Etihad and Lufthansa forge closer ties

Etihad and Lufthansa have entered into a new commercial partnership, which will see the German carrier providing catering services to the Abu Dhabi-based airline in Europe, Asia and the Americas.

The four-year US$100 million contract will see Lufthansa’s LSG Sky Chefs provide catering to Etihad in 16 cities, making it the carrier’s largest catering provider outside the UAE.

The two airlines have also signed a memorandum of understanding to co-operate in aircraft maintenance, repair and overhaul.

Addressing a press conference today in Abu Dhabi, the chief executives of both airline groups spelled out plans to broaden their commercial partnership.

James Hogan, Etihad Aviation Group president and CEO, who is due to leave the company later this year, said: "Partnerships are at the heart of our strategy and remain fundamental for us to compete effectively and efficiently in a complex and competitive global market.

"Our collaboration with one of the aviation industry’s most established and recognised brands is undoubtedly the most significant non-equity partnership with an airline we have ever announced.

"This partnership is the platform for a much wider strategic collaboration between our two organisations. It demonstrates the commitment of the Etihad Aviation Group Board and Abu Dhabi to our European growth strategy."

Carsten Spohr, Lufthansa Group chairman and CEO, said: "We welcome the opportunity to strengthen our cooperation with the Etihad Aviation Group. Together we can create added value for our customers and shareholders. Partnering with the Etihad Aviation Group fits perfectly the Lufthansa Group’s global strategy for our passenger airlines and service companies."

Etihad Airways and Lufthansa are also exploring further cooperation in a number of areas, including freight operations, procurement and passenger services to improve their competitive offering globally and in the European market, they said.

A previously announced codeshare between the two airline groups went on sale this week for flights between Abu Dhabi and Germany. Lufthansa will place its ‘LH’ code on Etihad Airways’ twice daily flights between its Abu Dhabi hub and both Frankfurt and Munich.

Etihad will put its ‘EY’ code on Lufthansa’s long-haul, non-stop intercontinental services between its home base of Frankfurt, the business and commercial capital of Germany, and Rio de Janeiro in Brazil and the Colombian capital, Bogota as soon as government approval is obtained.

The codeshare agreement will grow both carriers’ global networks, giving Lufthansa increased access to important feeder markets throughout the Indian Subcontinent via Abu Dhabi, while Etihad will gain access into South America through Germany.