Etihad Airways is on track to raise US$2 billion this year through loans for investment purposes.
“Last year, we raised approximately $2bn and this year we are on track to raise approximately US$2bn,” said James Rigney, Etihad’s chief financial officer. “The primary focus of that money is aircraft-related and for investments in our equity partners.”
Etihad has expanded its global route network by forming “equity alliances”, in which it invests in carriers in strategically important regions. It has formed alliances with Aer Lingus, airberlin, Air Serbia, Air Seychelles, Virgin Australia, India’s Jet Airways and Switzerland’s Etihad Regional. Its latest investment is in Alitalia, the financially ailing Italian airline.
Mr Rigney also said that since 2007, Etihad’s fuel hedging programme has saved the airline about $500 million. Fuel constitutes about 40 per cent of the Abu Dhabi carrier’s expenses.
On Wednesday, Brian Pearce, the chief economist at International Air Transport Association, said that Iata did not plan to again revise its outlook for profitability this year.
In March, the global aviation body revised down its outlook for the year and forecast a fall in profit to $18.7bn from $19.7bn previously.
Iata’s main reason behind the revision was higher oil prices, but it said that it expected the impact to be offset by an increase in demand, especially in cargo, which is supported by a stronger global economy. Iata warned at the time that “government policies” and “geopolitical risks” could negatively affect the aviation industry this year.
selgazzar@thenational.ae
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