Inside Etihad’s Pearl Business Class cabin. World Travel Awards says the ladies are the best in the business, from coach to first class. In the background, an on-board ‘nanny’ in an orange apron waits for children.
Fiji Airways last week signed interline agreements with the modern national airline of the United Arab Emirates, Etihad. Further links are being explored. Etihad is one of the world’s fastest growing and best rated airlines,holding the top spot in some best airline lists.The international business magazine Forbes looks at why the airlines of the United Arab Emirates, like Etihad and Emirates, and nearby Qatar are world leaders
Kenneth rapoza
forbes.com
On a business class flight from Rome to Boston, there is no leg rest. The seat does not recline all the way. There is no separation between the passengers. The dinner is not bad, sort of like an Applebees.
In the same class cabin on a trip from New York to Abu Dhabi, tiny lights illuminate the ceiling of an Etihad flight like stars. There’s a leg rest. The seat reclines flat. The dinner is Spago’s. My passport fell out of my front chest pocket while sleeping, wrapped in a thick blanket. A flight attendant proceeded to rip apart the entire seat until he found it, which he did, in about a minute.
Check out any list of the world’s leading airlines and you’ll be hard pressed to find a U.S. carrier. Within the top 10 ranked by Skytrax, only one country has two airlines on the list: the United Arab Emirates and their flagship carrier Emirates Airlines flying out of Dubai and the smaller Etihad Airways based in Abu Dhabi. UAE’s smaller neighbor, Qatar, is home to the No. 2 ranked airline Qatar Airways. It trails Emirates at No. 1. Etihad is ranked No. 7.
The closest thing to an American carrier on the list is Air Canada out of Toronto.
By just about every estimate, these three Persian Gulf carriers are the best in the business.
Recognition
Last year, the World Travel Awards, considered the “Oscars” of the travel industry, chose Etihad Airways as the world’s best airline. Etihad also was picked by travel agents and industry professionals for world’s best cabin crew and best first class.
Accolades go beyond the air. It also matters on the ground — like in the airports itself. Emirates first class lounge at Dubai International was ranked the world’s best.
US airline invention
“The U.S. invented the airline industry and I think we should be the best in the world, but obviously we are not,” said Thomas Horton, chairman of American Airlines. Horton, the former CEO of American, is now non-executive chairman of American Airlines Group.
The company is the result of a merger between American Airlines and former rival U.S. Airways. Speaking at the Buttonwood Gathering last fall in New York, Horton said, “the mergers will help us compete with the likes of Emirates, I think. This is a hyper competitive industry. We’re competing in a world marketplace and we have to think of ourselves that way.”
Boeing BA +1.49% loves these guys. They see the Middle East airline industry growing beyond the global average.
At the Dubai Air Show in November, Emirates Airline placed a $76 billion order for 150 777 aircraft, helping make the model the largest product launch in commercial jetliner history.
Not to be outdone by Emirates, Qatar Airways ordered 50 777′s worth $19 billion and Etihad Airways ordered 25.
Boeing loves them . Passengers do to. But when it comes to passenger satisfaction, the U.S. airlines are lagging again.
Growing vs. Shrinking
Louisiana has a GDP of around $207 billion while tiny Qatar has a GDP of around $175 billion. And even though its capital city, Doha, has a population just shy of 800,000, according to United Nations data, Doha International Airport’s passenger traffic is around half that of JFK International, a city of 8.3 million.
Dubai International in the U.A.E. is larger, and a top 10 airport in terms of passenger traffic, making it roughly the size of Hong Kong International, based in a city three times larger than Dubai.
Of course, population size is irrelevant when it comes to airports. Denver’s airport is bigger than JFK as well. But while the United Arab Emirates and Qatar are small places on the map, they have have managed to become global leaders in aviation.
Their airlines are growing while U.S. carriers are largely dependent on cost cutting, fees and consolidation for profits.
Etihad’s net profit last year rose 48% to $62 million.
They were the first international company to take advantage of a new Indian government policy allowing for foreign ownership of airlines. It bought a 20% stake in Jet Airways. Emirates Airlines profit rose 4% to $600 million in the first half of 2013, according to a statement released by the company.
Partnership
Last year, the airline partnered with Qantas of Australia, giving the Dubai carrier greater access Down Under, as well as access to Qantas flights to Europe.
State-managed investment funds like the Qatar Investment Authority and the Abu Dhabi Investment Authority are putting money to work in both home-gown and in U.K. airports, like Qatar’s investment in Heathrow in 2012 and Abu Dhabi’s investment in Gatwick.
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