The Abu Dhabi government has transferred the full ownership of Etihad Aviation Group (EAG), the parent company of Etihad Airways, to the holding company ADQ. This move is aimed at supporting Abu Dhabi’s vision to create an integrated aviation hub, which is in line with ADQ’s aviation strategy.
“The Supreme Council for Financial and Economic Affairs "transferred full ownership" of EAG to ADQ,” the company said in a statement. ADQ aviation is an Abu-Dhabi-based investment and holding company.
"The transfer of EAG complements ADQ's efforts to transform Abu Dhabi into a global aviation hub anchored in end-to-end airport service excellence. We are focused on "delivering airlines and passengers a globally competitive value proposition specializing in aircraft engineering, cargo, and ground handling services, and an unrivaled customer experience through the anticipated opening of Abu Dhabi Airport’s new Midfield Terminal," ADQ said.
Mohamed Hassan Alsuwaidi, Managing Director and Chief Executive Officer of ADQ, commented: “The aviation sector is critical to Abu Dhabi’s economic growth plans and prosperity. With Etihad joining ADQ’s mobility and logistics cluster, we are well positioned to develop a globally competitive and integrated aviation portfolio to enhance Abu Dhabi’s connectivity and overall value proposition.”
ADQ is planning to create an aviation services giant with about $2.56bn in assets by combining its stakes in three aviation assets with Abu Dhabi Aviation (ADA).
The move is expected to create a globally competitive aviation business based in Abu Dhabi, positioning it as a global hub for maintenance, repair, and overhaul (MRO) services, logistics, supply chain, and advanced engineering capabilities. And, after completion, ADQ would own about 59.44% of the entire issued share capital of ADA.
Earlier this year, EAG’s ancillary businesses were transitioned into ADQ to create a new integrated aviation support services company, ushering in a new wave of growth for the sector.
"EAG will continue its aspiration to be a leading global airline that delivers a best-in-class customer experience, unrivaled services, and care for its guests as part of ADQ’s aviation portfolio," ADQ said.
Besides Etihad Airways, the EAG portfolio comprises Etihad Cargo, Etihad Holidays, Etihad Guest, Etihad Engineering, Etihad Aviation Training, Etihad Hub, Etihad Business Connect, and Etihad Secure Logistics.
With the addition of EAG, ADQ’s aviation portfolio includes Abu Dhabi Airports, Wizz Air Abu Dhabi, and ADQ Aviation & Aerospace Services Company.
During the H1 of 2022, Etihad Airways reported a record profit with a core operating income of $296 million, its highest in its 18-year history, citing a strong rebound in passenger travel demand, growth in cargo revenue, and the lifting of domestic Covid-19 curbs.
As part of the change, ADQ has appointed Antonoaldo Neves as the new chief executive officer of Etihad Airways, replacing Tony Douglas, who is leaving the company to “pursue another unspecified opportunity”. The new opportunity is understood to be at the new Saudi Arabian airline, but this has not yet been confirmed. Douglas will serve as an adviser to the board of ADQ Aviation and Aerospace Services Company.
“Tony has led Etihad through some of its most challenging times and has successfully turned the airline into a profitable and sustainable business over the past five years as part of its initial transformation program,” said Mohammed Ali Al Shorafa, Chairman of Etihad Aviation Group. “As we’re entering our next phase of sustainable growth, we are confident that Antonoaldo will build on Tony’s legacy”
Neves was previously CEO and a board member of TAP from July 2017 to September 2020.
In a statement, Neves said in the statement he was excited for his role at Etihad, "a global well-known brand in the industry," and said he was confident it would continue "its journey of sustainable growth."