Etihad layoffs
Dec 18, 2016, 11:52 pm
#1
Original Poster
Join Date: Jan 2010
Posts: 9,307
Etihad layoffs
A fresh round of layoffs as Etihad face "an increasingly competitive landscape".
Reported elsewhere as between 1,000 to 3,000 layoffs and already underway.
http://www.macon.com/news/business/a...121637807.html
Reported elsewhere as between 1,000 to 3,000 layoffs and already underway.
http://www.macon.com/news/business/a...121637807.html
Dec 19, 2016, 1:11 am
#2
Join Date: Oct 2014
Programs: Etihad Platinum. Bonvoy Ambassador Elite
Posts: 333
A fresh round of layoffs as Etihad face "an increasingly competitive landscape".
Reported elsewhere as between 1,000 to 3,000 layoffs and already underway.
http://www.macon.com/news/business/a...121637807.html
Reported elsewhere as between 1,000 to 3,000 layoffs and already underway.
http://www.macon.com/news/business/a...121637807.html
Dec 19, 2016, 9:46 am
#3
Join Date: Feb 2016
Programs: MM, EK, HH, etc.
Posts: 381
Well, that's what often happens with the launch of prestige products, not just with EY: product launched to big fanfare and little consideration for the bottom line, and at some stage economic reality starts to bite, and adjustments have to be made. EY/Abu Dhabi, welcome to the real world 
To be fair, probably also has to do with EY's spiralling costs at its subsidiaries, which are getting out of hand, even for Abu Dhabi (just look at their LH deal, which may lead to further cooperation). EY's "strategy" of buying second and third-rate carriers with often dysfunctional business models is surprisingly not paying off... ...reminds me of Swissair's hunter strategy, except that Swissair did not have access to the deep pockets of a Gulf oil state!
To be fair, probably also has to do with EY's spiralling costs at its subsidiaries, which are getting out of hand, even for Abu Dhabi (just look at their LH deal, which may lead to further cooperation). EY's "strategy" of buying second and third-rate carriers with often dysfunctional business models is surprisingly not paying off... ...reminds me of Swissair's hunter strategy, except that Swissair did not have access to the deep pockets of a Gulf oil state!
Dec 19, 2016, 11:21 am
#4
Join Date: Apr 2015
Programs: Some
Posts: 5,252
Hmm, this is annoying. My current situation is that I am considering ditching BA for EY, as I'm sick of BA's constant chipping away of F and J products. Now I'm not so sure, although at least the EY cuts are from a higher base level, I guess!
Dec 19, 2016, 6:16 pm
#6
Join Date: Apr 2004
Location: Washington, DC
Posts: 1,309
um really?
Have you flown EY lately? they had massive degradations to the food/beverage products in J and F earlier this year from past years. Now I'd honestly say that it's really nothing special. Even before the degradations this year it was never THAT great. F could be pretty good, especially on the A380, but J was usually meh at best. With VERY lengthly service times. One time in 2015 on BKK-AUH it was 2.5 hours into the flight before I got my appetizers.
as a London resident where do you travel so much that it would make sense to ditch BA for EY? I can't imagine doing that. The service isn't that much better (though can be good, but inconsistent at best) and transferring at AUH isn't great. It's a total pain. I can't imagine making this trade off ever, unless the price was SIGNIFICANTLY less for EY and I had a lot of time for connections.
as a London resident where do you travel so much that it would make sense to ditch BA for EY? I can't imagine doing that. The service isn't that much better (though can be good, but inconsistent at best) and transferring at AUH isn't great. It's a total pain. I can't imagine making this trade off ever, unless the price was SIGNIFICANTLY less for EY and I had a lot of time for connections.
Dec 20, 2016, 1:41 am
#7
Join Date: Apr 2015
Programs: Some
Posts: 5,252
Thanks Jasondc, don't think it's that strange as a choice for a U.K-based flyer, perhaps you're looking at it from a US perspective?
Most of my travel is LON-Asia (I'm not suggesting flying EY via AUH around Europe!). BA also has relatively little in the way of a network in Asia outside of the largest cities instead preferring to focus on opening up direct routes to third tier US ones, so flights to a lot of Asia on BA involve a connection in HKG or SIN to a short haul flight anyway. As an LHR-based flyer it will be A380 Apartments or Business Studio to AUH, then 789 onwards to SIN/NRT mostly, which doesn't sound like a bad way to fly. The equipment choices to HKG are a bit strange but I can fly CX on that route.
Agree the connection will be the main thing that could kill it for me but I won't know if it's worth the hassle without trying it and the new F lounge doesn't seem like such a bad place to wait. I understand that EY is in cost saving mode also, but BA has taken it *much* further (F is now missing things that are offered in J on many other carriers). There's a steady stream of BA flyers I know and on the BA forum switching to QR, but I'm not sure how I feel about QR sometimes.
Most of my travel is LON-Asia (I'm not suggesting flying EY via AUH around Europe!). BA also has relatively little in the way of a network in Asia outside of the largest cities instead preferring to focus on opening up direct routes to third tier US ones, so flights to a lot of Asia on BA involve a connection in HKG or SIN to a short haul flight anyway. As an LHR-based flyer it will be A380 Apartments or Business Studio to AUH, then 789 onwards to SIN/NRT mostly, which doesn't sound like a bad way to fly. The equipment choices to HKG are a bit strange but I can fly CX on that route.
Agree the connection will be the main thing that could kill it for me but I won't know if it's worth the hassle without trying it and the new F lounge doesn't seem like such a bad place to wait. I understand that EY is in cost saving mode also, but BA has taken it *much* further (F is now missing things that are offered in J on many other carriers). There's a steady stream of BA flyers I know and on the BA forum switching to QR, but I'm not sure how I feel about QR sometimes.
Last edited by lost_in_translation; Dec 20, 2016 at 1:56 am
Dec 20, 2016, 2:02 am
#8
Join Date: Aug 2009
Location: SYD
Programs: QF WP (OWE), VA PLAT, EY GLD, SPG PLAT, Hyatt DIA, Hilton DIA, Hertz PC
Posts: 8,527
Dec 20, 2016, 5:03 am
#9
Join Date: Mar 2013
Programs: Etihad Guest Platinum; Accor Platinum; Hilton Diamond
Posts: 1,356
A fresh round of layoffs as Etihad face "an increasingly competitive landscape".
Reported elsewhere as between 1,000 to 3,000 layoffs and already underway.
http://www.macon.com/news/business/a...121637807.html
Reported elsewhere as between 1,000 to 3,000 layoffs and already underway.
http://www.macon.com/news/business/a...121637807.html
So when they finally have the new terminal there won't be enough staff to man it......
Dec 20, 2016, 7:15 am
#10
Suspended
Join Date: May 2001
Location: Washington, DC 20057
Posts: 24
hi
hey- it's me jasondc, long story but i have two log ins.
Okay, I see your point. The A380 hard product itself IS nice and being in London you should get it most of the time. the J product you'll find on the 380 and the 787 is nice - I find the seat great and there's a terrific use of space that makes it just feel very spacious - well designed. The A380 apts are beautiful. I have flown them LHR-AUH and back several times as well as from JFK. Amazing space. The 330, which you'd fly to HKG, is honestly nothing to write home about. Service, as I said, can be very hit or miss. Sometimes it's excellent, othertimes, it's awful (I had a TERRIBLE service in F on AUH-IAD this summer, though at least was very comfortable
).
The lounges at AUH are nice and all, but honestly, for many connections you'll end up having to go to bus gates. I think the A380s always leave from the T3 contact gates, which are convenient to all the lounges and shopping at AUH.
That said, with the destinations you mention, you can fly nonstop from LHR. It's very out of the way to go to AUH when going to Japan. And yes, I guess AUH is on the way to SIN/HKG, but the fact is, you can go nonstop. Sure, BA service might be iffy, but it's nonstop. Board the plane, fall asleep, and be there. No flying for 6 hours, break, then another 5-6 hours (11 or so to Tokyo). To each their own.
I guess, try it a few times and see if it works for you. I cannot comment on QR as I have not flown them. I have heard nice things about SOME of their planes, and about their lounge at DOH.
Okay, I see your point. The A380 hard product itself IS nice and being in London you should get it most of the time. the J product you'll find on the 380 and the 787 is nice - I find the seat great and there's a terrific use of space that makes it just feel very spacious - well designed. The A380 apts are beautiful. I have flown them LHR-AUH and back several times as well as from JFK. Amazing space. The 330, which you'd fly to HKG, is honestly nothing to write home about. Service, as I said, can be very hit or miss. Sometimes it's excellent, othertimes, it's awful (I had a TERRIBLE service in F on AUH-IAD this summer, though at least was very comfortable
).The lounges at AUH are nice and all, but honestly, for many connections you'll end up having to go to bus gates. I think the A380s always leave from the T3 contact gates, which are convenient to all the lounges and shopping at AUH.
That said, with the destinations you mention, you can fly nonstop from LHR. It's very out of the way to go to AUH when going to Japan. And yes, I guess AUH is on the way to SIN/HKG, but the fact is, you can go nonstop. Sure, BA service might be iffy, but it's nonstop. Board the plane, fall asleep, and be there. No flying for 6 hours, break, then another 5-6 hours (11 or so to Tokyo). To each their own.
I guess, try it a few times and see if it works for you. I cannot comment on QR as I have not flown them. I have heard nice things about SOME of their planes, and about their lounge at DOH.
Thanks Jasondc, don't think it's that strange as a choice for a U.K-based flyer, perhaps you're looking at it from a US perspective?
Most of my travel is LON-Asia (I'm not suggesting flying EY via AUH around Europe!). BA also has relatively little in the way of a network in Asia outside of the largest cities instead preferring to focus on opening up direct routes to third tier US ones, so flights to a lot of Asia on BA involve a connection in HKG or SIN to a short haul flight anyway. As an LHR-based flyer it will be A380 Apartments or Business Studio to AUH, then 789 onwards to SIN/NRT mostly, which doesn't sound like a bad way to fly. The equipment choices to HKG are a bit strange but I can fly CX on that route.
Agree the connection will be the main thing that could kill it for me but I won't know if it's worth the hassle without trying it and the new F lounge doesn't seem like such a bad place to wait. I understand that EY is in cost saving mode also, but BA has taken it *much* further (F is now missing things that are offered in J on many other carriers). There's a steady stream of BA flyers I know and on the BA forum switching to QR, but I'm not sure how I feel about QR sometimes.
Most of my travel is LON-Asia (I'm not suggesting flying EY via AUH around Europe!). BA also has relatively little in the way of a network in Asia outside of the largest cities instead preferring to focus on opening up direct routes to third tier US ones, so flights to a lot of Asia on BA involve a connection in HKG or SIN to a short haul flight anyway. As an LHR-based flyer it will be A380 Apartments or Business Studio to AUH, then 789 onwards to SIN/NRT mostly, which doesn't sound like a bad way to fly. The equipment choices to HKG are a bit strange but I can fly CX on that route.
Agree the connection will be the main thing that could kill it for me but I won't know if it's worth the hassle without trying it and the new F lounge doesn't seem like such a bad place to wait. I understand that EY is in cost saving mode also, but BA has taken it *much* further (F is now missing things that are offered in J on many other carriers). There's a steady stream of BA flyers I know and on the BA forum switching to QR, but I'm not sure how I feel about QR sometimes.
Dec 21, 2016, 1:06 am
#11
Join Date: Mar 2008
Location: UK
Programs: OneWorld Emerald/GHA Discovery Black
Posts: 552
Dec 21, 2016, 5:30 am
#12
Suspended
Join Date: Jul 2007
Posts: 4,477
I guess there are several things to consider:
1, History always repeat itself. If something did not work for one airline; it may not work for a second;
2, Equity partnership is a failure if your investment can not get reasonable return or contribute to your bottom line. Money can not buy you success.
3, Airline alliance is still valid to today's aviation world. AB and AZ did not take advantage of its alliance membership and network, and constantly works as outsider with EY, in the end it did not work out. In other side of the Gulf, QR is working OK with oneworld membership and EK is doing so-so with its strong hold and enormous network. EY unfortunately chose the wrong path and Hogan has to be responsible for its failure.
Dec 21, 2016, 6:01 am
#13
Join Date: Aug 2005
Programs: OWE, *A-G, EY Plat, Marriott Titanium, Hilton Diamond
Posts: 486
I think that this was inevitable. There has been a big shopping spree by Hogan, with little/no return to show for it. As noted above, EY, AB, AZ et al don't play with each other in the way that "partners" should or airlines in an alliance. A perfect example of this is EY Guest recognition by AB. No ability to select seats FOC like TopBonus Plat etc. Basic things like that are missing.
FlyNiki - Get rid. A completely pointless little venture that came for free with the purchase of the AB stake. Even they are not aligned with service standards with AB, leading to a product across brands (and internally) with no consistency.
EY - product degradation has been happening for quite some time. Quality, and quantity, of food on board has slipped. Recognition of FFP is all but useless. FFP is chaotic. Crew are inconsistent, and without wishing to pigeon hole, are pretty much in the UAE to live a perceived high life dashing around the world and taking bloody selfies for Instagram. I have only met a few service focused staff. They take pride in the work and you can't help but feel sorry for them with the increasingly poor product they have to work with. These guys are the ones that EY will loose quickly.
FlyNiki - Get rid. A completely pointless little venture that came for free with the purchase of the AB stake. Even they are not aligned with service standards with AB, leading to a product across brands (and internally) with no consistency.
EY - product degradation has been happening for quite some time. Quality, and quantity, of food on board has slipped. Recognition of FFP is all but useless. FFP is chaotic. Crew are inconsistent, and without wishing to pigeon hole, are pretty much in the UAE to live a perceived high life dashing around the world and taking bloody selfies for Instagram. I have only met a few service focused staff. They take pride in the work and you can't help but feel sorry for them with the increasingly poor product they have to work with. These guys are the ones that EY will loose quickly.
Dec 21, 2016, 12:10 pm
#14
Join Date: Aug 2011
Location: CDG
Programs: SK Gold, AF Gold, Marriott Platinum
Posts: 3,725
EY's only successful European project so far has been Air Serbia, because of low operational costs compared to EU countries, and more importantly, the fact that the Serbian government gave EY free rein to set up and operate the airline whichever way they wanted.
However, AB and AZ are vastly more complex enterprises, due to both sheer size and the socio-political environment. They've obviously been too big a bite for EY.
However, AB and AZ are vastly more complex enterprises, due to both sheer size and the socio-political environment. They've obviously been too big a bite for EY.
Dec 21, 2016, 1:43 pm
#15
Suspended
Join Date: Jul 2001
Location: Watchlisted by the prejudiced, en route to purgatory
Programs: Just Say No to Fleecing and Blacklisting
Posts: 102,095
When even the UAE's Mubadala and IPIC are merging and looking for a way to cut the UAE's costs/losses, it is not all that surprising that Etihad ends up being a focus of cost-cutting too.
This all is happening despite the rise in oil prices. Go figure, but there must have been some seriously big blunders for all of this to happen in such close timeframe.
This all is happening despite the rise in oil prices. Go figure, but there must have been some seriously big blunders for all of this to happen in such close timeframe.