(Yicai) Sept. 27 -- Etihad Airways' primary focus is to achieve sustainable expansion, and China will play a key role in this process, according to the chief executive officer of the Emirati airlines.

"At the beginning of this year, we formulated a new plan and redefined our carrier's vision and mission," Antonoaldo Neves told Yicai during the recent 2023 North Bund Forum. "Our objective is to achieve sustainable financial profitability in the future, with the Chinese market playing a crucial role in the expansion of our global network.

"In the first 15 years since the company's inception, the Abu Dhabi government has made substantial investments with the goal of connecting the world through an extensive network of routes,” Neves added, noting that this marked the initial phase of Etihad Airways' development.

Over the past three to four years, Etihad Airways has undertaken a comprehensive transformation. Not only has this included adjusting its fleet and network but also divesting several subsidiary businesses, such as engineering maintenance and flight training schools, in order to sharpen its focus on its core aviation business. After narrowing its losses from 2020 to 2021, the firm returned to profitability last year.

"Now, Etihad Airways has entered its third phase of development," Neves said. "Our primary focus is on sustainable expansion, which essentially entails deploying the right aircraft in the right markets and enhancing connectivity for more passengers within our appropriate network," he explained.

"In the past, our aim was to connect the entire world," Neves pointed out. "Now, we prioritize medium- and long-haul flights, shifting away from ultra-long-haul routes due to the escalating costs and reduced aircraft efficiency associated with longer flights." Flight rescheduling and maximizing the utilization of crew and fleet will also be done.

Since the relaxation of Covid-19 pandemic restrictions, Etihad Airways has undertaken several route adjustments in response to travelers' evolving demand, including changing the departure times of flights to Europe and Asia, increasing flight frequencies to key international destinations, and expanding the capacity to popular international destinations. 

"I organize monthly meetings to evaluate the profitability of each route," Neves noted. "Routes that do not generate profit undergo a three-to-six-month observation period to explore the possibility of a turnaround, and if a viable solution is not identified, we will promptly suspend them. 

"Etihad Airways aims to triple its passenger numbers to 30 million and double its fleet to 150 aircraft by 2030, a feasible objective based on profitable growth," Neves added. 

China as a key market 

China is one of Etihad Airways' six key markets. The carrier now operates 10 weekly passenger flights between Abu Dhabi and Beijing, Shanghai, and Guangzhou.

While China's overall international flight capacity has only partially recovered to pre-pandemic levels, international flights to the United Arab Emirates have rebounded more robustly than the global average. Last week, flights between China and the UAE had recovered to 91 percent of pre-pandemic levels, Flight Master data showed.

"We will soon introduce daily flights to Beijing and Shanghai," said Neves. “We have full confidence in China and anticipate a strong recovery next year. If demand remains strong, we hope to triple our capacity in China from its current level within 18 months.”

Etihad Airways has two codeshare partners in China, China Eastern Airlines and China Southern Airlines. "This month, we expanded our codesharing with China Eastern, encompassing both of our operational hubs," Neves noted. "We hope to expand Etihad Airways' presence in China through China Eastern's network," he explained. 

China's air cargo market is also one of the most significant and vital markets for Etihad Cargo. The carrier operates 10 freighters per week to Guangzhou, Shanghai, and Ezhou and provides additional belly capacity through its 10 weekly passenger flights to China. The Chinese market accounts for over 20% of Etihad Cargo's business.

While the current decrease in air cargo prices does impact air cargo revenue, the demand for air cargo remains strong, Neves pointed out. The global economic recovery post-pandemic, especially the growth in international e-commerce, continues to drive demand for air cargo.

Editor: Futura Costaglione, Zhang Yushuo