Etihad Airways CEO Mounts Defense of Gulf Carrier in Europe
Meeting with European transport commissioner Violeta Bulc, CEO James Hogan outlined Etihad Airways' contribution to Europe's economy.
European transport commissioner Violeta Bulc, left, sits across the table from Etihad CEO James Hogan. (Photo: European Commission)

Etihad Airways chief executive James Hogan emphasized the embattled carrier’s economic value to Europe in a meeting with European transport commissioner Violeta Bulc in Brussels on April 14. Following the meeting, Etihad issued a statement by Hogan warning that “protectionist competitors” threaten its ability to provide jobs and invest in partner airlines.


According to the statement, Etihad’s core operations in the European Union last year contributed $1 billion to the combined GDP of the 28 EU member nations and supported more than 11,000 jobs. Its spending on aircraft and other equipment contributed $2.6 billion and supported some 28,100 jobs.


Abu Dhabi-based Etihad also owns a 49 percent share of Italy’s Alitalia; a 49 percent share of Serbian flag carrier Air Serbia; and a 29 percent share of Airberlin, Germany’s second largest carrier after Lufthansa. It also owns a 4-percent holding in Ireland’s Aer Lingus, and earlier this month won approval from regulators to acquire a one-third stake in Swiss regional Darwin Airline.


“Etihad Airways is not just another foreign airline flying to Europe to poach local traffic,” Hogan said. “We are a sophisticated partner to and investor in Europe for long-term mutual benefit, contributing billions of euros every year to EU and non-EU economies, supporting tens of thousands of jobs and both maintaining and expanding choice for air travellers to and from Europe.”


Etihad, Emirates of Dubai and Qatar Airways are facing an intensive campaign by major U.S. airlines to scale back “open skies” trade agreements between the United States and their respective governments over claims of unfair subsidies. That effort led the U.S. departments of State, Commerce and Transportation to initiate a formal fact-finding proceeding.


The Persian Gulf carriers face similar pressure from some of Europe’s major airlines. In March, Bulc said she would seek to reopen talks with Persian Gulf states over airline subsidies, following a request from France and Germany. Alain Vidalies, French secretary of state for transport, and his German counterpart Alexander Dobrindt “complained about the situation” during a meeting of EU transport ministers in Brussels, the website EurActiv reported. In an interview with Arabian Business the same month, Lufthansa Group CEO Carsten Spohr said Etihad should “respect” European law when investing in partner airlines. A year ago, the EC initiated an inquiry into foreign ownership of European airlines, including Etihad’s investment in Airberlin, but also Delta Air Line’s 49-percent share of UK carrier Virgin Atlantic.


“Etihad Airways is committed to Europe,” Hogan said following the meeting with Bulc. “But growing resistance to us from a handful of protectionist competitors could have unintended consequences well beyond limiting our development. If our growth is curtailed or our investments in airlines are compromised, the real damage will be to Europe in lost jobs, lost flight connectivity, lost investment in local and national economies and lost consumer choice.” The EC did not immediately comment on the meeting.