Etihad Airways are today reported to be on the verge of cancelling their orders for the A350, as well as outsourcing lounges in a bid to cut costs. For Etihad financial struggles have been coming to a head for some time now. Reporting losses of $1.52bn last year. And that was on top of a loss of $1.87bn the year before. Is this end of Etihad Airways? Comment below of your opinion.
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Oh no…that’s bad for Airbus. The fact that they also canceled their orders for the 777-9X is bad for Boeing. Money problems could cause Etihad to go bankrupt,though the UAE Government will probably back it up. Could the merger of Etihad and Emirates become possible?
It was just a rumour about merging Emirates and Etihad but both parties denied it. Well, my opinion, Etihad are struggling to recover. They sold some Fleets, closed some Lounges in the busies Airports and now cancelled orders.
This is going play out interesting in The future
I sadly see this demise for all airlines that continue using quad engine aircraft as a “staple” in their fleet. There’s one thing about them.
The cost miles per gallon per passenger on the 380 is astronomically higher than 787 and A350 family.
I seee emirates demise in the future, along with Qatar. It’s time to axe the jumbos.
Thanks wendover for this.
The thing is that I believe there are too many airlines on the peninsula. This was bound to happen to one of the airlines.
Survival of the fittest if you will. They need to hunker down and not do what eithad did.
i think Etihad had lots of competitors with cheapest fares. i think etihad is way too luxury and maybe too expensive which customers aren’t attracted with. Another factor is the Fuel Price Hike.
The 787 should be the future. Really don’t need the 4 engine jumbos.
Etihad have 787. A350 and B777x was part of it of their new fleet orders. but since they losing lot of money, they have to cancel the orders.
This is honestly so sad. Businesses and small airlines are also seeming to keep collapsing lately.
I honestly think they expanded too much too fast. It’s like what’s happening to WOW, Norwegian, and maybe Icelandair a bit, and has happened to AirBerlin and Primera Air. I think they’ll end up like the airline that they bought and gave up on. Alitalia.
Basically what happened with JAL only a decade ago. They went above and beyond everything and almost went down the drain.
Etihad could be facing the same horror, but only time will tell and what kind of financial strategies they may come up with, trying to save the airline from going bankrupt. Also what part are the government going to play and how much they are willing to give and pay for Etihad’s survival through this economical backlash they’re facing.
Untimely, I think all the Middle East airlines are heading for bankruptcy unless that do something about it, which they will try to keep the airline going. I don’t really see a way they can make a comeback.
Honestly, People who choose other Middle East airlines choose them just because Etihad Airways is not even close to its rivals, personaly iv had an bad experience with Etihad, I would never fly them again.
I had a horrible experience over at their HUB Abu Dhabi about 14 years ago, since then I’ve chosen to fly with Qatar or other European Airlines such as Lufthansa and why not Asian ones like Thai Airways.
Etihad in my opinion does do bring back a lot of nostalgic memories, so I can’t say I don’t like them from a personal perspective just because of the bad service at Abu Dhabi and also that doesn’t mean my view towards them about their future will be negative but looking realistically the path they are running down now isn’t going to lead them to victory, more or less they’re going overshoot the runway one day, and that’s the end, unless a miracle can play out and they save themselves from this hell bound road.
So regardless of how I feel about them, that does not interfere with what I might think will happen to them. So if I talk negatively about them, it isn’t due to that I didn’t find their service good back then it’s what I hypothetically think could happen in the future. And I mostly, did used to believe only a few months ago that they would make it out fine, but now I’m countering my own words and thoughts and really pondering on that fact of whether they actually will see the first daylight of 2020… :/
Abu Dhabi Airport, way too small for an airline like Etihad. Unfortunately, things like this stop people from flying with them. Take the example of Emirates, They already have one of the best airports in the world and now they are building their new one. They keep trying to bring the airline to higher standards, I really respect them for that. But then again, the Middle East is not getting the money they need to function properly, That’s why their new airport is put on hold as they do not have the financial support to continue, they get this Money in dollars in from places like the US. Again, unfortunately I don’t see Ethaid doing anything to grow nor do I see them flying in the near future.
Dubai, that’s a whole another story. Their massive global expansion is beyond imagination. Who would’ve thought that a City in the Desert would become one the world most important and leading financial hubs, and the Airport, serving airlines from across the world, and their flag Carrier, the proud Emirates Airlines, a fleet of 80+ 777 and A380’s is buzzing in the skies above.
I mean compared to the size of Abu Dhabi, Dubai is far ahead, in many areas and aspects, especially in management of Air Traffic. Basically, Dubai Int’l handles more international flights than most other airports in the world. It’s one the biggest and busiest, also with their own Airline, Emirates flying to all corners of the world, with some of the worlds best service at hand.
I’m not saying it’s the best or my favorite, but from a business perspective, Emirates growth has been far more successful at a steady pace than Etihad’s somewhat rushed expansion with a couple of A380’s in its fleet at early stages of operation. I mean sure, buy them but have the cash to provide them with what they need. Fuel!
A380’s as we know are a lot less efficient than the 787, 777, A330 and other Twin-Jet planes, so if a airline is opting for the A380 they got to have the resources to operate them at full capacity and prior experience of handing bigger planes. Now that Etihad bought these early on in their life life, unlike other Airlines like SQ, EK and Asiana, Etihad aren’t able to fill all seats, they aren’t as popular as other airlines due to their short lived life, and obviously that holds a factor to empty seats on A380’s with their high costs, yeah you get it, not a good combo for young company.
They do have multiple B787-9’s but what does that help now with their Billions of USD in loss over the course of 2 years only. 787 can’t make up for it, when they are still flying many times a year, A380’s with quite a few empty seats. The fuel is burning, so it the money, where’s the profit? In the hands of the Devil, maybe?
As they expanded so quickly, and so did their airport, they went a little bit out of hand. Like how JAL went beyond their knowledge of expertise and began with Hotel and Resorts early on in the 70’s i think it was, just like them Etihad is expanding within their territory but building up a network to fast with too little costumers to fly with them. Since Emirates since a long time have been one the ruling airlines in the whole world, not only the Middle East, Etihad faced competition from the beginning from its older brother in its own nation. So it was blow on the money from the start, they did good at fist but when they tried to catch up to Emirates level of everything pretty much only to compete against other big airlines in the world, to call themselves to be a part of the big three in ME, they messed up pretty badly by going too far, too fast.
Now you could really see that Ethihad is on the fence financially
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