Abu Dhabi-based Etihad Airways is reviewing the possibility of returning to the former Yugoslav region, over three years after terminating operations to the area. It comes as the carrier is expected to announce a record second consecutive annual profit in 2023 and readies for a major network expansion. Etihad is charting an ambitious growth path through to 2030, aiming to triple the number of passengers carried to 33 million, double its fleet to 150 planes and increase its available seat kilometres by about 30% annually over the next seven years. The airline has undergone wide-scale restructuring following its failed strategy of investing in troubled airlines across the world and has recently begun focusing on its product and introducing new routes, with an emphasis on European operations, although most of Eastern Europe and Southern Europe remains unserved.
Etihad has only ever served Belgrade within the former Yugoslavia on the back of its equity investment in Air Serbia. Although the Emirati carrier still owns a 16% stake in its Serbian counterpart, it has no effective control of the airline and its wide-ranging codeshare agreement, through which it served almost all the capitals in the region, has been terminated. Etihad last served Belgrade in October 2020. In 2019 It carried 114.256 passengers on the Abu Dhabi – Belgrade route for an average annual load factor of 87.2%. The high loads were partially the result of its cooperation with Air Serbia which saw it funnel a notable number of Europe-bound passengers through Belgrade. However, Etihad had also previously engaged in talks with Zagreb Airport and the Slovenian government, indicating its interest in the region prior to its restructuring. A renewed focus on seasonal leisure destinations in Europe also put coastal airports in the region with good chances of welcoming Etihad in the future.
The Macedonian Minister for Transport and Communication, Blagoj Bočvarski, recently held talks with officials in the United Arab Emirates, during which the introduction of flights between Abu Dhabi and Skopje were discussed. Commenting on the matter, Mr Bočvarski said, “We discussed the importance of establishing nonstop flights between Skopje and Abu Dhabi with the aim of deepening economic cooperation. Talks will continue in the coming period between our two friendly countries. The UAE supports the establishment of flights between Abu Dhabi and Skopje, which would develop passenger traffic, tourism and cargo”.
 |
| Etihad Airways summer 2023 European route map |
Etihad Airways’ CEO, Antonoaldo Neves, said, “By the end of 2024, early 2025, Etihad Airways will be … bigger than ever before in terms of passengers, available seat kilometres and fleet. It’s incredible. An airline that was restructured over the last five years, now we’re back to the game. I’m trying to actually front-load growth now. We are a totally different airline – profitable, with a business model that makes a lot of sense and with a solid foundation on profitability and cost-wise”. Central to Etihad’s growth plans is the recent opening of the much-delayed Abu Dhabi Airport Midfield Terminal, now known as Terminal A, which has the capacity to handle 45 million passengers per year.
Low cost carrier Wizz Air Abu Dhabi has begun serving the region following Etihad’s withdrawal. It currently maintains flights to Belgrade, handling half the figures Etihad saw on its daily service. The budget airline recently suspended flights to Sarajevo. Etihad has a joint venture with budget carrier Air Arabia, known as Air Arabia Abu Dhabi, which is based in the UAE capital and previously served Sarajevo. “I don’t believe in that tension between point-to-point and connecting travel … We have to connect people if we want to be a relevant airline in the region. At the same time, we need to bring local demand into Abu Dhabi because we make money doing that. So, I see a future where we have both”, Mr Neves said.
