Etihad sells off its tourism subsidiary

The Etihad Aviation Group is selling off its tourism unit, Etihad Holidays, to the Abu Dhabi National Exhibitions Company (ADNEC), a subsidiary of state-owned Abu Dhabi Developmental Holding Company PJSC (ADQ).

Etihad Holidays will be integrated into Tourism 365, ADNEC’s own tourism promotion business, in line with the state exhibition company’s business diversification strategy and aspirations to increase its tourism footprint, ADNEC said in a statement.

The asset transfer will change Etihad Holidays from a platform focused on the local market to a fully-fledged tour operator supplying online and traditional travel agencies with Etihad Airways holiday packages from key source markets. Capital Experience, Tourism 365’s destination management arm, will be the exclusive supplier of Etihad Holidays across the United Arab Emirates (UAE) when it comes to hotels, transfers, and attractions. Etihad Holidays’ offering will combine Etihad Airways’ airline product with packages in different source markets to key destinations including Abu Dhabi, the wider UAE, Thailand, Seychelles, and the Maldives, the statement said.

The state-owned Etihad Aviation Group also includes a cargo division, an aviation training academy, an MRO division, a loyalty programme, and a logistics provider, amongst others.

Following years of losses, Etihad Airways last year announced bold changes to its organisational structure to address the devastating impact of the COVID-19 pandemic, focusing on its core business to become a mid-sized carrier with a fleet of widebody aircraft.