways]
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Flown on one of the big 3 lately? Flown on Etihad lately? The big three continue to coast with 30-year-old aircraft, crappy service and high prices. And they've been allowed, by the U.S. government, to buy up competitors and reduce competition -- how's that for a government subsidy? Etihad, on the other hand, competes with new planes, excellent service and excellent prices. They are actually giving the market what it wants. Since when is that a bad thing?
You can bet that ANYTHING that the Big 3 airlines here in the United States all agree upon and oppose is actually GOOD for you and me as members of the flying public.
A partnership of the three largest US airlines is a cartel...
Really? The consortium of crappy service carriers is calling into question???? For a start ,they need to take a long look into the mirror before they start slinging allegations around.
Perhaps Ethiad is getting profit because they provide CUSTOMER SERVICE to their customers?!