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
Conclusion
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.
Nice article….BTW the rulers of Abu Dhabi are “Emirs” not sheikhs.
@Richard
Sorry but you are wrong, they are most definitely Sheiks (or Shook in arabic).
The President of UAE and Ruler of Abu Dhabi is …….. H.H. Sheikh Khalifa Bin Zayed Al Nahyan
This was all the grand strategic plan of the former CEO of Etihad Airways, an Aussie.
Must have not done his ‘due diligence’ thing. as everyone (in the whole world) knows that Alitalia is a lost cause (and I did write an open letter to him asking ‘if he knew what he was doing’).
Air Berlin was born out of LTU and had problems for many, many years but as much of the management of EY in the early days were ex LTU, there was I guess some quid pro quo arrangement.
Jet Airways is yet another Indian Airline that grew too fast and the industry there is rather controlled, and many airlines have failed e.g. Kingfisher, Indian Airlines. So there must be a reason.
Air Seychelles, I know personally had nothing when EY took over, they say with 40% but they controlled literally even how many pencils were bought. But HM had been flying 2 ancient leased B763s and were in a fairly distressed position. However they did fly an array of routes from JNB to CDG, even LGW and FCO, also SIN (for what reason)?, but there are only so many tourists wishing to go to Seychelles and the flights were not profitable. However I also am personally aware that this was a political move for other particular reasons and not for any ‘value’ that HM may have brought to EY.
EY Regional, which was previously called Darwin Airways from Switzerland were a small feeder airline with an equally small fleet flying Saab 2000s and ATRs – one was never going to make much money in this sector with that business model and I do remember in the end they were flying concession routes for ALITALIA like FCO-Pisa with their ATRs.
Air Serbia – this was a political move and not a strategic one, as there will never be great traffic in or out of Belgrade
So their ‘grand partner’ strategy was rather doomed in my honest opinion by their choice of airlines ……………