SAA and Etihad sign code share agreement

In Early May, South African Airways' Acting CEO, Nico Bezuidenhout and Abu Dhabi's CEO, James Hogan, signed an MOU to establish a code share and interline agreement, which may be the start of a deepening strategic alliance with the United Arab Emirates carrier.

The MOU itself is little more than an intention to add an additional 12 destinations to SAA's booking system and it has been specifically designed to "plug holes", as Bezuidenhout describes the arrangement.

For now, the partnership with Etihad adds primarily Asian destinations to SAA's system, a region it lacks a strong footprint. The advantage for Etihad is the opening up of 10 South African, African and South American destinations. Those with Voyager and 'Guest' frequent flyer membership will be able to add points whilst flying these routes with either airline.

Part of SAA's turnaround plan includes an overhaul of its long haul destinations, where there are substantial gaps. The agreement with Etihad will not compromise the South African carrier's relationship with the Star Alliance nor will it effect its existing but limited code share arrangements with Dubai's Emirates Airlines.

The two airline CEOs acknowledged that the agreement might be the first step in exploring further partnerships between the two airlines. Amongst those mentioned were maintenance, cargo, support, catering and a loose reference to 'procurement'. There was no confirmation that Etihad's current expansion as well as its aircraft acquisition program might benefit SAA's need to fulfull its long haul fleet requirements by an additional 35 aircraft. The South African carrier is seeking ways to optimize its existing and future widebody needs and finding the finance to order aircraft is one of the major reasons the airline requires heavy government funding.