Tough times hits Etihad Airways as it confirms job cuts
Etihad Airways has confirmed plans to lay-off an unspecified number of employees as it grapples with what it termed, “an increasingly competitive landscape.”
The Abu Dhabi-based carrier said in a statement this weekend that the layoffs will constitute “a measured reduction of headcount in some parts of the business.”
According to Reuters, the majority of cuts will be achieved through “natural attrition”. No further details were disclosed although the workforce redundancy drive is reportedly a part of a greater plan to curb mounting losses incurred under the airline’s current business model, spearheaded by James Hogan.
Etihad’s board is said to be reviewing its strategy of acquiring shareholdings in European airlines given the poor to non-existent returns seen thus far from the likes of Air Berlin and Alitalia The Abu Dhabi-based airline is therefore said to be seeking a way out.
UAE-based carriers have been looking for ways to cut costs and increase ancillary revenue inflows given the impact the drop in oil prices, as well as the weak global economy, have had on their operations and the country as a whole.
During the first half of this year, Emirati authorities began levying an airport service fee on all passengers transiting through or departing from any of Abu Dhabi’s, Dubai’s, and Sharjah’s airports. Then, in October, Emirates introduced a seat selection ancillary fee for those wishing to pre-select their economy class seat in advance