Etihad Airways is the national airline of Abu Dhabi, established by Royal Decree in 2003 to provide air connectivity for the emirate and compete in the global aviation market. The airline operates from its hub at Abu Dhabi International Airport, serving destinations across the Middle East, Asia, Europe, Africa, North America, and Australasia.
History
Etihad commenced commercial operations in 2003 and grew rapidly through fleet acquisition, route expansion, and an aggressive equity alliance strategy. Between 2013 and 2017, the airline acquired minority stakes in several international carriers including Alitalia, Jet Airways, Virgin Australia, and Air Berlin. This equity partnership strategy aimed to create a global network without formal alliance membership. The strategy proved commercially unsuccessful, with several partner airlines entering administration or restructuring, leading to significant financial losses for Etihad.
Restructuring
Following substantial losses from the equity partnership strategy, Etihad underwent a major restructuring from 2017 onward under new management. The airline shifted focus from growth-at-all-costs to financial sustainability, reducing its fleet, rationalising its route network, and exiting most equity partnerships. The restructuring stabilised operations and moved the airline toward breakeven performance.
Fleet and Network
Etihad operates a fleet of wide-body aircraft including Boeing 787 Dreamliners and Airbus A350s for long-haul routes, supplemented by narrow-body aircraft for regional services. The airline serves over 70 destinations from Abu Dhabi and positions itself as a premium carrier with a focus on service quality and innovation.
Sustainability
Etihad has positioned itself as an industry leader in aviation sustainability. The airline has invested in sustainable aviation fuel, operated test flights with reduced emissions, and set targets for carbon reduction. This positioning aligns with Abu Dhabi’s broader sustainability agenda through Masdar and its commitment to the energy transition.
Ownership
Etihad is wholly owned by the Abu Dhabi government through the Etihad Aviation Group. The airline is not publicly listed.
Role in Vision 2030
Etihad supports the Abu Dhabi Economic Vision 2030’s tourism and international connectivity objectives. Air connectivity is essential for Abu Dhabi’s ambitions in tourism, financial services, trade, and talent attraction. Etihad provides the direct flight links that enable Abu Dhabi to function as a global business and leisure destination, complementing the infrastructure investments made on Yas Island, Saadiyat Island, and across the broader economy.