As the world sees a spike in COVID-19 cases due to new variants, Etihad Airways is banking on its ability to remain nimble to tide through 2021. Responding to CNBC-TV18’s questionnaire via e-mail, Terry Daly, executive director guest experience, brand and marketing, Etihad Aviation Group said the airline could navigate 2020 on the back of its agility and will continue to transform into a mid-sized, full-service carrier focused on wide-body aircraft.
The airline does not foresee vaccination as a mandatory travel requirement in immediate future but sees the emergence of some form of wellness certification or health visas. In that regard, Etihad is working with several companies to develop technology for global health certification system. Currently, the airline requires 100 percent of its passengers to show negative RT-PCR test before departure and on arrival in Abu Dhabi.
While the COVID-19-induced weakness had forced the airline to implement 25-50 percent salary cuts across the company in 2020, it has reduced the salary cut to 10 percent and plans to reinstate the salaries as soon as possible.
Here is the full e-mail interview.
Q. How does Etihad view the current aviation environment in light of COVID-19?
The past year has been the most challenging year in aviation history. An industry that brought the world closer, connecting people and countries, suddenly witnessed minimal movement with the onset of the COVID-19 pandemic. The situation remains extremely dynamic as new protocols emerge, countries are opening up their borders at different times and various air travel restrictions continue to be announced.
Over the last few months, we have seen a new normal in air-travel gradually shape up, and through a combination of transformation and innovation, we have adapted to the new reality. The way we travel has changed and wellness has emerged as a top priority. As the scenario stabilises, our focus is now on reviving confidence in international travel and this is being supported by initiatives that aim to ease the burden for travellers and ensure they have a peaceful journey, one that prioritises their health and wellbeing.
Q. The emergence of new variants of COVID-19, double mutant has again raised alarm over transmission of COVID-19. Have you seen any impact on air travel demand?
The impact on air travel is dependent on various factors and as highlighted earlier, the situation remains dynamic and unprecedented. Travel restrictions and protocols are still in place globally and they continue to change as the situation evolves. While we do not know how COVID-19 plays out in the coming months, I can say that the airline will continue to focus on providing peace of mind to travellers and ensuring their wellness is at the core of our experience.
Q. How do you plan to increase confidence among travellers for air travel?
Travelling internationally in a post-pandemic world is a different experience and we fully understand any apprehensions guests may have. The team at Etihad has gone above and beyond to ensure we prioritise the health and wellness of our guests and employees. In February this year, Etihad became the first airline in the world with 100 percent of its operating pilots and cabin crew vaccinated.
We launched ‘Etihad Wellness’ last year, an expanded and comprehensive health and hygiene programme which builds on the stringent measures already put in place by the airline to deal with COVID-19. This was championed by the introduction of specially trained Etihad Wellness Ambassadors, yet another industry-first initiative by us. Present on every flight, on ground at Abu Dhabi International Airport and available 24/7 via live webchat, this specially trained team is here to provide essential travel health information and care so guests can fly with greater peace of mind.
If any guest is diagnosed with COVID-19 during their trip, they won’t have to worry about medical expenses or quarantine costs when they fly with Etihad. The insurance is automatically effective from the first flight outside the guest’s home country and is valid for 31 days, or upon return to their home country if earlier. More importantly, Etihad remains the first and only airline in the world that requires 100 percent of its passengers to show a negative PCR test before departure and on arrival in Abu Dhabi. We want to ensure travellers feel safe knowing every other guest flying with us has tested negative for COVID-19.
All these initiatives have consolidated the airline’s position as an industry leader in its response to the pandemic and in keeping its employees and travellers safe.
Q. What can be the solution for international air travel for 2021 and 2022? By when can we expect a sharp recovery?
As I indicated earlier, the situation remains extremely dynamic and we cannot exactly determine how the pandemic will pan out through 2021. What I can say is the world may see some form of wellness certifications and health visas emerge that certify passengers are safe to fly. To that end, Etihad has been working with a variety of different companies, some within the industry, some outside of it, to develop technology required for a global health certification system.
A range of travel waivers, solutions and benefits were introduced to help ease the burden and provide maximum flexibility to guests and partners. As the situation remains dynamic, this is here to stay. What helped us navigate 2020 is our agility and we continue to remain nimble. It’s important to note that sustainability is going to play an even bigger role in a post-COVID-19 world. While commercial aviation still only represents around 2 percent of global human-made CO2 emissions, airlines and infrastructure that can adapt for a sustainable, carbon-neutral future are those that will survive. Etihad remains at the forefront to pioneer new and effective ways of mitigating aviation’s environmental impact to reduce carbon emissions and create cleaner and more sustainable transportation for future generations.
Q. Do you think vaccination against COVID-19 could be a necessary requirement for a traveller in the immediate future?
The various testing and vaccination protocols continue to develop around the world. Until we see harmonisation across governments and countries, we do not see vaccination as a mandatory travel requirement in the immediate future. That said, we do believe that some form of health certification will become necessary and we are active with a number of organisations to help make this become a reality.
Ultimately, if we want to survive, we need the pandemic to end and increased vaccination alongside PCR testing and the introduction of health visas to certify passengers are safe to fly are central to that. Achieving a historic milestone, we were the first airline in the world with 100 percent of crew on board vaccinated. We had to take significant steps last year to be able to support our employees in receiving the COVID-19 vaccine and we have worked tirelessly to ensure the Etihad Airways Medical Centre in Abu Dhabi became an accredited COVID-19 vaccination clinic to help facilitate this.
Q. How does Etihad view India as a market now?
India continues to remain an important market for Etihad, just as it has been for the past sixteen years. Our commitment remains undeterred and will not be affected by the impact of the global pandemic. India remains a key market as it holds strong historic relations with the UAE. Due to its close proximity we see Abu Dhabi remaining a preferred destination of choice and an ideal getaway from India.
Q. In terms of workforce, the airline extended salary cuts until end of 2020. Have you implemented such steps in 2021? What is the strategy in place for the workforce during 2021 and 2022?
Temporary company-wide salary sacrifices of 25 percent to 50 percent were introduced during 2020 and by the end of the year, we reduced to 10 percent, however, we will continuously review this with a view to reinstate as soon as we are able. We have done everything possible to support our employees while having to restructure our business to cope with the pandemic.
The airline will continue its transformation into a mid-sized, full-service carrier concentrating on its fleet of wide-body aircraft, with a leaner, flatter and scaleable organisational structure that supports organic growth as the world returns to flying. Etihad will strengthen its focus on its core offering of safety, security, service; it will continue developing its industry-leading health and hygiene programme Etihad Wellness, and prioritise innovation and sustainability, which are essential to the future of the airline.
Q. Are travellers preferring more direct flights rather than one-stop? If yes, will you make network changes? Please provide details
We retain a pragmatic approach to network planning and our strategy remains. The work we have done over the last three years of transformation has positioned the business well. Our network strategies are central to that and as a result, we remained nimble and were able to quickly respond to meet the COVID-19 crisis, as well as fit for business moving forward. As the national airline of the UAE, we have the advantage of the fact that two thirds of the world’s human footprint is within a four-hour flight of Abu Dhabi. We are currently operating to 60 worldwide destinations across Europe, Middle East and Africa, North America, Asia and Australia, as well as the Indian sub-continent.
