Etihad exceeds targets in first month of operation

Very strong in German market JOY ORLEK A 60-65% load factor achieved in its first month of operation on the SA route has endorsed the confidence of United Arab Emirates national airline, Etihad Crystal Cargo, in the long-term prospects on the route. “We were expecting to enter a price-driven market with rates going southwards,” said manager cargo sales worldwide Vipul Bhalla, “but the response has been nothing short of phenomenal.” “Coming into a new market, the first month usually is fairly slow,” said Bryn Woolley, managing director of general sales and service agent Airline Cargo Resources, “so we set ourselves a target of 50%. However, as the figures show, we have not only fulfilled that target but exceeded it with load factors rising to 65%,” he told FTW. Etihad launched its twice-weekly direct service between Johannesburg and Abu Dhabi in December 2005. Despite challenges presented by the strength of the rand and the impact of fierce competition on rates, the airline has already hinted at increasing frequencies. “Rate competition is a short-sighted strategy,” says Bhalla. “Long-term relationships are built on service excellence – and that will continue to be our focus.” Etihad’s expansion will also focus on cross-border opportunities. “We have already started marketing other destinations in Africa and see our partnership with ACR, which brings a depth of regional expertise, as a strong strategic advantage,” he said. For SA exports, Bhalla believes Etihad has much to offer in terms of streamlined transhipment options. “We’re very strong in the German market. Among other sectors we will be targeting the automotive industry. “Abu Dhabi is a key transhipment point for the Gulf, and thus a growing market for SA exports.” The airline introduced its all-cargo services in February 2005. Last year it handled 400% more cargo than in 2004, almost hitting the $100m mark in turnover. Etihad currently serves 20 destinations, aiming for 70 by 2010. Cargo is a strong focus, contributing a large part of the airline’s revenue.