- Partner airlines raise $500 millionin the international markets using innovative new structure
- "Major endorsement of shared vision and strategies by global financial community"
- "Partner strategy reflects a total which is greater than the sum of the parts"
Etihad Airways, its airport services business and five of its equity partners have today successfully completed an innovative new platform financing transaction, raising $500 million on the international markets.
Etihad Airways, Etihad Airport Services, airberlin, Air Serbia, Air Seychelles, Alitalia and Jet Airways have together taken a new step forward in their strategic business development through this unique fund-raising initiative.
At a series of roadshow meetings, held in Abu Dhabi, Dubai and London, the shared vision and strategies of the airlines were laid out to financial institutions. These highlighted the growing network coordination and revenue development initiatives, coupled with joint procurement and business synergy projects, across the airlines.
James Hogan, President and Chief Executive Officer of Etihad Airways, said: "The success of this transaction is a major endorsement of the shared vision and strategies of these businesses by the global financial community.
"A key element of our equity partner strategy is creating a total which is greater than the sum of its parts, a grouping which can work together to improve revenues, reduce costs and uncover exciting new business synergies.
"We have already been able to identify significant opportunities together, whether that be in shared IT platforms, joint fleet procurement or shared training costs. Commercial fund-raising is no different.
"Our proposed transaction is simply the next logical step in our growing partnership and underpins its strategic importance."
Allocation of the funds raised will be nearly 20 per cent each to Etihad Airways, Etihad Airport Services, airberlin and Alitalia; 16 per cent to Jet Airways; and the remainder to Air Serbia and Air Seychelles.
The funds raised by the transaction will be used largely for capital expenditure and investment in fleet, as well as for refinancing, depending on each individual airline's needs.
The transaction marks the first time that Etihad Airways and its partners have raised funds together. To date, Etihad Airways has already raised in excess of US$11 billion from more than 80 financial institutions, to help fund its expansion strategy.
The funds have been raised through a special purpose vehicle, EA Partners IBV. Goldman Sachs International, ADS Securities and Anoa Capital are acting as joint lead book-running managers for the offering.
About Etihad Airways
Etihad Airways began operations in 2003, and in 2014 carried 14.8 million passengers. From its Abu Dhabi base, Etihad Airways flies to or has announced plans to serve 111 passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and the Americas. The airline has a fleet of 117 Airbus and Boeing aircraft, and more than 200 aircraft on firm order, including 66 Boeing 787s, 25 Boeing 777-X, 62 Airbus A350s and six Airbus A380s.
Etihad Airways holds equity investments in airberlin, Air Serbia, Air Seychelles, Aer Lingus, Alitalia, Jet Airways, Virgin Australia, and Swiss-based Darwin Airline, trading as Etihad Regional. Etihad Airways, along with airberlin, Air Serbia, Air Seychelles, Alitalia, Etihad Regional, Jet Airways and NIKI, also participate in Etihad Airways Partners, a new brand that brings together like-minded airlines to offer customers more choice through improved networks and schedules and enhanced frequent flyer benefits. For more information, please visit: www.etihad.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20150915006758/en/
Contacts:
Ketchum, on behalf of Etihad Airways
Jeremy Pelofsky, 202-835-8885 (direct)
jeremy.pelofsky@ketchum.com
or
Etihad Airways Corporate Affairs
Katie Connell, 202-863-7272 (direct)
or 917-515-1136 (mobile)
KConnell@etihad.ae