Etihad Airways is sharpening its focus on tourists travelling to India and goods being transported from the country as the airline's seat capacity between Abu Dhabi and New Delhi reaches its regulatory limit. With traffic rights fully utilised, the Abu Dhabi-based carrier is pivoting towards higher-yield operations and long-term strategic investments to strengthen its Indian footprint, said its chief executive Antonoaldo Neves.
"India is a very important market for Etihad. It's 20-25% of our flows," Neves told ET. "About 50-60% of the tickets we sell are sold abroad. While Indian nationals travelling outbound are often highlighted, a big chunk of demand is inbound. We see a strong flow of tourists coming into India, and that's strategically important. Europe and the US in particular are doing very well, sending a large number of visitors to India." Arrivals from the United Arab Emirates (UAE) to India increased to 66,699 in 2024, up 12.14% year-on-year and 20.36% from 2019. Arrivals from the UAE accounted for 0.67% of the total arrivals to India last year, according to the tourism ministry data.
Etihad connects 11 Indian cities to more than 100 global destinations and has recently deployed its flagship narrow-body A321LR on the Abu Dhabi-Kolkata route.
"We're bringing more of these planes to India. The next few years, before more traffic rights are released, will be about lifting the product and investing in the experience," Neves said. As of September 2024, Etihad Cargo handled more than 46,000 tonnes annually from India through 588 monthly rotations. "We're really starting to invest in cargo. India is an important market. We currently operate six freighters and widebody belly space, but we can do a lot more with narrow bodies," Neves said.
The airline is working on an India strategy plan for cargo, which is likely to be firmed up by the end of 2025.
Looking ahead, Etihad is considering dedicated freighter operations from India by 2028. "We have 10 wide-body freighters coming by 2028. I don't see why India couldn't have a dedicated freighter in five years. The market for ecommerce, electronics and manufacturing exports is growing, and we're mulling plans for how to leverage both narrow-body and wide-body capacity," Neves said.
Despite saturation in seat entitlements, Etihad continues to eye high-value segments, including corporate travel and premium passengers.
"We want to be the best proposition for corporate and upper-class travel in India. Even with capacity constraints, we're focusing on product uplift, premium services and inbound flows," said Neves.
"With all India-UAE traffic rights fully utilised, further expansion hinges on regulatory approvals. Meanwhile, Etihad is focusing on maximising per-seat yield, deepening partnerships with carriers like Akasa and expanding cargo operations," he said. "India is going to be an important market for the next 10 years. Inbound traffic, premium passengers and cargo will be our focus."
"India is a very important market for Etihad. It's 20-25% of our flows," Neves told ET. "About 50-60% of the tickets we sell are sold abroad. While Indian nationals travelling outbound are often highlighted, a big chunk of demand is inbound. We see a strong flow of tourists coming into India, and that's strategically important. Europe and the US in particular are doing very well, sending a large number of visitors to India." Arrivals from the United Arab Emirates (UAE) to India increased to 66,699 in 2024, up 12.14% year-on-year and 20.36% from 2019. Arrivals from the UAE accounted for 0.67% of the total arrivals to India last year, according to the tourism ministry data.
Etihad connects 11 Indian cities to more than 100 global destinations and has recently deployed its flagship narrow-body A321LR on the Abu Dhabi-Kolkata route.
"We're bringing more of these planes to India. The next few years, before more traffic rights are released, will be about lifting the product and investing in the experience," Neves said. As of September 2024, Etihad Cargo handled more than 46,000 tonnes annually from India through 588 monthly rotations. "We're really starting to invest in cargo. India is an important market. We currently operate six freighters and widebody belly space, but we can do a lot more with narrow bodies," Neves said.
The airline is working on an India strategy plan for cargo, which is likely to be firmed up by the end of 2025.
Looking ahead, Etihad is considering dedicated freighter operations from India by 2028. "We have 10 wide-body freighters coming by 2028. I don't see why India couldn't have a dedicated freighter in five years. The market for ecommerce, electronics and manufacturing exports is growing, and we're mulling plans for how to leverage both narrow-body and wide-body capacity," Neves said.
Despite saturation in seat entitlements, Etihad continues to eye high-value segments, including corporate travel and premium passengers.
"We want to be the best proposition for corporate and upper-class travel in India. Even with capacity constraints, we're focusing on product uplift, premium services and inbound flows," said Neves.
"With all India-UAE traffic rights fully utilised, further expansion hinges on regulatory approvals. Meanwhile, Etihad is focusing on maximising per-seat yield, deepening partnerships with carriers like Akasa and expanding cargo operations," he said. "India is going to be an important market for the next 10 years. Inbound traffic, premium passengers and cargo will be our focus."
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