Abu Dhabi's carrier Etihad Airways CEO James Hogan, speaks to press duringthe World Route Development Strategy Summit in Abu Dhabi, on September 30, 2012. Hogan said Etihad Airways is projecting $5 billion in revenues in 2012, up from $4.1 billion last year. He also said that the carrier was looking to keep "sustainable profitability in place" after posting $14 million in net profits last year, in its first-ever registered profit since it began operations in 2003. AFP PHOTO/KARIM SAHIB

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Abu Dhabi's carrier Etihad Airways CEO James Hogan, speaks to press duringthe World Route Development Strategy Summit in Abu Dhabi, on September 30, 2012. Hogan said Etihad Airways is projecting $5 biShow more

Etihad runs ahead of schedule



James Hogan, the chief executive and president of Etihad Airways, is a man in a hurry.

With another set of record results posted yesterday, and so long as nothing untoward happens, he is on target to beat last year's US$14 million (Dh51.4m) annual profit by the end of this year.

"We're pushing hard," he said. "But it will all be about the fourth quarter. If it is a good one, we'll be on target to deliver robust figures. But I've been in this business long enough not to speculate."

Certainly the economic winds are blowing fair. Last week the International Air Transport Association (Iata) announced an upward revision to its global aviation outlook for this year. The fall in airline profits from the $8.4 billion that the industry earned last year will be cushioned by improved performance, with airlines now expected to earn $4.1bn this year, up $1.1bn from the $3bn forecast in June.

And Etihad's performance will be one of the drivers behind Iata's prediction that Middle East carriers will outperform the rest of the world by the end of the year with the strongest passenger traffic growth, up 17.1 per cent, as the region's carriers continue to expand their long-haul market share with connections through their expanding hubs.

"To illustrate the region's growth, the share of international passenger traffic held by its carriers has expanded from 4.8 per cent in 2002 to 11.5 per cent in August 2012," said Iata. That growth however, is not down to "trends" as far as Etihad is concerned, said Mr Hogan. "It is the pillars we've put in place that are driving our growth organically," he said.

"We now have 39 code-sharing partners giving us a total network of 315 destinations, more than any other Middle Eastern carrier.

"The wide segmentation of our business is helping to ensure our continued profitable growth. Australia and our major Asian markets are performing strongly. Our routes into China - Beijing, Shanghai and Chengdu - are showing particular potential, which will be further boosted by the strong growth of connecting markets into Africa and our code-shares.

"Revenue from code-share partners represented 18 per cent of Etihad Airways' total passenger revenue in the quarter."

During the quarter, the Abu Dhabi carrier signed interline and code-share agreements with Aer Lingus, China Eastern Airlines and RAK Airways, but its main partner airlines are behind the growth drive.

Etihad owns almost 30 per cent of Air Berlin, 10 per cent of Virgin Australia and 40 per cent of Air Seychelles.

"Air Berlin is going through a transformation," said Mr Hogan. "But next year we're all confident they will achieve the profits we are predicting and seeking. They've already put 50,000 passengers into our system this year so far and we've put 100,000 into theirs. It has given us huge access into a key market in Europe.

"At Air Seychelles, we downsized the company. Over 300 people left and we have implemented a new working the structure. You can't fly and make a profit if you are going around duplicating function. You've got to look at your overheads and strip out costs … training, head office and back-office functions, revenue planning and route planning … we've got to look for areas where we can work together, cut out costs and look to create centres of excellence that each operation can share in.

"With Air Berlin, we have established a foundation for further cost synergies through mutual maintenance programmes, the integrated 787 Dreamliner programme and international sales representation."

In its own backyard Etihad costs per available seat kilometre (Cask), excluding fuel, have fallen to their lowest levels this year, according to an independent benchmarking study by the aviation consultant Seabury. It shows that Etihad is in the lowest cost quartile for Cask, when compared to other major international full service airlines.

Emiratis in the lead at carrier: 1,00oth national joined the airline's staff this quarter

UAE nationals have become the largest nationality group working for Etihad Airways, as the airline works towards a 30 per cent local workforce.

With the 1,000th Emirati member of staff joining the company during this quarter, Emiratis now make up 21 per cent of the airline's core employee workforce.

Four years ago, Emiratis were only the ninth-largest nationality group at Etihad.

"We are working towards a benchmark of 30 per cent," said James Hogan, the chief executive and president of Etihad.

"The Emiratisation scheme, launched in 2007, offers a wide range of career opportunities for UAE nationals, including programmes for cadet pilots, technical engineers, graduate managers, guest service agents and call centre agents.

"We run a meritocracy, and that requires we bring on our own people. The Abu Dhabi Government has identified tourism as one of seven sectors which will lead job creation for Emiratis during this decade.

"At Etihad, we are proud to be playing our part in delivering on that vision and in supporting the work of the Abu Dhabi Tawteen Council."

Etihad introduced two programmes this year to attract UAE nationals to join its global workforce as part of the graduate development programme for sales and airport operations.

Emiratisation programmes currently have more than 570 trainees deployed across various streams within the airline.

From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

The Orwell Prize for Political Writing

Twelve books were longlisted for The Orwell Prize for Political Writing. The non-fiction works cover various themes from education, gender bias, and the environment to surveillance and political power. Some of the books that made it to the non-fiction longlist include: 

  • Appeasing Hitler: Chamberlain, Churchill and the Road to War by Tim Bouverie
  • Some Kids I Taught and What They Taught Me by Kate Clanchy
  • Invisible Women: Exposing Data Bias in a World Designed for Men by Caroline Criado Perez
  • Follow Me, Akhi: The Online World of British Muslims by Hussein Kesvani
  • Guest House for Young Widows: Among the Women of ISIS by Azadeh Moaveni
COMPANY%20PROFILE
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Fuel consumption: 8.0L/100km

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If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Common OCD symptoms and how they manifest

Checking: the obsession or thoughts focus on some harm coming from things not being as they should, which usually centre around the theme of safety. For example, the obsession is “the building will burn down”, therefore the compulsion is checking that the oven is switched off.

Contamination: the obsession is focused on the presence of germs, dirt or harmful bacteria and how this will impact the person and/or their loved ones. For example, the obsession is “the floor is dirty; me and my family will get sick and die”, the compulsion is repetitive cleaning.

Orderliness: the obsession is a fear of sitting with uncomfortable feelings, or to prevent harm coming to oneself or others. Objectively there appears to be no logical link between the obsession and compulsion. For example,” I won’t feel right if the jars aren’t lined up” or “harm will come to my family if I don’t line up all the jars”, so the compulsion is therefore lining up the jars.

Intrusive thoughts: the intrusive thought is usually highly distressing and repetitive. Common examples may include thoughts of perpetrating violence towards others, harming others, or questions over one’s character or deeds, usually in conflict with the person’s true values. An example would be: “I think I might hurt my family”, which in turn leads to the compulsion of avoiding social gatherings.

Hoarding: the intrusive thought is the overvaluing of objects or possessions, while the compulsion is stashing or hoarding these items and refusing to let them go. For example, “this newspaper may come in useful one day”, therefore, the compulsion is hoarding newspapers instead of discarding them the next day.

Source: Dr Robert Chandler, clinical psychologist at Lighthouse Arabia

TO A LAND UNKNOWN

Director: Mahdi Fleifel

Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa

Rating: 4.5/5