Airline Equity Partners 

Our minority stakes in strategically important
airlines provide access to hundreds of destinations

Etihad Aviation Group is committed to a strategy of collaborative growth to gain the scale required to be competitive in the global air transport market. Beyond its organic and traditional codeshare growth, this is being achieved through the acquisition of minority stakes in strategically important airlines, which combined, provide access to hundreds of destinations in otherwise constrained markets. 


Etihad Aviation Group has minority investments in Alitalia, airberlin, Air Serbia, Air Seychelles, Jet Airways, and Virgin Australia. The Airline Equity Partners division has a dual responsibility. AEP is responsible for:

  • driving revenue and cost synergies between the airline equity partners, and between Etihad Aviation Group and each of the airline equity partners.
  • supporting each individual airline equity partner in achieving its own objectives.

 

Strategy and Planning

The Strategy and Planning department oversees all Network and Revenue Management activities. Its three major objectives are to:

  • Optimise networks between the airline equity partners, and between the Etihad Aviation Group and each of the airline equity partners for maximum mutual benefit.
  • Provide structural alignment between the airline equity partners, in the form of systems and processes, to optimise revenue opportunities.
  • Enhance Etihad shareholder value in the partner airlines by supporting their revenue management and network development transformation processes.

 

Commercial

The Commercial team is responsible for defining the fields of commercial synergies between all AEP airlines. Areas of focus include: 

  • Commercial projects and sales cooperation: AEP airline Small and Medium Enterprises sales platform, AEP airline distribution strategy, AEP airline enhanced sales cooperation
  • Marketing: Joint product definition and support of seamless travel
  • Commercial Intelligence: AEP airline Salesforce.com centre, Multilateral dealing, Sales toolbox
  • Unique Selling Proposition: Definition of unique selling points for AEP, delivering seamless travel across partner airlines

German projects

The German Projects team is responsible for strengthening the position of Etihad by implementing projects in DACH (Germany, Austria, Switzerland), one of the most important market regions in Europe. Focus projects include:

  • New airberlin: Support the transformation process to deliver on the business plan and ensure ACMIO delivery to Lufthansa Group.
  • Lufthansa collaboration: Drive implementation of strategic collaboration between Lufthansa Group and Etihad Aviation Group and the airline equity partners.

Business transformation

The Business Transformation department is responsible for the development and implementation of key operational synergies within the airline equity partners.

Business areas that are covered include airport operations, ground handling, technical, maintenance and crewing.

 

Strategic Projects

The Strategic Projects team is the focal point within the division in helping partner airlines achieve their long-term objectives and maximise return for the investors. The team implements the partners’ strategic priorities, advises and collaborates with the partners’ leadership on business improvement opportunities, and provides support in critical situations across all business areas.

The Strategic Projects team is also involved in all the strategic initiatives concerning the division as part of Etihad Aviation Group.

 

Finance

The Finance team’s objective is to support the division by developing synergies to monitor and control the spend of the business unit, and to support the equity partner airlines.

The team provides financial support to the division and ensures the efficient and effective management of financial resources to accomplish the airline equity partners’ objectives. They provide support in defining the benefits of synergy projects and in tracking actual performance, whilst providing financial analytical skills as required.

AEP Finance also works closely with the finance teams of the equity partners to analyse their financial performance, understand their future profit, loss and cash forecasts, and to work together with the Chief Financial Officers to identify initiatives and provide support where required. 

Human Resources

The HR department has ultimate responsibility for all human resources -in the AEP division, and provides a strategic perspective for each of the equity airline partners.

Both operational and strategic, the team is involved in many areas, such as organisational design and development and cross-functional talent management. A central point of contact enables HR team members of all equity partner airlines to share and gain expert knowledge and best practice in people development.  

In particular the team also leads all HR due diligence at a senior level in relation to any potential equity investment and ensures delivery of people synergies, and in post-partnership due diligence / conditions precedent agreements.