Etihad Airways Acquires Three Airport Services Companies

Etihad Airways has finalised an agreement to acquire three airport services companies which will accelerate and consolidate the development of inflight catering services, ground handling and cargo operations at Abu Dhabi International Airport.

Formerly part of Abu Dhabi Airports Company (ADAC), the three companies, Abu Dhabi Airport Services (ADAS), Abu Dhabi In-Flight Catering (ADIFC), and Abu Dhabi Cargo Company (ADCC), are being incorporated, subject to receipt of regulatory approvals, into Etihad Airport Services, a wholly owned subsidiary of Etihad Airways.

The companies, which employ more than 4,000 people, are being integrated into the airline’s existing organisational structure to maximise synergies and operational scale.

The re-engineered business units will continue to provide the full range of ground handling, catering and cargo services to Etihad Airways and other airlines at Abu Dhabi International Airport, dedicated to customer excellence and commercial viability.

“This acquisition follows international best practice and is critical to the continued growth of the airline, and more importantly to the sustained growth and development of Abu Dhabi’s aviation industry in general as envisioned in the Abu Dhabi Plan 2030,” said James Hogan, Etihad Airways’ President and Chief Executive Officer. “It is once again in line with our strategy of working closely with our partners and service providers to achieve greater organisational and commercial alignment and a more consistent delivery of products and services along the entire value chain of the customer’s experience. Airline and cargo customers will also benefit from enhanced service levels and greater integration across hub operations.”

The acquisition is expected to provide significant incremental revenue opportunities, cost savings, and operational efficiencies across the various business entities.