Etihad aims to raise $2 billion to finance aircraft deliveries

Etihad awaits the delivery of 18 aircraft this year, including 10 Airbus and eight Boeing.

Powered by automated translation

Etihad Airways aims to raise US$2 billion to finance its aircraft deliveries this year, including its first Airbus A380 superjumbo and Boeing 787.

"Etihad Airways continues to expand its relationships with financial institutions in markets around the world, which in turn play a crucial role in the expansion of the airline's global network and fleet of aircraft," said James Hogan, Etihad's president and the chief executive, after attending roadshows in London and New York.

During the past 10 years, the carrier has raised more than $8bn from 68 financial institutions to fund aircraft and engines.

Etihad awaits the delivery of 18 aircraft this year, including 10 Airbus and eight Boeing.

Etihad’s growth strategy has relied heavily on expanding its route network through “equity alliances” in which it invests in carriers that help it to expand its global reach in strategically important regions.

In 2013, Etihad grew its equity alliance to seven partners — Air Seychelles, Air Berlin, Virgin Australia, Air Serbia, Ireland’s Aer Lingus, India’s Jet Airways and Etihad Regional (a Swiss carrier formerly known as Darwin Airline).

Last week, Etihad raised its stake in Irish airline Aer Lingus to 4.1 per cent.

Etihad reported a $62 million net profit in 2013, an increase of 48 per cent from 2012, while revenue reached $6bn last year.

selgazzar@thenational.ae

Follow us on Twitter @Ind_Insights