Etihad Airways finalised (19-May-2013) an agreement to acquire Abu Dhabi Airport Services, Abu Dhabi In-Flight Catering, and Abu Dhabi Cargo Company from UAE's Abu Dhabi Airports Company (ADAC), subject to regulatory approvals. The companies will be incorporated into the airline's subsidiary Etihad Airport Services and will continue to provide ground handling, catering and cargo handling services to Etihad Airways and other airlines at Abu Dhabi International Airport. The integration is expected to provide revenue opportunities, cost savings and operational efficiencies. Etihad Airways president and CEO James Hogan said, "This acquisition follows international best practice and is critical to the continued growth of the airline, and more importantly to the sustained growth and development of Abu Dhabi's aviation industry in general as envisioned in the Abu Dhabi Plan 2030. It is once again in line with our strategy of working closely with our partners and service providers to achieve greater organisational and commercial alignment and a more consistent delivery of products and services along the entire value chain of the customer's experience. Airline and cargo customers will also benefit from enhanced service levels and greater integration across hub operations." [more - original PR]
Etihad Airways to acquire ADAC's ground handling, catering and cargo handling companies
You may also be interested in the following articles...
Emirates has multiple reasons for cutting back on US capacity
As the most conspicuous and largest, Emirates Airline often takes on its shoulders the increasingly difficult task of defending Gulf aviation. Emirates often single handedly represents the Gulf and "Middle East Big 3", in much the same way as Dubai carries regional geopolitics.
Just as there are significant differences between the Big 3 US airlines who have strenuously opposed the Gulf carriers in the US market, so Emirates is fundamentally different from its peers: it is longer established, has a larger home market and has had a more commercial mandate from the beginning.
Yet Emirates must compete in a market where many others would like a piece of that market. Just as Dubai Inc modelled itself in many ways on Singapore Inc, there are many who would follow the same trail. This does not lead to steady market conditions.
Certainly the policies of US President Trump have hurt aviation and tourism. But Emirates' announcement of a 19% reduction in services to the United States is less about US policies and more about the nature of the market forces that started before Trump was even a serious Presidential contender.
Lufthansa and Etihad bedfellows - at last - but unions may make marriage a distant prospect
There can be no understating the symbolic change in mindset of Lufthansa agreeing to partner with Etihad. Lufthansa has spent the better part of a decade rallying against Gulf airlines to the press, lobbying in Europe's power corridors and seeking a range of aeropolitical measures to wind back new competitors. Etihad has been the prime target for its investment and ongoing top-ups in a range of European airlines including Lufthansa's home competitor, the failing airberlin. Despite that, it is not well known that the two have come close to a liaison before, suggesting that each sees an intrinsic logic in a relationship.
The partnership has potential to be more significant than Emirates-Qantas, Qatar-IAG or Etihad-AF-KLM. But for now it is limited in scope and caution should be exercised in extrapolating too far at this stage.
Lufthansa CEO Carsten Spohr is seeking new growth platforms that sidestep the flagship business' uncompromising unions who would seemingly prefer a status quo that exists only in memory. Their support will be necessary if the partnership is to work and grow. Then Lufthansa, which has rallied the Star Alliance and JV partners against Gulf airlines, will need to explain its change of heart. For now Lufthansa will not partner on Etihad's beyond-Abu Dhabi network, a move that would embrace the fundamental business plan of Etihad and peers. That upside remains a matter for speculation.