Etihad Airways and Air Europa announced plans to expand their strategic partnership, aiming to enhance connectivity between Europe, Latin America, the Middle East, and Asia. Starting in summer 2025, Etihad will increase its flights to Air Europa’s hub in Madrid to twice daily. This will provide seamless access between Abu Dhabi and Spain. This expansion is expected to strengthen travel options across these key regions between the two airlines.
Partnership Improvements
The expanded partnership will offer travelers wider choices and increased frequent flyer program value. By increasing flights between Madrid-Barajas and Abu Dhabi, the two airlines will expand their codeshare to more destinations. This will open up more possibilities to connect Latin Americas with the Middle East and Asia.
Other Air Europa Partnerships
IAG (owners of British Airways and Iberia) currently owns 20% of Air Europa. IAG failed to pass regulatory approval for an acquisition of Air Europa earlier in 2024. Other airlines, such as Lufthansa and Air France-KLM, are exploring strategic partnerships with Air Europa. Both airline groups have admitted interest in acquiring a 20% stake in Air Europa. IAG, however, has announced they will not immediately dispose of their 20% ownership. Further, Air Europa is now under watch by the Spanish industrial investment company (SEPI) given the upcoming maturity of their bailout of the airline.
Will Etihad Join an Airline Alliance?
As of now, Etihad Airways is not a member of any major global airline alliance. They have extensive partnerships with some Star Alliance and Sky Team members, but their main US partner is American Airlines (a member of oneworld). Etihad has pursued smaller individual partnerships and codeshare agreements with other airlines. This comes after their failed investment strategy in other airlines. While joining an alliance could provide benefits such as increased connectivity and frequent flyer opportunities, Etihad has not publicly indicated plans to join one in the near future. Considering Etihad is planning an IPO later this year, this might be low on managements priority list.
Conrado’s Thoughts
The expansion of the partnership between Etihad Airways and Air Europa signifies a move to enhance connectivity between their core networks. By increasing flight frequencies and offering more frequently flyer benefits, the partnership should improve both airlines’ frequent flyer programs. Air Europa is exploring additional partnerships, while IAG still holds a minority stake and with the SEPI’s pressure mounting, the airline finds itself in an interesting situation. Etihad continues to focus on individual collaborations in anticipation of their IPO. I imagine, once they go public, that the airline might pursue more lucrative global partnerships via joining an alliance.
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