In a time when airlines with a high position in the market have struggled to cope with economic downfalls resulting in consumers’ behaviour drastically changing, some airlines have indeed found their place in the sun, to the point when expansion has become more than an possibility.

Etihad Airways is such an airline. Celebrating their 9th year in the market, their development throughout the years is impressive. So what makes this company tick? What are the strategies behind their success?

Unlike those based in North America and Europe, Middle Eastern airlines have an overall tactic in mind: luxury.They have raised the bar in customer service and targeting a high income consumer base for long distanced flights. The list of Etihad’s current fleet and distribution of First Class, Business and Economy give a clear reason behind the airline’s expensive flights.

Another reason for their success is clearly their home base in the UAE (United Arab Emirates). Both Abu Dhabi and Dubai have become “links” between North America, Europe and Asia. I have had the pleasure of flying with Etihad a number of times and upon arrival at Abu Dhabi, what surprised me the most is how small is the group of passengers that actually stay in the country. Most have connecting flights to countries like India, Japan and China.

Etihad might not have the same fleet or the comparative advantage in destinations in North America compared to Emirates, but it is certainly gaining substantial market share. Their move to add Washington to their current destinations in the US (only Chicago and New York) will surely bring success to the airline. Just as said by the CEO of the company, “despite our continued and significant investment in new routes, new services and new infrastructure, we delivered a profit”. Risk is the choice towards achievement.

Sources:

http://gulfnews.com/business/aviation/etihad-promotes-partnership-as-a-strong-business-model-1.1105160

http://www.ameinfo.com/etihad-airways-wins-airline-honours-318159