Etihad Airways Seeks $2.6 Billion to Purchase More Planes
According to a report in Bloomberg, Etihad Airways is seeking $2.6 billion in loans from banks, with the intent of using the money to purchase more aircraft from Boeing and Airbus.
The reports says the airline wants $2 billion for the purchase of 10 Dreamliner aircraft from Boeing and $600 million for the purchase of two Airbus A380s.
In the past eight years, Etihad has expanded from 42 aircraft to 122 aircraft and tripled its staff to 20,292. However, the airline is seeking the loans, claiming that low oil prices have hurt airlines like itself in the Persian Gulf, where a large amount of money comes from oil. FlyDubai, a low-cost carrier that operates out of the United Arab Emirates, is also said to be seeking bank loans for its own infrastructure improvements.
In December, the airline announced that it was going to cut 1,000-3,000 jobs with the intent to “reduce costs and improve productivity and revenue.”
U.S. Carriers have heavily criticized gulf carriers like Etihad, claiming that they are unfairly subsidized by governments in the region, creating an unfair advantage.