Etihad acquires three airport services companies

Acquisition to provide incremental revenue and cost savings for airline, CEO says Dubai: Etihad Airways said on Sunday that it had acquired three airport services companies from Abu Dhabi Airports Company as the airline looks to exploit cost and revenue synergies across ground handling, catering and cargo operations. The three companies — Abu Dhabi Airport Services (ADAS), Abu Dhabi In-Flight Catering (ADIFC) and Abu Dhabi Cargo Company (ADCC) — employ 4,000 people and will be incorporated under Etihad Airport Services, a wholly-owned subsidiary of Etihad Airways, the airline said in an emailed statement. No financial details of the transaction were disclosed. Both Etihad Airways and Abu Dhabi Airports Company are owned by the government of Abu Dhabi. “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,” James Hogan, chief executive of Etihad Airways, said in the statement. Etihad added that the acquisition would provide “significant” incremental revenue opportunities and cost savings for the airline. Abu Dhabi Airports owns and operates five airports in the emirate, as well as the retailer Abu Dhabi Duty Free. - Gulf News