Looking at the aviation industry in terms of huge movements in making its future promises, Etihad Airways laid down a wide-ranging investment plan worth $7 billion over five years. The modernization program will cover its fleet and the improvement of passenger services, setting the stage for a totally transformed travel experience by 2026. ''Some people may doubt some of the changes we have made recently at the airline, but travelers can expect a completely transformed airline five years from now,'' according to Antonoaldo Neves, the group chief executive officer of Etihad as detailed in a report by CNBC.

The investment will be in the retro-fitting of older Boeing 777 aircraft, something Neves said is necessary because "of the constraints we have in the global aviation space." Etihad currently boasts a fleet size of 92 planes, and the carrier hopes to increase this significantly to reach up to 170 aircraft by 2030. As this happens, the passengers will enjoy more ideal flight scheduling for their travels to Europe and Southeast Asia.

Improvement of Passenger Experience

Improvement in In-flight Services Modernization forms one critical aspect of the investment plan. Neves said: "We need to increase the number of business-class seats and improve in-flight Wi-Fi connectivity." He added that "the quality of the product is critical, just as customer service," thus resulting in heavy investment into broadening travel experience for passengers.

The opening of Abu Dhabi's new terminal has already given Etihad a competitive edge as it is capable of facilitating 16 daily flights, according to Neves, who noted that passenger volumes have increased significantly since last year when Etihad received almost 18 million travelers in just the first part of this year alone. It shows a solid recovery in air travel demand and will surely catapult Etihad into success in the coming days.

Preparing for Potential IPO

Furthermore, as part of its strategic growth plans, Etihad is also getting ready for a possible IPO in 2025. The date has not been confirmed to date, but Neves admitted that having a public listing has many advantages. He explained though that at the moment, there aren't any cash requirements since capital deployment is supposed to happen, access to varied capital sources might become crucial when trying to reach that growth pace going forward.

ADQ is the shareholder of the airline. Fully owned by the Abu Dhabi government, it has been heavily investing in such companies for public listing. However geopolitical tensions of the region could make them alter their timing strategy for any public listing in the future. The problems and rising tensions in Gaza and Lebanon may be mentioned to be valid issues in the future strategic decision-making of Etihad.

Hence, the plan by Etihad Airways to modernize its fleet and improve passenger service at an estimated $7 billion will mark a much bigger move for the airline to rejuvenate its fleet and revamp passenger services. Against the backdrop of shifting market dynamics, the airline now stands optimally positioned for short-term growth as well as long-term sustainability through proposed modernization and expansion. With a public listing ahead and further changes in its concept for travelers toward scheduled services being imminent, Etihad is keen on making sure it provides an outstanding experience for its passengers.

Looking at the aviation industry in terms of huge movements in making its future promises, Etihad Airways laid down a wide-ranging investment plan worth $7 billion over five years.

Looking at the aviation industry in terms of huge movements in making its future promises, Etihad Airways laid down a wide-ranging investment plan worth $7 billion over five years. The modernization program will cover its fleet and the improvement of passenger services, setting the stage for a totally transformed travel experience by 2026. ''Some people may doubt some of the changes we have made recently at the airline, but travelers can expect a completely transformed airline five years from now,'' according to Antonoaldo Neves, the group chief executive officer of Etihad as detailed in a report by CNBC. The investment will be in the retro-fitting of older Boeing 777 aircraft, something Neves said is necessary because "of the constraints we have in the global aviation space." Etihad currently boasts a fleet size of 92 planes, and the carrier hopes to increase this significantly to reach up to 170 aircraft by 2030. As this happens, the passengers will enjoy more ideal flight scheduling for their travels to Europe and Southeast Asia. Improvement of Passenger Experience Improvement in In-flight Services Modernization forms one critical aspect of the investment plan. Neves said: "We need to increase the number of business-class seats and improve in-flight Wi-Fi connectivity." He added that "the quality of the product is critical, just as customer service," thus resulting in heavy investment into broadening travel experience for passengers. The opening of Abu Dhabi's new terminal has already given Etihad a competitive edge as it is capable of facilitating 16 daily flights, according to Neves, who noted that passenger volumes have increased significantly since last year when Etihad received almost 18 million travelers in just the first part of this year alone. It shows a solid recovery in air travel demand and will surely catapult Etihad into success in the coming days. Preparing for Potential IPO Furthermore, as part of its strategic growth plans, Etihad is also getting ready for a possible IPO in 2025. The date has not been confirmed to date, but Neves admitted that having a public listing has many advantages. He explained though that at the moment, there aren't any cash requirements since capital deployment is supposed to happen, access to varied capital sources might become crucial when trying to reach that growth pace going forward. ADQ is the shareholder of the airline. Fully owned by the Abu Dhabi government, it has been heavily investing in such companies for public listing. However geopolitical tensions of the region could make them alter their timing strategy for any public listing in the future. The problems and rising tensions in Gaza and Lebanon may be mentioned to be valid issues in the future strategic decision-making of Etihad. Hence, the plan by Etihad Airways to modernize its fleet and improve passenger service at an estimated $7 billion will mark a much bigger move for the airline to rejuvenate its fleet and revamp passenger services. Against the backdrop of shifting market dynamics, the airline now stands optimally positioned for short-term growth as well as long-term sustainability through proposed modernization and expansion. With a public listing ahead and further changes in its concept for travelers toward scheduled services being imminent, Etihad is keen on making sure it provides an outstanding experience for its passengers.

Etihad Airways unveils ambitious $7 billion investment plan for transformation of fleet and services

The global airline industry is poised for a remarkable resurgence as passenger traffic surges and local economies revive.&nbsp;

Willie Walsh, Director General of the International Air Transport Association (IATA), said that the industry is projected to achieve a net profit of $9.8 billion this year.&nbsp;

The projected revenue for the airline industry stands at a substantial $803 billion this year, with an average profit of $2.25 per passenger.

Speaking at the Annual General Meeting of the IATA, Walsh emphasised that the aviation industry is witnessing a remarkable recovery after the turbulence caused by the pandemic.&nbsp;

Passenger traffic has regained momentum and is currently surpassing 90 percent of pre-pandemic levels, indicating a strong rebound in air travel. This resurgence is attributed to people's eagerness to reconnect, explore, and engage in business activities, signaling a renewed confidence in the safety and convenience of air transportation.

The positive signs of recovery extend beyond passenger numbers, with airports experiencing increased activity and rising hotel occupancy rates. These indicators reflect the revival of local economies after the Covid-19 pandemic.&nbsp;

Navigating Through 'Stormy Weather'

While celebrating the aviation&nbsp;industry's recovery, Walsh also highlighted existing challenges.&nbsp;

Walsh emphasised the need for global standards in Sustainable Aviation Fuel (SAF) and urged prompt action to address supply chain concerns. As per reports, Walsh raised concerns regarding cost pressures and the impact of supply chain issues on airlines' operational capabilities.&nbsp;

Original Equipment Manufacturers (OEMs) have been identified as key stakeholders in resolving supply chain blockages that lead to increased costs and hinder the efficient deployment of aircraft.&nbsp;

He strongly pitched for establishing global standards in the Sustainable Aviation Fuel (SAF) book and claim system. Such a system would reduce carbon emissions, a pressing concern for the industry's sustainable growth.&nbsp;

Walsh also voiced his disappointment with politicians who have failed to deliver on their promise to halt financing for fossil fuels, as outlined in the COP26 agreement.&nbsp;

According to Walsh, decarbonizing aviation requires concerted efforts from governments and industry stakeholders to ensure the industry's sustainable future while simultaneously addressing climate change concerns.

The global airline industry is poised for a remarkable resurgence as passenger traffic surges and local economies revive. Willie Walsh, Director General of the International Air Transport Association (IATA), said that the industry is projected to achieve a net profit of $9.

The global airline industry is poised for a remarkable resurgence as passenger traffic surges and local economies revive. Willie Walsh, Director General of the International Air Transport Association (IATA), said that the industry is projected to achieve a net profit of $9.8 billion this year. The projected revenue for the airline industry stands at a substantial $803 billion this year, with an average profit of $2.25 per passenger. Speaking at the Annual General Meeting of the IATA, Walsh emphasised that the aviation industry is witnessing a remarkable recovery after the turbulence caused by the pandemic. Passenger traffic has regained momentum and is currently surpassing 90 percent of pre-pandemic levels, indicating a strong rebound in air travel. This resurgence is attributed to people's eagerness to reconnect, explore, and engage in business activities, signaling a renewed confidence in the safety and convenience of air transportation. The positive signs of recovery extend beyond passenger numbers, with airports experiencing increased activity and rising hotel occupancy rates. These indicators reflect the revival of local economies after the Covid-19 pandemic. Navigating Through 'Stormy Weather' While celebrating the aviation industry's recovery, Walsh also highlighted existing challenges. Walsh emphasised the need for global standards in Sustainable Aviation Fuel (SAF) and urged prompt action to address supply chain concerns. As per reports, Walsh raised concerns regarding cost pressures and the impact of supply chain issues on airlines' operational capabilities. Original Equipment Manufacturers (OEMs) have been identified as key stakeholders in resolving supply chain blockages that lead to increased costs and hinder the efficient deployment of aircraft. He strongly pitched for establishing global standards in the Sustainable Aviation Fuel (SAF) book and claim system. Such a system would reduce carbon emissions, a pressing concern for the industry's sustainable growth. Walsh also voiced his disappointment with politicians who have failed to deliver on their promise to halt financing for fossil fuels, as outlined in the COP26 agreement. According to Walsh, decarbonizing aviation requires concerted efforts from governments and industry stakeholders to ensure the industry's sustainable future while simultaneously addressing climate change concerns.

Aviation industry bounces back: Rising revenues and optimism take flight

Workers from the beleaguered US airline industry were making a last-ditch public appeal this week to coax more money from Capitol Hill power brokers to save their jobs.

The first day of October concludes the period when US carriers that received billions in aid from Congress promised to refrain from laying off workers.&nbsp;

American and United airlines were the first to announce cuts, saying they would begin furloughing 19,000 and 13,000 workers respectively as US officials have failed to reach a deal on fresh aid to the pandemic-hit air travel sector.

A package of loans totaling up to $25 billion to seven US carriers announced Tuesday night by the Treasury Department provides funds for airlines to ride out a prolonged downturn amid the coronavirus, but won't affect plans for furloughs, airline sources said.

Treasury Secretary Steven Mnuchin said Wednesday on CNBC he was hopeful airlines would postpone layoffs if congressional leaders can reach a framework for a deal, saying it was "critical" for Congress to act.

While the stalemate in Washington over stimulus has pinched unemployed workers and put public sector employees on notice, vulnerable airline workers have in some ways been the poster children for the impasse.

"Tomorrow, tens of thousands of essential aviation workers will wake up without a job or healthcare and tens of thousands more will be without a paycheck," Sara Nelson, president of the AFA-CWA flight attendant union, said in a statement.&nbsp;

House Speaker Nancy Pelosi and Mnuchin held talks again Tuesday and agreed to keep negotiating. But a deal is still far from assured.

Voluntary exit

Since the coronavirus intensified in March, US airlines have been grounding planes and delaying jet deliveries to limit their cash-burn as air travel remains at about only one-third of its level a year ago.

Carriers have struck agreements with unions to spread out work among employees. Tens of thousands of employees have also accepted unpaid leave or early retirement packages to avert the need for involuntary terminations.&nbsp;

Still, the decisions will not be enough to avert all job cuts. Airlines have said they do not expect a full recovery until a vaccine is widely available, which company executives have said may not be until late 2021.

Unions have said 100,000 people or more could be laid off without additional federal aid, but analysts expect a smaller number than that as airlines and unions seek ways to avoid layoffs.

In one such deal, United Airlines on Monday reached an agreement with its pilots union to avert furloughs of 2,850 employees.

Flight attendants and staff in other airport operations are among the 13,000 being laid off.

Southwest Airlines has said it does not plan involuntary job cuts.

The Delta Air Lines pilot union last week said it reached an agreement with the company to avoid furloughs until at least November 1 to give congressional talks more time.

Delta has said earlier voluntary staff departures and union agreements averted the need for involuntary job cuts for flight attendants and other frontline employees.

Peter McNally, an analyst at research firm Third Bridge, predicted there would be significant downsizing throughout the industry.

"The businesses cannot support the cost structure as it is," McNally said in an interview. "They worked around it through furloughs and early retirement and voluntary departures, but there are still going to be a lot of layoffs.

"The recovery has just not come as quickly as people had hoped," he said.

Public sector faces crunch

Airline workers are hardly the only losers from Washington's inability to enact fiscal stimulus.

Laid-off workers had been receiving $600 in weekly supplemental unemployment benefits under a provision of the CARES Act that expired at the end of July.

President Donald Trump authorized an additional $300 in weekly spending by tapping federal emergency funds, but those funds are also running out and expected to be gone in October, said Nancy Vanden Houten of Oxford Economics.

"Households got quite a boost from these benefits, so we're going to see a pretty big drop-off," she said in an interview.

Another vulnerable group is public sector workers, who face an uncertain future as governments struggle with lower tax revenues and, in many cases, balanced budget rules.

The most recent version of House Democrats' "Heroes Act" includes more than $400 billion in funding for state and local governments, a provision Republicans oppose.

The Economic Policy Institute has estimated that failure to provide support to local government could cost 5.3 million jobs through 2021.

Workers from the beleaguered US airline industry were making a last-ditch public appeal this week to coax more money from Capitol Hill power brokers to save their jobs.

Workers from the beleaguered US airline industry were making a last-ditch public appeal this week to coax more money from Capitol Hill power brokers to save their jobs. The first day of October concludes the period when US carriers that received billions in aid from Congress promised to refrain from laying off workers. American and United airlines were the first to announce cuts, saying they would begin furloughing 19,000 and 13,000 workers respectively as US officials have failed to reach a deal on fresh aid to the pandemic-hit air travel sector. A package of loans totaling up to $25 billion to seven US carriers announced Tuesday night by the Treasury Department provides funds for airlines to ride out a prolonged downturn amid the coronavirus, but won't affect plans for furloughs, airline sources said. Treasury Secretary Steven Mnuchin said Wednesday on CNBC he was hopeful airlines would postpone layoffs if congressional leaders can reach a framework for a deal, saying it was "critical" for Congress to act. While the stalemate in Washington over stimulus has pinched unemployed workers and put public sector employees on notice, vulnerable airline workers have in some ways been the poster children for the impasse. "Tomorrow, tens of thousands of essential aviation workers will wake up without a job or healthcare and tens of thousands more will be without a paycheck," Sara Nelson, president of the AFA-CWA flight attendant union, said in a statement. House Speaker Nancy Pelosi and Mnuchin held talks again Tuesday and agreed to keep negotiating. But a deal is still far from assured. Voluntary exit Since the coronavirus intensified in March, US airlines have been grounding planes and delaying jet deliveries to limit their cash-burn as air travel remains at about only one-third of its level a year ago. Carriers have struck agreements with unions to spread out work among employees. Tens of thousands of employees have also accepted unpaid leave or early retirement packages to avert the need for involuntary terminations. Still, the decisions will not be enough to avert all job cuts. Airlines have said they do not expect a full recovery until a vaccine is widely available, which company executives have said may not be until late 2021. Unions have said 100,000 people or more could be laid off without additional federal aid, but analysts expect a smaller number than that as airlines and unions seek ways to avoid layoffs. In one such deal, United Airlines on Monday reached an agreement with its pilots union to avert furloughs of 2,850 employees. Flight attendants and staff in other airport operations are among the 13,000 being laid off. Southwest Airlines has said it does not plan involuntary job cuts. The Delta Air Lines pilot union last week said it reached an agreement with the company to avoid furloughs until at least November 1 to give congressional talks more time. Delta has said earlier voluntary staff departures and union agreements averted the need for involuntary job cuts for flight attendants and other frontline employees. Peter McNally, an analyst at research firm Third Bridge, predicted there would be significant downsizing throughout the industry. "The businesses cannot support the cost structure as it is," McNally said in an interview. "They worked around it through furloughs and early retirement and voluntary departures, but there are still going to be a lot of layoffs. "The recovery has just not come as quickly as people had hoped," he said. Public sector faces crunch Airline workers are hardly the only losers from Washington's inability to enact fiscal stimulus. Laid-off workers had been receiving $600 in weekly supplemental unemployment benefits under a provision of the CARES Act that expired at the end of July. President Donald Trump authorized an additional $300 in weekly spending by tapping federal emergency funds, but those funds are also running out and expected to be gone in October, said Nancy Vanden Houten of Oxford Economics. "Households got quite a boost from these benefits, so we're going to see a pretty big drop-off," she said in an interview. Another vulnerable group is public sector workers, who face an uncertain future as governments struggle with lower tax revenues and, in many cases, balanced budget rules. The most recent version of House Democrats' "Heroes Act" includes more than $400 billion in funding for state and local governments, a provision Republicans oppose. The Economic Policy Institute has estimated that failure to provide support to local government could cost 5.3 million jobs through 2021.

Layoffs loom for beleaguered US airline industry

Once a great airline and now decrepit, Air India would get split into four separate companies and the government is offering at least 51% in each of them as part of their disinvestment plan.

As per media reports, the plan was proposed by Prime Minister Narendra Modi.

The four sections in which the airline would get divided are airline business, regional arm, ground handling and engineering operations, said reports.

Media reports quoted Aviation Minister Jayant Sinha as saying that the core airline business comprising Air India and Air India Express, the low coast overseas arm will be offered as one company.

The process is expected to get complete by the end of the year 2018.

Last week, India had cleared a proposal to allow foreign investors which&nbsp;allows foreign investors to own up to 49% in the airline.

Recently, Tata group showed interest in bidding for Air India along with Singapore airline.

Tata group chairman N Chandrasekaran had said last year that his group was ready to bid for the state-run airlines. 
&nbsp; 
Prime Minister Narendra Modi&#39;s administration had been exploring ways to privatise the loss-making national carrier, which was bailed out in 2012 with $5.8 billion of federal funding.

The airline is under the debt of more than Rs. 52,000 crore.

(With inputs from news agency) 
&nbsp;

The airline is under the debt of more than Rs. 52,000 crore

Once a great airline and now decrepit, Air India would get split into four separate companies and the government is offering at least 51% in each of them as part of their disinvestment plan. As per media reports, the plan was proposed by Prime Minister Narendra Modi. The four sections in which the airline would get divided are airline business, regional arm, ground handling and engineering operations, said reports. Media reports quoted Aviation Minister Jayant Sinha as saying that the core airline business comprising Air India and Air India Express, the low coast overseas arm will be offered as one company. The process is expected to get complete by the end of the year 2018. Last week, India had cleared a proposal to allow foreign investors which allows foreign investors to own up to 49% in the airline. Recently, Tata group showed interest in bidding for Air India along with Singapore airline. Tata group chairman N Chandrasekaran had said last year that his group was ready to bid for the state-run airlines. Prime Minister Narendra Modi's administration had been exploring ways to privatise the loss-making national carrier, which was bailed out in 2012 with $5.8 billion of federal funding. The airline is under the debt of more than Rs. 52,000 crore. (With inputs from news agency)

Air India to be split into 4 entities ahead of sale: Reports

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