| | JUNE 20248IN FOCUSETIHAD AIRWAYS & CHINA EASTERN FORM JOINT VENTURE TO BOOST GROWTHQATARENERGY PARTNERS WITH TAIWAN'S CPC FOR NORTH FIELD EXPANSIONEtihad Airways has partnered with China Eastern Airlines to form a joint venture, aiming to coordinate flights and share revenues on selected routes. Etihad's CEO, Antonoaldo Neves, announced that this collaboration, set to begin in 2025 pending regulatory approval, will involve joint management of flight capacity, schedule coordination, and revenue sharing, without any equity investment or cost-sharing.Neves highlighted that such joint ventures are common among European and American airlines, but this marks the first significant partnership between carriers from the Middle East and China. He emphasized that this strategy will enhance customer options and foster growth for airlines in the region. Neves also mentioned Etihad's intent to pursue similar opportunities globally.Post-pandemic, air travel has surged, benefiting airlines and overwhelming airports. While China was a major outbound travel market before COVID-19, its recovery has been slower. However, Neves noted an improvement in demand, with Etihad's flights to China seeing strong occupancy. He attributed this to good relations between the Middle East and China, which he believes will boost travel between the regions.Etihad, owned by Abu Dhabi wealth fund ADQ, reported net profits in 2022 and 2023 after years of losses. This turnaround is part of a strategic shift focusing on medium and long-haul destinations, eliminating unprofitable routes, and returning grounded aircraft to service. Unlike its competitors, Etihad has opted against placing large plane orders, preferring opportunistic purchases.The airline has secured agreements with lessors for 16 new aircraft, set for delivery starting in 2026. These additions will expand Etihad's network and flights, supporting anticipated growth from its joint venture with China Eastern Airlines. Neves believes this approach is key to advancing the development of airlines in the region. QatarEnergy has entered into definitive agreements with CPC Corporation, Taiwan (CPC), for the long-term supply of LNG and a partnership in the North Field East (NFE) LNG expansion project. The agreements include an LNG Sales and Purchase Agreement (SPA) for delivering four million tons per annum (MTPA) of LNG from the NFE project to CPC over 27 years. Additionally, a share sale and purchase agreement was signed, under which QatarEnergy will transfer a 5 percent interest in one NFE train with an eight MTPA capacity to CPC. This makes CPC a partner in the NFE project without altering the participating interests of the other shareholders.The agreements were signed by His Excellency Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, President and CEO of QatarEnergy, and Mr. Shun-Chin Lee, Chairman of CPC Corporation, Taiwan. The ceremony took place at QatarEnergy's headquarters in Doha, attended by senior executives from both companies.Minister Al-Kaabi welcomed CPC as a valuable partner in the NFE project, emphasizing the strong, three-decade-long relationship between the two entities. He reiterated QatarEnergy's commitment to its global customers and partners. Minister Al-Kaabi also expressed gratitude to the teams from both companies for their dedication and hard work in finalizing the agreements. Mr. Shun-Chin Lee highlighted QatarEnergy's significant role in Taiwan's domestic gas market over the years. He stated that CPC's equity stake in the NFE project and the new LNG SPA would further strengthen the cooperative relationship between CPC and QatarEnergy. These agreements underscore the longstanding partnership between QatarEnergy and CPC and their shared commitment to ensuring a stable and long-term LNG supply.
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