The business model of Etihad, Emirates and Qatar airlines depends entirely on other countries. They do not operate in their own countries because they are among the smallest nations in the world.
Yes, and? Emirates put Dubai on the map for banking, tourism, and is where expatriates place their families when they work in the region. The port (ships) helped.
Let us remember why Etihad partners was started. Etihad was a distant third to Emirates and Qatar. The Etihad partners were to secure feed to favor Etihad. This forced Emirates to seek partners (JetBlue, Qantas) for feed. Qatar also expanded partners. As a distant also ran needed big feed. They were done anyway, it would have taken longer.
@@External2737 As someone who lives in the U.A.E., tbh I think it's all to do with allure. Etihad would he more successful if it wasn't for Emirates being so close. Emirates is older more efficient and of course it's based in Dubai, and Dubai>Abu Dhabi by a mile.
As a former Pan Am flight attendant, it is painful to see bad decisions bringing about such a decline financially to an airline. Your video was very informative and very different than what I normally see. Great Job, Dan!!
The problem is Etihad's accountants should have been a bit ruthless, telling their CEOs "Whoa! Wait a minute, matey! That last airline hasn't raked in even $2 million yet. You do NOT get to buy the other airline until this one shows a real profit." We have a saying in my country: "Never bite off more than you can chew." That's pretty much what happened...
@@superheracross89 I beg to differ. Were you an employee? If not, then you need to know prior to Locherbie Pan Am 103, there were no significant accidents while I was working, 1979-1991. It was Ed Acker who came in and sold off every asset instead of figuring a different way. It was the deathly purchase of National Airlines to compete with TWA who had domestic and international routes and the moment the ink was dry on a super inflated sale, the government decided to deregulate, and we could have gotten all the domestic routes for pennies compared to buying a duplicitous (in many management positions) airline. It was the fuel crisis that hit international routes the worst. It was a lot of things. Locherbie was simply the final nail in the coffin. Ed Acker, former CEO, died just recently. There was very VERY little sympathy for that man on the private Pan Am forums. Everyone knew the truth about him.
The Middle East business arena has a problem in general: “Mine is bigger than yours” is more important than whether it makes commercial sense. When you try and create so many competing travel hubs within such a small geographic zone just because you want to look cool when you are smoking shisha in the majlis with your mates ...
Except Etihad was a trendsetter, they were as they put it re-imagining airlines. They should've come out on top based on this alone for setting new standards. Emirates was just pacing in it's footsteps. If they focused on their own airline instead of partners I think they could've been much more successful.
@@reconx86 most of us men compete nor always for a rational outcome but to prove dominance over our rivals. This makes us take risks for things our female counter parts wouldn't normally do. Like being able to fly, how many women I. History do we remember jumping off cliffs trying to proof a concept or theory. Not too many.
The problem is with the post union ruling generation who had more money than brains & didn't struggle for it. They deem thier national wealth as they own & only theirs & having the traditional inferiority complex to the rest of thier neighbors the though , wrongly , the only way to gain influence is to act as any novo rich does & spend without thought
No11Scalpel That’s the real problem in the gulf Arab states - from camel to Ferrari in one generation. You have a bunch of people with the emotional intelligence of a ten year old controlling billions of dollars.
I’ve never flown Etihad or any foreign carrier but I will say I love Etihad’s livery. The gold, silver, and bronze geometric patterns look so amazing on their planes, particularly the A380.
Also they had a massive competitive advantage on their rivals. Abu Dhabi international airport has US passport control which mean that Etihad flights land as domestic flights in the US. Anybody who’s had to stand in line at US passport control knows how a massive advantage this is.
i’m only about 1:30 in to the video, but i gotta pause. these kinds of videos deserve snacks and drinks! edit: this was _SO WELL DONE_ ! it was so informative, the visuals were great, and i learned more about the aviation industry.
I have to agree fully! I wonder if they focused on the business and first niche and even make it business only and use that cash and creativity in offering the best product if they could have used their excessive number of wide bodies at hand for that idea....could that ever had been profitable?
Etihad has THE best boarding music ever. I attain nirvana everytime I listen to that music. Just reminds me of my lovely flights I had with eithad. God I wish they overcome this slump.
Today while watching the FlightRadar24 map I found a Etihad A380 on the Dubai ground. Too bad it wasn't flying but its transponder was on, that's how I could spot it. Maybe they are training their crews to fly the 380 again as does Emirates for the last month or so (5 routes re-opened for their A380s including a brand new one, their 116th).
@@julosx from time to time they are doing what they said preservation and de-preservation. powering up the system and engine runs. 30 mins test flight.
Wow Dan, great work on this video. You did a great job of connecting the dots of Etihad's fall from grace. You did yourself proud and went up to a new level. I hope you do more of these long-form analyses videos. Bravo!!!
Hey Dan, I really liked this case study specific airline videos. I can imagine the amount of research that went into making it and really appreciate it. Would love to see more of these types of videos on various airlines (perhaps malaysia airlines) Hope you are keeping well! - a big fan
It’s such a shame to see this happen to an airline that gave my family such a wonderful life in Abu Dhabi. My dad is an ex Etihad captain and it upsets me to see an airline that was going so well begin to fail. Hopefully it’s new CEO can bring it back to its glory
The same happened to Swissair in the late 90s with their investments in Sabena, Air Liberté etc. They will end up merging with Emirates and could serve primarily either premium routes (SIN, LHR, JFK...) or focus on regional, niche destinations...
Dan, firstly what a beautiful video you put together. It made me emotional as I flew for EY from 2015-2018 as cabin crew. It was a dream job and 2015 was such an amazing year!! As time went on, I did notice change. I only wish they push through and become something truly amazing again one day (post COVID) lots of love from Australia!!
_W_ Re the math question, no. There are as many “invisible” zeroes in front of a figure as there are after a decimal point. To infinity, in fact. They’re just not annotated to spare confusion. Thanks and you’re welcome.
I’m a huge Emirates an and have flown it by default anytime I was headed that way. I was saving Etihad for a rainy day or a change of flavor when headed from the US eastward. However, now with the cuts of service to my country, I’m looking at flying Qatar instead - and looking forward to it. EY seems a good bit like a has-been airline at this point. (Actually, if the Covid crisis isn’t fixed soon, all air travel everywhere is toast, I fear.)
What's interesting is that you don't even had to mention the currrent COVID situation to make things worse. But as I see it for the years to come the Middle east will be a region of further interest and is the bridge between Asia and the western world, therefore Eithad must build a steady and secure grow (cutting the surplus) and be ready alongside with the growing of the emirate of Abu Dhabi for the years to come. Good Analysis Dan. I enjoyed your video.
Youssef Saad very good, I flew with Etihad for a whole year in between London and SYD for work purposes. I flew the route 16 times in 2014 with Etihad and then again in 2016 with Emirates. To be honest there isn’t much between them, I preferred the Etihad lounge at Abu- Dhabi but preferred the Emirates Skywards as I managed to claim a free upgrade into first class from Business class for my wife and myself for a holiday to Dubai.
They thought that their money was limitless. They could've made Etihad Partners a success however. If they had started with their smaller airlines such as Air Serbia and Air Seychelles. Once they had turned those around they could've then expanded to one of their larger airlines. If Etihad management was competent and focused they could've turned airberlin around. But the problem was they got distracted. They invested in way too many struggling airlines way too quickly. If they'd only invested in airberlin or Jet Airways they could've turned them around. But airberlin and Jet Airways, as well as the disaster that is Alitalia, would sink even the richest airline in the world.
@@noahbowie5985 If they had stuck to Air Berlin or Jet Airways or Alitalia as a turnaround and Air seychelles and Air Serbia then they would have been a success.
@@ShubhamSharma-wn3ic they could've made a success out of it. But they could've reached the same point if they had invested and turned them around one at a time. If they had invested in airberlin and managed to get decent, consistent profits then they could've made a success out of it. But instead they got distracted when they saw Jet Airways appear on the market, which began their sad and completely avoidable decline.
Noah Bowie You make good points. They should have just stuck with Air Berlin and made codeshare agreements with the rest. Did they not think why are they the only ones in the Gulf going down the path of heavily investing into loss-making airlines? Emirates,Qatar & Gulf Air weren’t heading that way, and there was a reason why.
Actually Iran Air was the largest and fastest growing airline of the Middle East up until the Islamic Revolution. So 1950-1979 it was them who were connecting the world to the Middle East. In fact they were the first and ONLY airline that flew directly to NYC back in the day with their 747s that they had newly added to their fleet in the 70s. They were second after Pan Am in terms of service and growth.
Etihad became too greedy. Just like JAL back in the days. Rather then investing in hotels and other companies, JAL should have focused on running their own airline.
Nonstop Dan I personally like both airlines, in my opinion, ANA has better service, better business class seats, better business class lounges, a better food selection, and is in General more organized, while JAL has a better economy and better food in terms of quality. Every other quality is equal to each other.
Diversification of a company should always be something more secure than the industry you’re in, if that is a high risk one, like airlines. Like JAL, they’ve invested too far on things that rely on their own well being to support, adding to the risks. Hotels need airlines, airlines need passengers. Subsidiary and partner airlines need their head airlines to generate revenues. Don’t add an airline on top of an airline and expect it to be stable or secure...
I greatly appreciate the fact that you included the entire Etihad ad in the video. Just goes to show what a legendary piece of advertising it is. One of my favourite ads of all time, across all industries!
Very Good Video Dan. You need to "connect" as well the good and bad years with the Price per Barrel. Then you will enrich your conclusion on "why and how".
Your history is skewed - Emirates commence operations in 1985 and created the World route map that Etihad, Qatar and Turkish has basically copied. Etihad was screwed by James Hogan's disastrous investments in foreign airlines and now is shrinking while others in the region are still growing although currently held up by Covid-19.
I've twice flown in Etihad. They've good service and a perfect boarding music. I've lost my luggage during connecting flight but they successfully managed to send that back before I reached the hotel. I guess the reason behind a huge lost was because of investment in Air Berlin and Jet air, a huge losing airlines.
Well. The guy who invented Partners didn't study Swissair's history. A glorious profitable airline, grounded because of ill thought acquisitions in Europe to broaden a network.
The problem with AirBerlin is that the premise of the new BER airport took too long to materialize. People say it might open this year but I'll wait until I see it in the news haha
Hi Dan 👋...Loved the video. Miss my flying days but your videos make it feel as though I’m still connected to what’s going on in the industry. Hope you’re well and look forward to seeing your travelling videos as soon as things pick up. Stay safe ✈️
I live in São Paulo, Brazil, which at one time was served by all four big Middle Eastern hub airlines as their main gateway to South and Central America (yes, *four,* because Turkish is often considered European because its main hub in Istanbul is technically in Europe, but due to its geographical position, it is a direct competitor of the other three and has a similar business model). Etihad pulled out of the São Paulo market on the very same day when Emirates switched from the 777-300ER to the A380 on that route. To attentive observers, this was one of the first signs that there were too many competitors for the same market, and Etihad was the weakest link. Emirates, Qatar and Turkish remain in the São Paulo market and committed to it, in spite of the COVID-19 crisis, as does Ethiopian, which is very competitive in routes from South America to Asia (sometimes even to Europe, in spite of the long detour, because of its very cheap fares). This brings me to another point: as a whole, the Middle Eastern hub airlines will remain strong, because there are routes that can't be served by point-to-point nonstop flights, such as South America to the Far East, or Europe to Australia and New Zealand (in spite of Qantas' "Project Sunrise" and the London-Perth flight, but it's not expected that it will be the rule), and they are and can continue to be competitive on other routes as well. They also make some one-stop itineraries feasible that wouldn't have a market otherwise, such as, say, São Paulo to Hanoi via Dubai or Warsaw to Adelaide via Doha. But four airlines competing for the same passengers was way too much. One of them had to go, and that would be the first one to make big mistakes and become weaker. It happened to be Etihad.
Good Comment and very sensible how you described the situation. You connected the dots perfectly about the airline situation in the Gulf countries. Regards from Dubai!
@HRH President of Tattooine, if they don't do London-Sydney and New York-Sydney, it won't matter if passengers connect in Perth or Dubai (or LAX or DFW for NYC). And even London-Perth is flown with a lower-density configuration that isn't profitable on a fleetwide scale (Singapore Airlines does the same on its SIN-EWR flights but it still keeps the flight via FRA, and Emirates still sells tickets for JFK-DXB-SIN). Lots of problems with crew rest, risk of thrombosis and much more. And that's just Australia. AKL-LHR, PPT-CDG or GRU-NRT nonstop would still be impossible. Moreover, there will always be dozens of city pairs that won't be profitable for nonstop flights even if technically feasible, like the WAW-ADL example I gave before. And finally, even for city pairs for which nonstop flights will exist, Middle Eastern carriers will still be able to compete with fares, service and frequent schedules, as they already do (BA, CX and VS all fly LHR-HKG nonstop, but many passengers still connect with other airlines if the fare or the frequent-flyer bonus is enticing). Middle Eastern carriers may have to readjust the fleet, route map, fare structure, service, etc. (and they're already doing that), which is part of the aviation business for ANY airline at ANY time, simply because conditions change all the time for everyone. But they will survive, unless they screw up their management monumentally, like Etihad did. The location of the Middle East at the center of the land hemisphere ensures that.
Yeah... Really great... I would NEVER, EVER, EVER give my money to a MILITARY DICTATOR! www.theguardian.com/world/2020/mar/05/kidnapping-case-what-happened-to-sheikh-mohammeds-daughters www.expressen.se/nyheter/the-truth-about-the-luxury-of-qatar-airways/
This is true and sad. I work as a pilot in etihad for 11 years now and I love this company more than any place I have ever worked at. The most beautiful Part of it is I never felt going to work as everyone is like family and super friendly. Everyone is smiling and we always have a. Great flight. Our passengers are amazing. I really pray for better days for my beautiful Etihad ❤️❤️❤️🙏🏼🙏🏼🙏🏼
Very good quality and very informative video. I flew a few times with Etihad both business and economy and they never failed to live to the expectations. Their boarding music is the best!
I’ve flown with Etihad a lot. Used to love the experience and the launch of their new look was exciting and added to the special feeling one got when flying with them. Then AUH airport started to become so crammed that it made the whole experience a nightmare. Haven’t flown with them since early 2017 and won’t until the new airport is up and running.
You nailed it Dan, love this new format video, well explained, great footage and obviously you’ve put a lot of work into it. Thank you and keep them coming.
@@indranilchakrabarty4196 ...Oh, I`m so sorry, so where is your knowledge, understanding and hundreds of travel videos? ...you have one 5 SECOND video form India 3 years ago. Suddenly your an expert? .. you been on the Desi Daru?
"Build it and they will come" doesn't work in the airline business. It didn't take a genius to see that Etihad had a flawed business model from the start. Emirates was expertly managed by Tim Clark and that's why they are in the position they are in now.
As an industry veteran, I helped start a new airline in Asia in 1995 that will go unnamed. The company lasted five years due to the chairman wouldn't listen to his experienced advisors. Like Etihad, the company grew too fast in terms of aircraft acquisitions, debt and over ambition. With Etihad, they chose the A380 and the sheer cost of purchasing and operating such an aircraft would be challenging at best, The A380 is suitable only for the highest density city pairs with high load factors. Bottom line: Too much ambition and growing too fast. Hopefully, they will do well even after Covid. While I have never flown Etihad, I have always admired their quality and reputation, an excellent product and company with fine people. First rate! When I mention to people that I helped start a new airline and failed, people are amazed. I reply that it was the greatest learning experience anyone could imagine, by learning "what not to do". First off, don't start an airline unless you have a bottomless bank account, as you are going to need it! This is a high cost, high risk business with numerous variables that cannot be adequately assessed until you are in the thick of it. Sadly, airlines are a romantic business that is exciting, much of it driven by emotion. Economics on the other hand is the counter to exuberance, and is a painful teacher. Hopefully, in time we can rebuild the industry as a whole, but I rather doubt it will ever return to its prior levels.
I forgot to mention, Etihad sports the most beautiful aircraft livery and identity scheme in the world, hands down... No one else even comes close. Well done, gentlemen!
Thanks for sharing this info I have a plan of starting a regional airlines in East Africa. Since u have the experience I would like get in contact with u sir
Excellent video, Dan!! Love your work!! Keep it up!! (I love that your work never uses cheap ploys like Josh C or obnoxious and ignorant videos like Sam C)
My cousin was one of the flight attendants who was accepted in Etihad Airways last 14 years ago and during that time their were quite new in the industry. Unfortunately after 2 years, she was part of the layoff of employees because Etihad had a lot of problems during the early to mid 2000s.
WOW! That’s was really a great video! To say I’m impressed is in understatement, I wasn’t expecting this kind of content from you at all-you’re always so happy. This was informative and you presented it flawlessly. Clearly you did your research and the editing, Dan, you did an excellent job. It was like I was seeing a top quality documentary along the line of Frontline (from PBS). I hope you do more of this type of videos. I’m equally amazed how financially savvy your cat is! Will be see him/her in future vids? Cheers👊
Having flown Etihad many times I can assure you, you are not missing anything anymore. Their service quality has fallen massively over the last 5 years because of budget cuts. They are trying to maintain the image of being a luxury airline with the ticket prices of mid range carriers while providing a budget level of service. The current AD airport is also undersized and the new airport was supposed to open in mid-late 2017 but is currently "on schedule" to open in 2020 (sic).
AZ, horrible economy meals and premium economy same meals. Coffee the worst in the skies.
4 года назад
Oh yeah! Invest in mafioso airlines. Very clever. They want their cut , whether you made a profit or loss. Or say goodbye to your knees and fingers, one at a time. Nice👍🏽
I'm no businessman but what I wouldve done was invested billions into AD making it a worldwide attraction also making flights to the Country cheaper from all over the world to bring people in the millions. Not to mention relaxing their laws a tad bit. I know all about Etihad but no so much about their Origin. So they got their marketing right there.
Best video on ME airlines, ever. Insightful data and analysis, excellent production. Among other points, it explains how Gulf dropped from my radar after a round-trip to Bahrain in 1999!
Hey Dan! Absolutely loved this format of video from you. Very well researched and prepared, and indeed presented. Loved it! I look forward to more of these. 😘❤️❤️
I could never afford to fly Etihad, by far the most expensive economy fare between LHR and SYD. It doesn’t matter how good the experience would have been, £300 to £500 cheaper to fly Singapore Airlines always won out.
One thing that hit all of the middle eastern airlines was a brief (but damaging) period where the US government instituted a ban on taking laptops and other electronics inside the cabin of flights from the middle east to the USA unless you were flying a US carrier.
i spend 30 hours in 2 weeks on ethihad flights, and hearing that trailer music, gave me goosebumps once more. Always thought their music was great. great experience. had a flight on jet airways. That was disappointing compared
Are you kidding? Even before COVID they had cut their economy meals and service so much, you even had to pay for dessert if you wanted it on long haul flights 🤣
@@iNickRivas even so, their ambience, their crew and their food(even though the portions were less cause of the budget cuts) were awesome for the price I paid. And are we going to ignore how amazing their cabins are?
sorry to hear that about Etihad. Had many flights with them from Abu Dhabi to Ho Chi Minh city and still remember that iconic song they play in their planes. Always good service, even placed me in excellent hotel in the center of Abu Dhabi ( Southern sun hotel) when i missed my flight, was suprised how good everything was. Hope they stay afloat
I have one single Etihad experience. I used them for a Munich destination because I could pay for an exit row seat, while Quantas/Emirates still had their chook loto approach. The Munich early morning arrival had to be diverted to Milan due to fog and there the dramas began. We waited for the fog to clear, still in the plane and continued to wait. Eventually they said they needed to refuel, so we waited for that and after more waiting they said they needed to de-ice the wings. More waiting. Eventually they taxied out, and there was still more waiting. Finally they announced that the crew no longer had enough hours left to complete the flight and so back we went to where we'd sat for hours. There was talk of getting another crew when the lack of hours was announced, however once back we just waited and received no information for about two hours. Finally we disembarked, without it being clear what was happening, were bundled onto busses, taken to the airport and lead around like lost sheep with an Arab shepherd whose communication skills and English left a lot to be desired. It turned out we were being put up in a hotel and two hotel staff struggled for an hour and a half to book in the entire plane load. They said we'd receive a call as to their plans, but that ended up as a note slipped under the door. Be in the lobby at 3am the next morning for another attempt at the same arrival time, and no mention of whether fog was expected. Another shepherding exercise followed, young children looking very uncomfortable at the early hour, but finally we boarded and the flight went ahead without any further drama. It really surprised me how unprepared the airline seemed to be for such an eventuality, how poorly they communicated during the mess, and most surprisingly, the plane, a 340, sat on that runway for an entire day as if it had nowhere else to be. That must have cost the airline a lot, without even considering their hotel bills etc.
Their relationship to travel agents sucked so bad in Brasil! They were truly awful. Add to that they were always trailing behind Emirates and Abu Dhabi as a destination was never able to be promoted as well as Dubai here... Etihad left a few years now (which was also a nightmare for passengers) and I don't think people even miss it
Sadly im one of those unfortunate ones that lost a job in etihad. I love this company but due to pandemic i have to go home. But its been a good times working in etihad.
I’m so glad I had a chance to nab an apartment seat from Abu Dhabi to London earlier this year using AA miles. The finishes of the suite was incredible! The food was really customized to the tilt... more than JAL F, Air France La Premiere , Singapore F, Emirates F , Cathay F, and Qantas F for sure. The space of the suite was equally impressive. Bed was on the harder side though. Shower room was nicely appointed but I prefer Emirates’ better because of the size. If they fly A380 in the future, I would def try to nab an apartment suite again especially for a long haul flight.
@pat bej Exactly. This thing is so over hyped. Every CEO and CFO have found they now have the perfect scape goat to poor performance now. Just blame the virus.
Doha, Dubai, Abu Dhabi want to create 3 regional hubs within 400km of each other..... each wants to claim 50-90mil passengers a year.... pipe dreams and someone gotta lose
Maybe but maybe not! I wonder if London, Paris, Amsterdam and Frankfurt are further apart or have same sort of geographical separation? Or am I missing something here?
@@ceblsclinic5613 those euro hubs took decades to build up to where they are and also lots of them are the final destinations for the travelers whereas middle east hubs are mostly for transits..... and now new jets can do direct flights from point to point so having a midway hub is becoming pointless
The obvious question is why didn't Etihad sell off its stakes in other airlines (Jet, Air Berlin, Alitalia, Virgin Australia etc) the moment it became obvious that these investments were not working. Selling them off at that point would have meant a loss but probably not as much as it eventually did.
Selling aircraft in different parts of the world: Europe: Is it efficient and can it be cheaper than rail? US: How many do we want? Yes. East Asia: How many people does it hold? Middle East: How much gold can we get on board?
