Dubai
Etihad’s re-positioning as a mid-sized carrier signals a broader shift towards low-cost carriers by Abu Dhabi. The transition – which began with the launch of Air Arabia Abu Dhabi and Wizz Air Arabia Abu Dhabi earlier this year – will gain further momentum as Etihad takes on smaller footprint operationally.
“Looking at the ongoing destruction inside of the [global airline] sector, with prolonged delays in recovery, the need for restructuring is clear,” said Cyril Widdershoven, founder of Verocy, a consultancy. “The dream of most GCC carriers and airports to be the leading ones worldwide is being hit hard, especially because EU-Asia business travel and tourism are out.” On Sunday, Etihad announced organizational changes aimed at transforming the company into a “mid-size, full-service” carrier with a “leaner, flatter and scale-able” structure. –AN
