The Downfall Of Etihad Airways
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- Опубликовано: 7 фев 2023
- In the 2010s, Etihad Airways almost collapsed as an airline. What caused the downfall of an airline that had so much potential?
Today we explore how the airline invested too heavily into aircraft, put money in the wrong airlines and made other critical decisions that poorly impacted the carrier resulting in it losing billions and billions of dollars and entering into a major restructuring plan.
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The video was written by Daniel Fowkes.
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I think Abu Dhabi being so close to Dubai really hurt Etihad. Emirates successfully built up Dubai into a gigantic transit hub and that really save Emirates in the long run.
The only thing that hurt Etihad was James Hogan.
Abu Dhabi is beginning to push tourism as Dubai did, and it's beginning to work. I was in Abu Dhabi at the end of 2021, and there's quite a few things to do there, plus it's only about an hour from Dubai anyway so most travelers can see both cities in one visit.
@@sainnt I think peoples choices are based on pricing also. Etihad has to get that right otherwise most travelers almost always picks Emirates over them. Transfer is easier at Dubai, overall better airport, both compete for the Australian market for which Emirates has that thanks to Qantas partnership. Why stop in Abu Dhabi when you’re going to Dubai anyways or to other parts of the world for which Emirates/Dubai is the biggest player in the region? They offer fewer connecting itinerary than Dubai unless the price is right which undercuts their business plan. Not only that but time also plays a factor. Folks coming from the US, Europe, Australia or South East Asia don’t have time to visit Abu Dhabi when it’s not their primary destination. For connecting passengers Emirates win, for stop over passengers Emirates win. They’ll have to pour billions into marketing Abi Dhabi but it will take time and years to get them name recognition as Doha the other main player in the region.
@@JeanClaudeCOCO It's true that pricing is a factor, but the two biggest markets for middle east airlines are USA and UK, more specifically New York and London. Both Emirates and Etihad offer similar service in that sense, but you're correct that Emirates has an advantage in the Australian market.
As a matter of scale, Etihad does alright because their market share lines up well with their fleet size since their restructuring. Emirates have a bigger fleet, and therefore bigger operating costs. Abu Dhabi actually bailed out Emirates during the pandemic, otherwise they'd also be in huge financial trouble now.
...and No. 1 Qatar Airways? (the emirate that didn't agree to join the UAE) QR is a worthy competitor airline in the Middle East to EK, and apparently not hurt by EK. In fact I flew EK for ten years before switching over to QR.
Great vid Dan👍🏻
Awesome Video globe trotting at dj's aviation
Etihad and AD Airports tried to replicate what Qatar Airways and Emirates were able to do. Many of us who lived in AD always preferred to fly out of Dubai due to departure choices, prices and service. Or if we flew out of AD then it was with Qatar or Oman airways, again for the choices, prices and service.
Both Etihad and Emirates have stubbornly resisted joining an airline alliance, and both are somehow hurt by that decision. Qatar Airways eventually joined OneWorld and has benefitted greatly from it
Etihad failed because it tried to build its own alliance and almost went under by investing in failing airlines. The 787-9 saved Etihad, especially during the pandemic.
They've now streamlined their operations and are poised to have a great 2023. I wish them continued success because they're a pretty good airline.
They use to fly to LAX and then cut the route due to ‘low demand’.
Now Qatar flies there morning and afternoon with 2 daily A350-1000.
American Airlines one world partnership is definitely helping Qatar do this. This is just one example. They only got to a handful of US Cities compare to Qatar who has expanded their US operations to multiple cities. Hence Emirates was forced to partner with United to get similar coverage.
@@JeanClaudeCOCO Emirates has nearly as much coverage in the US as Qatar Airways, but they started losing market share due to really high fares. They partnered with United mainly to have a presence in Newark, and connections from Newark to other parts of the country. It's been 5 years since I flew Emirates...may be time to get on board again.
@@sainnt I agree with you
Not sure 787 saved the airline. The rulers of the country saved them buy churning infinite money into a loss making business. A plane can not do that. They just have an unfair advantage and not really sure if subsidise companies by government or ruling families is actually allowed 🤔
@@markmitchell2658 Virtually all middle east airlines are subsidized. However, during the pandemic, Etihad grounded virtually all their widebody fleet and only flew the 787. It drastically reduced their operating costs and revived their longhaul market share. Adding the A350-100 is helping them continue the trend.
Dad used to work for etihad as a senior engineer in Sydney, Australia. They made him redundant at the beginning of covid and outsourced all their maintenance for every destination to other companies such as British airways for their Sydney routes. As far as I'm aware, they're hurting in the long run from not having their maintenance at other hubs around the world but we still get staff benefits for another 12 years so I guess it's better than nothing. Still remorseful towards them for making that stupid decision and basically having no concern or regard for their now ex employees. Just a whole mess of a job on their half and im sure not a very good choice in the long run
Another 12 years of staff benefit? Would you mind explaining it? Thank you.
Certainly a whole load of wrong decisions but hopefully that is behind them now and with the right decision making they can move forward, their aircraft have a stunning livery and it would be sad not to see them flying.
James Hogan should be behind bars for criminal negligence.
Thanks dj!!
To be fair to Etihad. One of their investments came good. In Air Serbia. They made their money back or a small profit. Air Serbia is now thriving and growing.
I flew with Etihad three months ago. Overall, it was a very good experience. nice food and service. however, the reason why I won't fly with them soon again, is Abu Dhabi airport. That airport is a catastrophe for layovers. It is much too small and quite old. People had to sit on the floor and most flights leave between 9 pm to 3 am. So when you already flew 11 hours this airport is anything but relaxing in any way. I never saw an airport as crowded like this.
The New Midfield terminal will open by the end of the year
@@RealFahimReza yes, I read about it. I hope it solves the problem.
When I worked for them, they said the airport was operating at 5x intended capacity, so yeah, it was ridiculous. Flight departure times actually have to do with acommodating summer temperatures and destination arrival times (or so I heard!).
@@littleraeofsunshine wow, 5 times more is a lot. I saw the new terminal last week, when I took a taxi from Abu Dhabi to Dubai. It looks really good.
A case of not only keeping up w/the Jones's but becoming the new Jones. nice visual in this vid.
Wow. That is quite of a chaos story for Etihad. In the mean time, Etihad is preparing to return some of it's A380s by next month
Do you think of the A350 fiassco was responsable ?
I love it that this video happened to have exactly 747 views when I saw it in my recommendations just now
The whole model was a mess but the utterly bizarre investments were the most entertaining - I mean Alitalia? Those investment reminded me of that awful mess got into by following the advice of a certain consultancy under the direction of someone who wanted to be the big I am which led to the failure of SwissAir, though here I think government pressure was the real issue?
Rumor has it, the Italians actually cheered when they voted down Etihad at one of the investor meetings. After the elf costumes they let the Etihad designer put the Alitalia crew in, really didn't blame them for giving Etihad the boot (we felt sorry seeing the crew come through the airport because they looked soooooooo stupid).
I've never flown Etihad. I love QR and EK. I just haven't gotten the right price or status promotion. Hope to try Etihad soon. I heard that Etihad means United. I don't know. I'd like to try it some day, maybe this year or next.
Actually it means union or unity
With the rise of more and more non-stop flights, I think we are going to see that the Middle Eastern market is far to crowded. The UAE only has 10 million people, that would be like Sweden having two long haul full service carriers. It isn't sustainable in the long term.
I’m not sure if ultra long haul flights are ever going to be more cost efficient than Emirates/Qatar/Etihad’s hub and spoke model- unless you are referring mostly to business travel between fairly large global cities. And to play devils advocate, Sweden is not within a 4 hour flight of 1/3rd of the world’s population and an 8 hour flight from 2/3rds of the Earth’s population.
@@joegrimeh950 I agree, it’s a poor example of using Sweden as an example. Sweden does not have millions of barrels of oil below the ground its people walk on, and does not have its own government-backed airline, it is part of the SAS airline consortium . Just look at Singapore airlines , the country has half the population of Sweden , yet look at how big it’s airline is. It’s location counts for a lot. It’s the gateway to S.E Asia.
This had to happen. Their service sucked. Back in 2017 they lost my daughters stroller on a flight to SFO, and then delivered a broken stroller at my door step. Never responded to my many requests for refund.
Etihad had its downfalls, due to poor management decisions. But it's coming back slowly but surely. Four A380s are coming back by Q3 of this year. Four to five B787s are waiting delivery by end of the year. They are revamping their onboard services, and they are recruiting by the thousands at the moment.
their investment in Aer Lingus paid off.
I traveled with Etihad economy in feb 23 & I swear NEVER again . No drinks of any sort offered except when meal was being handed out - no tea /coffee offered during an over night flight - cabin crew so rude & unhelpful for example - I was sitting in middle seat 💺& there was an empty bulkhead seat , I asked could I move & was told you must pay for that - I tell NEVER again will I travel with them
I flew with Etihad three months ago and overall it was a very good experience except for the fact that Abu Dhabi airport is horrible for an overnight layover.
Hiring a CEO because of his passport instead of credentials, is what happened to Etihad!! The same CEO was hired to lead the new saudi RIA airline,...and was terminated/fired even before the airline launched! That CEO and his silly decisions which went unchallenged, was the cause of Etihad falling off.
You appear confused. James Hogan was the CEO who ran Etihad into the ground. His successor at Etihad, Tony Douglas, was the person concerned at RIA. By all accounts,
Douglas did a reasonable job in extremely difficult circumstances at Etihad.
Agree with you...
The B-747s Pan Am bought contributed its demise. And investing in airlines took Swissair down.
If it wasn’t for Pan-Am, Boeing would have never built the B747. This was a time when post-war international travel started to boom because of more fuel efficient planes, which could carry more people, therefore making the flight cheaper per person. Pan-Am’s demise came after the Lockerbie bombing, which scared off people from flying with them, coupled with the recession that hit the USA & other parts of the world in the early 1990’s. I think you should do more research before making such comments. The only part of your comments which are accurate is with Swissair, their Business strategy, combined with the events of 9/11 brought the Airline down, just like it contributed to the end of an Australian Airline, Ansett.
Same with TWA.
Etihad started to fail just after 2012 when they could rightly claim to be “ the best in the world “
Only one reason for down fall....
Same like
Anset Australia
British midland
Gulf Air
Etihad airways
...... James Hogan.
2022 was a great year for Etihad.
The Airline is turning a profit now
Won’t be surprised if Etihad,Fly Dubal and Emirates merge in future under a single entity
poor service and expansive tickets compared to Emirates, Qatar, Saudi, Jordanian, Turkish air lines. Why to fly with Ettihad?
What a shame. Such a great airline
According to some news Air India is leasing few 777s from Ethihad till new jets are ordered.
0:39 Is that Jet Airways B777-300 at storage in Abu Dhabi airport?
Doesn't make sense, considering SIA investment and them having some B777 grounded.
04:15 “Un-go” ?! restructuring
06:20 “Long-vetivity”
What is this meaning of these words you say!?
Following its “launched” ?
What kind of English is this please elaborate
They must find new routes like Berlin to Abu Dhabi, leipzig to Abudhabi, emirates is not flying from there.
I'm surprised that the Saudi gov didn't take note. What's the point of having both Saudia and Riyadh Air?
very general in nature with no specific information, please try to get more information an example being 10 of billions be specific..
There was so much mismanagement it was painful to watch. Loved flying for them, but the absolute cognitive dissonance was painful to watch, just downright embarrassing.
Sounds very similar to Swissair's attempt to cobble together a global alliance, the Qualifyer Alliance. We all know the rest.
Last year they are in profit zone and 2023 all gone...what's happening
Etihad Airlines & Imelda Marcos Airways merger ?
ETHIAd should join delta sky team
I really like Etihad Airways... I just take Etihad Airways just 1 month ago and it's was good overall
in the land of the blind one eye is king (James Hogan). 😂😂
a new full service carrier operating a fleet of refurbished A380-800 only dedicated to international long haul services only . . . just turned out to be more than profitable than ever imagined . . . a new full service carrier operating a fleet of refurbished A380-800 only dedicated to international long haul services only . . . just turned out to be more than profitable than ever imagined . . . retiring A380-800 fleet by it's operators ain't the solution . . . total wrong misconception . . .
Anything etihad invests in it goes down.
Manchester City as well lol
THE ENTIRE VIDEO JUST STATES THE OBVIOUS, POOR RESARCH
Planes need a new paint design looks boring and stale nothing stands out.
Ethihad has the best 👌 boarding music, and much-loved airlines
Is it fair this kind of airlines survive only with government?
Etihad is a flag carrier same as air france is for france.
Facing relegation
how much is jealousy of established western airlines and air industry and how much is fact the new trend flashy modern posh fleet and airports come and uoends the existing world order or the airline industrial comples which was western oriented. cathay sigapre anf gulf rule and wolrs should come awake that the centre of th world is shfting to africa and asia in one way or another
Etihad are one of the toughest airlines to beat today .
Old old news
Emirates is also not profitable but the Emirate pretends it is to not tarnish it's image.
The only Gulf carriers that make a TRUE profit (not a fake one by cooking the books) are no frills low cost airlines that depart from cheap hubs, ie. air Arabia based in Sharjah and Jazeera based in Kuwait.
The most money losing airlines are probably Saudia and Qatar and the least money losing airlines are Oman Air and Emirates (still they are at a loss as it is impossible to make a profit considering the perks they provide, the high costs in their hubs and the advertising campaigns they engage in).
As someone who has flown with this airline, both in economy and business clsss quite a few times, I would never fly with them again.
With neighboring Emirates and Qatar, who also charge premium, this airline is mediocre at best both in soft and hard products. Not surprised that they their losses piled up. I wouldn't be surprised if they'll be gone.
Rude staff and lack of training, 😢
It honestly feels like the same poor choices emirates did in buying that many a380s
poor choices? Emirates is literally is the only airline who actually profited from the A380
Emirates has long haul routes suited to the A380,, they even want more !!!
Etihad going away? That is good news! Hope Emirates and Qatar should follow suit.
Djs Aviation Still posting misleading titles The Downfall Of Etihad Airways just headline nonsense, if you have nothing then post nothing.
Have you even watched the video? how is 1 billion loss every year "misleading"
is fake news again ?
@@ryleferrer4876he means misleading in telling how it happened all he said was they ordered too many planes and they lost tons of money and then waffled for the rest of the time saying something with 50 more words than it needed
6:54 I think he means about this portion of the video. Because he said, “they’re well on course to being a profitable company”
So if they’re on course to be being a profitable company then how can Etihad be on a downfall?
it showed up on my feed and i decided to watch the video and then it hit me that this was the annoying ozzie and the video is, as you say.... nonsense and old news....
Emirates & Qatar = at the top of their game.
Etihad = WORST AIRLINE we’ve experienced. Our travel is 2 days from now yet they canceled our transit visas to abu dhabi due to “migration” issues. They lack coordination with their embassy. They won’t even refund our tickets (which was booked months ago) that costed us $4,000+ and are asking us to pay another penalty fee at the expense of their system’s fault??? Their policy on this is just to make money, NOT for the customer’s sake. We are now forced to make ANOTHER flight booking to a new airline. Never again Etihad.
ETIHAD 🤣🤣🤣
won't to subscribe to a channel run by a Airbus fan boy.....real.
It’s an Australian mafia. You won’t go up the ranks in this airline unless you’re Australian
As someone who has been based around Etihad Airways my whole life, the carrier has really fallen off, it hurts especially since it's an airline that i flew in my childhood, I'd love to see it stay up for a while but it's slowly looking difficult 🥲