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Abu Dhabi’s long-troubled Etihad sells 38 Airplanes for about $ 1 billion

Last updated on February 5, 2020

Etihad stated it’d sell 38 aircraft 22 Airbus A330s and 16 Boeing 777-300ERs — at the bargain with investment company KKR and leasing company Altavair AirFinance. KKR said the Boeing 777-300ERs will probably”be rented back to Etihad upon buy-in ancient 2020,” while the Airbus A330s will visit global customers.

“The bargain provides us flexibility whilst ensuring that we stand by our sustainability goals and keep a fleet of the very fuel-efficient, technologically advanced aircraft,” the airline said in a statement.

Etihad’s site lists itself as with a fleet of 102 aircraft. It no more lists the A330s one of its fleet, having stated it would start phasing out those aircraft.

The 16 Boeing 777s it’ll sell and rent back represent 15 percent of its present fleet.

It’s yet to publish results for 2019.

At the time since 2016, it’s turned on a cost-cutting initiative and recently announced that it would reveal proposed aircraft buys from Airbus and Boeing.

It flew 17.8 million passengers this past year, down from 18.6 million annually before.

Formerly, Etihad reported declines of USD 1.52 billion to 2017 and USD 1.95 billion in 2016.

It blamed”challenging market conditions and consequences of an increase in gas costs” in a part for the reduction in 2018.

Abu Dhabi’s rulers started Etihad in 2003, competing with the recognized Dubai government-owned carrier Emirates that flies from Dubai International Airport just 115 km (70 miles) away. In 2018, Etihad started devoting pilots to Emirates beneath a brand new app.

The two Emirates and Etihad have observed the company hurt by President Donald Trump’s travel prohibits affecting Muslim-majority states.

That is even with Abu Dhabi International Airport with a US Customs and Border Protection pre-clearance center, allowing passengers coming in America to instantly depart. It is the only such center in the Mideast.

Both airlines have been government-owned carriers at the United Arab Emirates, a federation of seven sheikhdoms around the Arabian Peninsula. Both compete at the long-haul carrier marketplace, with their country’s place between East and West for their benefit.

Both airlines continued to fly into China amid the continuing outbreak of this new coronavirus, even as both Arab and Western airlines ceased. On Monday, UAE civil aviation police halted all flights into China, except for people visiting Beijing.