Etihad to acquire 40% stake in Air Seychelles
Etihad confirmed (25-Jan-2012) it will acquire a 40% stake in Air Seychelles as part of a strategic partnership alliance initiative between the two carriers. Etihad's investment of USD20 million will be matched by a capital injection from the Seychelles Government. Etihad will also provide a shareholder's loan of USD25 million to meet working capital requirements and support network development. The following initiatives will take place under the partnership:
- Etihad will seek to increase Abu Dhabi-Mahe frequency from four times weekly to daily, as well as providing new services to the islands;
- Etihad will work in conjunction with Air Seychelles to develop a renewed fleet and network growth plan for the carrier;
- The carriers will sign a comprehensive codeshare agreement to include Etihad-marketed services across Air Seychelles' network;
- Frequent flyer programmes Etihad Guest and Seychelles Bonus will be integrated to include mileage earning and redemption on each others services. [more - original PR] [more - CAPA Blog Air Seychelles] [more - CAPA Analysis Etihad]
Etihad: “This deal is consistent with our approach to expansion, which relies on the strength of strategic partnerships across the globe. The investment in the national carrier of Seychelles is a natural next step towards growing our operations in the increasingly important leisure markets of the Indian Ocean and Africa." James Hogan, Etihad President and CEO. Source: Company statement, 25-Jan-2012.