Face-to-Face with Cramer Ball, Etihad Airways
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Cramer Ball
Etihad Airways
Regional General Manager for Asia Pacific South and Australasia
Q1. Etihad recently announced huge, multi-billion dollar aircraft orders at the Farnborough Air Show. In times when the aviation industry is suffering globally, how is Etihad able to pursue such expansion?
Our recent deal signed at Farnborough is part of the airline’s long-term strategy to take us to more than 150 by 2020. The order is aimed at protecting our position and will enable us to expand the airline. We have developed a network plan out to 2030 which factors in travel projections into Abu Dhabi and beyond. This order will help us deliver that plan.
Our geographical location also means that we can tap into markets offering high traffic potential such as India and North Africa.
Q2. With its rapid fleet expansion, how is Etihad coping with the increased need for trained staff?
We have been on an aggressive recruitment and training drive for a number of roles including pilots, cabin crew, engineers, ground staff. We believe that our established reputation is helping us to attract the best candidates.
Q3. How much has Etihad’s rapid recent growth been influenced by the Middle Eastern business travel boom?
The development of Abu Dhabi is extremely important. Abu Dhabi is the capital of the United Arab Emirates; it’s investing in excess of US$200 billion in domestic infrastructure over the next 10 years. More professionals are coming into the region to work within Abu Dhabi, and more companies are investing in Abu Dhabi as an important base for their Middle East operations.
Q4. One Asian carrier recently announced the end of its ‘ultra long haul’ flights, citing them as economically unviable. How have Etihad’s services to, for example, Sydney, Johannesburg or Toronto been affected by recent fuel price hikes, and does Etihad intend to continue developing these long-distance services?
One of our key strengths as an airline is that we provide direct access to many cities not serviced by other airlines. Our Sydney services are 90% full, so there is definitely demand for ultra long haul flights.
There is no question that the aviation industry is going through a difficult period. Oil has impacted all airlines. In 2006 we embarked on an aggressive hedging cycle. We were 70% hedged in 2007. In 2008, we’re 80% hedged. Next year, we’re hedged at 40% at this stage.
We’re seeing fuel trending down and the price of oil should stabilise. We’re hoping that we’re able to get to a level that enables us to move forward at a hedging again in the back quarter of this year. And at the same time we’ve pushed through fuel surcharges.
It’s a tough cycle we’re working through, but we’ve seen it before.
Q5 What are your visions for the future of the aviation industry, given the current plight of many carriers?
There are a number of issues facing the airline industry such as ownership issues, regulation and work practices. I think we’re going through a cycle within aviation where we’re going to see some of those barriers be lessened, which gives airlines the opportunity to look at other ways they can partner, acquire and be able to take costs out of their business. I believe we’re going to that era.
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