Etihad Airways Negotiates Airbus Orders Ahead of Dubai Airshow

Etihad Airways is reportedly in discussions with Airbus for potential orders of the Airbus A350 and A330neo ahead of the Dubai Airshow, set to take place in March 2024. The Abu Dhabi-based airline aims to expand its fleet as it seeks to enhance its operational capabilities and profitability.

The interest in the Airbus A350 is not surprising, given that Etihad already operates this model. The A350 has proven to be a valuable asset for the airline. In contrast, the consideration of the Airbus A330neo is more unexpected, as Etihad does not currently have any A330s in its fleet. Instead, the airline predominantly operates a fleet of 47 Boeing 787s, comprising both the 787-9 and 787-10 variants.

Etihad’s Fleet Expansion Plans

Etihad Airways is one of the three major carriers in the Middle East, alongside Emirates and Qatar Airways. It is notable that while the airline has restructured since facing significant losses in the late 2010s, it is now poised for growth. The recent talks with Airbus signal a strategic move towards expanding its fleet and services, with a focus on doing so more profitably than in the past.

Currently, Etihad operates a diverse fleet that includes the Airbus A320-200, A321-200, A321neo, A321LR, A350-1000, Airbus A380-800, Boeing 777-300ER, and the Boeing 787 family. The airline has 11 outstanding orders for the A350-1000, but it remains unclear whether this potential order will involve the same variant or if it will include the A350-900.

The possibility of adding the A330neo is particularly intriguing, especially since Etihad has previously operated both the A330-200 and A330-300, which have since been retired. If Etihad proceeds with this order, it is likely to choose the A330-900 variant, which is designed for shorter routes and has a similar size to the Boeing 787-9.

Strategic Network Opportunities

The integration of the A350-900 into Etihad’s fleet would enhance its ability to serve long-distance routes efficiently. By complementing the Boeing 787-9, the A350-900 could improve passenger capacity and payload capabilities. This strategic move aligns with Etihad’s focus on maintaining a competitive edge in an evolving market.

Incorporating the A330neo into its operations could also provide Etihad with a fuel-efficient option for its network, which primarily connects Europe and Africa to Asia. The A330-900 is particularly well-suited for these routes, allowing for cost-effective operations while maintaining service quality. Additionally, the A330-900 is generally more affordable and offers shorter lead times for delivery compared to new Boeing 787s, which is a crucial consideration for an airline with ambitious growth plans.

As of now, Etihad operates a fleet of 112 passenger aircraft, significantly smaller than its competitors, with Qatar Airways operating 235 aircraft and Emirates flying 257. Nonetheless, Etihad has managed to return to profitability after years of restructuring and is determined to grow its presence in the market.

The airline has set an ambitious target to double its fleet and triple its passenger numbers by 2030. It currently has 88 passenger aircraft on order, along with 10 Airbus A350 freighters. This potential new order is a clear indication that Etihad is not satisfied with its current position and is eager to compete more vigorously with Emirates and Qatar Airways.

The potential acquisition of additional Airbus aircraft represents a step towards a more sustainable growth strategy. Etihad aims to identify markets with limited competition, as exemplified by its new route to Charlotte, which currently has no service from its larger rivals, Emirates or Qatar Airways.

In conclusion, the discussions between Etihad Airways and Airbus highlight the airline’s ambition to expand its fleet strategically while focusing on profitability. As the Dubai Airshow approaches, the aviation industry will be closely watching to see how these negotiations unfold and what it means for the future of Etihad Airways.