Etihad rules out equity investments in Indian airlines, focuses on partnerships

Etihad, owned by Abu Dhabi's sovereign fund ADQ, is not interested in investing in India's airlines, CEO Antonoaldo Neves told ET in an interview, although the country remains a focus market for the Gulf carrier.

"The answer is a clear no. Etihad will not do equity investment in airlines," Neves said on the sidelines of the annual general meeting of the International Air Transport Association in New Delhi.

Under former CEO James Hogan, Etihad had devised a strategy of acquiring stakes in multiple airlines across the world, including Jet Airways in which it purchased a 24% stake in 2013 for $379 million. It also bought a 50% stake in Jet's loyalty programme for $150 million.


Soon after that, the then United Progressive Alliance (UPA) government announced a four-fold increase in the number of seats available on weekly flights between India and Abu Dhabi, allowing Etihad a larger slice of the Indian market.

International flying rights are allocated on a bilateral reciprocal basis by the government to airlines of their country. Airlines cannot operate more flights than they are allotted. But the National Democratic Alliance (NDA) government has been hawkish about expanding flying rights for Middle East carriers.

'Unsustainable'

"Etihad was buying airlines all over the world because Etihad was assuming this would bring traffic to Abu Dhabi. It doesn't work that way. What we want to do is partnerships," Neves said.

Etihad has a limited code share partnership with Akasa Air under which the Gulf airline can sell seats of Akasa flights from Bengaluru and Ahmedabad to Abu Dhabi.

Flying rights between the two countries have been exhausted by airlines of both countries due to an exponential growth of outbound international traffic from India.

According to the Travel Trends 2025, a report prepared by the Mastercard Economics Institute, India saw the highest number of outbound travellers in 2024, with Abu Dhabi being one of the top three destinations.

About two years ago, he noted, UAE airlines used only 50% of their allocated seats between Abu Dhabi and India, while Indian carriers used only 30%. Currently, he added, there are "virtually no additional seats available under these traffic rights," he said.

Over last 3 years, Indian carriers significantly boosted their service to Abu Dhabi, tripling their capacity, and doubled their total capacity into India. Neves believes this growth benefits the Indian market by offering more flight choices.

However, he also pointed out that "neither UAE nor Indian carriers have more seats available to add," making increasing flights between India and the UAE almost non-existent today. Now that the rights are fully used, Neves believes "the question is now." He anticipates "conversations are going to happen" and "take place," which he considers "good."

Etihad currently flies to 11 Indian destinations but believes it can expand to between 17 and 20. The airline is prepared to add more flights to new, currently "underserved" Indian destinations once necessary traffic rights are secured.

Etihad operates about 170 weekly flights to and from India. Neves said the airline has requested the government to increase seat share, as rising outbound demand makes India a crucial market.