Etihad
Airways is keen to expand its footprint in South America, said
President and Chief Executive Officer, James Hogan, on Friday.
Mr
Hogan said that the airline is currently in discussions with South
American-based carriers about potential commercial partnerships.
Etihad
Airways currently has 38 codeshare partnerships with airlines around
the globe, resulting in a combined network of 323 destinations, more
than any other Middle Eastern airline.
Beyond
its own organic growth, codeshare partnerships and equity stakes are
a significant and growing part of the airline’s expansion strategy.
Etihad Airways holds a 30 per cent stake of airberlin, 40 per cent of
Air Seychelles, 3 per cent of Aer Lingus and 10 per cent of Virgin
Australia.
The
airline will launch its first route in South America on June 1, 2013,
with daily non-stop flights between Sao Paulo, Brazil and its home
base of Abu Dhabi, the capitol of the United Arab Emirates.
Etihad
Airways’ service will also provide seamless connections from Brazil
to the airline’s global network, offering connectivity over Abu
Dhabi to markets in the Gulf Co-operation Council, the Indian
Subcontinent and Asia.
Mr
Hogan spoke of the significance of the new route, in particular the
economic impact.
“Brazil
is one of the fastest growing economies in the world, now ranking as
the sixth largest since overtaking the UK in 2011. Bi-lateral trade
between Brazil and the UAE is valued at nearly US$3 billion annually,
with authorities aiming to lift this to US$10 billion within five
years.
“There
are 25 major Brazilian companies with offices in Abu Dhabi. Mubadala,
the development company of the Government of Abu Dhabi, last year
signalled its intent to begin investments in Brazil, valued at up to
US$13 billion.
“According
to the Arab-Brazilian Chamber of Commerce, Brazil trade volumes with
the Arab world grew by 28 per cent in 2011 to reach US$25 billion.
This is forecasted to grow by a further 10-15% this year.
“In
addition to supporting the growing ties between Brazil and the Middle
East, this new route complements Etihad Airways’ recent expansion
in North Asia, including the recent introduction of services to
Chengdu and Shanghai and the upcoming increase to daily Tokyo
services with connections to Nagoya from April 2013.
“With
some of the fastest connecting flight times to China and Japan,
Brazil’s largest and fifth largest trade partner, respectively,
Etihad Airways is providing vital air links between the world’s
major emerging markets.”
Mr
Hogan was in Sao Paulo late last week to meet prominent local
diplomats, travel industry executives, media and corporate
representatives.