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Etihad-China Eastern codeshare starts small but with enormous potential

Analysis

With little fanfare, Etihad Airways has notched China Eastern as codeshare partner number 37. At first glance, benefits may seem limited: Etihad has services to China Eastern's hub at Shanghai but China Eastern's only services to the Middle East are twice-weekly from Kunming to Dubai, close but not at Etihad's hub of Abu Dhabi. Yet the partnership has potential to develop powerfully and be one of the most important to each carrier.

It is a long-term possibility. China Eastern has a number of initiatives and not always enough support to see them through as quickly as Etihad can. Further cooperation will also depend on how markets develop. Unlike bullish China Southern, China Eastern is conservative with its long-haul growth and is not certain on the long-term prospects of Europe. Reducing direct long-haul exposure via a partnership with Etihad, which could also reach other markets, could be ideal. Etihad stands to receive further access to mainland China, which will one day be the largest domestic market and which it cannot serve entirely on its own, due to fleet, demand and bilateral restrictions.

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