Etihad Airways, the national airline of the United Arab Emirates, has welcomed the turnaround of equity partner Air Seychelles which has posted a profit following three years of losses.
A net profit of US$1 million was achieved just one year after Abu Dhabi-based Etihad Airways acquired a 40 per cent stake in Air Seychelles along with a five-year management contract to provide strategic support and management expertise in reshaping the airline as a sustainable commercial entity.
The result marks a dramatic change of fortune for the Indian Ocean carrier which had made heavy losses for past three years.
James Hogan, Etihad Airways’ President and Chief Executive Officer, said: “The challenges in the global economy mean it is still a very tough environment for airlines. Against that backdrop, this is an impressive result.
“This performance validates the strength of our equity alliance proposition in which closer committed commercial collaboration drives revenue growth, and the integration and consolidation of key functions, achieves economies of scale and cost savings.
“It is also testament to the hard work and willingness of the Air Seychelles team to embrace change and make the tough decisions required in reshaping their business.”
Network and fleet planning centralized in Abu Dhabi has resulted in a new network plan which will support the hugely important tourist sector in Seychelles more effectively with good connections and broader choice for visitors to the archipelago.