Etihad Airways: Targeting Indian Market Beyond Metro Cities

Despite the global uncertainties in recent years, Etihad Airways, the national airline of the United Arab Emirates, has strengthened its business. Now, it has ambitious plans of expanding its India network. As the global travel market gradually recovers to pre-pandemic levels, India stands out among APAC and western countries as a remarkable source market.

“The demand for our services has been robust, resulting in significant growth in our operations. As the global travel market gradually recovers to pre-pandemic levels, India stands out as a remarkable source market. Indian travelers, beyond the major metropolitan areas, exhibit a growing appetite for luxury experiences, cultural exploration, and international destinations,” said Salil Nath, general manager Indian subcontinent, Etihad Airways.

The travel demand between the UAE and India is experiencing a rapid recovery and continued growth, reflecting the strong ties and increasing connectivity between the two nations.

“In response to the dynamic market conditions, we have demonstrated remarkable agility in adding new destinations where we identify demand and untapped opportunities like in the case of Kolkata,” he added.

The airline will be completing nineteen years of operations this year. Etihad plays a vital role in facilitating travel and trade between the UAE and India. Its network has steadily expanded, now encompassing 10 major cities, namely Ahmedabad, Bengaluru, Chennai, Mumbai, New Delhi, Hyderabad, Kochi, and Kolkata. Not only urban markets, it has connected a greater number of Indian travelers, particularly from regional and smaller gateways (non-metro/Tier II), to both Abu Dhabi and Etihad’s extensive global network through Air Arabia Abu Dhabi joint venture, with Kozhikode and Thiruvananthapuram serving as crucial entry points.

Innovations & sustainability

Etihad has been increasing the frequency of flights to and from India, aiming to provide a wider range of options for Indian travelers. Etihad has also made significant investments in enhancing its product and service offerings. Its new economy experience now fully rolled out across the network, brings an elevated level of comfort for economy cabins. “It features a high-quality, design-led, sustainable dining service. Notably, we have introduced fully reusable dining equipment, reducing waste and eliminating single-use plastic from meal trays. By implementing closed loop recycling, we establish a circular economy for all reusable plastic materials.”

Aligned with the UAE’s pro-environmental vision, Etihad has developed a comprehensive sustainability strategy. Etihad Airways has achieved a 26 per cent reduction in CO2 emissions per Revenue Tonne Kilometre (RTK) in 2022 compared to the 2019 baseline. “We have also partnered with World Energy to establish a long-term strategy for decarbonizing flights through in-sector emissions reductions. Etihad has set ambitious environmental targets, which will be accomplished through a combination of internal initiatives, collaborations with industry partners, and the implementation of a robust carbon offset program,” he said.

Expansions & change in strategy

From cargo aircraft to our state-of-the-art Boeing 787 Dreamliners, the Etihad fleet has technologically superior aircraft. “Our sophisticated fleet of aircraft epitomizes exceptional performance and operational efficiency. With a fleet of 74 aircraft, we have announced the highly anticipated return of the A380 later this year. This addition will provide additional capacity to destinations such as London Heathrow (LHR), which, in turn, will enhance our connectivity to various parts of India,” he explains.

Through the joint venture between Air Arabia Abu Dhabi and Etihad, the airline is able to expand Etihad’s presence in India, connecting a greater number of Indian travelers, especially those from regional and smaller gateways, to Abu Dhabi and Etihad’s extensive global network. “Currently, we operate 165 weekly flights to 10 key gateways across India in collaboration with Abu Dhabi Air Arabia.”

India serves as a pivotal market for Etihad, and its meticulously crafted strategy is poised to bolster both Etihad and the Indian aviation sector for years to come. As a crucial trade facilitator, Etihad assumes a pivotal role in fortifying bilateral trade between India and the UAE. “Etihad is committed to India’s economic growth and development by facilitating seamless trade to and from India, leveraging its expansive global network and strong ties with the UAE. We have witnessed remarkable expansion in our operations within India, epitomizing a flourishing network of flights connecting major cities across the nation.”

Throughout the pandemic, we maintained a pragmatic approach to our overall network planning, allowing us to swiftly adapt to immediate demand and effectively serve our passengers. “In response to the dynamic market conditions, we have demonstrated remarkable agility in adding new destinations where we identify demand and untapped opportunities like in the case of Kolkata.”

Perks of ‘healthy competition’

The demand for air travel within India is undeniably substantial, reflecting the evolving aspirations and mobility of the population.As per the Indian Brand Equity Foundation (IBEF), India is projected to ascend to the position of the third-largest aviation market in terms of passengers by 2024, highlighting the immense potential and future prospects.Multiple industry analyses consistently indicate the long-term growth trajectory of India.

“At Etihad, we firmly believe that healthy competition fosters innovation. It motivates us to constantly push boundaries and deliver faster, cutting-edge solutions that cater to the evolving needs and desires of our esteemed guests. With an unwavering commitment to providing the finest product and service in the skies, our ultimate goal is to offer a comfortable and hospitable experience to every single guest. We continuously strive to enhance our services, seeking innovative ways to exceed expectations,” Nath said.

Travelers are increasingly exercising caution and discernment when it comes to making their travel arrangements. The escalation of ticket prices can act as a deterrent, particularly for individuals who prioritize affordability due to budget constraints or price sensitivity. The relationship between airfares and travel demand is a delicate equilibrium, as travelers carefully evaluate the value and accessibility of air travel. “Airlines and the industry as a whole meticulously monitors and adapts to the fluctuating demand, ensuring that it remains robust and inclusive for a diverse range of travelers.”