Etihad Airways said on Wednesday it has raised $500 million in funds for the airline and four of its minority-owned carriers.
The announcement follows the airline’s successful efforts last year to raise $700 million using its Etihad Airways Partners platform, a group of airlines minority owned by Etihad.
Etihad along with its airport services unit and minority owned Air Berlin, Air Serbia, Air Seychelles and Alitalia raised the $500 million, according to an Etihad statement.
The transaction was officially launched on May 23.
The funds are “largely for capital expenditure and investment in fleet, as well as for refinancing, depending on each individual airline’s needs,” the statement said.
President and Chief Executive of parent company Etihad Aviation Group James Hogan said the $500 million “is part of our long-term capital strategy.”
Etihad has embarked on a strategy of buying up stakes in airlines from Australia to Italy in bid to grow its network. Today, it minority owns seven airlines and last year sold its stake in Ireland’s Aer Lingus.
Earlier this month, Etihad announced a management shuffle with airline president and chief executive James Hogan taking on the same, newly formed position at the parent company. Etihad Airways’ chief commercial officer Peter Baumgartner is now airline chief executive.
© Al Nisr Publishing LLC 2019. All rights reserved.