How Etihad Became a $20 Billion Airline From Abu Dhabi That Almost Disappeared | Gulf Empires
Gulf Empires
5,204 views
Etihad Airways lost billions investing in failing carriers like Alitalia and Air Berlin. See how their strategy led to massive airline bankruptcy.
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This analysis examines why Etihad Airways poured billions of euros into struggling carriers, only to watch them collapse one by one. If you follow aviation industry trends or are curious about corporate finance in the airline business, this breakdown explains the specific sequence of events that wiped out significant capital from Abu Dhabi.
We look at the timeline of the failed investments, starting with the 2.4 billion dollar stake in Alitalia in 2014, and moving through the subsequent crashes of Air Berlin, Jet Airways, and Air Italy. By reviewing these case studies, you will understand the risks inherent in airline business strategy and why these partnerships could not save the carriers from insolvency.
Subscribe for weekly aviation and business breakdowns, and comment which airline failure you want covered next.
Timestamps:
00:00 - How Etihad Lost Billions on Failed Airline Investments
1:12 - Why Abu Dhabi Founded Etihad Airways in 2003
2:20 - James Hogan and the Equity Alliance Strategy
3:26 - Etihad's $2.4 Billion Stake in Alitalia
4:12 - The Residence: Etihad's Luxury A380 Suite
5:55 - Why Air Berlin, Alitalia, and Jet Airways Were Already Failing
6:34 - Etihad's Record $1.87 Billion Loss in 2016
7:58 - The Collapse of Air Berlin, Alitalia, and Jet Airways
9:05 - How COVID-19 Nearly Ended Etihad Airways
9:42 - Etihad's Post-COVID Turnaround and Return to Profit
12:05 - The Real Lesson Behind Etihad's Equity Alliance Failure
3 Comments
The only people who used it were government officials and those whose jobs required them to use the 'national carrier' rather than drive an hour nd. ahlf to DXB to catch. cheaper, better flight. If you had a job in the public sector in AD, you were required to fly on Etihad, even for your annual flight home allowance.
How Etihad Became a $20 Billion Airline From Abu Dhabi That Almost Disappeared | Gulf Empires
Gulf Empires
5,204 views
Etihad Airways lost billions investing in failing carriers like Alitalia and Air Berlin. See how their strategy led to massive airline bankruptcy.
📘Get The MENA Playbook: https://ko-fi.com/gulfempires
This analysis examines why Etihad Airways poured billions of euros into struggling carriers, only to watch them collapse one by one. If you follow aviation industry trends or are curious about corporate finance in the airline business, this breakdown explains the specific sequence of events that wiped out significant capital from Abu Dhabi.
We look at the timeline of the failed investments, starting with the 2.4 billion dollar stake in Alitalia in 2014, and moving through the subsequent crashes of Air Berlin, Jet Airways, and Air Italy. By reviewing these case studies, you will understand the risks inherent in airline business strategy and why these partnerships could not save the carriers from insolvency.
Subscribe for weekly aviation and business breakdowns, and comment which airline failure you want covered next.
Timestamps:
00:00 - How Etihad Lost Billions on Failed Airline Investments
1:12 - Why Abu Dhabi Founded Etihad Airways in 2003
2:20 - James Hogan and the Equity Alliance Strategy
3:26 - Etihad's $2.4 Billion Stake in Alitalia
4:12 - The Residence: Etihad's Luxury A380 Suite
5:55 - Why Air Berlin, Alitalia, and Jet Airways Were Already Failing
6:34 - Etihad's Record $1.87 Billion Loss in 2016
7:58 - The Collapse of Air Berlin, Alitalia, and Jet Airways
9:05 - How COVID-19 Nearly Ended Etihad Airways
9:42 - Etihad's Post-COVID Turnaround and Return to Profit
12:05 - The Real Lesson Behind Etihad's Equity Alliance Failure