Report Etihad Airways in denial on royal backing

first_imgEtihad Airways president and chief executive officer James Hogan continues to deny the airline is subsidised. Etihad’s James Hogan, an Australian has ongoing rivalry with Qantas chief executive officer, Alan Joyce.  The included report includes a PowerPoint slide titled “Equity and Shareholder’s Loan” that also details that the loan would be interest free and subordinated. State owned Etihad Airways stood to benefit from a secret $US3 billion (AUD $3.3 billion) loan from the Abu Dhabi royal family, despite it always claiming that it does not receive royal financial support. The findings come as Qantas is about get rid of 5000 jobs and the Abbott government drags its fleet on helping the struggling airline. Mr Hogan said at the International Aviation Club in 2009 that the airline received no handouts. In addition, a Booz and Co report prepared in 2010 shows that Etihad used special deductions in the UAE to post its first $US 12 million profit in 2012. Another slide entitled “What Etihad needs to win” outlines subsidies the airline really wants including PSO destinations loss to be underwritten”, the granting of land for more Etihad buildings and “approval of acquisition of targets” in passenger air transport which include strategic equity stakes in Virgin Australia, Air Berlin and Jet Airways. According to a leaked report obtained by Fairfax Media, if Etihad secured the loan, it would not be required to make loan repayments until 2027, the Sydney Morning Herald reported. Another slide called “Public Service Obligations” also deals contention over whether Etihad sponsors all of its benefactors itself, or with the help of the Abu Dhabi monarchy. Etihad Airways’ competitors, such as Qantas Airways have complained of predatory behaviour by the airline off the back of UAE government subsidies. It states that the Abu Dhabi Executive Council of the Emirates government backs “Man City”. This means that the Abu Dhabi government is backing English Premier League team Manchester City, which is also owned by the Emirates Crown Princes’ brother Sheikh Mansour bin Zayed Al Nahyan. Source = ETB News: Tom Nealelast_img

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