Etihad promises “a totally different airline” with $7 billion investment plan

Etihad plans to double its fleet and upgrade its planes.

Etihad Airways has announced an ambitious $7 billion investment plan over the next five years, as part of its strategy to significantly expand the airline.

The investment will focus on modernising its existing fleet, purchasing new planes, and improving customer experience. The airline’s leadership has laid out a vision for major changes that will affect the business and its passengers.

The Group Chief Executive Officer of Etihad, Antonoaldo Neves, stated that customers should expect a “completely different airline” within the next few years. This transformation is driven by the airline’s goal of doubling its size by 2030. According to Neves, the airline currently operates 92 planes, but this number is expected to rise to 170 by the end of the decade, allowing the company to offer passengers more flight options and convenient schedules, particularly for those travelling to Europe and South-East Asia.

One of the central aspects of this plan is the retrofitting of Etihad’s Boeing 777 aircraft, which is set to begin in 2026. Neves noted that this decision is partly due to the challenges faced in the global aviation industry, where the availability of planes is limited. By retrofitting existing planes, Etihad aims to maintain high standards of comfort and efficiency without having to rely on purchasing entirely new planes immediately.

In addition to upgrading its Boeing 777s, Etihad plans to increase the number of business class seats and improve its in-flight WiFi with stronger connectivity. Neves emphasised that providing an excellent product and exceptional customer service remain top priorities for the airline as it continues to grow.

The opening of the new terminal at Abu Dhabi International Airport in late 2023 has also strengthened Etihad’s competitive advantage. The airline now operates over 100 flights a day from this terminal, and Neves believes that this will help attract even more passengers. In 2022, Etihad transported 10 million passengers, but in the current year, the airline has already seen 18 million passengers take to the skies.

As Etihad pursues further expansion, there has been growing speculation about the possibility of an Initial Public Offering (IPO) in the near future. While no official decision has been made, Neves stated that the airline is preparing itself for a potential stock market debut, possibly as early as 2025. He explained that while the company does not require immediate capital, listing the airline on the stock exchange could provide access to additional funds for future growth.

The airline’s majority shareholder, ADQ, which is owned by the Abu Dhabi government, has been heavily investing in its portfolio of companies, possibly in preparation for the IPO. However, geopolitical factors, such as regional instability, could influence the timing of any future stock market listing. Nevertheless, Etihad remains optimistic about its future prospects and is working hard to position itself as a leading global airline.