Air Seychelles is in talks to end its “equity” alliance with Etihad based on Bloomberg’s reporting.
The airline is the last one left of Etihad’s grand ambition of becoming an alliance based on partial ownership of airlines – most of which have now ceased operations (airberlin, Jet Airways & Etihad Regional) or are in bankruptcy (Alitalia) or through one (Virgin Australia).
You can access Air Seychelles here.
Here’s an excerpt from Bloomberg:
The Seychelles government is set to become the sole owner of the airline, Air Seychelles Chief Executive Officer Remco Althuis said Wednesday at an online event hosted by industry group CAPA. The talks “are being formalized as we speak,” he said. Etihad Airways declined to comment.
A divestment of Air Seychelles would wrap up the so-called equity alliance strategy, after Etihad reduced its stake in Air Serbia to 18% from 49% in December. The Gulf carrier has been unwinding a global expansion plan through which it bought a 40% stake in Air Seychelles in 2012. The network of airline investments led to $7 billion in losses over the five years ending in 2020.
Some of Etihad’s other airline investments folded or went through insolvency bouts, including Jet Airways, Virgin Australia, Air Berlin and Alitalia SpA.
The Former Equity Alliance
Etihad’s Equity Alliance was a costly lesson for the airline, as was its ambition of becoming a second Emirates (super-connector).
It began to cut down routes even before the pandemic when losses were mounting and sheiks unwilling to pour more money into the airline.
Air Seychelles has already removed all the wording relating to Etihad on its website.
Not sure what the plan is regarding its frequent flier program that was Etihad Guest, with a mention of Air Seychelles on the membership card. There is no word of any frequent flier program on its website at the moment.