Etihad in codeshare partnership with Air France-KLM

Agreement extends Abu Dhabi-based carrier’s network to 321 destinations

Dubai: Taking its codeshare and partnership strategy a notch up, Etihad Airways on Monday said it has signed a codeshare partnership with Air France-KLM, due to take effective on October 28.

The move comes a day after Etihad said its codeshare and partner revenues grew 51 per cent to $182 million (Dh668 million) in the third quarter, boosting overall revenues by 19 per cent to $1.3 billion.

The deal enables Etihad to further extend its global reach to a combined network of 321 destinations, Etihad said, adding it would see the two carriers offering joint codes on destinations in Europe, the Middle East, Asia and Australia.

Etihad holds equity investments in airberlin, Air Seychelles, Virgin Australia and Aer Lingus.

Etihad also announced the new codeshare agreement between Air France and airberlin.

Etihad holds a 29.21 per cent stake in the German carrier.

The agreement would allow customers of the French and German carriers to fly on all routes they serve.

“Partnerships are delivering a major source of our revenue growth, by extending our network reach. This year to date, they are providing 18 per cent of our revenues and will be a major contributor to our sustained profitability growth this year and into the future,” James Hogan, Etihad Airways’ President and Chief Executive Officer, said in a statement.

“Gulf carriers have now officially changed the face of aviation. It is cheaper for Etihad to do this and build its network this way, and it is the only way Air France-KLM, which is facing high costs and debts to stay in the game and serve large (and growing) parts of the globe, can survive,” said aviation analyst, Andrew Charlton of Aviation Advocacy.

According to Saj Ahmad of StrategicAero Research, in the long term, this move may also open up doors for Etihad “to explore joining the Skyteam alliance”.

Other potential areas of cooperation between Etihad and Air France-KLM include joint procurement, as well as maintenance and repair collaboration, as both carriers identify cost savings and seek to benefit from economies of scale, Etihad stated, adding, the two airline groups expect to collectively carry more than 85 million passengers in 2012.