Etihad Airways Unveils $7B Revamp and IPO Plans
Etihad Airways is set to transform into “a totally different airline” over the next two to three years, according to Group Chief Executive Officer Antonoaldo Neves. Speaking to CNBC, Neves outlined a comprehensive $7 billion investment plan aimed at doubling the airline’s fleet size by 2030, which currently operates 92 aircraft.
The substantial investment will primarily focus on retrofitting existing aircraft, particularly the “dated” Boeing 777 planes, starting in 2026. Neves attributed this initiative to “the constraints that we have in the global aviation market,” noting, “There are no planes available,” which has affected the airline’s ability to acquire new aircraft immediately.
With aspirations to expand its fleet to as many as 170 planes by the end of the decade, Etihad aims to enhance its connectivity and improve passenger experience. The expanded fleet will provide more convenient flight schedules, particularly for travelers to Europe and Southeast Asia. Neves emphasized the importance of offering more desirable departure times, allowing passengers to fly at 2 p.m. rather than early morning hours.
The airline’s retrofitting plans include increasing the number of business class seats, upgrading in-flight WiFi for stronger connectivity, and improving overall product offerings. Neves stated, “The product is extremely important, and customer service is extremely important.”
The opening of Abu Dhabi’s new terminal last November has already strengthened Etihad’s competitive advantage, allowing the airline to operate over 100 flights daily. The airline has witnessed a remarkable rebound, accommodating 10 million passengers two years ago and surpassing 18 million passengers since the start of the current year.
Amidst its expansion plans, speculation about a potential Initial Public Offering (IPO) in 2025 is also brewing. Neves commented on the strategic importance of being publicly listed, stating, “It’s really important for airlines to be listed… although we don’t need cash in the next five to six years to deploy the $7 billion capital, one day, if we decide to accelerate, we may need capital.” This forward-thinking approach underscores the airline’s vision for future growth and flexibility in financing.
Etihad is “working hard to be ready” for an IPO, with its sovereign wealth fund shareholder, ADQ, heavily investing in its companies to prepare for the listing. ADQ, fully owned by the Abu Dhabi government, is chaired by Sheikh Tahnoon bin Zayed al-Nahyan, the brother of the UAE’s current president.
According to reports from Reuters, Etihad Airways may not make its stock market debut before 2025. However, geopolitical instability in the region, particularly the ongoing conflict in Gaza and escalating tensions between Israel and Lebanon, could affect the timing of any potential announcement.
As Etihad Airlines embarks on this significant transformation, its commitment to enhancing passenger experience and expanding its fleet positions it well to meet the evolving demands of the global aviation market. With a clear focus on modernization and strategic growth, the airline aims to secure its place as a leading player in the competitive airline industry.
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Sources: AirGuide Business airguide.info, bing.com, cnbc.com