Financially struggling, UAE flag carrier, closed and sold its ‘First and Business class’ lounge in London Heathrow airport, and says no money to financially support its another struggling Indian partner Jet Airways.
Independent credit rating agency ‘Fitch’ says that Etihad will remain loss-making until 2022, says.
In the past the state own airline reported $800million in losses on its investment on bankrupt Air Berlin and Air Alitalia. In 2013, Etihad invested US$379 million to acquire a 24 percent holding of Indian airline Jet Airways, which is also going through financial hardship.
Earlier this year, Etihad appointed Tony Douglas as its new Group Chief Executive. Tony was a former CEO of the Defence Equipment and Support department at UK’s Ministry of Defence. As part of plans to reduce capacity by 2.4% in 2018, the airline trimming down some of its scheduled services and closing down lounges
Even though Etihad is continue to make losses, the Government, may not let the airline to out of business. With over 24,000 employees, including many Emirati’s in senior leadership positions, the chance of Etihad planes disappearing from the skies is unlikely.