Is Etihad Shifting From Alliance Carrier to Boutique Airline?
Joe Cortez September 18, 2017
Analysis suggests partner changes and reductions could result in new strategy
An industry analysis suggests Etihad Airways could be forced to shift their strategy from becoming an alliance flag carrier into flying as a boutique airline. In a report by CAPA – Centre for Aviation, the research group notes the airline may have their hand forced due to circumstances out of their control.
In 2014, the Middle East Carrier launched a new “alliance,” Etihad Airways Partners, alongside five charter members: Air Berlin, Air Serbia, Air Seychelles, Darwin Airline and Jet Airways. Since then, Air Berlin was forced into bankruptcy and cut their routes to Abu Dhabi. Air Serbia has also stopped flights into Etihad’s home airport, along with non-alliance partner Virgin Australia.
Still advertising themselves as an Etihad Airways Partner airline, Jet Airways is slated to reduce their presence in Abu Dhabi as they pursue a deeper relationship with the SkyTeam triad of Air France, Delta Air Lines and KLM. In turn, the Middle East carrier is making shifts to discourage travel aboard non-partner airlines. Starting in October 2017, a first-time flying bonus of 500 Etihad Guest points will only be granted to new passengers aboard Air Serbia and Air Seychelles.
As a result of all the changes, combined with installation of Peter Baumgartner just over one year ago, CAPA projects Etihad will be forced to back out of their original vision of starting the fourth airline alliance. Instead, with products like The Residence, the aviation industry analysts believe they will ultimately transform into a boutique carrier serving the Middle East.
Etihad is not the only member of the Middle East Three which could face some major changes. A separate analysis suggested that the long-term partnership between Emirates and Qantas could also face changes in the near future.
You’re Reading
Etihad clearly need to rethink their strategy and at the moment they appear to be upsetting their previously loyal customers as they cut back which means that there are likely to spiral downwards - A great shame I never understood their previous strategy anyway why was it necessary to buy into these basket case airlines when far looser alliances such as Star and One World would have been far less risky
Even as a lowly Silver Medallion member (AKA tinfoil), I recognize the many benefits unique to Delta. As others have mentioned, miles don't expire. As a Silver member, I have immediate access to exit row seating - can't get that on the other majors. And now, Silvers are allowed to use the Priority lane for airport check in with the FC and other Medallion members. While redemption charts are no longer published online, I regularly find redemptions to be at or lower than the standards of the past, at least for domestic flights. I've scored about 6 roundtrip tickets from SMF to LAX and LAS for 11K miles roundtrip in the last year - far below the other carriers' minimums of 15K or 20K roundtrip for interstate or close to flights. Add to all this the friendliness of the employees (I'm addressed by name on 80% of flights I board), the quality of the equipment and the on time factor and I'm very satisfied.