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Etihad and Co. to pump over $ 3.6b to Africa’s economy

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Etihad Aviation Group (EAG) and its equity airline partners are expected to contribute over USD 3.6 Billion Gross Domestic Product (GDP) to the African economy in 2016 and is set to support almost 425,000 jobs.

According to a report by Oxford Economics Group, EAG and its partners make a substantial contribution to economic prosperity in Africa and throughout the global economy providing vital connections between leading commercial centres and emerging markets.

“EAG and its partners will deliver a core economic contribution of US$1.1 billion and a tourism contribution of US$2.5 billion,” said the report.

In turn, they will support 117,000 jobs through core operations, with another 308,000 jobs supported through the tourism contribution.

The core contribution of US$1.1 billion (about Kshs 111 billion) includes the impact of EAG’s global operations, its capital spending in Africa, and the operational impact of its partners.

Among this, EAG’s global operations alone will make a US$400 million contribution to the economy and sustain 39,700 jobs in 2016, mainly through purchases of products and services from African-based suppliers.

Also read: Etihad Airline bags top honor

Joan Mwaniki, General Manager of Etihad Airways Kenya, said: “We will continue to explore opportunities for growth and investment in Kenya as we gear to meet market demand and give our customers more choices. Our current service between Nairobi and Abu Dhabi has allowed Etihad Airways to tap into the large traffic flows between Kenya and the rest of the world.”

Etihad Airways signed a strategic commercial partnership agreement with Kenya Airways in February 2013 which saw Etihad Airways place its EY code on Kenya Airways flights from Nairobi to 27 destinations across Kenya Airways’ network in Africa.

Etihad Airways reciprocated by having Kenya Airways place its KQ code on Etihad Airways’ daily service from Nairobi to Abu Dhabi and onwards to up to 32 key destinations across Etihad’s global network.

James Hogan, President and Chief Executive Officer of Etihad Aviation Group, said: “Many jobs across the supply chain in hotels, ground transport companies, freight forwarders, catering, manufacturing, and throughout the tourism industry, all benefit from the presence of the Etihad Aviation Group, with suppliers in these sectors creating tremendous employment opportunities for emerging markets such as Africa.

“These contributions to economies in Africa are substantial. They are also an indication of the continued increase in travel into and out of Africa via our hub in Abu Dhabi, signalling the possibility for even more growth and prosperity across the continent in the future.”

The economic contribution of tourism is estimated to contribute US$2.5 billion in GDP for the continent, supporting some 308,000 jobs. By 2024, the number of visitor arrivals carried into Africa by Etihad Airways and its partners is projected to rise to over 3.2 million.

Since launching its first service in Egypt back in 2004, Etihad Airways has expanded its operations across the African continent with the opening up of outstations in a further eight countries including South Africa, Morocco, Libya, Sudan, Kenya, Nigeria, Uganda and Tanzania.

Currently, Etihad Airways operates services to 117 passenger and cargo destinations around the world, and is expected to carry 19 million passengers on over 100,000 flights, among which almost 8,300 flights will be to and from Africa serving some 1.1 million passengers in the continent

EAG comprises of four business divisions – Etihad Airways, Etihad Engineering, Hala Group and Airline Equity Partners.

The group owns minority investments in seven airlines: airberlin, Air Serbia, Air Seychelles, Alitalia, Jet Airways, Virgin Australia, and Swiss-based Darwin Airline, trading as Etihad Regional.

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