Etihad Airways expects 20% revenue hike from Phl flights

MANILA, Philippines - Etihad Airways, the national airline of the United Arab Emirates, said it expects a 20 percent growth in net revenues this year to $29 million, from $24 million in 2010, from bringing in passengers to the Philippines.

This, as visiting Etihad chief executive officer James Hogan assured both President Aquino and Vice President Jejomar Binay in separate courtesy calls of the airline’s commitment to helping promote the Philippines as a tourism destination especially among Europeans.

Hogan said the President gave a briefing on the economy and emphasized his focus on increased infrastructure investments, while the Etihad top executive expressed his group’s interest to develop tourism programs more aggressively.

Etihad also discussed with Binay opportunities to assist in the repatriation of Filipinos affected by turmoil in some countries.

“We said we are keen to work to promote the Philippines as a tourism destination. Etihad is also looking for other ways to do business here. After all, Manila serves as a gateway to over 300 islands. We are bringing more tourists out of Europe and we hope to bring them here,” he added.

Right now, Etihad’s Philippine market is dominated by the overseas workers segment.

Etihad Philippines country manager Roberto Hukom said that the $24 million generated from inbound passengers to the Philippines represents six to eight percent of total passenger revenues for the company.

Hukom did not disclose how much revenues they generate from transporting cargo to the Philippines but said they are substantial.

Meanwhile, Hogan said the Philippines is one of the world’s best-kept secrets. “We are looking at how we can help the world know about this great destination. People are looking for new destinations. Our research out of Europe showed that the Europeans want to try other destinations, especially eco-friendly markets. By promoting the Philippines, we are also helping create jobs here,” he pointed out.

He emphasized that the Philippines is an important part of the Etihad network, which operates 12 weekly flights between Abu Dhabi and Manila with seamless connections to destinations in the Middle East, Africa, UK, Ireland, Europe and North America. Etihad has a code share agreement with Philippine Airlines.

This will increase to 14 flights a week by the second half of this year.

Hogan said while 14 weekly flights (two flights a day) gives Etihad the minimum balance that it needs to move forward, by 2013-2015 with the delivery of more aircraft, they will seek greater access to the Philippines in a more structured way.

“In 2008, we signed a 100-aircraft deal and we are taking delivery backend of 2014 onwards. By then, we will discuss possible increased access here,” he said.

Hogan also said that there are no plans for Etihad to move to Clark even with the implementation of the Philippines’ pocket open skies policy. “But we would like to see Manila moving to three flights a day (21 flights a week from 14) in the future,” he said.

Also, Hogan said Etihad remains cautiously positive about the future. “Subject to the state of the overall global economy, we believe we are well positioned to continue our journey to profitability. Fuel prices will be a major challenge for the airline industry this year but Etihad has hedged more than 75 percent of its fuel requirements for 2011,” he noted.

Etihad employs a total of 767 Filipino nationals, 739 of which are in the Abu Dhabi head office and the rest in outstation offices. Filipinos make up the second largest national group working at Etihad.

Hukom also said Etihad has no issue and is, in fact, looking forward to moving to NAIA Terminal 3 from Terminal 1 collectively with other foreign airlines, but a number of issues prevent them from doing so.

“Terminal 1 serves its purpose and I understand there will be renovations. With the hitches and hiccups facing Terminal 3, we will only move when these are ironed out,” he pointed out.