Partnership with Air Berlin: Why Etihad grief airline remains true – Tagesspiegel

In the Persian Gulf a larger message that message on Thursday was worth: “Etihad’s partnership with Air Berlin brings Abu Dhabi $ 630 million a,” the newspaper “The National” wrote on the Internet. The report quoted James Hogan, the chief of the Arab airline Etihad Airways from a message: Air Berlin bring direct revenue of over 150 million dollars (133 million euros) per year, says Hogan. In addition, you benefit from comprehensive cost synergies of over $ 100 million.

The readers of the English-language newspaper in Abu Dhabi also experienced the fact that Air Berlin also conducts a review of more than 630 million to economy of the Emirate , In hotel rooms, shops and Leisure park. Who would have thought? Converted 580 million euros (Course end of 2015) economic effect by a heavily indebted airline with a market value of just EUR 86 million.

Air Berlin on the market not worth more than a single brand-new medium-haul Airbus, of which the company nearly 150

has in the fleet. “that’s why we continue committed to the reconstruction of this society,” said the Etihad boss. He continues: “Even with an investment like in Air Berlin – in which it has taken longer than expected to achieve sustained profitability – we are seeing incredibly high returns that flow directly into our business and that are far beyond our expectations”. So you’ve been able to generate direct income of 500 million dollars for Etihad Airways.

The sheikhs are not stupid. They trust her years ago purchased from Australia and top managers to exercise it in the long term. He is Etihad against local rivals Emirates and Qatar to number one in the Persian Gulf – and eventually the world – build. And Hogan knows clearly how his seemingly small 29-percent stake in Air Berlin helps: With Air Berlin, whose fortunes he decisively influenced as member of the board, it burns – but the other investors and shareholders – money. Almost half a billion euros alone in 2015, as is apparent from the now published Annual Report.

Nevertheless reserves Hogan with this formal almost worthless airline a good sized walk in the economically powerful “DACH” (Germany, Austria, Switzerland). Another he south with nearly 50 percent stake in the Italian market leader Alitalia. With Air Berlin to cooperate closely

Air Berlin is important for Etihad -. Especially as long as the two partners may carry out joint flights under different flight numbers after codeshare principle. The has a court – much to the annoyance of Lufthansa and the Federal Ministry of Transport – largely approved earlier this year. It can go so with the exchange of passengers. Another reason why the Arabs have now once again granted the Berliners around CEO Stefan Pichler a loan of 75 million euros. What are the conditions like that, however, does not reveal when presenting the deep red figures for 2015 on Thursday

Pichler. Reason: When fuel price gambled

Despite the foresight and joy it is likely the major shareholder in Abu Dhabi not care what he had to read back from Berlin: a loss 447 million euros flew Air Berlin for the full year, 2015. Negative record. These continue to weigh the high liabilities, equity is strongly negative. Pichler’s defense strategy: He suggests that bad luck was there. Respectively blame his predecessor, which he had succeeded only in February 2015.

the end of 2014 it had secured itself a large part of the required 2015 aviation fuel at fixed conditions, explained Pichler and his chief financial officer. That should prevent unexpected price jumps. In fact, crude oil prices were – and thus also the kerosene – plummeted. Companies like Lufthansa or Easyjet, who chose other hedging strategies could benefit from lower costs and fly profits. but not Air Berlin. At the turn you have changed the strategy.

“In 2016, we will benefit from the relatively low fuel price development in the amount of 250 million euros,” Pichler announced. Other reasons for the record decline in 2015 he called an unfavorable exchange rate between the euro and the dollar and costs for the realignment of the company.

Air Berlin is a classic network airline will offer service for business travelers. Even more legroom, Pichler said. However, it does not seem that he or his partners want to invest a lot. “2016, we need to reduce costs. By this is no way around “.