Etihad to become profitable by 2011

After launching its first commercial service in 2003, Etihad is expected to break-even by next year and become profitable starting 2011, the Abu Dhabi-based airline’s top executive said on Monday.

James Hogan, Etihad Airways’ Chief Executive Officer, said he is confident the airline will achieve profitability as targeted in the next couple of years despite the recent onslaught of the global financial crisis.

“As early as June 2008 when we first took notice of the global crisis and its effect on aviation, we started implementing strong cost-containment plans across all our operations. Now, all our costs are under control,” Hogan said.

While it will not make any major aircraft purchases during this year’s Dubai Airshow, Etihad has announced a $750 million (Dh2.76 billion) investment package that will be used to address key strategic elements of its operations such as workforce, fleet expansion, in-flight service and planning systems.

A series of contracts are expected to be signed this week that will provide maintenance, retro-fitting, cabin upgrades and support for aircraft currently in its fleet or scheduled for delivery in the coming years.

The airline currently flies to 57 destinations worldwide using a fleet of 49 aircraft. It expects to carry over seven million passengers by the end of 2009.

Hogan clarified that this year the airline has no plans to repeat the major aircraft order deals it had made during the Farnborough Airshow in the United Kingdom in July 2008.

Etihad then made a mammoth order of 205 wide-body and narrow-body Boeing and Airbus aeroplanes worth nearly $43 billion, comprising of 100 firm orders, 55 options and 50 purchase rights.

Specifically, it had agreed to purchase new 20 A320, 25 A350 and 10 A380 aircraft from Airbus, as well as 35 B787 and 10 B777-300ER aircraft from Boeing. The new aeroplanes are scheduled to be delivered between 2011 and 2020.