Etihad Airways and China Eastern Airlines have just announced a comprehensive new partnership, which I think will be pretty successful.
Details of the new Etihad & China Eastern partnership
Etihad and China Eastern intend to launch a joint venture, which is the first such partnership that we’ve seen between a Middle Eastern and Chinese airline.
For those not familiar, a joint venture is the closest level of cooperation you’ll find between airlines, short of an outright merger. This isn’t just a loyalty collaboration or codeshare agreement, but rather it allows airlines to coordinate routes, schedules, and more.
With this joint venture, Etihad and China Eastern plan to jointly develop and grow routes between the United Arab Emirates and China, to create a stronger combined network. Currently, China Eastern doesn’t fly to Abu Dhabi (AUH), while Etihad’s only destinations in China include Beijing (PKX) and Shanghai (PVG).
The plan is for the new joint venture to launch in early 2025, after securing all regulatory clearances. Furthermore, both airlines plan to introduce frequent flyer program reciprocity in the fourth quarter of 2024, allowing passengers to earn and redeem points across airlines.
My expectation for this partnership would be that:
- Etihad will increase its service from Abu Dhabi to China, with China Eastern providing connectivity
- China Eastern will add considerable service to Abu Dhabi from several cities in China, to create one-stop routings between China and the Middle East, Africa, and beyond
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Perhaps the most interesting quote here comes from Mohamed Ali Al Shorafa, Chairman of Etihad Aviation Group, who suggests this is more about close cooperation between the two countries than anything else:
“This Joint Venture signifies a deep commitment to strengthening the bonds between the UAE and China, while fostering deeper cultural and economic ties. We look forward to welcoming a greater number of Chinese tourists to explore the rich cultural heritage and vibrant experiences that the UAE has to offer. This partnership is more than the expansion of routes; it is about creating lasting and meaningful connections between our two nations which will stand for decades to come.”
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My take on this new partnership
If you ask me, this new partnership makes a lot of sense, especially from Etihad’s perspective. Etihad is smaller than its two biggest Gulf rivals (though hopes to grow), so a strategic joint ventures make a lot of sense. This is Etihad’s best way to expand its network in China, and on top of that, the airline could be getting quite a bit of extra traffic throughout its regional network, as China Eastern adds service to Abu Dhabi.
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Etihad’s current management team is doing a great job with growing the airline sustainably. We haven’t seen the airline launch many new partnerships in Asia, so this is very cool to see.
Now, I’m not saying this is going to happen, but I can’t help but feel like Etihad is inching ever-so-slightly closer to joining SkyTeam and/or partnering with Delta. Admittedly airlines can have strategic partnerships outside of alliances, but there’s definitely a pattern here.
For example, just recently, we saw Etihad expand its partnership with Air France-KLM, in a pretty significant way. Now we’re seeing an even closer partnership with China Eastern. One can’t help but notice the general move in the direction of SkyTeam airlines, and wonder if a Delta partnership could be imminent.
Keep in mind that Qatar Airways is in the oneworld alliance and has a strategic partnership with American (even beyond mutually being in the same alliance), while United and Emirates have a close partnership.
Yes, Etihad and American have a partnership as well, but it’s not nearly as close as American’s partnership with Qatar Airways:
- You’d think Delta would want more connectivity in the Middle East and India, and currently Delta’s only partner in the region is Saudia
- Etihad’s US route network is actually very complementary to Delta’s network, especially with Etihad flying to Boston (BOS) and New York (JFK), where Etihad currently largely relies on JetBlue for connectivity
The only challenge here is that Delta often only launches partnerships as part of a joint venture, or if it can get an equity stake, and I’m not sure an investment in Etihad makes a whole lot of sense.
So while I wouldn’t bet money on Etihad joining SkyTeam or partnering with Delta, I do think it’s increasingly likely as time goes on. That’s especially true with the continued closure of Russian airspace to US airlines, which limits the ability to serve India.
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Bottom line
Etihad and China Eastern plan to launch a joint venture, to increase service between the United Arab Emirates and China. We’ll see the two airlines coordinate routes and schedules, so I think it’s a given that China Eastern will start flying to Abu Dhabi, and that Etihad will expand service to China.
This seems like a sensible new partnership, especially for Etihad, as it will allow the airline to expand service to one of the biggest aviation markets in the world.
What do you make of the new Etihad and China Eastern joint venture? And do you think we could see Etihad eventually join SkyTeam and/or partner with Delta?