Etihad's financing secured for 2011 plane

Even with a number of companies in the UAE issuing bonds in recent weeks to finance projects, Etihad Airways has no plans to do so to finance its aircraft deliveries this year, according to the carrier's senior executive. Asked if the airline was considering issuing a bond this year to raise finance for its aircraft, Peter Baumgartner, Chief Commercial Officer, said it was unlikely. "We have secured fin-ancing for the aircraft deliveries this year. The first of the order that Etihad placed for up to 205 aircraft at the 2008 Farnborough Airshow will be arriving this year. It's a 10-year plan and thus there will be a 10-year financing plan," he said, speaking on the sidelines of the airline's launch of a new tier level in its loyalty programme. Last year, the Abu Dhabi flagship carrier reportedly said that it's likely to secure $13.3 billion (Dh48.8 billion) in financing to almost triple its fleet in the next decade. Baumgartner told Gulf News: "We never had any problems financing our aircraft. It's the credibility that Etihad Airways in Abu Dhabi has in the marketplace." "We are quite successful in financing our aircraft under open financial markets and with a lot of credibility that we have always enjoyed in the marketplace. So there is no need to do anything over and above that for us," he added. Meanwhile, riding on the bond boom, Emirates this month launched a five-year, $1 billion (Dh3.67 billion) bond to be listed on the London Stock Exchange. The airline said it would use the net proceeds of the issue for general corporate purposes, which include fulfilling its financial obligations for aircraft fleet. Etihad Airways said it is taking its loyalty programme a notch higher by adding one more tier level to the programme. The airline unveiled its "Gold Elite" tier in the Etihad Guest loyalty programme at a conference yesterday as a way of recognising and rewarding the airline's most frequent travellers. Etihad Guest Gold Elite membership will be awarded to passengers who in one year take more than 60 flights or collect more than 125,000 Tier Miles. According to Baumgartner, the airline already has up to 500 members eligible for the new tier level. "We expect quite a few more by the end of the year. We have 1.2 million members in our loyalty programme at present and it is expected to go up to two million by 2013," said Baumgartner. He added that before the year, the carrier will announce a number of innovations in the loyalty programme which will be "world firsts". Hinting on one, he said: "How great would that be if we could use it [the Etihad Guest miles card] as a card whereby Etihad Guest miles could be accepted at all points of sale across the world, allowing you to make purchases with it!", indicating it could "possibly" be a "credit card-like device". The Abu Dhabi carrier has appointed Jettainer, the unit load device (ULD) management company to supply, manage and maintain its ULD fleet at Etihad destinations worldwide to 2016, in a five-year agreement. Etihad said it is the 13th member in the customer portfolio of Jettainer. From / Gulf News