Etihad Airways Flies into new Territories

Etihad Airways plans to set up joint ventures this year as part of its strategy to become an integrated company with diversified revenue sources.

The airline has already set up subsidiaries in travel management and armoured transport, and expects to announce more in the coming months.

The shift will see Etihad create units in much the same way as Emirates has grown into a holding company with more than two dozen subsidiaries in travel, retail and services that contribute substantially to the bottom line of the airline, and to its sister company Dnata .

"We continue to look at ways of improving the business through partnerships," said James Hogan, the chief executive of Etihad. "There are a couple of announcements in the next few weeks."

Etihad this year established Hala Abu Dhabi to offer travel products, services and activities in the UAE including tours and desert safaris, event management, airport greeters, ground transport, and luxury and economy accommodation options.

It has already created travel packages for the Formula 1 Etihad Airways Grand Prix and other motor racing events in the capital through the service.

Last week, Etihad signed for a joint venture with an Australian company focusing on the transport of valuable goods such as gems, bullion and artworks. Armaguard Group, a subsidiary of Linfox, is linking with Etihad to create a cargo facility in Abu Dhabi called ACM UAE.

Mr Hogan said the venture would capitalise on the capital's projects such as the planned local branches of the Louvre and Guggenheim museums.

Much of the UAE's armoured transport services are conducted by Transguard, a unit of Dnata with 30,000 employees.

Emirates's bottom line includes contributions from hotels such as Premier Inn and Al Maha Desert Resort & Spa, as well as properties in Australia and the Seychelles.

The airline has a flight-training joint venture with CAE of Canada, while its catering unit in Dubai provides meals for airlines flying out of Dubai International Airport.

Emirates Airline also owns an alcohol distributor and 18 retail franchises including Costa coffee, Left Bank and Noodle House.

Mr Hogan said Etihad would build subsidiaries over time as Emirates had done.

"The guys down the road have built an integrated company and they are 26 years old," he said. "People sometimes forget we are just seven years old."

Etihad plans to open two routes this year, including one in Europe, and will receive seven new aircraft from Boeing and Airbus.

This month, the airline will roll out an online sales platform that will package options for air travel, hotel stays and car rentals, Mr Hogan said.

"It will allow our customers to transact faster, with better content," he said.