"Etihad Cargo"

Earlier this week, Etihad Cargo announced an increase in belly hold capacity for the Summer season.

This is thanks to the amount of new passenger routes starting up, where the benefit will be received the most.

Without further ado, let’s get into it…

How is Etihad Cargo Increasing Their Capacity?

Etihad Cargo will provide extra belly hold cargo capacity on up to 100 new passenger flights for the Summer 2024 season.

This will include 23 weekly flights to eight new destinations, which are as follows:

• Antalya
• Bali
• Al-Qassim
• Jaipur
• Malaga
• Mykonos
• Nice
• Santorini

On top of this, Etihad Cargo is now offering belly hold capacity to Boston on a four times per week basis.

Furthermore, more capacity will be placed on increased passenger flights into Europe, the Middle East and Asia.

Thanks to the increased passenger flights, this is enabling the growth of the cargo division of the carrier.

As per data from Planespotters.net, Etihad Cargo has five dedicated Boeing 777 Freighters at this present moment.

Furthermore, the belly hold capacity will be distributed amongst the passenger division of the airline, of which their fleet consists of:

• 14 Airbus A320 Family aircraft.
• 11 Airbus A321 Family aircraft.
• Five Airbus A350-1000s.
• Five Airbus A380s.
• Nine Boeing 777-300ERs.
• 43 Boeing 787 Dreamliner Family aircraft.

As the passenger side of the airline also receives delivery of more aircraft, this will no doubt increase the cargo capacity that the carrier can exploit.

Brun: Meeting Growing Demand for Freight…

Stanislas Brun, Vice President Cargo at Etihad Cargo had this to say on the extra capacity:

“With the launch of its summer schedule, Etihad Cargo will deliver significant benefits to its partners and customers, thanks to the added belly hold cargo capacity and enhanced connectivity to key markets.”

“The expansion of the airline’s passenger network, in combination with Etihad Cargo’s regular and charter freighter services, will substantially increase cargo capacity across Europe, the Middle East and Asia.”

“Introducing new routes and increased frequencies will reinforce the connections between Abu Dhabi and major global markets, effectively meeting the growing demand for cargo capacity.”

On top of this, it does appear that this isn’t the end of the growth plans for Etihad Cargo.

In their press release, they mentioned the following aspect:

“Celebrating its 20th anniversary in 2024, the carrier is committed to continuously evaluating its network, increasing frequencies, launching new destinations and expanding cargo capacity to better serve its customers and remain the air cargo partner of choice.”

This would indicate that as more routes develop, so will the demand for such freighter services globally.

Overall…

In conclusion, the elevated frequencies from the passenger division of the airline is good news for Etihad Cargo.

As more commercial flights occur, this will increase the capacity for belly hold cargo flights.

Furthermore, as well as this increasing revenue for the passenger side, it will also increase for the cargo side too.

The proof is definitely in the pudding.

For the first quarter of this year, Etihad posted a record Q1 profit from record revenues of $1.5bn.

This surge is primarily driven by a strategic network expansion and a notable rise in passenger numbers.

Looking ahead, all eyes will be on what comes next for the airline both on the passenger and freight side.

It is most definitely the perfect example of aligning one business model with another for maximised success and profitability.

But for now, all eyes will be on the performance of the overall group for the rest of 2024 and beyond.

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Etihad Cargo has announced a significant strategic partnership agreement with Worldwide Flight Services (WFS), a member of the SATS Group.

This collaboration aims to enhance cargo handling services at major international airports across various continents.

The Partnership Agreement

Etihad Cargo, the cargo and logistics arm of Etihad Airways, announced the recently brokered partnership this week.

The agreement, spanning over three years, entails WFS providing cargo handling services for Etihad Cargo at 12 major international airports.

This collaboration is projected to handle over 150,000 tonnes of cargo annually for the Abu Dhabi-based airline.

Covered Airports

• EMEAA Region: Amsterdam, Bangkok, Barcelona, Bengaluru, Copenhagen, Frankfurt, London Heathrow, Madrid, and Paris CDG.
• North America: New York JFK, Washington Dulles, Boston, and Chicago.

Etihad Cargo: Integral Link in Global Trade

Etihad Cargo serves as a vital link connecting major trade lanes across the globe. Strategically located in Abu Dhabi, it facilitates seamless cargo transportation between Africa, America, Asia, Australia, Europe, and the Middle East.

The airline’s extensive network ensures efficient connectivity to prime cargo markets worldwide.

Range of Services

Since its establishment in 2004, Etihad Cargo has emerged as a leading air cargo carrier, offering an array of cargo products and services.

In addition to general cargo transportation, Etihad Cargo specializes in handling various products including

• live animals,
• dangerous goods,
• valuables and personal effects, and
• cold chain products for pharmaceuticals and perishables cargoes.

Etihad Cargo Comments

Thomas Schürmann, Head of Cargo Operations & Delivery at Etihad Cargo, emphasized the shared commitment between Etihad Cargo and WFS in delivering high-quality air cargo solutions globally.

“The combination of Etihad Cargo’s expertise in transporting general and specialised cargo and the capabilities of WFS give partners and customers the confidence that their air cargo needs are in the best hands, regardless of where they are in the world.”

This collaboration reflects the confidence that partners and customers have in entrusting their cargo needs to these industry leaders.

Prior History with WFS

The partnership between Etihad Cargo and WFS dates back to 2005, highlighting a longstanding relationship marked by mutual growth and trust.

Mohammed Esa, Global Head, Gateway Services Key Accounts & Strategy, SATS Group, expressed gratitude for Etihad Cargo’s continued trust in WFS.

“As well as renewing existing contracts with WFS, this new agreement adds more key airport stations to the important work we do for the airline, including Amsterdam, Bengaluru, Barcelona, Boston, Copenhagen and Chicago.”

“Being awarded responsibility for providing cargo handling services at so many major cargo airports highlights WFS’s ability to provide global network solutions to our strategic customers,” he said.

Summary

Since its establishment in 2004, Etihad Cargo has grown rapidly to become one of the leading air cargo carriers in the world.

Etihad has been a fast-growing cargo handling customer of WFS since the two organisations signed their first cargo handling agreement in Frankfurt in 2005.

This extension of their partnership signifies WFS’s ability to consistently deliver high levels of service across major cargo airports.

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In the United Arab Emirates, Etihad Cargo, the logistics offshoot of Etihad Airways, gave a warm Arabic welcome to top leaders from SF Airlines, one of China’s largest cargo airlines to Abu Dhabi to review the ‘reciprocal block space agreement’ between the two carriers announced earlier this year.

The agreement aims to explore business opportunities and expand its outreach on both ends of Abu Dhabi and Beijing respectively. Both see each other countries as strategic locations for business opportunities. 

During the visit, both airlines dove deeper into a more elaborate Memorandum of Understanding (MoU) to formalise their commitment to deepen and strengthen relations.

In this case it will mean enhancing and increasing cargo capacity between Asia and the rest of the world through Etihad Cargo’s base in Abu Dhabi.

This will have a positive knock-on effect on the bilateral trade between both countries, strengthening ties between China and the United Arab Emirates. 

Reciprocal Capacity Agreement

In addition to this, earlier in April 2023 Etihad Cargo and SF Airlines inked a reciprocal capacity agreement to connect their networks together. This new agreement is meant to guarantee the space in one another’s flights forwarded by the two carriers.

The new agreement will see the commencement of two weekly freighter services between Abu Dhabi Airport and Wuhan Tianhe International Airport in the province of Hubei.

This will be the fourth Chinese destination chosen by Etihad Cargo’s partners and customers, with more accessibility to 25 Chinese destinations.

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This signifies that Etihad is truly committed to the Chinese market, and the diplomatic ties between the two nations are stronger than ever. Destinations flown by Etihad include Shenzhen, Hangzhou, Chengdu, and Nanjing.

SF Airlines through the prized agreement has increased its operational footprint in the Middle East and has vastly benefitted from Etihad Cargo’s global network for its products.

Etihad is expanding aggressively in the world of parcel deliveries and forwarding of goods and services around the globe.  

The new MoU was inked on the 16th of June 2023, which officiates the collaboration between Etihad Cargo and SF Airlines, along with their strong commitment to sharing collective and mutual growth and opportunities through its networks via Abu Dhabi and Wuhan air hubs.

China’s first-ever cargo-dedicated airport Ezhou Huahu Airport would also be incorporated into the plan of Etihad Airways to fly there, making the first airline other than SF Airlines to fly to the airport.

  Moreover, the new agreement would also mean Etihad Cargo and SF Airlines will review the schedule of flights between the Emirati capital and Wuhan, and whether there is always room for expansion.

Partner comments

Antonoaldo Neves, Chief Executive Officer at Etihad Airways, said, “As the national carrier of the UAE, Etihad Airways is committed to supporting Abu Dhabi’s vision of becoming a global logistics and express hub.”

“The agreement between Etihad Airways and SF Airlines will contribute to achieving the Emirate’s ambitious strategic plans. It was a pleasure to welcome such prominent visitors from SF Airlines’ leadership to the country’s capital.”

“Etihad Cargo looks forward to expanding the agreement between the two airlines to not only benefit the partners and customers of both airlines but also broaden the strong ties between the UAE and China.”

Li Sheng, Vice President of SF Group, and Chairman of SF Airlines, said, “Working with Etihad Airways has been a significant milestone and achieved fruitful results. The elevation of two companies ties to a strategic partnership.”

“By expanding this cooperation between SF Airlines and Etihad Airways, we will continue strongly supporting and improving both parties’ service capabilities, and provide global consumers with more convenient and reliable services.”

Abu Dhabi will become even greater and an important strategic location for Chinese companies in the country and the Middle East as a whole. This new agreement ensures that both parties will mutually gain economically and culturally.

On April 17, Etihad Cargo and SF Airlines signed a comprehensive agreement to further connect their respective hubs through flight operations.

The agreement will greatly increase Etihad Cargo’s cargo capacity and will also be expanding its network reach into 25 domestic destinations within the Chinese market.

SF Airlines will greatly benefit from Etihad Cargo’s global network of destinations , further expanding SF Airlines’ global presence.

The agreement

Etihad Airways‘ cargo arm, Etihad Cargo, has recently signed a Memorandum of Understanding (MoU) with China’s SF Airlines, further reinforcing its commitment to the Chinese market.

The result of the MoU will be both carriers operating flights via their respective fleets to each others hubs in April; further enabling Etihad Cargo to expand into China via SF Airline’s extensive domestic Chinese network.

The new partnership between the two companies will provide the customers of Etihad Cargo with an even greater connectivity to 25 domestic Chinese destinations via SF Airlines’ road feeder service trucking network. This will benefit in enhancing Etihad Cargo’s capabilities within the region.

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Etihad Cargo commenced an additional service to Shanghai in February this year, which increased the total number of flights per week to eight.

The Memorandum of Understanding becomes the latest step by Etihad Cargo to increase their operations and presence in China.

In line with the partnership, Etihad Cargo will operate a Boeing 777-F with services due to commence on 28 April this year.

Etihad Cargo currently serves a five-aircraft Boeing 777-F fleet which they utilize in general global cargo operations.

Statements

Martin Drew, Senior Vice President Global Sales & Cargo at Etihad Airways commented on the parternship, saying: “Etihad Cargo is committed to establishing partnerships that add value to customers across the supply chain.”

“Strengthening the connection between Abu Dhabi and and one of SF Airlines’ major Chinese hubs will enable Etihad Cargo’s customers to benefit from SF Airlines’ exhaustive distribution capabilities in China, and SF Airlines will reap the benefits of Etihad Cargo’s global network for its express product.”

“Etihad Cargo is committed to the country’s ambitious growth vision, and this partnership supports the further development of Abu Dhabi as a major logistics and express hub for the region.”

Chairman of SF Airlines, Li Sheng also commented on the partnership, saying: “Etihad Cargo is an industry-leading company, with a competitive cargo network from Abu Dhabi to the world.”

“SF Airlines is excited the two companies can work together to connect hubs and strength the network of both airlines.”

“SF Airlines is looking forward to this cooperation, which will offer good value to customers and enable them to develop their international business with more convenient and diversified global transportation options.”

Overall

Etihad Cargo appears to be all-in on the expansion of their global presence, and the same goes for SF Airlines. In this case, the latter will benefit greatly from Etihad Cargo’s numerous destinations, thus also increasing their global presence as well.

Etihad Cargo has previously expanded the network into China, as the carrier back in December of last year initiated flights to Abu Dhabi from Shanghai via Chennai.

Overall, this is an agreement which will benefit both parties, and will likely not be the worst of partnerships.