As its first foray into the hospitality sector, Etihad Airways plans to develop a business hotel at the Abu Dhabi International Airport (AUH) and it is expected to be ready in two years, according to the airline's chief executive.
"We would also like to develop at least a couple of transit hotels in Abu Dhabi for passengers flying in from Europe and other destinations," James Hogan told Emirates Today.
"Initially, we are looking at one business hotel and a couple of transit hotels.
"The work is in progress with regards to how many rooms and what facilities these hotels will have," he said.
Sheikh Ahmad bin Saif Al Nahyan, Chairman of Abu Dhabi Civil Aviation as well as Etihad, said at Dubai Air Show in 2005 that the emirate is planning a 300-room hotel at AUH.
Asked how much Etihad would invest in its hospitality business, Hogan said: "We are not telling that to anyone right now." "Initially, we will look at developing hotels in our own backyard. If that works, we will look at growing bigger. We hope to do something in Abu Dhabi first, make it work and then determine whether to take it further." In an earlier interview, Hogan said Etihad will look at partnerships and acquisi tions in the UAE's hospitality sector. The airline needed to buy up hotels as it caters to an increasing number of travellers, he had said. The airline will be interested in airport hotels rather than tourist destinations on one of Abu Dhabi's several island projects, Hogan said at the time.
$400 lease finance facility
Etihad has signed a $400 million (Dh1.46bn) Islamic lease financing facility that will be used to acquire four Airbus A340-500 aircraft. The sale and leaseback arrangement is the first Islamic financing deal to be concluded by Etihad, and the largest Islamic deal of its kind by an airline.
Etihad will acquire less than 10 narrow-body aircraft in the "late half of 2008", Hogan said. "We are looking at a single-digit order," he added. The airline will acquire the planes on operating leases, he said. Asked which model Etihad is considering - the Airbus A320 or Boeing 737- Hogan said: "It will depend on which aircrafts are available."
Compensation 'unfair' for airbus
Etihad is "definitely" not cancelling its order for the delayed A380, Hogan said, and added that compensation talks are "unfair for Airbus".
"At the end of the day, the aircraft has been delayed. Each airline has to take a decision on how it will bridge the gap.
"And you have only got two choices - Airbus and Boeing," said Hogan.
"It is a long-term partnership so it is not about compensation. It is about how you fulfill your requirements, how you develop a relationship. We are definitely not cancelling our order."
By Shweta Jain
© Emirates Today 2007
