Etihad welcomes equity partner’s turnaround

Etihad Airways has welcomed the turnaround of equity partner Air Seychelles which has posted a profit following three years of losses.
A net profit of $1 million was achieved just one year after Abu Dhabi-based Etihad Airways acquired a 40 percent stake in Air Seychelles along with a five-year management contract to provide strategic support and management expertise in reshaping the airline as a sustainable commercial entity.
The result marks a dramatic change of fortune for the Indian Ocean carrier which had made heavy losses for past three years.
James Hogan, Etihad Airways’ president and CEO, said: “The challenges in the global economy mean it is still a very tough environment for airlines. Against that backdrop, this is an impressive result."
Hogan added: “This performance validates the strength of our equity alliance proposition in which closer committed commercial collaboration drives revenue growth, and the integration and consolidation of key functions, achieves economies of scale and cost savings."
He said: “It is also testament to the hard work and willingness of the Air Seychelles team to embrace change and make the tough decisions required in reshaping their business.”
Network and fleet planning centralized in Abu Dhabi has resulted in a new network plan which will support the hugely important tourist sector in Seychelles more effectively with good connections and broader choice for visitors to the archipelago.
The optimized schedule has enhanced connectivity with Etihad Airways and other partner airlines over Abu Dhabi.
Nineteen new codeshare destinations with Etihad Airways will open up key European markets.
Leveraging synergies and economies of scale arising from its relationship with Etihad Airways, Air Seychelles has been able to achieve substantial savings and cost reductions in aviation insurance, international catering and ground handling and inflight entertainment.
The conclusion of joint contracts for fuel, uniforms and stationery supplies, all contributed to significantly reduced costs.
Another key benefit of the equity partnership has been the broad access to Etihad Airways’ state-of-the-art Training Academy in Abu Dhabi, and Etihad Airways’ Emiratisation initiatives including the technical training program, the cadet pilot program, and the graduate manager development program.