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Etihad raises its Europe profile with codeshares and equity, expanding indirect connections

Analysis

Etihad will have grown the number of direct seats flown between its Abu Dhabi hub and Europe by 39% in the two year period from Dec-2012 to Dec-2014 (source: OAG). This is faster than the other two of the Gulf Three and also faster than Turkish Airlines' growth in international seats between its Istanbul Ataturk hub and Europe.

Nevertheless, Etihad itself remains the smallest operator of this quartet by number of seats to Europe, with only around two thirds of Qatar Airways' capacity and less than a quarter of that of the other two.

Etihad's use of codeshares and equity investments to increase its market presence in Europe has mainly focused on indirect connections. With an investment in codeshare partner Alitalia expected soon, its strategy is receiving a great deal of attention from competitors and regulators.

This report looks at how important have Etihad's codeshare agreements been in increasing its network profile in Europe. Have its equity investments further enhanced its market presence in Europe - and in what ways?

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