Etihad Airways: Flying high on the journey to global superpower status

Etihad has grown revenues and profits, and increased operational measures such as load factor, cargo tonnage, and revenue passengers. Profit margins, however, remain a concern. Etihad is central to Abu Dhabi's economic plan to build 'a sustainable economy,' by reducing its reliance on oil income. Tourism is at the forefront of this drive and Etihad is the transport that will drive the industry.

Scope

Learn about Etihad Airways' origins and its growth since it was founded.

Assesses the growth opportunities for Etihad and looks at how the company may exploit them.

Offers an analysis of the threats that could potentially set Etihad back on its path to becoming a global superpower in the airlines industry.

Compares Etihad's recent financial performance to several of its competitors.

Reasons to buy

What is Etihad Airways?

How does Etihad's performance compare to that of its competitors?

What are Etihad's growth prospects ?

What threats is the company facing?

Companies mentioned

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Table of Contents

OVERVIEW

Catalyst

Summary

ETIHAD: A YOUNG, FAST-GROWING COMPANY

Etihad: The national airline of the United Arab Emirates

Etihad is a fully diversified airline

Etihad is a key part of Abu Dhabi's 2030 economic plan

Financial performance characterized by growth

Impressive revenue growth

Grown key operational areas

Profit margins remain a concern for Etihad

GROWTH OPPORTUNITIES AT HOME & OVERSEAS

Growing UAE tourism & airlines industries offer opportunities

UAE airlines industry booming

Exploiting the UAE's Middle East location

Buoyant tourism industry driving demand for flights

Migrant workers a source of passengers

Increasing number of flights, destinations, and fleet size

Acquisitions and code sharing aid international expansion

Etihad has eight equity partners

Codeshares allow Etihad to reach more destinations

Differentiate by service quality across the value spectrum

ETIHAD BUSINESS MODEL NOT WITHOUT THREATS

Low margins leave Etihad at risk of small economic changes

Intense competition & price wars could erode margins further

Controversy over government subsidies for Gulf state airlines

CONCLUSIONS

Flying high but potential turbulence on the horizon

APPENDIX

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