Etihad Makes Huge Cuts to Widebody Aircraft Orders
Just six years ago Etihad Airways was on the fast track to becoming a serious global airline player, it had placed orders for dozens of aircraft and was investing in airlines around the world to build out its partner network and potentially build an airline alliance of its own. But the recent times have not treated the carrier well — its run into serious financial issues, and many of the airlines it bankrolled fell apart or declared bankruptcy.
Etihad's continually worked on cutting costs in an effort to tide the losses, and we've just seen another iteration of that — the airline has essentially canceled 76 orders for widebody aircraft, Reuters reports.
The Abu Dhabi based airline reportedly "restructured" its orders with both Boeing and Airbus, and the airline says it will now receive just a sliver of what it originally ordered.
The airline said it has "committed" to take delivery of just five Airbus A350-1000s, that's down from the 40 A350-900s and 22 A350-1000s it had on order from European airline manufacturer.
Boeing had secured 25 orders from Etihad for its soon to be released 777X aircraft — specifically eight 777-8s and 17 777-9s. Etihad negotiated that down to just six 777-9s.
Less was revealed about its Boeing 787s, 29 of which are already in its fleet. Etihad reportedly has 43 more Dreamliners on order that were part of its original plan. It did not cancel any of the 26 A321neos it had on order.
The airline currently has a fleet of 112 aircraft, which includes 10 A380s — a plane without a bright future as Airbus just announced its ending the superjumbo program. In addition to its Dreamliners and A380s, its widebody fleet is rounded out by 16 Airbus A330s and 25 Boeing 777s.
Etihad told Reuters that it had "reached agreements with Airbus and Boeing to not disclose details of the order changes." Etihad isn't publicly canceling these orders, but by only committing to taking delivery of 37 aircraft out of the original 113 (not including the Dreamliners), it's silently communicating that it's seriously downsizing its growth plans.
We've reached out to Etihad for comment regarding its fleet plans but have yet to receive a response.
Emirates, an Etihad competitor and much larger airline, is headquartered in Dubai less than 75 miles away from Abu Dhabi. Etihad attempted to compete with Emirates and build up Abu Dhabi as a connecting hub, flying passengers to long-haul destinations around the world.Both airlines are government owned, but rumors have swirled that the airlines will one day merge, and reports emerged in September that Emirates was eyeing a takeover.
Etihad had reported losses of more than $3.5 billion over the last two years — responding by cutting routes, flight frequencies and employees to reduce costs.
Etihad is a TPG staff and reader favorite. Its premium cabins offer some of the best products in the sky.
It has one of the less talked about but more valuable loyalty currencies out there are. TPG values Etihad Guest Miles at 1.4 cents each, and the program has some great sweet spots for redemptions with partners like American Airlines and Royal Air Maroc. You can transfer points from Capital One, Citi Thank You and Amex Memberships Rewards to Etihad Guest.
The airline may be best known for its opulence, notably the ultra-lux Etihad Residence, which features a private bedroom, sitting room, and shower.
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.