Etihad 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.