Etihad moves into Brisbane

The Australian

In a move that will set alarm bells ringing at Qantas, Abu Dhabi-based Etihad Airways will expand its Australian services after bringing forward plans to fly to Brisbane.
A stronger than expected response to its new Australian operations prompted the United Arab Emirates carrier to accelerate its plans to expand and begin services to Brisbane from September.

The governments of Australia and the UAE needed to change the air services agreement between them in order to bring forward rights originally to begin next year.

Etihad will fly to Brisbane three times a week via Singapore.

The decision by Etihad, which had previously said it would consolidate its Sydney operations before expanding to other destinations, means more competition for Qantas.

Etihad’s Australian manager, Cramer Ball, said the airline’s Abu Dhabi-Singapore service meant it had additional capacity it could use on the Brisbane route.

That, combined with the good response to its Sydney flights and strong representations from Queensland government and airport authorities, prompted it to bring forward its plans.

“We are still having dialogue with the various states, the various bodies, so we have a decision to make probably later this year as to where we utilise the additional capacity that comes on board,” Mr Ball said.

Australia, particularly the Gold Coast, is an increasingly popular tourism destination for Emiratis, with inbound figures increasing seven-fold in the past decade. Trade between Australia and the UAE is also increasing, standing at about $US3 billion ($3.5 billion).

The Emirates are Australia’s biggest Middle-Eastern trade partner, with more than 300 companies and an estimated 15,000 expatriates operating there.

Mr Ball said traffic generated by these factors and travel on the airline through to Europe and the Middle East had meant passenger and freight loads on the airline’s Sydney flights were far exceeding expectations.

The Sydney flights in June had been full in all classes.

“Without putting a number on it, chief executive James Hogan keeps on saying it’s probably been the most successful route launch out of any destination we’ve started up,” Mr Ball said.

“We’ve been full in June – you can’t get a seat in any class – and July, when we go daily.

“You would expect a drop in load factors but the load factors have remained high.”

He expected Queensland to generate good inbound demand as well as strong cargo and outbound passenger loads.

New flights to Dublin and Milan, as well as more flights to Paris, would also make through flights to and from Europe more attractive.

Transport Minister Mark Vaile said the increased air services between Australia and the Middle East would benefit consumers, the tourism industry and many other sectors of the Australian economy.

Mr Vaile announced a framework that would allow UAE carriers, which include Dubai-based Emirates, to double their services to Australia by 2011.

Brisbane Airport general manager commercial services Gert-Jan de Graaff said Etihad’s arrival would give the Gold Coast another platform to showcase itself as a prime destination and provide an alternative gateway to Europe.