ETIHAD AIRWAYS UPDATES

UNCLAS ABU DHABI 000238

SIPDIS

SENSITIVE
SIPDIS

DEPARTMENT FOR NEA/ARP, EEB/TRA/ATP
E.O. 12958: N/A
TAGS: EAIR PREL ECON AE
SUBJECT: ETIHAD AIRWAYS UPDATES


1. (U) This message contains business proprietary information. Not
for internet distribution.


2. (SBU) Summary. On February 12, Econoff and FCSoff met with
Etihad Airways CEO James Hogan, Manager of International Affairs
Vijay Poonoosamy, and Vice President of Operations Richard Hill.
Hogan discussed Etihad's recent personnel changes and noted that he
wants the Federal Aviation Administration (FAA) to be aware of the
changes. He also said that he wants to re-align the fleet and
discussed the possibility of adding more Boeings. Hogan noted that he
is disappointed with Etihad's performance on its New York flight and
is changing its scheduling in April for better connection times.
Hogan also said that Etihad is meeting this week with American,
United, and Jet Blue to discuss code-sharing opportunities. End
summary.


3. (SBU) During the February 12 meeting, CEO Hogan told Emboffs that
Etihad had made a number of changes in its personnel and that he
wanted to be sure that the Federal Aviation Authority (FAA) knew
about these changes. Hogan said, "I do not take safety or security
lightly. There will be no 'issues' in Etihad under my watch." He
also said that former Accountable Officer and Vice President of
Operations, Helmut Weixler, was no longer with Etihad. In addition
to being CEO, Hogan is also NOW Etihad's Accountable Officer and
Richard Hill is Etihad's new Vice President for Operations. Hogan
also told Emboffs that Etihad's former Security Manager, Gary Cooper,
is no longer with the company. Etihad is ready to hire a new
Security Manager, who was formerly head of security for South African
Airlines, but is waiting for final approval from the General Civil
Aviation Authority (GCAA). Hill said he had spoken to the GCAA and
the new head of security should be approved at any time.


4. (SBU) Although Etihad is currently losing money, Hogan stated that
Etihad will break even by 2010. Hogan wants to re-align the fleet and
discussed the possibility of adding more Boeings, commenting, "I wish
I had more 777's."


5. (SBU) Hogan is disappointed over Etihad's performance in the U.S.
market and discussed ways to improve the carrier's market share in
the United States. The current average passenger load on Etihad's
daily flight to New York is only 22 percent. Hogan feels the numbers
are low because of the poor connection times. In April, Etihad is
changing its New York route scheduling in order to have better
connection times. Hogan also said that Etihad is meeting this week
with American, United and Jet Blue to discuss code-sharing, which
will increase passenger load on the NY flight. Hogan said he would
like to add a flight to Los Angeles, but would not do so until the NY
flight carries a 70 percent passenger load.

SISON