Etihad takes on global airlines alliance

ALTHOUGH Etihad Airways
maintains that it is not
planning to form a ‘fourth
alliance’, the new Etihad
Airways Partner brand will
see the airline considerably
expanding its footprint across
the globe through its equity
partners.
Initially, six airlines will
participate in the new
partnership: airberlin, Air
Serbia, Air Seychelles, Jet
Airways, Darwin Airline and
Etihad Airways. Any airline can
become an Etihad Airways
Partner, even if it was part of
an existing alliance, such as
airberlin, which is a member of
oneworld, the airline said in a
press statement.
In a press release
announcing the new brand,
James Hogan, president and
ceo of Etihad Airways, lashed
out at the global alliances for
having complex and confusing
loyalty structures.
James said the formation of
the new Etihad brand would
see increased benefits for
frequent travellers, such as
standardised mileage and tier
benefits across all partners
with no blackout periods.
“Frequent flyers will benefit
from the formation of Etihad
Airways Partners as it will
remove the complexity and
confusion that exists within
the global alliances. We’re
aiming to deliver a consistent
experience for frequent
flyers when they travel, and
a consistent framework for
earning and using their miles.”
Chris Karanja, spokesperson
for SkyTeam, says Etihad’s
Partnership Brand is not a
threat to the existing alliances,
which represent almost 60% of
the market. “Smart alliances
enable members’ migration
to the constantly changing
environments.” Chris says
there is still space for another
platform, but asks what value
will it be to its members and
how much of a global footprint
will it be able to offer.
 Chris Zweigenthal, ce of
Aasa, says all Middle Eastern
carriers have become a
force to be reckoned with
as they are currently already
dominating the airline industry.
He says Etihad, Qatar and
Emirates have huge ambitions
to grow their offering and
that the new Etihad brand
is just another example
that illustrates this. “They
are definitely creating an
interesting dynamic within
the airline industry.” He says,
as the three Middle Eastern
carriers go from strength to
strength, certain countries may
start to limit their rights for
their own national carriers to
survive in the future.
Germany recently started
blocking Etihad from selling
tickets for 34 codeshare
flights operated by partner,
airberlin. Etihad and airberlin
have, in the past, shared
codes on flights to around 60
destinations, meaning their
number of shared flights will
more than halve.