MIAMI: Etihad Airways has reached a deal to deepen its relationship with Air France-KLM and separately has agreed to sell its stake in Aer Lingus Group Plc, Etihad’s CEO James Hogan said.
Etihad and Air France-KLM will share codes on more flights starting this year, opening more European cities to the Abu Dhabi-based airline’s customers, Hogan said on the sidelines of the International Air Transport Association’s (IATA) annual meeting.
The airlines have yet to finalize terms of the deal.
Hogan said that Etihad will sell its 4.99-percent stake in Aer Lingus, the Irish flag carrier, in a potential takeover bid by British Airways-parent International Airlines Group.
The moves reflect Etihad’s strategy to grow its route map through airline partnerships. With codeshares on French domestic flights imminent, Etihad also is looking to add destinations via codeshares with Philippine Airlines, Garuda Indonesia and Malaysia Airlines, Hogan said.
“We’re keen to maintain a relationship with (IAG). Indications are that they’re interested in doing so too,” Hogan said.
Kevin Knight, Etihad’s chief strategy and planning officer, said in the same interview that Etihad hopes to expand its codeshare with Air France-KLM “as broadly as possible.”
Etihad currently lists its flight code on nine Air France cities and 21 KLM destinations.
Hogan said sharing frequent-flier rewards would be the next step in the airline’s partnership with Air France-KLM. It has not discussed or considered taking an equity stake in the European carrier, although saying this would never happen is “not possible,” Hogan said.
Across the Atlantic, Knight said Etihad does not have plans to introduce new service to the United States for 24 months.
Etihad in expanded codeshare deal with Air France-KLM
Updated 08 June 2015