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Air Seychelles looks to ride Chinese boom & grow in tandem with part-owner Etihad – Australia next?

Analysis

The Seychelles attracted 4,500 Chinese tourists in 2012, so it and flag carrier Air Seychelles look with envy to the Maldives, which in 2012 had 230,000 Chinese tourists. Air Seychelles hopes to attract a greater number of Chinese visitors not only from its flights departing Hong Kong, the first of which left on 25-Mar-2013, but via traffic feed across mainland China from a pending partnership with Cathay Pacific that it hopes to announce in coming weeks. In exchange for feed, Air Seychelles' link will enable Cathay to sell the Seychelles, finally giving it a presence in China's booming demand for luxury tropical getaways. And the Cathay partnership may be extended to Air Seychelles' part-owner Etihad Airways.

Air Seychelles links Mahe to Hong Kong via Abu Dhabi, effectively giving Etihad Airways - which owns 40% of Air Seychelles - an Abu Dhabi-Hong Kong flight via codeshare in absence of its own service to Hong Kong due to aircraft shortages. This use of open air service agreements, at Air Seychelles/Etihad and globally, is only in its early days. A MoU between the Seychelles and Australia could also in the long-term allow Air Seychelles to expand Etihad's footprint in Australia at a time when competitor Emirates is dominating the continent and the UAE-Australia bilateral capacity is capped.

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