Saturday, June 7, 2025
Etihad Airways has confirmed that it will not be making any new investments in India’s aviation market, despite the country’s strategic importance to the Gulf-based airline. CEO Antonoaldo Neves clarified this decision during an interview, emphasizing that while India remains a vital market for Etihad, particularly due to its rapid growth in the aviation sector, the airline does not foresee any immediate financial commitments or partnerships in the region. This statement marks a shift from the airline’s previous aggressive investment strategy, notably its stake in Jet Airways, as it reassesses its approach to the competitive Indian aviation landscape.
Etihad Airways, a prominent airline owned by Abu Dhabi’s sovereign wealth fund ADQ, has recently reaffirmed that it does not plan to make any new investments in India’s aviation sector. This clarification came directly from CEO Antonoaldo Neves during a recent interview with Economic Times (ET). Despite this decision, Neves emphasized that India remains a key market for the Gulf-based airline, underlining its strategic importance in Etihad’s global operations.
Historically, under the leadership of former CEO James Hogan, Etihad Airways adopted an aggressive growth strategy, acquiring significant stakes in several global airlines. One of the most notable investments was in India’s Jet Airways. In 2013, Etihad purchased a 24% equity stake in Jet Airways for $379 million. Along with this, Etihad also acquired a 50% share in Jet Airways’ loyalty program, valued at an additional $150 million. This partnership symbolized Etihad’s broader ambition to secure a footprint in the competitive Indian aviation sector, which is one of the world’s fastest-growing travel markets.
Around the same period, India’s government, led by the United Progressive Alliance (UPA), made a bold move to increase aviation connectivity with the UAE by expanding the flying rights between India and Abu Dhabi. This expansion allowed Etihad Airways to offer more flights, bolstering its capacity and access to the booming Indian market. However, recent developments have shown a shift in the Indian government’s stance. The current National Democratic Alliance (NDA) government has introduced more stringent regulations and a more cautious approach when it comes to increasing flying rights for Middle Eastern carriers, including Etihad. This has posed challenges for Etihad’s plans to expand its presence further in India.
Despite these regulatory hurdles, Etihad has found a new avenue for collaboration. The airline recently entered into a limited codeshare partnership with Akasa Air, a relatively new Indian carrier. This agreement allows Etihad to sell tickets for select Akasa-operated flights between Bengaluru, Ahmedabad, and Abu Dhabi. The arrangement comes at a time when the capacity for bilateral flights between India and the UAE has been fully utilized, due to the rapidly growing international travel demand from India.
India’s outbound travel market has seen significant growth, particularly with destinations like Abu Dhabi becoming increasingly popular among Indian travelers. According to the Travel Trends 2025 report from the Mastercard Economics Institute, India registered the highest number of outbound travelers in 2024, further underlining the immense potential for aviation growth between the two nations. This surge in travel demand highlights the pressing need for more robust connectivity between India and the UAE.
In response to this increased demand, Indian carriers have ramped up their services to Abu Dhabi. Over recent years, they have expanded their operations significantly, tripling their capacity to the UAE capital. This expansion has had a positive impact on the overall connectivity between India and the Middle East. Etihad’s CEO Neves noted that while the increased capacity from Indian airlines to Abu Dhabi is beneficial for passengers, it also provides Etihad with an opportunity to expand its presence by offering more diverse flight options.
At present, Etihad Airways serves 11 major cities in India. However, Neves has expressed intentions to further expand the airline’s operations in India, with plans to increase its destinations to between 17 and 20 cities. The airline is particularly keen on launching flights to underserved cities within India, provided the necessary traffic rights are granted. Neves also mentioned that Etihad is in ongoing discussions with the Indian government regarding the possibility of increasing its seat allocation on flights between the two countries. This comes as Etihad sees a continued surge in demand for outbound travel from India, which has become an increasingly critical market for the airline.
Currently, Etihad operates approximately 170 weekly flights between India and its hub cities, and the airline’s management is hopeful that with further government negotiations, they can secure more flying rights to meet the rising demand. Neves stressed that India’s rapid economic growth, along with its burgeoning middle class, is making it an even more vital strategic market for Etihad, and the airline is committed to continuing its engagement with the country’s aviation authorities to foster more connectivity.
Etihad Airways has confirmed it will not make new investments in India’s aviation sector, despite the country’s strategic importance. CEO Antonoaldo Neves highlighted that while India remains a key market, the airline is not planning any immediate financial commitments or partnerships in the region.
As the aviation landscape in India evolves, Etihad Airways is keen to leverage new partnerships and expand its reach, positioning itself as a key player in the region’s dynamic travel market. While direct investments in India’s airlines remain off the table, Etihad’s strategic collaborations, like the partnership with Akasa Air, provide a strong foundation for future growth and expanded connectivity between India and the UAE.
