Today's Edition
A.SREENIVASA REDDY (ABU DHABI)
Etihad Airways is demonstrating notable strengths in its operational performance, even amidst a competitive landscape, according to an analysis by AvBench, an aviation industry analytics provider.
This analysis arrives as Etihad is set to announce a $1 billion initial public offering (IPO), a significant milestone marking the potential first public listing by a major Gulf airline.
AvBench's report offers a comprehensive look at Etihad's performance, based on Q3 2024 data. The report indicates that Etihad is performing well in its medium/long-haul network. AvBench notes that Etihad's wide-body fleet is currently the most profitable when compared to Emirates and Qatar Airways — two other Middle Eastern carriers.
The airline has made a commendable recovery from the COVID-crisis, evidenced by the successful return of its A380s.
AvBench also highlights Etihad's strengths within its short-haul network. Specifically, the airline holds a solid position in the UAE-to-India market, securing the third-highest revenue market share. Etihad is also showing good results on key Indian routes, including Abu Dhabi to Delhi and Abu Dhabi to Mumbai.
The AvBench report provides a detailed analysis of Etihad's performance across several key areas. This includes a breakdown of market performance, identifying both strong and less strong routes. For short-haul, strong routes include Abu Dhabi to Delhi, Mumbai, Cairo, Jeddah, and Karachi, while routes such as Abu Dhabi to Beirut, Hyderabad, Lahore, Ahmedabad, and Bengaluru present more of a challenge. For medium/long-haul, strong routes feature Abu Dhabi to Phuket, Bangkok, Jakarta, London, and Kochi, with Abu Dhabi to Paris included in routes with more room for improvement.
The report also examines Etihad's performance in key markets, considering factors such as the percentage of Available Seat Kilometers (ASK) deployed, revenue market share, ranking among competitors, main competitors, and the types of aircraft deployed. ASK is a key metric in the airline industry used to measure an airline’s passenger-carrying capacity. It represents the total number of available seats multiplied by the distance flown in kilometres.
Furthermore, the report delivers an analysis of Etihad's fleet, detailing aircraft types in service and on order, average fleet age, average seat count, and engines used. Route analysis is also a key component of the report, with a detailed breakdown of performance on specific routes.
In its analysis, AvBench identifies both opportunities and areas for strategic consideration for Etihad. Opportunities include the continued growth potential with the A321neo aircraft and maximising the economic advantages of long-range aircraft.
While Etihad has demonstrated strength, the report also provides a forward-looking perspective. Etihad, like its regional competitors Emirates and Qatar Airways, has benefited from its geographical advantage along the Asia-Europe/North America corridor. AvBench suggests that this advantage could potentially be challenged by airlines in neighbouring regions that may be well-positioned to leverage the capabilities of next-generation aircraft.
The report notes that while a one-stop flight may not be as economical as a non-stop option, a narrowbody/widebody combination can offer greater efficiency than two widebody flights. Airlines like Turkish, IndiGo, or Air India, with their upcoming aircraft orders, may capitalise on this, along with the growth of their respective regions.
Currently, approximately 50% of Etihad’s ASKs are deployed on routes under 3,000 nautical miles, often utilising aircraft designed for much greater distances. In a region that has historically favoured larger aircraft, a strategic shift towards smaller, more efficient aircraft options could become important for sustaining competitiveness, the report said.
AvBench employs detailed metrics and methodologies in its analysis, including the MOXI Index and the COFI, with data sourced from providers such as Milanamos and ch-aviation. AvBench is an aviation industry analytics provider that collects and analyses traffic, revenue, and schedule data, in addition to fleet data, covering more than 500 airlines.
