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Etihad partnership strategy evolves further as joint purchasing with airberlin and Jet is pursued

Analysis

Etihad Airways is looking to take its alliance and partnership strategy another step forward by negotiating a potential joint aircraft order. The joint purchasing of aircraft and other smaller products such as seats on the new 787 could provide some of the carriers that Etihad has invested in an economy of scale that otherwise would be unobtainable.

Etihad currently has codeshare partnerships with 43 carriers. Joint purchasing will likely be limited to some or all of the five carriers that are now partially owned by Etihad. So far negotiations with aircraft manufacturers have included airberlin, Air Seychelles and Jet Airways with Aer Lingus and Virign Australia potentially joining the discussions later. Other airlines that Etihad buys into in future could also join later but for now Etihad is not looking to expand its investment portfolio.

Etihad has emerged as a leader in building up partnerships outside the main global alliances. The Etihad alliance and similar initiatives by other non-aligned carriers have become a viable alternative to global alliances. A joint aircraft order would provide an example of the Etihad alliance even providing a significant benefit that global alliances have so far not been able to offer.

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