Abstract

The case “Growth Through Co-Ventures: Etihad’s Strategy In The Competitive Aviation Industry” talks about the growth of Abu Dhabi-based Etihad Airways (Etihad) into one of the leading airlines in the world through a co-venturing strategy with other airlines. The case starts out by providing details about the initial days of Etihad’s operations and its financial troubles. The case then documents the adoption of its unique ‘equity alliance’ strategy, wherein Etihad took stakes in troubled, but regionally important airlines in Europe and Asia. The case describes how Etihad capitalized on its various partnerships to build a large network that spurred revenues. The case concludes with an insight into the potential risks of such a strategy, including the exposure of Etihad to regulatory scrutiny in Europe and the US.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Evaluate co-ventures as a strategy for growth of a global airline company
• Create a framework to choose co-venture partners using appropriate parameters
• Formulate a strategy to deal with the backlash from competitors for the co-venture strategy

Keywords

Etihad,Airline,Strategic Alliance,Co-Venture,Partnership,Equity Alliance,Middle East,International Expansion,Partnership Risk,Regulation,Leadership,Partner Selection,Competition,Abu Dhabi,Aviation Industry