Etihad banks on premium service, smart partnerships to drive India growth amid seat cap

Kolkata, Oct 12 (PTI ) Etihad Airways, which operates 185 flights a week across 11 Indian cities, is banking on premium travel experience, customer segmentation and strategic partnerships to drive its business growth in the country, which is among the top three global markets for the airline, said an official of the Abu Dhabi-based carrier.

Unable to expand through additional flights, the airline is focusing on “smart ways” to grow its India revenues, and central to these plans is upgrading its product offering to attract high-value travellers, Etihad Airways Vice President for Global Sales and Distribution Javier Alija told PTI.

The carrier is using 100 per cent of its allocated capacity under the bilateral agreement between India and the UAE, which caps 50,000 seats per week for Abu Dhabi-based airlines.

“We fly to 11 cities. We fly all the seats that the bilateral agreement allows us,” Alija told PTI in an interview.

The 50,000-seat limit is shared between Etihad and Air Arabia Abu Dhabi.

“Until there is a change in the bilateral agreement, a discussion solely for the governments, we will not be able to add more frequencies or destinations,” he said.

The airline is also "tapping partnerships to overcome capacity constraints" and has tied up with Akasa Air, which now connects four Indian cities to Abu Dhabi in cooperation with Etihad, he said.

For long-haul travellers, especially those bound for the United States, Alija underlined the advantages of transiting through Abu Dhabi’s new airport terminal, describing it as a “pleasant and efficient” hub.

Etihad is also the only airline in the region offering US Customs and Border Protection (CBP) pre-clearance in Abu Dhabi, allowing passengers to arrive in the US as domestic travellers—saving time at immigration, he said.

“Even if our frequencies and destinations remain static, these customer-focused and operational efforts ensure Etihad continues to be the preferred airline for Indian travellers,” Alija said.

Kolkata has become the first Indian city to receive Etihad’s new A321 LR aircraft, featuring a redesigned, widebody-like cabin experience.

The aircraft provides seats for only 160 passengers - two first-class suites with doors, 14 in business class and 144 in economy category - well below the typical 240-seat configuration in this model.

“This is an industry-first interior designed to recreate the widebody experience,” Alija said, adding that the deployment reflects Kolkata’s strong premium travel potential.

The airline's shift towards yield optimisation and operational efficiency has paid off, he said.

It recently reported the best financial results in its history, driven by higher revenue and efficient capacity deployment.

For the current year too, the carrier expects 21-22 per cent growth in production (seat capacity), 22–23 per cent rise in revenue, and 30 per cent growth in absolute profit backed by expansions in the other markets, according to the official.

Etihad prepares to launch an additional 13 new routes before the year-end in various international markets as Abu Dhabi is gaining prominence as a global tourism and business centre, Alija said.

The airline is geared up to take guests directly to almost 90 destinations worldwide, he said, adding that it remains focused on sustaining growth without eroding profitability.

“We are very conscious that our rapid growth should not compromise the financial gains we have achieved,” he added. PTI BSM BDC