Annual Report 2011 (English) - Etihad Airways

our 

journey 

Annual Report 2011

Travelling well, they say, is more important than arriving. 

At Etihad Airways, our journey defines us. 

Etihad Airways Annual Report 2011 3

Contents 

President and Chief Executive Officer’s report 6 | Into the black 8 | airberlin: an ideal partnership 12 

Etihad Airways and Abu Dhabi 14 | A stellar year of achievements 16 | Route map 18 | The story so far 20 

Making the numbers work 22 | Aircraft 24 | Fleet 26 | Network 28 | Guest Experience 30 | Etihad Cargo 32 

Operations 34 | Safety 37 | Etihad Guest 38 | Sales 40 | Information technology 42 | Partnerships and alliances 44 

Marketing 46 | Social responsibility and sustainability 48 | People and performance 50 | Corporate Governance 55 

Etihad Airways Executive 56 | Management 58 | Awards 60 

CONTENTS 

President and Chief Executive Officer’s report 8 | Into the black 10 | airberlin: an ideal partnership 14 | Etihad Airways and Abu Dhabi 16 

A year of stellar achievements 18 | Route map 20 | The story so far 22 | Making the numbers work 24 | Aircraft 26 | Fleet 28 | Network 30 

Guest Experience 32 | Etihad Cargo 34 | Operations 36 | Safety 39 | Etihad Guest 40 | Sales 42 | Information technology 44 

Partnerships and alliances 46 | Joint Ventures 48 | Marketing 50 | Social responsibility and sustainability 52 | People and performance 54 

Corporate Governance 59 | Etihad Airways Executive 60 | Etihad Airways Management 62 | Awards 64 

4 Etihad Airways Annual Report 2011 Etihad Airways Annual Report 2011 5

HH Sheikh Khalifa bin Zayed Al Nahyan 

President of the UAE and the Ruler of Abu Dhabi 

HH General Sheikh Mohamed bin Zayed Al Nahyan 

Crown Prince of Abu Dhabi and Deputy Supreme 

Commander of the Armed Forces of the UAE 

Etihad Airways 

Board of Directors 

HH Sheikh Hamed bin Zayed Al Nahyan (Chairman) 

HH Sheikh Khaled bin Zayed Al Nahyan (Vice Chairman) 

HE Mohammed Mubarak Fadel Al Mazrouei 

HE Ahmed Ali Al Sayegh 

HE Mubarak Hamad Al Muhairi 

HE Hamad Abdullah Al Shamsi 

HE Khalifa Sultan Al Suwaidi 


CEO REPORT 

President and Chief Executive Officer’s report 

2011 was the most momentous year in 

the short history of Etihad Airways. 

Against a backdrop of the global 

financial crisis, regional instability, 

continued high oil prices and natural 

disasters, our milestone achievement 

of profitability ranks as one of the best 

performances of any airline in the 

world. 

Our target in 2011 was to break 

even. Thanks to the dedication and 

commitment of the entire Etihad 

Airways family, we surpassed that goal. 

We delivered earnings before interest 

and tax (EBIT) of US$137 million, on 

revenues up 36 per cent to US$4.1 

billion. We carried 8.3 million 

passengers, up 17 per cent on 2010, 

with an average seat factor of 75.8 per 

cent, nearly two percentage points 

higher than the previous year. All parts 

of the business contributed to our 

success. Cargo revenues were up 25 

per cent to US$651 million on tonnage 

up nearly 18 per cent. 

Safety remained our highest priority, 

and our focus on providing the best 

customer service continued – for 

example, leading the way with 

innovative developments such as our 

First Class Chefs. 

During the year we formed a new 

Guest Experience department to focus 

on the entire journey of our customers 

like never before. We will continue to 

innovate in 2012 through investment 

in our product, on the ground and in 

the air. 

The new benchmarks we have set 

in modern air travel have not gone 

unnoticed. We were proud to be 

awarded the title of World’s Leading 

Airline for the third year in succession, 

and we were also awarded Best First 

Class and Best First Class Catering by 

Skytrax. 

We launched five new passenger 

destinations in 2011 – the Maldives, 

the Seychelles, Chengdu, Bangalore 

and Düsseldorf – while also investing 

in our 11 cargo-only cities. Already 

in 2012, we have launched flights to 

Tripoli, Shanghai and Nairobi, with 

Lagos and Basra to follow, and new 

services to Washington DC announced. 

In 2011, we increased the frequency 

of more than 13 routes and we will 

continue this approach, with daily 

frequencies our minimum target and 

double daily or more where demand 

allows. During 2011, we introduced 

seven new aircraft, boosting our fleet 

to 64, and in 2012 we expect to add 

another seven aircraft. 

We published the first-ever 

Etihad Airways Corporate Social 

Responsibility Report in 2011, detailing 

our policies and activities to date 

in relation to our environmental, 

community and philanthropic 

activities. This will become an annual 

report, charting our progress towards 

delivering best-in-class performance in 

this area. 

The 2011 results delivered the mandate 

set by our shareholder, the Government 

of Abu Dhabi, to be safe, profitable 

and create the best airline in the 

world, while fulfilling our role as a key 

enabler in the transformation of Abu 

Dhabi into a world-class trade and 

tourism centre. 

While impressive, these results are 

now consigned to the pages of history. 

Today’s achievements are no guarantee 

of future success and our focus is now 

on reaching greater heights. 

Sustained profitability is our new 

challenge and one that requires a new 

mindset. In 2012 we have once again 

set new targets for strong growth, with 

a passenger traffic target of 10 million 

and a corresponding increase in profits. 

We know it will not be easy – aviation 

is not an easy industry. In 2011, 

we contended with the terrible 

earthquake and tsunami in Japan, 

global economic uncertainty, regional 

instability in the Middle East and 

high oil prices, averaging US$110.83 

per barrel over the course of the 

year – all of which were outside our 

control. As always, we will expect the 

unexpected, and in 2012 be ready to 

react to the unforeseen events that will 

undoubtedly arise. 

While many factors will remain 

outside our direct control, there is 

much we can influence and a key 

area in 2012 will be our controllable 

costs. Our record in this area to date 

is notable. Costs per available seat 

kilometre, excluding fuel, have fallen 

by 16 per cent over the last two years, 

representing annual savings of more 

than US$187 million. Ongoing cost 

control will continue to be a key 

feature of how we do business and 

more efficiencies have been identified 

for 2012 and beyond. 

Alongside this, much work will take 

place to develop and strengthen our 

strategic partnerships and investments 

to deliver increasing returns. Our 

strategic partnership with Virgin 

Australia – which took root in 2011 

and is proving very successful – and 

partnership and investments with 

airberlin and Air Seychelles, will play 

a very important part in sustaining 

profitability. 

Through airberlin, Germany’s second 

largest airline and the sixth largest 

in Europe, we have instant access 

to the largest European market of 

80 million people in the strongest 

economy in Europe. This adds 157 

destinations and gives us access to 

35 million new passengers. This deal 

will be our most important catalyst for 

Given the challenges faced by the industry, our combination of 

revenue growth and entry into profitability must be one of the best 

results of any airline in 2011.” 

President and Chief Executive Officer, James Hogan 

growth in 2012 and will have a major 

impact on revenues, with an expected 

contribution of some US$50 million. 

These partnerships are game-changing 

moves. In 2012, partnerships and 

alliances are expected to produce 

just under US$500 million in annual 

revenues. This is a massive contribution 

to our business, which is why we 

will continue to expand and develop 

such partnerships, strengthening our 

relationship with our 35 codeshare 

partners and giving sensible thought 

to new opportunities that arise and 

are right for the business to extend our 

competitive offering for the benefit of 

our customers. 

Internally, we will continue to reengineer 

our business, such as through 

our deal with Sabre Airline Solutions, 

the aviation computer technology 

provider, to introduce revolutionary 

change through cutting edge, 

integrated software systems across the 

company. 

Etihad Airways staff grew by 15 per 

cent in 2011, to more than 9,000 

people from 128 different nationalities. 

We continue to focus on the 

development of an Emirati workforce, 

which now represents 18 per cent of 

Head Office staff, in addition to more 

than 1,000 participating in cadet pilot, 

engineer, contact centre agent and 

graduate manager training programs. 

As always, continued success will be 

driven by our people and depend on 

collective and individual focus, energy, 

and commitment to our customers and 

each other. We will also continue to 

instil the values of respect, consistency 

and discipline throughout our 

workforce. 

The year ahead will be about 

navigating the challenges that come 

our way, while cementing our 

reputation as a successful global 

business, one that delivers increasing 

returns to its shareholder. 

Finally, I thank our shareholder, 

the Government of Abu Dhabi. The 

Government has set Etihad Airways 

ambitious targets and we embrace 

them, knowing that in all we do we 

can count on the strong support of our 

Chairman and the Board of Directors in 

the implementation of our strategy. 

James Hogan 

President and Chief Executive Officer 


US$4.1 billion 

36% 

TOTAL REVENUE 

US$29.6 billion 

PASSENGER REVENUE 

Into the black 

Etihad Airways’ mandate: 

✓ Safe airline 

✓ Best-in-class airline 

✓ Profitable airline 

• Full year EBIT of US$137 million 

• EBITDAR of US$648 million 

• Net profit of US$14 million 

10 Etihad Airways Annual Report 2011 

23.9% 

US$651 million 

25.7% 

CARGO REVENUE 

8.3 million 

17% 

PASSENGER NUMBERS 

38.7 billion 

15.8% 

REVENUE PASSENGER 

KILOMETRES 

51 billion 

13% 

AVAILABLE SEAT 

KILOMETRES 

75.8 per cent 

1.8% 

SEAT FACTOR 

While we deliver an 

exceptional full service 

product, our management 

culture is that of a low cost 

airline. We have a forensic 

focus on cost control in 

every area of the business, 

aggressively targeting 

operational efficiencies.” 

President and Chief Executive Officer, 

James Hogan 

64 aircraft 

12.3% 

FLEET SIZE 

9,038 

15.1% 

NUMBER OF 

EMPLOYEES 


Into the black 

2011 was the year Etihad Airways became profitable. 

The result is testament to the efficacy of financial 

strategies put in place as long ago as 2006 by the 

management team. 

It also follows the introduction in 2010 of an enriched 

business model designed to build on the organic depth 

and scale achieved over the airline’s first seven years of 

rapid growth. 

2011 saw significant progress in each of the four areas 

of focus – passenger air transport, distribution, air cargo 

operations and Abu Dhabi hub operations. 

In 2011 Cargo enjoyed spectacular growth. A record 

310,000 tonnes was carried, 46,875 tonnes or almost 

18 per cent more than in 2010. Strongest growth was 

seen out of Europe as exports from markets such as 

Germany and Italy held firm during a challenging back 

half of the year. 

Fifteen per cent was contributed by airline alliances. 

For example, 2011 marked the first full year of Etihad 

Airways’ strategic partnership with Virgin Australia. The 

revenue contributed by this alliance was 700 per cent 

above what had been achieved with Etihad Airways’ 

previous Australian airline partner. 

The 29.21 per cent equity investment in airberlin is 

expected to generate extra revenue for Etihad Airways 

of up to US$50 million in the first year alone, while 

the strategic long-term investment in Air Seychelles – 

combined with a commercial agreement and five-year 

management contract – will underpin that carrier’s 

return to profitability. 

Cost reduction was a key factor in the airline’s financial 

performance. Costs per available seat kilometre (CASK), 


excluding fuel, were cut by 4.6 per cent on 2010 

figures, and by 16.6 per cent since 2009, representing 

an annual saving of US$187 million. 

Etihad Airways issued three major Requests for 

Proposal (RFPs) in 2011 to secure financing for two 

aircraft and one spare engine. The RFPs received 

significant interest and were oversubscribed by up to 

five times the funding requirement. Etihad Airways 

raised US$767 million in aircraft delivery financing 

and US$316 million in spare engines sale and 

leaseback financing, amounting to a total of US$1,083 

million raised in 2011. Of this, approximately US$728 

million was raised as export credit financing for the 

Boeing B777 and Airbus A330 passenger and freighter 

deliveries, and US$39 million was raised in the 

commercial market for an Airbus A320 delivery. The 

spare engine financing was raised from two leasing 

companies in the commercial market. 

Three new lending and leasing partners were 

introduced in 2011– TD Securities, ELFC, and SANAD. 

The cost of funding from external markets remained 

Focus areas Actions implemented 

Passenger air transport 

very competitive in 2011, with all transactions resulting 

in an all-in cost of funding below three per cent. 

Etihad Airways’ industry-leading fuel hedging program 

saw the airline purchase jet fuel at an average cost of 

US$100.96 a barrel in 2011 against a market average 

price of US$127.70 per barrel. 

The airline’s rolling three-year program involving active 

hedges with 24 international financial institutions 

builds certainty into the price of fuel, which is the 

airline’s largest and most volatile expense. 

In 2012, Etihad Airways is again aiming for strong 

growth, with a passenger traffic target of 10 million and 

a corresponding increase in profits. 

The airline will continue to invest in network, aircraft 

and infrastructure in 2012, expanding in Asia and 

Africa, adding seven aircraft to the fleet and looking for 

opportunities to make profitable alliances in 2012. 

• Equity acquisitions in Air Berlin (29%) and Air Seychelles (40%) 

• 35 codeshare partnerships (2006:two) 

Distribution • Joint venture with BCD to create Hala Travel Management 

Air cargo operations 

Abu Dhabi hub operations 

• Joint venture with Linfox/Armaguard for carriage of precious cargo 

and cash management 

• Management of cargo handling and warehousing at Abu Dhabi hub 

• Management of check in and ramp operations for Etihad Airways 

and other airlines 

• Management of ADIFC (catering company) 

KPMG Lower Gulf Limited 

Abu Dhabi Branch 

PO Box 7613 

Abu Dhabi 

United Arab Emirates 

Independent auditor’s report 

Report on consolidated financial statements 

We have audited the accompanying financial 

statements of Etihad Airways PJSC (“Etihad” or 

“the company”), and its subsidiaries (collectively 

referred to as “the Group”), which comprise the 

consolidated statement of financial position as at 31 

December 2011, and the consolidated statements of 

comprehensive income, changes in equity and cash 

flows for the year then ended, and notes, comprising a 

summary of significant accounting policies and other 

explanatory information. 

Management’s responsibility for the consolidated 

financial statements 

Management is responsible for the preparation and 

fair presentation of these consolidated financial 

statements in accordance with International 

Financial Reporting Standards, the relevant Articles 

of Association of the Company and the applicable 

provisions of UAE Federal Law No. (8) of 1984 

(as amended), and for such internal control as 

management determines necessary to ensure the 

preparation of consolidated financial statements that 

are free from material misstatement, whether due to 

fraud or error. 

Auditor’s responsibility 

Our responsibility is to express an opinion on these 

consolidated financial statements based on our 

audit. We conducted our audit in accordance with 

International Standards on Auditing. Those standards 

require that we comply with ethical requirements 

and plan and perform the audit to obtain reasonable 

assurance whether the consolidated financial 

statements are free from material misstatement. 

An audit involves performing procedures to obtain 

audit evidence about the amounts and disclosures in 

the consolidated financial statements. The procedures 

selected depend on our judgement, including the 

assessment of the risks of material misstatement of 

the consolidated financial statements, whether due 

to fraud or error. In making those risk assessments, 

we consider internal control relevant to the entity’s 

preparation and fair presentation of the consolidated 

financial statements in order to design audit 

procedures that are appropriate in the circumstances, 

but not for the purpose of expressing an opinion on 

the effectiveness of the entity’s internal control. An 

audit also includes evaluating the appropriateness 

of accounting policies used and the reasonableness 

of accounting estimates made by management, as 

well as evaluating the overall presentation of the 

consolidated financial statements. 

We believe that the audit we have obtained is 

sufficient and appropriate to provide a basis for our 

audit opinion. 

Opinion 

In our opinion, the consolidated financial statements 

present fairly, in all material respects, the consolidated 

financial position of the Group as at 31 December 

2011, and its consolidated financial performance and 

its consolidated cash flows for the year then ended 

in accordance with International Financial Reporting 

Standards and comply, where appropriate, with 

the Articles of Association of the Company and the 

applicable provisions of UAE Federal Law No. (8) of 

1984 (as amended). 

Report on other requirements 

As required by the Company’s Articles of Association, 

we further confirm that we have obtained all the 

information and explanations necessary for our audit, 

that proper financial records have been kept by the 

Company, and that physical counts of inventories 

were carried out by management in accordance 

with established principles. We are not aware of any 

violation of the Company’s Articles of Association 

having occurred during the year ended 31 December 

2011, which may have had a material adverse effect 

on the business of the Company or on its financial 

position. 

Vijendra Nath Malhotra 

31 January 2012 

KPMG 

Registration No. 48 


airberlin: an ideal partnership 

Etihad Airways’ move on December 19 to become 

airberlin’s single largest shareholder was a gamechanging 

move that opened access to a new market 

of 35 million passengers. 

Etihad Airways had already taken a 2.99 per cent 

stake in airberlin – Europe’s sixth largest airline and 

Germany’s second – and by increasing its stake to 

29.2 per cent, signalled the start of a strategic longterm 

partnership linking airberlin’s European hubs 

with Etihad Airways’ home base in Abu Dhabi. 

The year-one revenue prediction arising from 

the partnership is in the order of US$50 million 

for each airline, with revenues expected to grow 

considerably as the partnership matures. Unlocking 

efficiencies is also a key focus for the two airlines. 

The airberlin deal was Etihad Airways’ first equity 

partnership in a well-developed and highly 

successful partnership strategy built over the past 

six years. This strategy has enabled Etihad Airways 

to stretch its network in a way that would not have 

been viable for such a young airline, despite its own 

rapid organic growth. 

Under the terms of the agreement, Etihad Airways 

will provide five-year financing facilities of up 

to US$255 million to support airberlin’s fleet 

development and future network growth. 


Under the partnership, which received approval 

from German and Austrian regulatory authorities on 

January 26, 2012: 

» airberlin commenced operating four A330-200 

flights a week between Berlin and Abu Dhabi 

on January 15, 2012, and moved to a daily 

service on March 25, 2012 

» European travellers have access to 29 

flights a week to and through Abu Dhabi from 

four German hubs – Berlin, Munich, Frankfurt 

and Düsseldorf – with a plan to increase to 42 

flights from mid-April 2012 

» airberlin launched a new daily route between 

Abu Dhabi and Phuket on March 25, 2012 

» airberlin is initially codesharing on Etihad 

Airways flights from Düsseldorf, Frankfurt and 

Munich to Abu Dhabi and on Etihad Airways 

flights from Abu Dhabi to Bangkok, Malé 

(Maldives) and Singapore, with other destinations 

to come 

» Etihad Airways is codesharing on airberlin group 

flights to Basel, Berlin, Catania, Copenhagen, 

Hamburg, Hannover, Helsinki, Milan, Rome, 

Stuttgart, Venice, Vienna and Zurich, with others 

to come 

» Etihad Guest and topbonus, the airlines’ frequent 

flyer programs, have been integrated, enabling 

passengers on both airlines to ‘earn and burn’ 

on each other’s flights and offering reciprocal 

benefits – including status earning – to 

top tier members. 

Etihad Airways acquisition of the 29.2 percent stake 

in airberlin was a game-changing move that opened 

access to a huge new market of 35 million passengers. 

The year-one revenue prediction arising from the partnership 

is in the order of US$50 million for each airline, with revenues 

expected to grow considerably as the partnership matures. 



Etihad Airways’ total economic contribution 

to Abu Dhabi’s GDP is on track to increase 

by 76 per cent to US$10.743 billion by 2015, 

helping to support 162,000 jobs in the Emirate. 

Etihad Airways and Abu Dhabi 

Aviation is a critical cluster industry within the Abu 

Dhabi Government’s 2030 Plan on the basis that 

a successful airline and airport will promote freemarket 

commercial activity in sufficient volume to 

underpin a diverse economy, while attracting further 

investment. 

According to the latest study, completed in April 

2011 by leading UK think tank Oxford Economics, 

Etihad Airways plays a crucial role in supporting 

and driving economic growth in the UAE. 

The research used the standard methodology for 

economic impact appraisals, and was based on 

data from the International Air Transport Association 

(IATA), the Air Transport Action Group (ATAG), 

EUROCONTROL, the UK aviation industry and the 

Civil Aviation Authority of Singapore (CAAS). 

Economic contribution is classified into four key 

areas: direct (within Etihad Airways), indirect 

(suppliers to Etihad Airways), induced (spending 

of direct and indirect employees) and catalytic 

(impacts on other industries). 

Direct Economic Contribution: The airline 

contributed US$1.46 billion or 2.1 per cent of Abu 

Dhabi’s non-oil GDP (0.8 per cent of total GDP) in 

2011. 

Indirect Economic Contribution: Etihad Airways 

made an indirect economic contribution of US$830 

million and supported an additional 15,000 jobs 

in 2011 through fuel purchases, maintenance and 

repair, airport rental and landing fees, marketing, 

advertising, IT ventures and communications. 

Induced Economic Contribution: An induced 

GDP contribution of US$760 million and 13,839 

additional jobs can be attributed to money spent 

during 2011 by people working for Etihad Airways 

and its suppliers. 

Catalytic Economic Contribution: Etihad Airways 

played an important role in improving air links 

between Abu Dhabi and the rest of the global 

economy, and the airline’s expanding network was 

a key factor in encouraging businesses to invest in 

the Emirate and the UAE. These activities provided 

a catalytic economic contribution of nearly US$4 

billion, representing 5.3 per cent of Abu Dhabi’s nonoil 

GDP or 2.1 per cent of total GDP, and supported 

nearly 104,000 jobs. 

Etihad Airways was also a key contributor to the 

development and growth of tourism in the UAE. 

In 2011 the airline carried 8.3 million passengers 

through its hub in Abu Dhabi. In 2012 this figure is 

set to increase to 10 million passengers. 

Based on the airline’s current growth projections, 

Etihad Airways’ total economic contribution to Abu 

Dhabi’s GDP is on track to increase by 76 per cent 

to US$10.743 billion by 2015, helping to support 

162,000 jobs in the Emirate. 

US$ billion 

12 

10 

8 

6 

4 

2 

2010 

2011 

2012 

2013 

2014 

2015 

0 

Etihad’s overall contribution to 

economic activity in Abu Dhabi 

Source: Oxford Economics and Etihad Airways 

Direct Indirect 

Induced Catalytic 

Airport 

Etihad 

Airways 

ABU DHABI 

2030 PLAN 

Tourism 

Infrastructure 

International 

Business 

Etihad Airways Annual Report 2011 17 

Transport 

Infrastructure

PROFIT 

A year of stellar achievements 

From profitability to a landmark deal with airberlin and a 10-year 

sponsorship deal with Manchester City Football Club, in 2011 Etihad 

Airways demonstrated to the world the scale of its ambition. 

Etihad Airways recorded its 

first ever full year net profit 

in 2011 of US$14 million, 

beating its break-even goal. 

A full year EBIT of US$137 

million was recorded on 

revenues up 36 per cent to 

US$4.1 billion. 

AIRBERLIN 

Etihad Airways’ first equity 

investment was a 29.2 

per cent stake in Europe’s 

sixth largest airline, giving 

overnight access to 35 

million new passengers 

and expanding the airlines’ 

combined networks to 239 

destinations. 

MANCHESTER 

CITY FOOTBALL 

CLUB 

A 10-year partnership deal 

was signed with the iconic 

English football club and 

includes naming rights 

for the club’s stadium 

and campus, as well as 

an extension of the shirt 

sponsorship. 

2009 

2010 


1,929 

2,390 

Passenger Revenue 

(US$m) 

2,960 

NETWORK 

Five new routes were 

launched – Bangalore, the 

Maldives, the Seychelles, 

Chengdu and Düsseldorf – 

and five announced for 2012 

– Tripoli, Shanghai, Lagos, 

Basra and Nairobi. 

2009 

2010 


322 

Cargo Revenue 

(US$m) 

FLEET 

Eleven more B787-9 

Dreamliners ordered – the 

fleet of 41 will make Etihad 

Airways the largest operator 

of this aircraft type in the 

world. 

518 

651 

2009 

2010 


CARGO 

A record 310,000 tonnes cargo 

were carried, the almost 18 per 

cent annual increase continuing 

the spectacular growth of this 

key revenue generating division. 

2.3 

Total Revenue 

(US$b) 

3.0 

4.1 

EMIRATISATION 

The number of UAE nationals 

in the company jumped to 

18 per cent – a 70 per cent 

increase – in a year that saw 

the first female Emirati pilot 

qualify as a First Officer 

and the first-ever all-female 

Emirati contact centre open 

in Al Ain. 

TECHNOLOGY 

A deal worth more than 

US$1 billion was signed 

with Sabre Airline Solutions, 

the aviation computer 

technology provider, 

enabling revolutionary 

change through the 

introduction of cutting edge, 

integrated software systems 

across the company, affecting 

almost every facet of the 

business. 

IFE & 

CONNECTIVITY 

A 10-year deal, valued at 

more than US$1 billion, 

was signed with Panasonic 

Avionics Corporation 

to provide in-flight 

entertainment systems 

and in-flight connectivity, 

including broadband Internet 

and live TV, for the airline’s 

entire long-haul fleet of wide 

body aircraft. 

ENVIRONMENT 

Etihad Airways reduced carbon 

emissions per passenger kilometre 

by five per cent compared 

to 2010 – with an overall 

improvement of 17 per cent 

since 2006 – through initiatives 

such as lighter cargo containers, 

modification of selected engines 

and involvement in an industrywide 

program of ‘green flights’ 

identifying key areas for fuel and 

emissions saving. 

SOCIAL MEDIA 

Etihad Airways’ Facebook 

page was launched in the 

first quarter of 2011 and 

by year-end had more than 

60,000 fans. 

18 Etihad Airways Annual Report 2011 Etihad Airways Annual Report 2011 19 

AWARDS 

Etihad Airways was named 

World’s Leading Airline in 

the prestigious World Travel 

Awards for the third year in 

succession.

Inverness 

Londonderry 

Edinburgh 

Belfast 

Copenhagen 

Nottingham Amsterdam 

Birmingham London Stansted 

Prague 

Stuttgart Kosice 

Basel 

Zurich 

Lyon 

Venice 

Bucharest 

Sofia 

Madrid 

Rome 

Barcelona 

Tirana 

Thessaloniki 

Berlin 

Isle of Mann 

Leeds 

Hamburg 

Manchester Hanover 

Dublin 

Warsaw 

London 

Southampton 

Düsseldorf 

Exeter Brussels 

Jersey 

Frankfurt 

Paris 

Munich Vienna 

Salzburg Budapest 

Innsbruck Graz 

Geneva 

Toulouse 

Milan 

Marseille 

Belgrade 

Palma de Mallorca 

Istanbul 

Malaga 

Aberdeen 

Europe Network 

Broome 

Port Hedland 

Karratha 

Perth 

Route map 

Newman 

Darwin 

Australasia Network 

Oslo 

Gothenburg 

Helsinki 

Stockholm 

Athens 

Catania 

Malta 

Cairns 

Townsville 

Proserpine Hamilton Island 

Mackay 

Rockhampton 

Ayers Rock (Uluru) 

Gladstone 

Hervey Bay 

Sunshine Coast 

Brisbane 

Gold Coast 

Ballina 

Coffs Harbour 

Port Macquarie 

Newcastle 

Adelaide 

Sydney 

Canberra 

Albury 

Melbourne 

Launceston 

Hobart 

Rhodes 

Christchurch 

Queenstown 

Dunedin 

Auckland 

Hamilton 

Rotorua 

Wellington 

Vancouver 

Seattle 

Minneapolis Ottawa 

La Crosse Toronto 

MadisonMilwaukeeRochester 

Syracuse 

Sioux City DubuqueChicago 

Waterloo 

BuffaloWestchester Boston 

Des Moines Toledo 

Detroit 

Moline 

Cleveland Hartford 

Omaha Bloomington Champaign Newark New York 

Salt Lake City 

Indianapolis Harrisburg 

Pittsburgh NY - La Guardia 

Denver 

Louisville Columbus Philadelphia 

Saint Louis 

Baltimore 

San Francisco 

Covington Washington 

Evansville Lexington 

Las Vegas 

Tulsa 

NW Arkansas Nashville 

Oklahoma 

Memphis 

Knoxville 

Raleigh (Durham) 

Los Angeles 

Little Rock 

Huntsville 

Charlotte Douglas 

Phoenix 

Dallas 

Atlanta 

San Diego Tucson 

El Paso 

Wilmington 

Austin 

San Antonio Houston New Orleans 

Orlando 

Tampa 

Fort Myers 

Miami 

Etihad Destinations 

Codeshare Partner Destinations 

Etihad Future Destinations 

Bangkok 

Manila 

Trat 

Phnom Penh 

Ho Chi Minh City 

Phuket 

Koh Samui 

Krabi 

Langkawi 

Penang 

Kuala Lumpur Kuantan 

Johor Bahru 

Singapore 

Kota Kinabalu 

Kuching 

Tokyo 

Osaka Nagoya 

Fukuoka Matsuyama 

Kumamoto 

Kagoshima 


Funchal 

Nouakchott 

Dakar 

Banjul 

Manchester 

Dublin 

London 

Düsseldorf 

Brussels 

Frankfurt Prague 

Paris 

Munich 

Porto Barcelona 

Madrid 

Lisbon 

Faro 

Tangiers Nador 

Fez Oujda 

Casablanca 

Errachidia 

Marrakech 

Ouarzazate 

Agadir 

Bamako 

Geneva 

Milan 

Ouagadougou 

Cotonou 

Accra 

Lagos 

Tripoli 

Istanbul 

Kiev 

Athens 

Minsk 

Larnaca 

Alexandria 

Cairo 

Khartoum 

St. Petersburg 

Nairobi 

Johannesburg 

Moscow 

Krasnodar 

San'a 

Kazan 

Samara 

Erbil Tehran 

Beirut 

Baghdad 

Damascus 

Amman Basrah 

Kuwait 

Dammam 

Riyadh 

Bahrain 

Doha 

Karachi 

Jeddah 

Abu Dhabi Muscat 

Seychelles 

Praslin 

Astana 

Peshawar 

Islamabad 

Lahore 

Delhi 

Bengaluru 

Kozhikode 

Kochi 

Trivandrum 

Colombo 

Malé 

Almaty 

Mumbai 

Hyderabad 

Chennai 

Kathmandu 

Dhaka 

Luang Prabang 

Chiang Mai 

Yangon 

Chengdu 

Hanoi 

Beijing 

Jakarta 

Denpasar Bali 

Shanghai 

Hong Kong 

Seoul 

Okinawa 

Sapporo 

Sendai 

Niigata 

Melbourne 

Brisbane 

Sydney 

Auckland

The story so far 


2008 2009 2010 2011 

Passengers (million) 6 6.3 7.1 8.3 

Fleet by year (passenger & cargo) 42 53 57 64 

Total destinations including Abu Dhabi 59 69 79 81 

Load factor 75% 74% 74% 75.8% 

On time performance 79% 87% 86% 82.6% 

Etihad Guest members 500,000 750,000 1,000,000 1,300,000 

Etihad Guest accrual partners 30 43 65 67 

Etihad Guest redemption partners 69 107 215 273 

Codeshare partners 10 19 28 35 

Employees 7,058 7,828 7,855 9,038 

Revenues (billion) 

AED 9.1 AED 8.4 AED 10.9 AED 15 

(US$ 2.5) (US$ 2.5) (US$ 2.95) (US$ 4.1) 

Fuel hedged 76% 66% 82% 80% 

We have delivered on our mandate and the business plan we agreed with our shareholder. We 

have a proven track record, and today, Etihad Airways enjoys the confidence of the banking and 

financial sector globally and has a high measure of credibility in the business community.” 

James Rigney, Chief Financial Officer 


Making the numbers work 

Guests carried 

8.3 million 

Seat factor 

75.8% 

New aircraft 

7 

Total codeshare 

agreements 

35 

Total annual 

cargo carried 

310,000 tonnes 


Available seat 

kilometres 

51 billion 

Number of Etihad 

Guest accrual partners 

67 

Annual passenger 

revenue 

$2.96bn 

Etihad Airways’ stake in 

airberlin 

29.2% 

Average cargo 

carried in a month 

25,000 tonnes 

Coaches a day from 

Dubai to Abu Dhabi 

22 

Passenger fleet 

57 

Revenue passenger 

kilometres 

38.7 billion 

Staff nationalities 

128 

Top 5 staff 

nationalities 

India (962) 

UAE (819) 

Philippines (710) 

UK (624) 

Australia (237) 

5 new destinations 

Bangalore 

Maldives 

Seychelles 

Chengdu 

Düsseldorf 

Cargo fleet 

7 

Top 10 routes by 

passenger volume 

Bangkok 

(500,589) 

London 

(478,821) 

Jeddah 

(289,439) 

Sydney 

(269,185) 

Frankfurt 

(237,451) 

Paris 

(228,425) 

Manchester 

(222,465) 

Doha 

(215,137) 

Dublin 

(214,733) 

Many congratulations to Etihad Airways on this year’s results. It 

is wonderful to have been part of the Etihad Airways story, from 

inception in 2003 through to world stage as a premier carrier. 

We look forward to your future success and wish you great 

fortune in 2012 and beyond.” 

Richard S Oliver, Managing Director, Head of Global Banking, Abu Dhabi HSBC Bank 



Aircraft the right mix 

Current fleet at 31 December 2011 Aircraft on order at 31 December 2011* 

8x B777-300ER 

11x A340-500/600 

22x A330-200/300 

16x A319/320 

1x B777-200F 

2x MD11F 

2x A330-200F 

2x A300-600F 

10x A380 

12x B777 

19x A350 

41x B787 

20x A320 

* Flexibility to increase deliveries with 85 

options and purchase rights. 


Etihad continually evaluates opportunities to 

optimise aircraft deliveries to meet forecast 

passenger demand and network requirements. 


Fleet the right size 

During 2011, Etihad Airways took delivery of seven 

new aircraft: 

» Three Airbus A330-300 in a three-class layout 

» Two Boeing B777-300ER in a two-class layout 

» One Airbus A320-200 in a two-class layout 

» The first Boeing B777-200F for the cargo division 

This brought the fleet to a total of 64 aircraft as at 

December 31, 2011. 

Seven new aircraft are due for delivery in 2012, 

with a further 95 on firm order to meet the airline’s 

needs through to 2020. Out of the total firm order 

of 100, five have already entered service. 

Etihad Airways continually evaluates opportunities 

to optimise aircraft deliveries to meet forecast 

passenger demand and network requirements. 

During 2011, agreements were put in place with 

aircraft manufacturers to protect the growth of 

the airline over the short- and long-term. These 

included: 

» Altering delivery profiles to add three 

Airbus A320 aircraft in 2012 by advancing two 

aircraft from 2014 and taking an additional 

leased aircraft 

» Increasing the Boeing B777-300ER order by 

three aircraft to be delivered in 2013 

» Adding further Boeing B787-9 Dreamliner 

capacity, bringing to 41 the total number of 

this aircraft type to be delivered between 2014 

and 2019, which will result in Etihad Airways 

being the single largest operator of this model in 

the world 

» Tripling the order for Boeing B777-200F aircraft 

to join the fleet by the second quarter of 2013 

Agreements with the major aircraft manufacturers 

were restructured to retain flexibility for future 

capacity growth and coverage for any further delays 

in the new aircraft programs. 

In 2011, Etihad Airways concluded an extensive 

two-year reconfiguration program in which the 

majority of the existing fleet was upgraded to Etihad 

Airways’ exacting standard of onboard product 

while optimising seat count to match demand on 

the routes served by each aircraft type. 

The following programs were completed during the 

year: 

» Roll out of the new Diamond First Class cabin, 

incorporating suites and a large changing 

room on nine Airbus A340 aircraft 

» Upgrade of the Pearl Business Class cabin on nine 

narrow-body aircraft, including the installation of 

new seats 

» Reconfiguration of eight Airbus A330-200 aircraft 

from three- to two-class, with consistent 

product and seat count 

» Reconfiguration of three Airbus A330-300 

aircraft, resulting in an additional 28 seats by 

adjusting cabin configurations to match demand. 

Work commenced for the entry into service of 

the Airbus A380 and Boeing B787, which will be 

delivered in 2014. 

In 2011, progress included: 

» defining the onboard product and seat count 

» detailing specifications for the aircraft 

» managing onboard weight 

» infrastructure technology readiness 

Total Fleet 

52 

2009 

57 

2010 

Total Aircraft 

Departures 

49,064 

2009 

57,534 

2010 

64 


62,735 


Weight management 

initiatives 

Etihad Airways takes weight management on its aircraft 

seriously, with the aim of reducing fuel costs and aircraft 

emissions. A project group was formed in 2011, tasked 

with identifying and implementing initiatives to reduce 

weight and lower fuel burn and the impact on the 

environment. Savings have already been made through 

the use of lighter weight composite materials in cargo 

containers, catering equipment and magazines. 


At December 31, 2011 

» 81 destinations in 51 countries. 

» Available Seat Kilometres (ASKs) on the network grew to 

51 billion, up 13 per cent on the previous year. 

» Revenue Passenger Kilometres (RPKs) grew to 38.7 billion, 

up 16 per cent on the previous year. 


Network connecting the world 

Network Management generates optimal 

commercial results by designing, implementing and 

managing a customer-driven network and schedule. 

When planning the development of the Etihad 

Airways network, the airline takes into account 

a range of indicators such as demand, potential 

revenue and profitability, and analyses current and 

new markets for the best capacity fit (aircraft size 

and cabin configuration) to ensure each market will 

contribute to airline profitability. 

Schedule planning is based on optimal connectivity 

across the network and customer convenience, 

with the important goal of maximising use of the 

airline’s major assets – its aircraft – while working 

within operational, environmental, political and 

infrastructure constraints. 

The airline’s 10-year network plan was refreshed in 

2011, detailing Etihad Airways’ growth through to 

2020 to include 131 passenger destinations with a 

fleet of over 150 aircraft. 

Six new passenger aircraft in 2011 allowed 

Etihad Airways to add five new destinations to the 

network: Bangalore, Maldives, Seychelles, Chengdu 

and Düsseldorf. An additional 36 frequencies to 12 

existing destinations were also added. As part of its 

European expansion at the beginning of summer 

2011, 17 additional weekly frequencies were added 

across five existing destinations – Paris, Geneva, 

Milan, Brussels and Manchester. 

The combination of increased routes and 

frequencies generated a 30 per cent year-on-year 

increase in sub-four-hour connectivity over the Abu 

Dhabi hub. 

Significant expansion is planned into the emerging 

markets of China, Africa and the Middle East 

with the following new destinations added to the 

network: 

» Tripoli (three per week – from January 17, 2012) 

» Nairobi (daily – from April 1, 2012) 

» Shanghai (daily – from April 15, 2012) 

» Basra (four flights per week – from April 15, 2012) 

» Lagos (six per week – from July 1, 2012) 

Etihad Airways also planned additional frequencies 

to a range of other destinations to be introduced in 

2012, enabling it to increase the depth and breadth 

of the network. 

Other changes planned for 2012 include: 

» upgrading services to Jakarta (March) and 

Kuala Lumpur (April) to two-class Boeing 

B777-300ER aircraft; 

» deploying the first three-class B777-300ER on the 

London-Abu Dhabi route (July 2012); and 

» adding a third daily Bangkok service (April 15, 

2012). 

Seat Factor 

(%) 

73.6% 

2009 

74.0% 

2010 

75.8% 


Passenger 

Numbers (’000) 

6,276 

2009 

7,100 

2010 

8,297 



Etihad Guest Experience frequently and regularly assesses the airline’s 

performance in the eyes of its customers. 

Participation in Airs@t – IATA’s independent quarterly benchmarking study of major airlines’ 

Business and Economy classes – continued in 2011, with positive results for Etihad Airways in 

both classes. In addition, Etihad Airways launched its own Etihad Guest Experience Survey. The 

first quarterly results, delivered in November 2011, showed strong performance in all cabins 

while indicating areas for development in 2012. 


a 

Guest Experience leading the world 

In May 2011, the Product and Service department was 

repositioned and renamed Guest Experience. More 

than just a departmental name change, the move is a 

strategic business change, reflecting Etihad Airways’ 

total commitment to caring for its customers at every 

stage of their journey, and refocusing the airline’s 

resources on the delivery of service at the very highest 

standard. 

Etihad Airways’ world-first Guest Response initiative 

was launched in December 2011, based in the 

airline’s round-the-clock Network Operations Centre. 

Guest Response provides assistance and service 

recovery to First and Business Class passengers and 

premium-tier Etihad Guest members who are in ‘live 

journey’, with real-time links to the Etihad Airways 

global airport network that are particularly beneficial 

during operational disruptions. The Guest Response 

unit also provides ‘speed-dial’ support inflight to the 

airline’s cabin crew, enabling on-the-spot service 

recovery. 

2011 saw considerable consolidation after several 

changes to the Diamond First and Pearl Business Class 

cabins in 2010, including a program to standardise 

inflight processes, ensuring consistency of service 

across all fleet and seat types. 

Other key initiatives launched during the year 

included: 

» A new premium cabin service on ultra short-haul 

flights in response to guest feedback to ensure faster 

delivery of drinks and appetisers 

» Fortnightly menu changes to ensure frequent guests 

experience variety 

» New amenity kits in Diamond First Class 

» ‘Immaculate Etihad’ – a program to ensure a new 

level of cleanliness in all cabins 

» The innovative First Class Chef concept and 

introduction of the ‘Mezoon Grille’ cuisine, 

which continues to be rolled out across the First 

Class operation 

» A new recruitment and training program to 

strengthen the Guest Affairs team and offer world- 

leading customer response times 

Inflight entertainment is a crucial differentiator 

between airlines, and Etihad Airways is committed 

to providing the best, both in terms of content 

and system performance and reliability. The new 

Panasonic eX2 IFE system is incredibly popular with 

customers and so far features on 16 aircraft, with rollout 

on a further 100 planned. 

Inflight mobile phone and Internet connectivity 

services were launched on two Airbus A330-300 and 

one A320 aircraft towards the end of 2011 and further 

deployment will continue to be a key area of focus in 

2012 with 12 aircraft equipped by year end. 

Etihad Airways invested in a rigorous research 

program that was launched in September 2011. The 

new research approach comprises four measures, 

including the IATA airs@t survey, the Mindset survey, 

the Etihad Guest Experience survey and a new Etihad 

Airways Staff Travel survey. 

On the ground, destinations offering Etihad Chauffeur 

service to premium passengers increased to 27 and 

the frequency of the free Etihad Express luxury coach 

service between Abu Dhabi and Dubai increased to 

22 trips per day. 

The airline’s efforts to improve and refine the guest 

experience will deepen and strengthen in 2012 as 

Etihad Airways reinforces its drive to be a world leader 

in this field with positive and exciting action. 

1 October saw the introduction of Inflight 

Chefs in Diamond First Class and the 

launch of the signature ‘Mezoon Grille’ 

cuisine. 

2 16 aircraft were equipped with the latest 

Panasonic eX2 IFE technology by the end 

of the year. 

Etihad Airways Annual Report 2011 33 

1 

2

Etihad Cargo a record performance 

Etihad Cargo achieved a strong performance in 

2011, with revenues exceeding budget by more than 

US$33 million and year-on-year revenue growth of 

over US$133 million. Freight carried grew nearly 18 

per cent year-on-year to average more than 26,000 

tons per month, with a record tonnage month in 

December, which exceeded 29,000 tons. 

During the year, the freighter fleet grew from six to 

seven aircraft with the introduction of Etihad Cargo’s 

first Boeing B777 freighter. Freighter capacity now 

accounts for one third of the total Available Tonne 

Kilometres (ATKs) offered for sale. 

The freighter network continued to be optimised and 

expanded, with the addition of Almaty, Amsterdam, 

Cairo, Djibouti, Johannesburg, Kabul, Kandahar, 

Karachi and Lahore. The freighter network grew to 27 

stations, 10 of which are freighter-only stations. 

A new record in charter revenue was achieved during 

the year, with revenue in excess of US$50 million, 

accounting for seven per cent of cargo revenue. 

Etihad Cargo expanded its product portfolio with the 

launch of the FAST-TRACK premium product, offering 

priority handling and faster connectivity. The product 

has been well received and is generating more than 

US$1 million in revenue per month. 

In addition to the existing UAE road trucking 

schedules operated by Al Mazroui International Cargo 

Company, scheduled trucking was launched from 

Abu Dhabi to Bahrain, Dammam, Doha, Kuwait and 

Muscat, using the capabilities and existing schedules 

of DHL and Dnata-PWC. 

The scheduled trucking frequency from Abu Dhabi 

to Dubai and Sharjah expanded, increasing to 115 

weekly departures, to allow a greater focus on 

targeting business destined throughout the UAE. 

In March 2011, Etihad Airways appointed Jettainer as 

its Unit Load Device (ULD) provider, focusing on cost 

reduction and reduced fuel burn by deploying lighter 

weight ULDs. 

The business will move forward with implementation 

of new modules of the Cargo Max Revenue 

Management system, offering revenue improvement 

opportunities through enhanced inventory, allotment 

and bid pricing controls. 

A precious cargo shipment facility will be launched in 

2012 in collaboration with Linfox Armaguard. 


Cargo Revenue 

per Freighter 

(US$m) 

107.3 

2009 

219 

2009 

86.3 

2010 

263 

2010 

93.0 


Cargo Tonnage 

(’000) 

310 

2011

Operations a commitment to technical excellence 

Etihad Airways’ Operations division is responsible 

for delivering a safe, punctual and efficient customer 

experience of the highest quality. 

In 2011, Etihad Airways operated 56,643 flights, an 

increase of seven per cent, or 3,553 flights, on the 

previous year. Despite this increase, only 192 flights were 

cancelled, down by 31 per cent, or 85 cancellations, on 

2010. 

It proved to be a challenging year for Etihad Airways in 

terms of maintaining the high on-time performance of 

the previous two years. An extraordinarily high number 

of external weather and political events impacted 

performance for the first half of the year, while from June, 

air traffic flow restrictions took their toll. Cumulatively, 

these external factors drove the airline’s on-time 

performance down to two per cent below target, at 82.6 

per cent. 

Overall, Etihad Airways’ technical dispatch reliability was 

stable, and above industry standard, improving in 2011 to 

99.1 per cent – well above target. 

Several systems and programs were implemented to 

automate processes and improve efficiency. Etihad 

Airways’ non-flight data monitoring platform, for 

example, allows the operations team to read aircraft 

system data more quickly and with a higher data 

consistency than before at a fraction of the cost. Etihad 

Airways also upgraded its capability to communicate from 

the ground to the aircraft by implementing new enhanced 

tools to facilitate greater flexibility and speed of data 

processing. 

A network-wide fuel and combined route optimisation 

project was completed after a 15-month implementation. 

This system allows for the real time comparison of fuel 


costs versus route costs, and ultimately the selection of the 

most efficient route, based on multiple input parameters. 

The year was marked by a series of firsts, including the 

successful training and graduation of the first female 

Emirati First Officer, the first Emirati engineer, and the first 

female Captain. 

A total of 215 pilots, 900 cabin crew and 113 chefs were 

recruited and trained. 

Etihad Airways’ instructor training programs were 

significantly upgraded during the course of 2011 to 

enhance standardisation in pilot training and flight safety. 

The Technical division oversaw an ongoing program of 

innovation and product enhancement to ensure Etihad 

Airways aircraft are maintained to the highest standards. 

The Airbus A330-200 aircraft fleet was extensively 

reconfigured from three to two classes while the retrofit 

program for the new Diamond First Class suite on the 

Airbus A340 fleet continued to ensure a consistent 

product across the airline. In 2011, the first Airbus A330 

aircraft in Etihad Airways’ fleet was fitted with onboard 

connectivity. 

Adding to the network of local line maintenance centres 

at Etihad Airways outstations, a new facility was opened 

in Manchester, where 12 people are employed to service 

Etihad Airways aircraft. 

The first quarter of 2011 saw the “Arab Spring” civilian 

uprisings in Tunisia, Egypt and Bahrain, followed quickly 

by the earthquake and tsunami disaster in Japan. Despite 

these unprecedented and disruptive events, Etihad 

Airways’ scheduled operations remained steady and 

wholly complete even though contingency plans were in 

It has been an amazing journey for Etihad Airways. We are 

proud of achieving our goal of profitability in only eight years 

– and more importantly, to have done so while maintaining our 

absolute commitment to the highest standards of safety, which 

will always be our paramount concern.” 

Richard Hill, Chief Operations Officer 



place to respond to the unique demands of each event. The crisis 

in Egypt, in particular, brought about a rapid response from the 

operations group to repatriate UAE nationals. Over a three-day 

period Etihad Airways was able to provide assistance to more 

than 1,000 UAE nationals. 

The earthquake and tsunami in Japan saw another unique 

challenge for the industry and Etihad Airways was one of the few 

airlines that continued to operate to both Narita and Nagoya 

throughout the crisis. The welfare of the airline’s Japan-based 

staff, their families, and the flight deck and cabin crew operating 

into Japan, became top-priority until the threat diminished, and 

by late April a state of normalcy had returned. 

Good progress was made in fuel and carbon emission savings 

by refining operating procedures, optimising flight routes and 

altitudes, and reducing aircraft weight. These, together with 

improved payloads, resulted in a five per cent improvement in 

efficiency per RPK from 2010. 

Working with a wide range of stakeholders, the airline 

continually looks at all phases of flight for potential fuel savings. 

Locally, the introduction of new approach routes (planned 

for the third quarter of 2012) and landing procedures in Abu 

Dhabi will allow for the decrease of each flight path by 33 flight 

kilometres. More widely, demonstration flights across the Indian 

Ocean indicated substantial emissions savings if the airline 

were able to make better use of its onboard flight management 

systems to identify more flexible, fuel efficient routes. 

2011 saw the introduction of a formalised biofuel strategy. 

In addition to its investment with the Masdar Institute-led 

consortium conducting research into viable, locally produced 

biomass for alternate fuel, Etihad Airways operated its first 

demonstration flight using a biofuel blend in January 2012. 

Safety Etihad Airways’ top priority 

Safety was once again the priority 

and preeminent focus for the 

Operations division in 2011. 

The division’s objectives are: 

» Zero accidents 

» Continuous decrease in the severity of incidents and occurrences 

» Continuous improvement in safety culture 

In 2011, a 61 per cent reduction in risk for identified hazards across 

all operational areas was achieved. 

The new Environmental Health and Safety Management System, 

approved by the Abu Dhabi Department of Transport, was 

implemented in 2011 in addition to Etihad Airways’ own Safety 

Management System, which is designed to manage safety proactively 

and promote a positive safety culture. 

Etihad Airways’ Safety Week, which took place in May, and a Pilot 

Safety Seminar in October were both well attended. 

The biennial IOSA-renewal audit is scheduled for 2012. The industry’s 

most challenging operational audit will be conducted by an external 

international audit team in May. This follows successful IOSA audits in 

2006, 2008 and 2010 – all of which were passed with no findings. 


Etihad Guest miles of rewards 

Etihad Guest, Etihad Airways’ loyalty program, 

enjoyed a stellar year as membership increased by a 

third for the second year in succession. By the end 

of 2011, its sixth year of operation, Etihad Guest had 

more than 1.3 million members. 

The number of miles accrued by members rose by 

42 per cent and Total Partner Revenue was up by 

some 207 per cent, largely due to the success of 

co-branded credit card initiatives with Abu Dhabi 

Commercial Bank and Abu Dhabi Islamic Bank. 

Member redemptions also rose strongly, 

outperforming 2010 by 68 per cent. 

Over the course of the year, 15 accrual partners 

were added to the Etihad Guest portfolio, giving 

members the opportunity to earn and burn miles 

with a total of 75 partners. 

New partners include Malaysia Airlines, American 

Airlines and bmi; blue chip brands such as Avis, 

Citibank and American Express Membership Reward; 

and local firms such as Etisalat, Mobily and Atlantis 

The Palm Hotel. 

Innovative member-only promotions such as the 

raffle draws for Paddock Club passes to the 2011 

Formula One Etihad Airways Abu Dhabi Grand Prix 

and an all expenses paid trip to the Maldives, saw 

some 34.5 million miles redeemed. 

In 2011, Etihad Guest announced the launch of a 

major initiative that allows members to redeem their 

miles at up to 30 million points of sale across the 

globe. This new facility, which comes into effect in 

2012, will revolutionise the program, effectively 

giving Guest Miles the same liquidity as major global 

currencies. The ’virtual credit card’ will cement 

the program’s status as the most innovative in the 

industry. 


Sales a pillar of sustainable profitability 

In 2011, Etihad Airways continued the development 

of its world class global sales and distribution 

network. 

» Distribution was broadened with a concerted 

strategy to increase global deals, and to strengthen 

relationships with key travel trade partners 

at local and global levels, particularly with travel 

management companies specialising in business 

travel 

» Sales teams were strengthened with additional 

specialist corporate sales executives and regular 

advanced sales training programs 

» Training and development for the sales teams 

placed emphasis on new sales technology and 

a more analytic approach to sales, to leverage 

substantial investments made in tracking analysis 

and reporting during the year 

As part of the work to strengthen distribution, there 

was also increased focus on allocating inventory for 

group travel, supporting efforts of the commercial 

team to service important tour operator series traffic 

as well as ad hoc groups. 

Etihad Airways also achieved significant growth 

from direct sales in 2011, using direct channels 

including Etihad Holidays, destination management 

company Hala Abu Dhabi, etihad.com, Etihad shops 

in the UAE and the airline’s global contact centres. 

Direct sales grew as a proportion of overall sales 

throughout 2011 in line with strategic objectives. 

During 2011, the stature of Hala Abu Dhabi grew 

within the industry, and over the course of the year, 

it was the inbound tour operator for internationally 

prestigious events such as the World Economic 

Forum and the Arab Air Carriers Organisation 

(AACO) Annual General Meeting. 

Etihad Airways continued to invest in its global 

contact centres to support its expanding network. 

At the beginning of 2011, Etihad Airways had three 

contact centres: Abu Dhabi, Al Ain and Mumbai. 

By the end of the year these three centres employed 

450 people, 51 per cent of the people employed 

in the UAE being Emiratis, predominantly women 

based in Etihad Airways’ Al Ain centre. 

Following the signing of the Memorandum of 

Understanding (MoU) with Manchester Airport 

Group and MIDAS (Manchester’s Inward Investment 

Agency) on March 23, 2011, planning began on 

Etihad Airways’ European contact centre. The 178seat 

contact centre, located in the Voyager Building 

at Manchester Airport, was officially opened on 

February 6, 2012. Currently employing 78 people, 

including a mix of experienced travel professionals, 

linguists and school leavers, the centre is planned to 

grow to 160 by July 2012 and will handle calls from 

over 25 markets in 13 languages. 

Globally, the centres received more than 2.7 million 

calls in 2011, a number which is expected to grow 

to more than three million in 2012. 

etihad.com is an integral sales and marketing 

channel for the airline, and has grown significantly 

as a primary direct distribution channel. During 

2011, bookings grew by 49 per cent, driven by a 

29 per cent increase in visits. Revenue grew by 35 

per cent. Additional language capability was added 

during 2011, making the website available in 10 

languages: English, Arabic, French, German, Italian, 

Chinese, Japanese, Korean, Russian and Thai. 

Strategic pricing initiatives and the further 

development of the airline’s inventory systems were 

the hallmarks of revenue management during 2011. 

Etihad Airways migrated to a new Origin and 

Destination inventory management system in 2011. 

This system assesses optimum use of the airline’s 

inventory of seats, based on each passenger’s total 

journey rather than by sector. Development of a 

new forecast model based on 2011 data is under 

way and will be deployed in 2012. This new 

forecast methodology will take advantage of real 

time passenger booking data to increase forecast 

accuracy and further improve revenue generating 

capabilities. 

A major fare class realignment exercise was 

undertaken in July 2011, with the new inventory 

control methodology providing an opportunity to 

create new competitive and revenue generating 

market fares. 

1 Al Ain Contact Centre 

2 etihad.com is an integral 

sales and marketing channel 

We have achieved global recognition as a leading airline 

brand that stands for an inspirational customer experience. 

Our strong brand and exceptional product allow us to 

accelerate sales across all market segments, as the airline of 

choice for consumers and trade partners.” 

Peter Baumgartner, Chief Commercial Officer 


1 

2

Information technology helping drive the efficiencies needed for profitability 

The role of information technology (IT) as a key 

enabler in any business is critical, and Etihad Airways 

is no exception. 

The airline embraces IT, placing great emphasis on the 

need for sound and robust platforms to underpin the 

way the airline conducts its business. Equally, ongoing 

investment in systems and processes to enable a 

smarter and more efficient company is crucial. 

Etihad Airways’ IT infrastructure is a complex 

environment with more than 3,000 personal 

computers and 300 servers running 170 applications 

across a global network. 

2011 saw the renewal of the IT foundations that will 

facilitate Etihad Airways’ ability to remain a dynamic 

and competitive company over the next decade. This 

included a restructure in the IT department with a 

renewed emphasis on effective engagement across the 

organisation, offering efficient, cost-effective IT support 

aligned to the commercial objectives of each division 

within the business. 

The restructure made provision for the creation of 

an Innovation and Technology Exploitation group to 

identify opportunities for new technologies to improve 

existing processes, such as the use of tablet devices by 

cabin crew to enhance customer service and reduce 

paperwork. 

In 2011, Etihad Airways signed a revolutionary 10-year 

technology deal with Sabre Airline Solutions – the 

single largest technology-enabled business change that 

Etihad Airways will undertake in a decade – to utilise 

cutting edge, integrated software across reservations, 

inventory, marketing, planning, e-commerce, 

distribution and departure control operations. 


The Sabre-created software will be implemented 

by February 2013 and will significantly reduce the 

airline’s technology costs while streamlining processes. 

This groundbreaking deal will play a pivotal role in 

generating efficiencies to deliver the airline’s future 

revenue growth. 

Important systems were upgraded or migrated during 

2011. These included: 

» the corporate system for managing financial, supply 

chain and human resources transactions; 

» the e-commerce system used to drive web selling, 

promotions and customer engagement; 

» the airline’s Customer Relationship Management 

system, aimed at delivering more effective service for 

the airline’s passengers; and 

» the Aircraft Movement and Crew Control system, 

which enables efficient on-the-day management of 

Etihad Airways’ fleet schedule and crew duties. 

In addition, more than 30 new projects were delivered 

during the year, ranging from complex revenue 

management systems to simple web forms to improve 

business processes. 

A major program of infrastructure renewal was 

commenced to ensure that Etihad Airways benefits 

from scalable and best practice technology to support 

its operations over the next decade. 

In the year ahead, Etihad Airways will continue to 

focus on ensuring it has the most efficient and effective 

IT systems to support the business and its people. 


Partnerships and alliances stretching the network and contributing to revenue 

Etihad Airways has pursued an effective strategy of 

forming alliances with carriers around the world to 

enhance its network and marketing reach. 

At December 31, 2011, Etihad Airways had 

one equity partnership (with airberlin), Europe’s 

sixth largest carrier providing Etihad Airways 

with increased access to Germany, Austria and 

Switzerland and points across Europe and into 

North America. 

The airline’s 35 codeshare deals with key partners 

around the world have created a comprehensive 

virtual network giving customers easy access to 

destinations not directly served by the Etihad 

Airways fleet. The agreements have also generated 

considerable revenue for Etihad Airways. 

Revenue generated from alliance traffic grew by 

more than US$418 million in 2011, up 48 per cent 

on the previous year. Alliance revenue contributed 

over 15 per cent of the airline’s total 2011 

passenger revenue, with around 25 per cent of this 

coming from premium cabins. 

The comprehensive agreements include codeshare 

flights, reciprocal frequent flyer programs, premium 

lounge access and other customer benefits, 

depending on the partner. 

The convenience and seamlessness of these 

arrangements has been critical in generating 

customer loyalty. 

During the year, Etihad Airways announced eight 

new codeshare partnerships with: airberlin, Air 

Astana, Air New Zealand, SNCF (French Railways), 

Czech Airlines, Vietnam Airlines, Tap Portugal, NIKI 

and Hainan Airlines. 

An agreement was also reached with Air Seychelles 

and this partnership is a strategic move by both 

carriers to support the Mahé – Abu Dhabi route. 

However, January 2012 saw this relationship 

transformed, following the acquisition by Etihad 

Airways of a 40 per cent stake in the national 

carrier of the Seychelles. In addition to the 

capital investment and loan, this long-term 

strategic agreement makes provision for a five 

year management contract that will see the 

implementation of strategic measures to encourage 

Air Seychelles’ long-term commercial growth and 

sustainability. 

Etihad Airways 

codeshare partnerships: 

Aer Arann* 

airberlin 

Air Astana 

Air Malta 

Air New Zealand 

Air Seychelles*** 

Alitalia 

American Airlines 

ANA 

Asiana 

Bangkok Airways 

bmi 

Brussels Airlines 

Cyprus Airways 

Czech Airlines 

flybe 

Hainan Airlines 

Jet Airways 

* To become Aer Lingus in 2012 

** Ended operations in 2012 

*** Commenced January 2012 

Kuwait Airways 

Malaysia Airlines 

Malév** 

Middle East Airlines 

NIKI 

Olympic Airlines 

Philippine Airlines 

Royal Air Maroc 

Saudi Arabia Airlines 

Siberia Airlines (S7) 

SNCF (French Railways) 

Sri Lankan Airlines 

TAP Portugal 

Turkish Airlines 

Ukraine International 

Virgin Australia 

Vietnam Airlines 

Yemenia 

One of the keys to success is providing convenient schedules that 

get our customers where they want to go. Alliances and partnerships 

enable us to offer an enhanced network of services, which translates 

into greater choice for our customers, in turn generating revenue for 

the airline – and this makes good commercial sense.” 

Kevin Knight, Chief Strategy and Planning Officer 


Joint ventures subsidiaries and equity partnerships 

Etihad Airways is 100 per cent owned by the 

Government of Abu Dhabi. The airline has the 

following investments, subsidiaries and joint 

ventures, all of which are accounted for in Etihad 

Airways’ consolidated financial statements. 

Joint ventures 

» ASC (Airline Services Centre) Private Ltd is a 

wholly owned subsidiary of Etihad Airways. ASC 

Airlines Service Centre is located in India and 

provides services as a captive call centre for 

Etihad Airways. 

» Amadeus Gulf LLC is a subsidiary of Etihad 

Airways, owned jointly by Etihad Airways (51 per 

cent) and by the Amadeus IT Group S.A. (49 per 

cent). Amadeus is a leading global distribution 

system and technology partner for the world’s 

travel and tourism industries. Amadeus Gulf LLC is 

present in the United Arab Emirates, the Kingdom 

of Bahrain and the Sultanate of Oman. 

» Aldar Etihad Investment Properties LLC is a joint 

venture between Abu Dhabi’s largest real-estate 

developer Aldar Properties and Etihad Airways. 

The joint venture was created to acquire Abraj 

Tower (later renamed Etihad Plaza) in Abu Dhabi. 

Etihad Plaza provides cost effective housing, 

recreation facilities, utilities and services to more 

than 1,000 members of Etihad Airways’ staff and 

the surrounding community. 

» Hala Travel Management is a joint venture 

between Etihad Airways (80 per cent) and BCD 

Travel (20 per cent) providing various travel 

management services to the Government of Abu 

Dhabi and its clients and supporting the growing 

requirement for a comprehensive service for 

corporate and government clients, including 

global airline reservations, hotel accommodation, 

car rental and insurance. It commenced 

operations in February 2011. 

» Armaguard Valuables Management LLC is a joint 

venture between Etihad Airways (51 per cent) and 

the Linfox Group (49 per cent). The company will 

provide transportation for valuable goods around 

the globe from the second half of 2012. 

Equity investments 

» airberlin 

In December 2011, Etihad Airways concluded its 

first major equity investment increasing its stake 

in airberlin, Europe’s sixth largest airline, to 29.2 

per cent. 

» Air Seychelles 

Etihad Airways acquired a 40 per cent 

shareholding in Air Seychelles in January 2012. 

The remaining shares in the Seychelles national 

airline are held by the Government of the 

Seychelles. 


Marketing driving revenue 

In 2011, the primary objective for Marketing was to 

support and drive revenue to achieve the airline’s 

commercial break-even objective. Overall, marketing 

activity delivered a 10:1 return on investment. 

Considerable investment was made in digital 

marketing over the year, as it continued to demonstrate 

a strong return. 

This investment included increased search engine 

marketing (SEM), ensuring consistent banner activity 

in key markets, and increasing online affiliate 

partners. SEM was one of the highest returning 

activities for the year. 

Specific promotional campaigns were developed 

to support the launches of new routes including 

the Maldives, Seychelles, Chengdu, Düsseldorf and 

Shanghai. These campaigns involved introducing the 

Etihad Airways brand and service into the new market, 

as well as stimulating interest within the airline’s home 

and key connecting markets. 

Marketing continued to leverage the Etihad Guest 

database to incentivise members to fly in the 

premium cabins, in particular through popular 

Double/Triple miles offers for Pearl Business and 

Diamond First Class bookings. Direct marketing 

campaigns were also activated in cooperation with 

major local and international partners, such as Abu 

Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic 

Bank (ADIB), Visa, MasterCard, American Express, 

Carrefour and Hertz. 

Etihad Airways continued to work closely with the Abu 

Dhabi Tourism and Cultural Authority and international 

partners such as Tourism Thailand, Tourism New 

South Wales, Tourism Queensland, Tourism Ireland, 

and Tourism Manchester. Joint activity with these 

organisations allowed Etihad Airways to stretch its 

marketing budget, while developing campaigns to 

support leisure traffic across the network in key source 

markets. 


In 2011, Etihad Airways continued to drive the 

destination marketing program ‘essential abu 

dhabi’, coordinating activity across over 40 

destination partners and managing all related 

marketing communications. The program’s website 

– essentialabudhabi.com – had more than 140,000 

unique visitors during the year. 

Hala Abu Dhabi managed inbound MICE business for 

major conferences and exhibitions hosted by the Abu 

Dhabi Tourism and Cultural Authority. 

Etihad Airways announced the expansion of its 

successful partnership with Manchester City Football 

Club in June 2011. The comprehensive and innovative 

10-year partnership involves the extension of the 

existing shirt sponsorship, as well as naming rights for 

the stadium and the expansive surrounding grounds, 

now known as Etihad Stadium and Etihad Campus. 

In celebration of this milestone, a special Manchester 

City-liveried Airbus A330-200 aircraft in the club’s 

signature sky blue colour entered into service. The 

aircraft operates on the Abu Dhabi-Manchester 

route and also serves Milan, Frankfurt, Brussels, 

Johannesburg, Kuala Lumpur, Jakarta, Singapore, 

Istanbul and destinations throughout the Middle East 

and India. 

In 2011, Etihad Airways’ major sponsorships – 

Manchester City Football Club, Etihad Stadium 

Melbourne, Harlequins Rugby Club, GAA Hurling, 

and the Formula 1 Etihad Airways Abu Dhabi Grand 

Prix – helped extend the airline’s brand reach across 

the world. 

Etihad Airways’ multi-tiered agreement in support of 

Abu Dhabi’s involvement in the 2011/12 Volvo Ocean 

Yacht Race saw the airline’s livery featured prominently 

on the hull and sails of Abu Dhabi Ocean Racing’s 

entry, Azzam, as well as across its Abu Dhabi Ocean 

Racing team apparel during the global event. 

Etihad Airways was also the presenting sponsor for the 

fortnight-long race stopover in Abu Dhabi and title 

sponsor of the In-Port Race. 

Other major Abu Dhabi sponsorships included the 

HSBC Abu Dhabi Golf Championships, the Mubadala 

World Tennis Championships, and the World 

Professional Jiu-Jitsu Championships 2012. 

As part of a strategy to target the Indian market and 

Indian nationals worldwide, Etihad Airways continued 

to work with rising Bollywood star Katrina Kaif, who is 

an Etihad Airways brand ambassador. 

Throughout the year, incremental traffic 

opportunities were generated through targeted 

tactical campaigns. Regular Breaking Deals 

offers were made available on the web in 

major markets. The regular online deals, 

initially introduced in 2010, are now available 

in 10 key markets and offer highly-discounted, 

last-minute offers to encourage repeat visitors 

to etihad.com. 

Major tactical promotional campaigns were 

developed and executed throughout the year, 

stimulating demand during specific periods – 

for example, the ‘Up, Up & Away’ campaign in 

April and May provided a necessary boost in 

bookings during the shoulder season. This was 

followed by a special Ramadan sale targeted at 

increasing outbound traffic for short holidays, 

inbound traffic from GCC markets and key 

traffic over the Abu Dhabi hub. 

1 Etihad Airways supported the 2011/12 Volvo Ocean Yacht Race. 

2 Etihad Stadium in Melbourne. 

3 essential abu dhabi livery. 

4 In June 2011, Etihad Airways announced the expansion of its successful 

partnership with Manchester City Football Club, a comprehensive and 

innovative 10-year partnership. 

2 

3 

4 

1 



Social responsibility and sustainability creating a community 

Etihad Airways acknowledges its position as an 

integral part of society, as well as its potential to 

have both positive and negative impacts on the 

communities in which it operates. 

Aligned with the greater ambitions and vision of the 

Emirate of Abu Dhabi, the Etihad Airways corporate 

social responsibility (CSR) and sustainability policy 

and supporting strategy is designed to: 

» ensure the airline’s compliance with all applicable 

international and local regulations and standards; 

» mitigate any potential risks and minimise, wherever 

possible, negative environmental and social impacts 

from its operations; and 

» enhance the airline’s reputation through the 

implementation of industry best practice in the fields 

of sustainability and social responsibility. 

Etihad Airways’ strategy is based on the premise that 

CSR is a collaborative process, and one that will only 

succeed in partnership with internal and external 

stakeholders – which is why the airline’s CSR and 

sustainability program is called Together. 

Together is a four-part policy, communications and 

reporting framework for engagement with a broad 

range of stakeholders – staff, the local community 

and economy, and the greater communities across the 

airline’s global network. 

In these four areas, it is Etihad Airways’ aim to work 

collaboratively in: 

» identifying and developing awareness of issues 

and challenges; 

» focusing action to address these challenges; and 

» making a difference, through measurable 

improvement, year on year. 

The company’s second CSR Report, which 

complements this Annual Report, will provide 

comprehensive information in each of these four areas 

mapped against the Global Reporting Initiative Index. 


People and performance on target for growth and profitability 

Active recruitment of employees continued 

throughout the year to support the growth of the 

airline and its business objectives. Almost 7,700 

of the airline’s employees are based in Abu Dhabi, 

with 1,300 located in 46 other countries. Of the 

total number of employees, 1,185 are pilots and 

3,230 are cabin crew. 

Staff costs are second only to fuel costs for the 

company, so great attention was paid to headcount, 

with both staff numbers and associated cost targets 

being met for the year. 

Etihad Airways’ growth necessitated the 

establishment of teams at five new outstations – 

Seychelles, Maldives, Chengdu, Düsseldorf and 

Bangalore. 

With 52 external senior appointments and more 

than 100 internal senior promotions in 2011, 

Etihad Airways is increasingly recognised as 

an environment for career development and 

progression. 

Etihad Airways’ Emiratisation strategy accelerated in 

2011 with the number of UAE nationals employed 

at year end reaching 819, an increase of 335 – or 70 

per cent – on 2010. UAE nationals are the second 

highest nationality at Etihad Airways and comprise 

more than 18 per cent of the workforce. 

The strategy is supported by local institutions such 

as the Abu Dhabi Tawteen Council, the Abu Dhabi 

Education Council and the Institute of Applied 

Technology. 


UAE nationals, including those at senior level, 

join the airline through development programs 

and as direct entry appointments. Forty-two 

UAE nationals graduated in September from the 

airline’s three core training streams as cadet pilots, 

technical engineers and graduate managers. 

In March 2011, the airline opened a unique allfemale 

Emirati Etihad Airways contact centre in Al 

Ain. This followed the completion of a nine month 

training and development program by 85 female 

UAE nationals. 

New development programs were introduced to 

grow a strong pipeline of capability to support 

Etihad Airways’ airport management and ground 

services operations. 

A number of other Emirati employees pursued 

opportunities on international assignments and 

rotations in destinations including the USA, 

Australia and Malaysia, where they were able to 

broaden their exposure to the business and gain 

experience working in the global arena. 

At the end of 2010, Etihad Airways employees 

completed their first full year cycle of the new 

performance management system ‘iachieve’, with 

employees receiving the first pay increases based 

on performance in April 2011. 

To address the administrative requirements of a 

growing workforce and focus on streamlined and 

efficient processes, Etihad Airways implemented 

an online self-service function for employees 

and managers that facilitates the management of 

personal and professional data and key transactions, 

such as leave requests, salary payment information 

and expense claims. Utilisation of iserve increased 

by 71 per cent in 2011. 

The new Employee Services intranet site, launched 

in January 2011, provides comprehensive 

information on employee policies and procedures 

around the clock to Etihad Airways employees 

wherever they are. 

The airline’s adoption of on-line learning was 

highly successful in 2011. There was a 500 per cent 

increase in courses delivered online, which enabled 

a training cost reduction of US$2.7 million. 

The Etihad Airways Academy, now accredited by 

the International Air Transport Association (IATA), 

delivered almost 1,300 classroom-based courses 

to more than 12,700 participants, including a 

re-launched induction program called ‘Marhaba’, 

which equips new employees with information to 

achieve an accelerated start in the airline. 

The health and safety of Etihad Airways employees 

is of utmost importance to the company. 

As well as complying with all regulatory health 

standards, the airline offers a range of services and 

Etihad Airways employees are drawn from more 

than 125 nationalities, providing an incredibly 

diverse and widely experienced workforce.” 

Ray Gammell, Chief People and Performance Officer 


enefits to support the wellbeing of its people. 

These include accommodation at a number of 

major residential locations in Abu Dhabi, including 

Etihad Plaza. The airline also provides ‘Fit 2 Fly’ 

leisure facilities including gymnasiums, pools and 

recreational amenities. 

Occupancy of the airline’s Abu Dhabi residential 

portfolio for more than 4,000 employees and their 

families reached 93 per cent by the end of 2011. 

Etihad Airways Medical Centre, based at Etihad Plaza, 

serves in excess of 650 employees each week. In 

addition to aviation and general medicine clinics, the 

centre also provides physiotherapy, dental services, 

radiology and ultrasound, and laboratory services. 

All clinic services are strictly regulated by the Health 

Authority of Abu Dhabi and the General Civil Aviation 

Authority. 

There is a growing emphasis on disease prevention 

and health promotion for the airline’s staff, with 

Wellbeing Days firmly established as part of the events 

calendar in addition to organised screening campaigns 

for conditions including diabetes, cholesterol and 

certain types of cancer. The further development of 

Occupational Health Medicine and the provision of an 

Employee Assistance Program will play an important 

part in delivering the highest standard of services to 

our employees. 

1 

1 In March 2011, the all-female Emirati Etihad Airways Al Ain Contact Centre was opened. This followed the completion of a nine month 

development program and subsequent graduation of 85 female UAE nationals from the Contact Centre program. 

Total Employees 

7,828 

2009 

2010 7,855 

9,038 


Employee Cost 

per Aircraft 

(US$m) 

10 

2009 

9 

2010 

9 


Emiratisation 

(As a percentage 

of total employees 

less cabin crew and 

outstations) 

9% 

2009 

13% 

2010 

18% 



2 

2 Etihad Plaza 

3 Etihad Airways provides ‘Fit 2 Fly’ leisure 

facilities including gymnasiums, pools and 

recreational amenities. 

4 Etihad Airways Medical Centre offers stateof-the-art 

facilities and access to health and 

welfare professionals for all staff. 

3 4


Corporate Governance 

Corporate governance is rigorously enforced in line 

with the Manual of Authority through carefully defined 

structures and processes. The Manual of Authority 

outlines authority limits delegated by the Board to the 

Executive Committee, management and staff in order 

to run the company’s affairs and operations. 

The organisational structure ensures transparent 

reporting and necessary checks and balances. A 2009 

report by leading global management consulting firm 

Oliver Wyman for the Abu Dhabi Audit Authority 

concluded that Etihad Airways had “established strong 

corporate governance and process redesign”. 

Various layers of shareholder, management and 

regulatory oversight ensure continuous performance 

review against corporate strategic objectives and 

external standards. 

Etihad Airways governance framework 

Shareholder 

Board Meeting – Quarterly 

Executive Committee – Monthly 

Audit Committee – Quarterly 

Management 

Manual of Authority 

Tender Board Meetings 

Internal Audits 

Regulatory 

External Audit – KPMG Annual 

Financial Review – KPMG Quarterly 

Government Audit – ADAA Periodic 

Operations Audit – GCAA Annual 

Safety Audit – IOSA Biennial 

Etihad’s management reporting framework 

Meetings Objective Frequency Attendees 

Board Meetings The Board meets the management of the company to ensure 

shareholder mandates are effectively implemented. The Board 

receives its authority from the shareholder and effectively 

delegates that to the management via the Manual of Authority. 

Executive Committee 

Meetings 

The Executive Committee meets management to discuss and 

authorise the carrying out of any activity deemed necessary to 

enable the company to achieve its commercial objectives and 

operational activities, and to review risks and formulate actions 

to address such potential risks. 

Audit Committee The Audit Committee provide assurance to the Board over the 

qualification, independence, and performance of the registered 

public accounting firm (external auditor), and seeks advice from 

the company’s internal audit function as to the adherence to 

relevant governance standards. 

Chiefs Meetings The Chief Officers of the company meet to discuss and review 

performance to ensure the company achieves its commercial 

objectives. At this meeting the CEO updates his direct reports on 

issues affecting the company and feedback of Board, Executive 

Committee and other meetings. The Chief Officers update the 

CEO on issues and focus areas relating to their divisions. 

Performance Review 

Prioritisation Meetings 

Divisional Business 

Review Meetings (BRM) 

Divisional 

Organisational Review 

Meetings (ORM) 

These meetings focus on the performance of the company 

including planned initiatives and continuous improvement. 

The CEO meets with the management teams on a monthly basis 

to ensure the organisation’s performance is aligned to strategic 

objectives and a healthy operational environment exists. This is 

done through updating the CEO and other members of the BRM 

on initiatives, projects, risks and critical performance indicators 

and focus areas of the division. 

Divisional Organisational Review Meetings (ORM) are held to 

review the divisional organisation structure and identify resource 

needs, gaps, efficiency measures, career development plans and 

succession planning. 

Quarterly Board members, CEO, CFO and 

Chief Officers as required 

Monthly A subcommittee of Board 

members, CEO , CFO and Chief 

Officers as required 

At least five 

times a year 

Two members of the Board, CEO, 

one independent member 

including a representative of 

Abu Dhabi Accountability 

Authority, Audit Committee 

Secretary (VP Internal Audit), 

CFO and other VPs as required 

Monthly CEO, Chief Officers 

Quarterly or 

as required 

CEO, Chief Officers, PMO, 

Cross functional VPs 

Monthly CEO, Chief Officers, VPs, 

Departments Heads and 

Divisional Financial Controllers 

Twice 

quarterly 

CEO, Chief Officers and HR 

Business Partners 

A centralised Project Management Office (PMO) and a Value Management Committee ensure an ethical and objective process for the procurement of 

goods and services, managed by the Tender Board. 

Etihad Airways has recently implemented a Fraud Control Policy and a reporting hotline to guide employees when faced with incidents of potential 

fraud. During 2012, the company’s anti-fraud efforts will be complemented by a comprehensive compliance program outlined in a new Code of 

Business Conduct. The program will be supplemented with dedicated training. 


Etihad Airways Executive 

James Hogan 

President & Chief Executive Officer 

Australia 

James Hogan was appointed President and Chief 

Executive of Etihad Airways on 10 September 2006, 

bringing more than 30 years of travel industry expertise 

to the airline. 

Mr Hogan started his career in 1975 at Ansett Airlines, 

and subsequently held senior positions with bmi, Hertz, 

Forte Hotels and Gulf Air. 

At Hertz, his roles included directorships of the 

marketing, sales and operations divisions. In 1995, 

based in London, he joined the executive management 

committee as Vice President, Marketing & Sales for 

Europe, Middle East and Africa. 

In 1997, Mr Hogan became Service Director for bmi 

British Midland, leaving in 1998 to join the Granada 

Group as Worldwide Sales Director, where he sat on the 

board of Forte Hotels. 

He returned to bmi in 1999 as Chief Operating Officer 

and a member of the Board, responsible for flight and 

ground operations, sales and marketing, commercial, 

cargo, engineering and handling service companies. 

In 2002, Mr Hogan joined Gulf Air, where he served as 

President and Chief Executive for four years. 

Mr Hogan is a fellow of the Royal Aeronautical Society 

and a former Non-executive Director, and member of 

the Board’s Audit Committee, of Gallaher Plc. In 2010, 

he served as the Chairman of the Aviation Travel and 

Tourism Governors at the World Economic Forum. He 

currently serves on the Executive Committee of the 

World Travel and Tourism Council. In June 2011 he was 

appointed to the International Air Transport Association 

(IATA) Board of Governors. Following the acquisition of 

a majority shareholding in Air Berlin plc, in December 

2011, he was named Vice Chairman of the airline. 

James Rigney 

Chief Financial Officer 

Australia 

James Rigney was appointed Executive Vice President 

Finance at Etihad Airways in October 2006, and 

became the airline’s Chief Financial Officer in March 

2009. 

Mr Rigney’s career in aviation has spanned two decades. 

He joined Etihad Airways from Gulf Air where he 

was Head of Corporate Strategy. 

Prior to joining Gulf Air in 2002, Mr Rigney held a 

number of senior strategic and commercial positions 

within the Ansett Group in Australia. 

Mr Rigney is responsible for finance, treasury, information 

technology, supply chain and property at Etihad 

Airways. He is also a Non-executive Director of Abu 

Dhabi Aircraft Technologies (ADAT) and sits on the 

Board of airberlin. 

A chartered accountant, he holds a Bachelor of Business 

and an MBA from RMIT University in Melbourne, 

Australia. 

Peter Baumgartner 

Chief Commercial Officer 

Switzerland 

Peter Baumgartner was appointed Chief Commercial 

Officer in April 2009. He joined Etihad Airways in April 

2004 and has managed the airline’s intense global 

commercial efforts during a period of rapid growth – 

both its network expansion and the introduction of new 

product and service innovations. 

Mr Baumgartner heads the commercial strategy and 

planning function, global sales, marketing, product, 

service delivery, call centres, e-commerce, Etihad Holidays 

and the airline’s loyalty program, Etihad Guest. 

Prior to joining Etihad Airways, he held a number of 

senior roles within the Belgian and Swiss aviation industries, 

including at Swiss International Airlines where 

he was responsible for marketing development. 

Peter Baumgartner is Chairman of the Board of Directors 

of Hala Travel Management (HTM), a joint-venture 

company with BCD Travel B.V. 

Richard Hill 

Chief Operations Officer 

United Kingdom 

Captain Richard Hill joined Etihad 

Airways in January 2007 and was 

appointed Chief Operations Officer in 

April 2009. 

He is responsible for Etihad Airways’ 

flight operations, inflight services, 

airport operations, technical, training 

standards, flight safety and quality and 

aviation security, including the airline’s 

emergency response procedures. 

Captain Hill began his aviation career 

as a cadet pilot at British Airways in 

1979. He spent 20 years with bmi 

British Midland, where he rose to the 

position of Director Flight Operations 

and finally Director Operations. 

He joined Gulf Air in 2002 as General 

Manager Operations Technical and 

Head of Flight Operations. In 2006 he 

served as Head of the Flight Operations 

Inspectorate Department for the UK 

Civil Aviation Authority. 

Captain Hill maintains his pilot qualification 

by operating as a Captain on the 

Airbus A330/A340 fleet. 

Kevin Knight 

Chief Strategy & Planning Officer 

United States of America 

Kevin Knight joined Etihad Airways as 

Chief Strategy and Planning Officer in 

March 2011. 

He is responsible for pricing, capacity 

and revenue management, route 

and network planning, alliances and 

aircraft acquisitions. He also leads 

Etihad Cargo. 

Mr Knight has more than 30 years’ experience 

in the airline industry, including 

business development, strategic 

planning and operations. Before joining 

Etihad Airways, he spent 17 years at 

United Airlines, the last five as Senior 

Vice President Planning. He previously 

held senior roles at Northwest Airlines 

and Republic Airlines. 

Mr Knight holds a Bachelor of Science 

in Business Administration from Westminster 

College, Utah, and an MBA 

from the University of Utah. 

Ray Gammell 

Chief People & Performance Officer 

Ireland 

Ray Gammell joined Etihad Airways as 

Chief People and Performance Officer 

in April 2009. 

He oversees all of the airline’s human 

resources functions, including recruitment, 

workforce development and 

performance management, as well as 

being responsible for Etihad Airways’ 

Emiratisation scheme. 

Mr Gammell joined Etihad Airways 

from the Royal Bank of Scotland (RBS), 

where he was Director of Human Resources 

for Europe and the Middle East 

regional markets. Prior to that, he held 

similar positions at the Ulster Bank 

Group in Ireland and RBS European 

Consumer Finance, as well as with 

Intel Corporation in the USA. 

Mr Gammell holds a Masters of Business 

in Organisational Development 

and HR Management from University 

College, Dublin, and is a fellow of 

the Chartered Institute of Personnel 

Development. 

Jim Callaghan 

General Counsel & Company Secretary 

Ireland 

Jim Callaghan became Etihad Airways’ 

General Counsel and Company Secretary 

in May 2009. 

Previously, he spent nine years at Europe’s 

largest low cost carrier, Ryanair 

Ltd, as Company Secretary and Director 

of Legal and Regulatory Affairs. 

At Ryanair, Mr Callaghan was responsible 

for setting up the airline’s legal 

function and for corporate governance 

and liaison with the Board. He actively 

managed a suite of ongoing regulatory 

and legal issues relating to competition 

law, trademarks, airport contracts, 

advertising standards, consumer law, 

and commercial litigation. 

Before joining Ryanair in 2000, Mr 

Callaghan spent several years at international 

law firms in the United States 

and in Brussels. 

He holds a Juris Doctorate and a Masters 

in Public and International Affairs 

from the University of Pittsburgh and a 

Masters in European and International 

Law from Vrije Universiteit in Brussels. 


Etihad Airways Management 

Belinda de Rome 

Senior Vice President 

Corporate Affairs 

Australia 

Belinda de Rome was appointed 

Etihad Airways’ Senior Vice President 

Corporate Affairs in August 

2009. 

She is responsible for the airline’s 

public affairs and corporate communications, 

including global 

media relations, social media 

strategy, internal communications, 

corporate social responsibility, 

environmental affairs, and 

corporate events. 

She joined Etihad Airways with 

more than 20 years’ experience in 

public relations and communications 

gained in two of Australia’s 

pre-eminent corporations – Qantas 

Airways and the Commonwealth 

Bank of Australia – where 

her roles included responsibility 

for public affairs strategy, media 

relations, issues management, 

crisis communications, internal 

communications, marketing 

communications and sponsorship 

management. 

Ms de Rome has a Bachelor of 

Arts degree in Communication 

and a Diploma in Education. 

Gordon Penfold 


Information Technology 


Gordon Penfold was appointed 

Senior Vice President Information 

Technology in December 2010. 

Leading the IT team, he is 

responsible for Etihad Airways’ 

technology and communications 

framework as well as IT development, 

delivery and maintenance. 

Mr Penfold joined Etihad Airways 

from British Airways, where he 

was Chief Technology Officer. 

His extensive experience includes 

sales, marketing, operations and 

business management roles in the 

IT services, telecommunications, 

defence and aviation sectors, with 

assignments in the UK, Europe, 

Japan and North America, and 

long-term postings in South Africa 

and Hong Kong. 

In 1997 he joined British Airways 

as Director and General Manager 

of BA’s subsidiary company 

Speedwing Airport Services (Malaysia), 

managing the delivery of 

major projects at the new Kuala 

Lumpur International Airport at 

Sepang, and for the commercial 

development and P&L performance 

of the company. 

Mr Penfold graduated in Economics 

and Law from the University 

of London, and gained postgraduate 

qualifications in Computer 

Science from Brunel University. 

Werner Rothenbaecher 

Senior Vice President Technical 

Germany 

Werner Rothenbaecher joined Etihad 

Airways in November 2005. 

Prior to joining Etihad Airways, he 

held a number of senior technical 

operational roles with Lufthansa, 

including assignments with Lufthansa’s 

regional airline and cargo 

division. 

His early career was with the German 

Air Force, where he led the 

maintenance organisation of the 

German Special Air Mission Wing 

and reached the rank of Lieutenant 

Colonel. 

At Etihad Airways, he is responsible 

for engineering, technical 

purchasing and contracts, the 

technical operations control centre, 

aircraft cost control, aircraft 

specification, technical quality 

and reliability control, and line 

maintenance in Abu Dhabi and 

worldwide. 

Mr Rothenbaecher has a Masters 

degree in Aircraft Engineering and 

Aero Space Technology from the 

University of Munich. 

Khaled Al Mehairbi 


Government and 

Aeropolitical Affairs 


Khaled Al Mehairbi joined Etihad 

Airways in January 2004 as Head 

of Corporate Affairs. 

He was appointed Senior Vice 

President Government and 

Aeropolitical Affairs in 2009, 

and is responsible for UAE and 

international government affairs, 

negotiating bilateral air service 

agreements for the airline. 

Before joining Etihad Airways, Mr 

Al Mehairbi was Airport Director 

of Abu Dhabi International 

Airport. He also served as General 

Manager Abu Dhabi Airport 

Services. 

He has extensive experience 

in airport operations, including 

ground handling and civil 

aviation. 

He is Chairman of the Aeropolitical 

Watch Group of the Arab Air 

Carriers Organisation. 

Mr Al Mehairbi has a Bachelor 

of Business from the USA’s Salem 

University. 

Geoff Linaker 


Operations 


Geoff Linaker joined Etihad 

Airways in 2010 as Senior Vice 

President Operations, after serving 

with bmi British Midland as 

Director of Operations. 

He has 35 years’ experience in 

the aviation industry, including 15 

years as a regulatory Postholder. 

His previous roles include aircrew 

instruction, examining and 

technical management. 

He is responsible as the GCAA 

nominated Postholder for Etihad 

Airways Flight Operations, Guest 

Services, Crew Resources and 

Operations Logistics, in addition 

to his management role as a current 

A330 Captain. 

Hasan Al Hammadi 


Executive Affairs 


Hasan Al Hammadi joined Etihad 

Airways in 2009 as Vice President 

Special Projects, and was appointed 


Executive Affairs in 2010, with 

additional responsibility for corporate 

security. 

Mr Al Hammadi has more than 

25 years’ experience as a senior 

adviser to the UAE Government 

on matters of security, intelligence, 

national and international 

political relations, protocol and 

diplomatic affairs. 

He has held various senior roles 

across the Ministry of Interior, 

State Security, and the Crown 

Prince Court as well as the 

Presidential Court. He is a former 

Director of Private Protocol in 

the office of the late HH Sheikh 

Zayed bin Sultan Al Nahyan, 

Ruler of Abu Dhabi and President 

of the UAE. 

Mr Al-Hammadi holds a degree 

in Petroleum Engineering from 

Manchester University. 

John Shepley 


Network Management 

Australia 

John Shepley joined Etihad Airways 

in November 2006 as Vice 

President Network Planning 


President Network Management 

on December 1, 2011, and is responsible 

for development of the 

airline’s network and schedules, 

as well as developing and managing 

Etihad Airways’ relationship 

with more than 35 airline partners 

worldwide. 

Before joining Etihad Airways, 

Mr Shepley was with Australia’s 

Jetstar Airways, where he was 

General Manager Network & 

Schedules Planning, responsible 

for all domestic and international 

planning with a fleet of over 50 

wide- and narrow-body aircraft. 

He has more than 20 years’ 

experience in aviation, including 

senior positions with Ansett Australia, 

Air New Zealand and Gulf 

Air in Sales, Airports, Revenue 

Management, Planning and Alliance 

areas. 

Roy Kinnear 

Senior Vice President Revenue 

Management and Planning 

Northern Ireland 

Roy Kinnear joined Etihad 

Airways in 2006 as Vice President 

Revenue Management. 


President, Cargo in 2010 and to 

his current role, as Senior Vice 

President Revenue Management 

and Planning in 2011. 

Mr Kinnear oversees the revenue 

management and commercial 

planning for Etihad Airways 

passenger and cargo business 

streams. 

He has 20 years’ experience 

in aviation, having previously 

worked in pricing, revenue 

management and scheduling for 

British Midland Airways. 

Mr Kinnear has previously held 

the position of Chairman of the 

Board of Amadeus Gulf, the joint 

venture GDS company majorityowned 

by Etihad Airways, and 

is currently Chairman of the 

Board of Armaguard Valuables 

Management LLC, a joint venture 

company majority owned by 

Etihad Airways for the handling 

of high value cash and valuables 

shipments. 

He has a Bachelor of Science 

Economics and Statistics honours 

degree from the University of 

Ulster. 

Carolyn Prowse 


Corporate Strategy & Special 

Projects 


Carolyn Prowse joined Etihad Airways 

in January 2012 to head up 

corporate strategy, mergers and 

acquisitions and other special 

projects. She is also responsible 

for the Project Management 

Office at Etihad Airways, which 

manages key projects and has 

oversight of all other major projects 

to ensure effective delivery 

and strategic alignment of all 

projects with the airline’s business 

objectives. 

Prior to joining Etihad Airways, 

she was Managing Director, Head 

of Asset Management for Ithmaar 

Bank BSC in Bahrain, where she 

was responsible for a global portfolio 

of private equity, investment 

banking and strategic investments. 

Her aviation experience 

includes working as a Senior 

Manager for Investments and Joint 

Ventures at British Airways Plc. 

Ms Prowse has extensive experience 

in corporate strategy, 

mergers and acquisitions and 

restructuring. 

She has a Bachelor of Arts (Hons) 

degree in Chemistry from St 

Anne’s College, University of 

Oxford 


2011 Awards recognition of our excellence 

• World’s Leading Airline – World Travel Awards 

• World’s Leading First Class – World Travel Awards 

• World’s Leading Airline to the Middle East – World Travel Awards 

• World’s Best First Class – Skytrax Awards 

• World’s Best First Class Onboard Catering – Skytrax Awards 

• World’s Leading Airline – Arabian Business Magazine 

• Airline of the Year – TTG Travel Awards 

• Best Business Class – Biz Travel Forum, Milan 

• Business Airline of the Year – Guardian Observer Travel Awards 

• Middle East’s Leading Airline – World Travel Awards 

• Middle East’s Leading Airline First Class – World Travel Awards 

• Middle East’s Leading Airline Inflight Entertainment – World Travel Awards 

• Middle East’s Leading Cabin Staff – World Travel Awards 

• Web Excellence, Airline category – Pan Arab Web Awards 

• Best Co-Branded Card in the Middle East – Smart Card Awards Middle East 

• Best Long Haul Airline – Irish Travel Awards 

• Best Economy Class – Monitor Airline of the Year Awards 

• Best Meal in Economy Class – Monitor Airline of the Year Awards 

عادبإلاو زيمتلل يلماع ريدقت 2011 ماع زئاوج 

يلماعلا رفسلا زئاوج – لماعلا ىوتسم ىلع ةدئارلا نايرطلا ةكرس ةزئاج • 

يلماعلا رفسلا زئاوج – لماعلا ىوتسم ىلع ةدئارلا لىوألا ةجردلا ةزئاج • 

يلماعلا رفسلا زئاوج – لماعلا ىوتسم ىلع ةدئارلا نايرطلا ةكرس ةزئاج • 

سكارت ياكس زئاوج – لماعلا ىوتسم ىلع لىوأا ةجرد لسفأا ةزئاج • 

سكارت ياكس زئاوج – لىوألا ةجردلا تنم ىلع ةمعطأا ةمدخ لسفأا ةزئاج • 

ةيبرعلا لامعألا ةلمج – لماعلا ىوتسم ىلع ةدئارلا نايرطلا ةكرس ةزئاج • 

)TTG( تيزاج ديرت ليفارت ةلمج نم رفسلا زئاوج – ماعلا في نايرط ةكرس لسفأا ةزئاج • 

نلايم ،زيب رفسلا ىدتنم – لامعأا ةجرد لسفأا ةزئاج • 

رفريزبوأاو نايدرالجا عقوم نم رفسلا زئاوج – ماعلا في لامعألا عاطقل نايرط ةكرس لسفأا ةزئاج • 

يلماعلا رفسلا زئاوج – طسوألا قرسلا ىوتسم ىلع ةدئارلا نايرطلا ةكرس ةزئاج • 

يلماعلا رفسلا زئاوج – طسوألا قرسلا ىوتسم ىلع ةدئارلا لىوألا ةجردلا ةزئاج • 

يلماعلا رفسلا زئاوج – طسوألا قرسلا في ةدئارلا ةرئاطلا تنم ىلع ةيلستلا ةمظنأا ةزئاج • 

يلماعلا رفسلا زئاوج – طسوألا قرسلا ىوتسم ىلع ةروسقلما يفظوم في ةدئارلا نايرطلا ةكرس ةزئاج • 

تنترنإلا ةكبسل ةيبرعلا زئاولجا – نايرطلا تاكرس ةئف ،تنترنإلا ةكبس في قوفتلا ةزئاج • 

طسوألا قرسلا في ةيكذلا تاقاطبلا زئاوج – طسوألا قرسلا في ةيراجتلا ةملاعلا ةكترسم ةقاطب لسفأا ةزئاج • 

ةيدنلريألا رفسلا زئاوج – ةليوطلا تلاحرلل نايرط ةكرس لسفأا ةزئاج • 

ماعلا زئاولج نيلريإا روتينوم – ةيحايس ةجرد لسفأا ةزئاج • 

ماعلا زئاولج نيلريإا روتينوم - ةيحايسلا ةجردلا ىلع هبجو لسفأا ةزئاج •

Annual Report 2011 (English) - Etihad Airways

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?