Dubai Air Show: Etihad sees “green shoots” of recovery

Etihad's advance sales for December and January suggest that the first “green shoots” of recovery are evident in the region, chief executive James Hogan says.

His views echo that of Emirates which has also said that bookings for December and January are strong.

“Passenger bookings for December and January are showing the first green shoots,” said Hogan. “It’s promising and sales for December and January are much further ahead than at this time last year.”

He added that the cargo business was also showing strong signs of recovery.

The global economic crisis put Etihad’s plans to move into profitability by 2010 back by a year. At the outset of the crisis Hogan said that Etihad had instituted a programme of cost containment.

“Looking to 2010, our costs are under control and we are maturing as an airline,” he said. “We are getting things like our crew numbers right. Now, advance sales give us every confidence that we will hit our (profitability) target for 2011.”

Hogan was giving an overview of a new $750 million investment planned by Etihad, covering a range of areas, from stock control initiatives to In Flight Entertainment upgrades. Details of each initiative are being released at Dubai Air Show later this week.

On the eve of the air show, His Highness Sheikh Ahmed bin Rashid Al Maktoum, chairman of Emirates group was similarly upbeat about the near future, saying that advance sales for December and January were strong.