US airline lobby questions Etihad profitability

Friday, May 29, 2015

Dubai: The lobby group representing the United States’ largest airlines in their claims that Gulf carriers are state subsidised have raised questions over Etihad Airway’s financial performance for 2014.

“Etihad continues to claim that it is profitable, but it refuses to open its books because it knows the subsidies it receives from the treasury of the United Arab Emirates are in direct violation of Open Skies policies. Just because Etihad says it is profitable, doesn’t make it so,” stated Jill Zuckman, chief spokesperson for the Partnership for Open & Fair Skies.

Etihad reported on Thursday that it made $73 million (Dh268 million) in 2014. The airline did not release their financial results, however, did release a statement outlining the company’s performance.

“By touting a ‘summary’ instead of providing full disclosure of financial statements and details, as US airline carriers do, it is impossible to determine how much additional money was funnelled directly to Etihad Airways from the government of the UAE in 2014,” said the Partnership for Open & Fair Skies emailed statement released late on Thursday.

Etihad is privately owned by the Abu Dhabi government and is not compelled to release its annual financial results unlike publicly traded companies.

Etihad President and Chief Executive, James Hogan, said last year, “we receive no state subsidies, no free fuel and no reduced airport charges”.

Staff Report