Etihad cuts losses despite failure of European partnerships 

Etihad Airways managed to reduce its loss by $432 million to $1.52 billion last year despite its European equity partners Alitalia and airberlin entering administration. 

The airline said other challenges during 2017 included ‘significant’ fuel price increases. 

Revenues from core operations were up 1.9 per cent to $6.1 billion.

Both passenger and cargo yields improved following an increased focus on point-to-point traffic and improving market conditions. It carried 18.6 million passengers last year at a 78.5 per cent load factor. Unit costs were down 7.3 per cent despite the higher fuel costs, which the airline put down to a strong focus on efficiency. 

SAS to create new subsidiary in Ireland

SAS is the latest European airline to create a new airline / subsidiary. They are creating an Irish subsidiary – also called SAS – to fly some shorter routes because that’s the only way it can compete on costs with discounters like Norwegian Air, Ryanair and easyJet on certain competitive routes

The airline’s foreign competitors do not use a Scandinavian operating certificate on short international flights that touch SAS’ hubs in Stockholm, Oslo and Copenhagen, giving them a labour cost advantage. 

But even Oslo-based Norwegian Air, its most fierce competitor, operates many European flights under an Irish certificate, rather than a Norwegian one thus enabling the airline to pursue a much lower cost base than some of its competitors such as SAS. 

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