Etihad Acquires Ground Handling, Catering, Cargo Operators At AUH

May 20, 2013
Acquisitions will help airline boost services at Abu Dhabi International Airport.

May 20--Etihad Airways has acquired three airport services companies to accelerate and consolidate the development of in-flight catering services, ground handling and cargo operations at Abu Dhabi International Airport.

The acquisition will provide significant incremental revenue opportunities, cost savings and operational efficiencies across the various business entities.

Formerly part of Abu Dhabi Airports Company, the three companies, Abu Dhabi Airport Services, Abu Dhabi In-Flight Catering and Abu Dhabi Cargo Company, are being incorporated, subject to regulatory approvals, into Etihad Airport Services, a wholly owned subsidiary of Etihad Airways.

The companies, which employ more than 4,000 people, are being integrated into the airline's existing organisational structure to maximise synergies and operational scale.

The re-engineered business units will continue to provide the full range of ground handling, catering and cargo services to Etihad Airways and other airlines at Abu Dhabi International Airport, dedicated to customer excellence and commercial viability.

Saj Ahmad, chief analyst at London-based StrategicAero Research, said Etihad Airways is consolidating its operations at Abu Dhabi base.

"The move will not only bring end-to-end business services, but the combined suite of services allows a greater integration of activities that drives efficiency into its core airport operations business."

James Hogan, Etihad Airways' president and chief executive officer, said this acquisition follows international best practice and is critical to the continued growth of the airline, and more importantly to the sustained growth and development of Abu Dhabi's aviation industry in general as envisioned in the Abu Dhabi Plan 2030. ?Saj said the Abu Dhabi airline can leverage its strength for new airlines and customers operating at the airport with greater autonomy without them having to seek third party services.

Hogan further said: "It is in line with our strategy of working closely with our partners and service providers to achieve greater organisational and commercial alignment."

He said the airline and cargo customers will also benefit from enhanced service levels and greater integration across hub operations.

A transition process is in place and it is 'business as usual' as Etihad continues to work closely with its new and existing employees and customers, ensuring that there is no disruption to existing services during the integration period while benefits are delivered immediately.

Etihad Airways carried 10.3 million passengers in 2012. With a fleet of 77 Airbus and Boeing aircraft, the national airways serves 89 passenger and cargo destinations around the world.

Copyright 2013 - Khaleej Times, Dubai, United Arab Emirates