Compensation from plane makers for delayed deliveries does not make up for how the shortage of seats hurts passengers, Etihad Airways' chief executive has said.
The airline is due to receive about 15 Airbus and Boeing aircraft in 2024 which are already late by between six months and a year, Antonoaldo Neves told The National at Arabian Travel Market in Dubai.
“Compensations are expected because they are contractual and they are going to come,” he said. “And when they come, great. But it's sad to be honest because who pays the bill in the end?” He pointed out that the shortage of planes and continued strong travel demand has led to an industry-wide rise in ticket prices.
“I would trade all the compensations for planes on time,” he said. “Compensations don't move the needle … every airline in the world would trade compensation for planes to make money.”
The airline is scheduled to received next year 15 wide-body and narrow-body aircraft that are a combination of Airbus A350s, A321 Neos and Boeing 787s.
“We will take about 15 planes, a little bit less or a little bit more, depending on if the OEMs [original equipment manufacturers] are on time,” Mr Neves said.
“They are already late, some by one year and some by six months.”
Mr Neves's comments echo similar concerns raised by global airline executives about the supply chain woes that continue to roil the industry.
Emirates is “not happy” with the long delays to Boeing's 777X wide-body programme and expects the US plane maker's new management to fix the issues, chairman and chief executive Sheikh Ahmed bin Saeed said on Tuesday.
Boeing and Airbus are struggling to increase production quickly enough to meet soaring post-pandemic demand for new aircraft.
The aviation supply chain is facing several challenges such as a shortage of parts, shortage of skilled workers, aircraft certification hold-ups and, in Boeing's case, increased regulatory scrutiny. The US plane maker is grappling with a widening crisis after a door panel flew off an Alaska Airlines 737 Max 9 jet in mid-flight.
Profitable first quarter
Etihad recorded a strong performance in the first quarter and expects to make a profit, Mr Neves said.
“We had an amazing quarter. Things are really coming together. We're going to make a profit in Q1, which is something that is not common in the industry. Most airlines lose money in Q1,” he said.
Etihad in March said it was preparing for a potential listing – a first for a major Gulf airline – as it pursues an ambitious growth strategy between now and 2030. However, any decision about a possible listing would be made by Etihad Airways' owner, Abu Dhabi holding company ADQ.
In the second quarter of this year, the airline will add six leased Airbus A321 Neo aircraft to its fleet for the first time, Mr Neves said.
The narrow-body planes will be deployed on routes in the Gulf and India.
“Q1 and Q2 are two quarters where things are coming together and everything we invested last year is coming to fruition,” Mr Neves said.
The outlook for summer travel is bright with “very strong” forward bookings for travel in June, he added.
SM Town Live is on Friday, April 6 at Autism Rocks Arena, Dubai. Tickets are Dh375 at www.platinumlist.net
More from Rashmee Roshan Lall
The Gentlemen
Director: Guy Ritchie
Stars: Colin Farrell, Hugh Grant
Three out of five stars
Oscars in the UAE
The 90th Academy Awards will be aired in the UAE from 3.30am on Monday, March 5 on OSN, with the ceremony starting at 5am
The biog
Age: 59
From: Giza Governorate, Egypt
Family: A daughter, two sons and wife
Favourite tree: Ghaf
Runner up favourite tree: Frankincense
Favourite place on Sir Bani Yas Island: “I love all of Sir Bani Yas. Every spot of Sir Bani Yas, I love it.”
The specs
Engine: 4.0-litre V8
Power: 503hp at 6,000rpm
Torque: 685Nm at 2,000rpm
Transmission: 8-speed auto
Price: from Dh850,000
On sale: now
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MATCH INFO
Uefa Champions League, last 16, first leg
Tottenham Hotspur v Borussia Dortmund, midnight (Thursday), BeIN Sports
In numbers
- Number of children under five will fall from 681 million in 2017 to 401m in 2100
- Over-80s will rise from 141m in 2017 to 866m in 2100
- Nigeria will become the world’s second most populous country with 791m by 2100, behind India
- China will fall dramatically from a peak of 2.4 billion in 2024 to 732 million by 2100
- an average of 2.1 children per woman is required to sustain population growth
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Day 3, Abu Dhabi Test: At a glance
Moment of the day Just three balls remained in an exhausting day for Sri Lanka’s bowlers when they were afforded some belated cheer. Nuwan Pradeep, unrewarded in 15 overs to that point, let slip a seemingly innocuous delivery down the legside. Babar Azam feathered it behind, and Niroshan Dickwella dived to make a fine catch.
Stat of the day - 2.56 Shan Masood and Sami Aslam are the 16th opening partnership Pakistan have had in Tests in the past five years. That turnover at the top of the order – a new pair every 2.56 Test matches on average – is by far the fastest rate among the leading Test sides. Masood and Aslam put on 114 in their first alliance in Abu Dhabi.
The verdict Even by the normal standards of Test cricket in the UAE, this has been slow going. Pakistan’s run-rate of 2.38 per over is the lowest they have managed in a Test match in this country. With just 14 wickets having fallen in three days so far, it is difficult to see 26 dropping to bring about a result over the next two.
Six large-scale objects on show
- Concrete wall and windows from the now demolished Robin Hood Gardens housing estate in Poplar
- The 17th Century Agra Colonnade, from the bathhouse of the fort of Agra in India
- A stagecloth for The Ballet Russes that is 10m high – the largest Picasso in the world
- Frank Lloyd Wright’s 1930s Kaufmann Office
- A full-scale Frankfurt Kitchen designed by Margarete Schütte-Lihotzky, which transformed kitchen design in the 20th century
- Torrijos Palace dome
THE BIO
Family: I have three siblings, one older brother (age 25) and two younger sisters, 20 and 13
Favourite book: Asking for my favourite book has to be one of the hardest questions. However a current favourite would be Sidewalk by Mitchell Duneier
Favourite place to travel to: Any walkable city. I also love nature and wildlife
What do you love eating or cooking: I’m constantly in the kitchen. Ever since I changed the way I eat I enjoy choosing and creating what goes into my body. However, nothing can top home cooked food from my parents.
Favorite place to go in the UAE: A quiet beach.
Company profile
Name: Oulo.com
Founder: Kamal Nazha
Based: Dubai
Founded: 2020
Number of employees: 5
Sector: Technology
Funding: $450,000
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
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The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
KEY HIGHLIGHTS
Healthcare spending to double to $2.2 trillion rupees
Launched a 641billion-rupee federal health scheme
Allotted 200 billion rupees for the recapitalisation of state-run banks
Around 1.75 trillion rupees allotted for privatisation and stake sales in state-owned assets
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
General%20Classification
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