Etihad seeks slice of Aust govt contract

Published: 2:14PM Tuesday March 02, 2010 Source: AAP

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  • Etihad seeks slice of Aust govt contract (Source: ONE News)
    Etihad Airways - Source: ONE News

Etihad Airways chief executive James Hogan has his sights set on capturing a slice of the lucrative Australian federal government travel contract.

Hogan confirmed the six-year old airline was bidding to win some of the $643 million or so that politicians, diplomats and public servants spend of flights each year and talked up Etihad's extensive route network to Australia's major trading partners.
  
"We fly into more international cities than Qantas do," Hogan told reporters at Etihad's head office in Abu Dhabi on Sunday.
  
"From the Australian government's point of view, look at all the points that we travel to that Australia is doing business with, it's just one stop."
  
Hogan said Abu Dhabi, where half of all Etihad's passengers pass through, was no more than three hours away from India, the Middle East and GCC countries such as Saudi Arabia, Oman and Qatar.
  
"The beauty is that we link Australia to so many places," Hogan said.
  
"What we bring as a one-stop carrier to anywhere in the world is huge convenience."
  
With an average fleet age of two-and-a-half-years old and a recently revamped first class that cost $100 million, Hogan said Etihad's had the best product flying out of Australia.
  
"As people try us, they get their mouths around Etihad, and they try us and they switch," Hogan said.
  
Currently, Etihad Airways flies out of Sydney and Melbourne to Abu Dhabi daily.
  
The airline also has three flight a week from Brisbane to the United Arab Emirates capital, via Singapore.

Hogan, who is originally from Melbourne and has been chief executive since 2006, said Etihad was looking to make Brisbane a daily service and start flying out of Perth, but had no intention of going into Adelaide or Tasmania.
  
"We invest considerably in Australia," Hogan said.
  
"Putting every day three aircraft in Australia is a big investment and employing people locally - we just set up a Japanese call centre in Sydney for our Japanese market.
  
Asked to rate Etihad's chances of winning a part of the government contract, Hogan said: "No idea."
  
The outcome of the three separate tenders - one for international travel, one for domestic travel and one for travel management services - is expected to be known in the next three to four weeks.
  
Qantas Airways Ltd holds the biggest share of government travel.
  
Virgin Blue Holdings Ltd chief executive Brett Godfrey said last week that even if Qantas retained most of its current contract, the flying kangaroo would be providing air travel at much cheaper prices.
  
"Either we win it or Qantas gets a whole lot less than what they used to get for it," Godfrey said on February 24.
  
"We see that as a win-win irrespective of how it pans out quite frankly."

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