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Etihad Airways is a flag carrier and the second-largest airline of the UAE (after Emirates). Its head office is in Khalifa City, Abu Dhabi, near Abu Dhabi International Airport. Etihad commenced operations in November 2003.
The airline operates more than 1,000 flights per week to over 120 passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and the Americas, with a fleet of 122 Airbus and Boeing aircraft as of July 2016. In 2015, Etihad carried 14.8 million passengers, a 22.3% increase from the previous year, delivering revenues of US$9.02 billion and net profits of US$103 million. Etihad Airways is the third largest airline in the Middle East and it is the second largest airline in the UAE, after the Dubai-based airline Emirates. Its main base is Abu Dhabi International Airport.
In addition to its core activity of passenger transportation, Etihad also operates Etihad Holidays and Etihad Cargo. Etihad established its own airline alliance, Etihad Airways Partners, in 2015, which includes Alitalia, Jet Airways, Air Berlin, Niki, Air Serbia, Air Seychelles and Etihad Regional. Almost every participant airline has a considerable stake of the airline owned by Etihad. Booking for these airlines is consolidated under one network. With the exception of Niki, Etihad Airways holds minority equity investments in the participating airlines including Virgin Australia which is not officially listed as the Etihad Airways Partners.
As of 12 October 2016, Etihad Airways is rated as a 5-star airline by Skytrax.
The name Etihad is an informal romanisation of "ittiḥād", which means 'union', referring to the United Arab Emirates where the airline is based.
Etihad Airways was established as the second flag carrier of the United Arab Emirates in July 2003 by Royal (Amiri) Decree issued by Sheikh Khalifa bin Zayed Al Nahyan. It started with an initial paid-up capital of AED500 million. Services were launched with a ceremonial flight to Al Ain on 5 November 2003. On 12 November 2003, Etihad commenced commercial operations with the launch of services to Beirut. Prior to the establishment of Etihad, Gulf Air was the airline which was based at Abu Dhabi International Airport and was also co-owned by Bahrain and the Sultanate of Oman.
In June 2004, the airline made an US$8-billion aircraft order for five Boeing 777-300ERs and 24 Airbus aircraft, including four A380-800s. Their first A380 was delivered in December 2014.
The airline announced what was the largest aircraft order in commercial aviation history at the Farnborough Airshow in 2008, for up to 205 aircraft—100 firm orders, 55 options and 50 purchase rights.
Etihad reported its first full-year net profit in 2011, of US$14 million, in line with the strategic plan announced by CEO James Hogan in 2006.
In December 2011, Etihad announced it had taken a 29.21% stake in Air Berlin, Europe's sixth largest airline, and James Hogan was appointed Vice Chairman. It followed this up with minority stakes in other airlines—Air Seychelles (40%), Aer Lingus (2.987%), Virgin Australia (10%). On 1 August 2013, the President of the company, James Hogan, signed a deal with Aleksandar Vučić, First Deputy Prime Minister of Serbia, in Belgrade, giving Etihad a 49% stake in the Serbian national carrier Jat Airways/Air Serbia. The Serbian Government retained 51% of the shares. The new company is named Air Serbia.
At the 2013 Dubai Airshow, Etihad announced that it was acquiring a 33.3% stake in the Swiss carrier Darwin Airline. Darwin was rebranded as Etihad Regional from March 2014.
On 1 August 2014, Etihad agreed to take a 49% stake in the Italian flag carrier Alitalia for an estimated €560 million. The deal was closed on 8 August 2014. On 1 January 2015, Alitalia-CAI formally passed its operations to Alitalia-SAI, a new entity owned 49% by Etihad and 51% by the Alitalia-CAI shareholders.
In May 2016, the management structure was reshuffled, appointing James Hogan CEO of the airline's parent company, Etihad Aviation Group. Peter Baumgartner, formerly the airline's Chief Commercial Officer, took over as Chief Executive Officer of the airline, answering to Hogan.
In August 2016, Etihad Airways announced the cancellation of their routes to Almaty and Larnaca by October 2016.
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