Etihad, China Eastern sign joint venture to expand global routes

Etihad Airways PJSC, the national carrier of the United Arab Emirates, and China Eastern Airlines Co. will create a joint venture to develop routes between the UAE and Asia’s largest economy. 

The venture will allow the airlines to expand travel options for passengers between major Chinese cities like Shanghai and Beijing, and across the Middle East and Africa, according to a statement on Wednesday. It is expected to launch in early 2025 once both carriers receive regulatory sign off.

The two airlines came to an agreement after first exploring the idea last year at an aviation gathering in Istanbul, Etihad Chief Executive Officer Antonoaldo Neves said in an interview. The accord is the first of its kind between carriers from the two regions, aiming to facilitate connectivity between two of the most important aviation markets on the planet. 

The pact will allow the carriers to coordinate schedule and network development, Neves said. Etihad had previously pursued an ill-fated strategy of trying to funnel more traffic through its Abu Dhabi hub by buying stakes in smaller carriers. That plan fell apart after losses piled up, and Neves said he’d not repeat that approach to expand Etihad.

Etihad and Shanghai-based China Eastern already have an agreement due to go into effect by end of this year to recognise each other’s frequent flier programs.

The latest accord underscores China’s wider push to open up to more friendly nations and cooperate in areas of finance and investment. The Middle East was among the first destinations for Chinese carriers when they resumed international traffic after the Covid interruption.

Regional rival Qatar Airways and China Southern Airlines Co. have a close commercial relationship, and the Doha-based carrier also holds a 5% stake in China’s largest airline. Upstart Riyadh Air, which is owned by Saudi Arabia’s sovereign wealth fund, also signed a preliminary agreement on interline traffic and code-shares with Air China this week. 

“We look forward to our collaboration creating more synergies, not only in facilitating passenger travel but also in building deeper economic, trade, and cultural exchanges between China and the UAE,” China Eastern Chairman Wang Zhiqing said in the statement.