Etihad Airways and its partner airports and airlines have jointly raised $500 million, some of which will be used to buy new aircraft.
In a statement released this morning, Etihad said the cash had been raised on the international markets using an ‘innovative new structure’.
Eithad CEO James Hogan said the successful fund-raising initiative, in which the shared vision of the airlines was presented to financial institutions during a series of meetings in Abu Dhabi, Dubai and London, was a ‘major endorsement of shared vision and strategies by the global financial community’.
The funds will be used by Etihad, Etihad Airport Services, airberlin, Air Serbia, Air Seychelles, Alitalia and Jet Airways to expand.
Hogan added: "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% 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.
