THE METHOD: SELFPROMOTION

They call it “growth” or more exactly “unprecedented growth in the Airline industry”. Michael O’LEARY CEO of Ryanair is still laughing about it! And he's not going to stop laughing anytime soon because Etihad is flying to 50 destinations when Ryanair is going to 142... Etihad fleet is made of 53 aircraft, Ryanair's fleet: 142. Even more surprising, Ryanair managed to increase their revenue from 231 millions EUR in 1998 to 843 millions EUR in 2003 with a 25% annual growth along the way! So, still claim to be the best, Etihad? 

What might be mistakenly taken for a sign of growth is, once you take a closer look at it, a mere scam! Etihad spend a lot of money and pull tremendous efforts to make everyone believe they are in a successful path, where natural growth is ensured by an increasing number of passengers flying throughout their network. Common sense will assert that a company reaches the phase of growth when using part of his earned benefit to invest in future development because its management foresees potential income into his own particular area of business.

But this basic rule of business doesn’t seem to apply to Etihad’s management. Because their bragging growth is entirely financed by billions the company never had to earn! For the mere reason that it all came from government’s pocket filled with long standing oil revenue.

All in all, the increase in passengers figure only matches the increment of the entire network dynamism by destinations newly opened. It is in no way a proof of growth. Clearly, you can open as much destination as you like, it won’t increase your benefit as long as your expenses overcome the profit you get out of it, which is obviously the case of Etihad Airways. You need and example? Nothing can come easier! Take the destination of Manchester for instance. Manchester was added to Etihad network following the acquisition of Football club Manchester City by his Highness Sheikh Mansour Bin Zayed Al Nahyan. Needless to say that operating straight flight from Abu Dhabi to Manchester means to find 300 people willing to fly this route both ways everyday!

This shows you how arbitrary things are conducted even about decision affecting the overall effectiveness and profitability of the entire company!

The addition of such destination does not generate any income. Quite the opposite in fact, it rather looks like a commercial suicide! This silly move can only help Etihad to lose more money when the so called Management does not actually make any and surely won’t before quite some time…