(Bloomberg) -- Etihad plans to spend as much as $1 billion to overhaul widebody aircraft as the Gulf carrier looks to refresh its fleet amid delays from planemakers.
The retrofit program, Etihad’s largest to date, will start with about 50 twin-aisle jets, the Boeing Co. 787 and 777 models, and later expand to all widebody aircraft. The carrier will overhaul the entire cabin, add high-speed Internet, and introduce a new entertainment system.
“We’re going to retrofit even the planes that don’t need a retrofit, but we believe it’s important for the airline,” to have consistency across the fleet, Chief Executive Officer Antonoaldo Neves said in an interview. The program will not include the Airbus SE 380, which Etihad had retired but now plans to fly until the end of the decade or beyond, he said.
Delays in the aviation supply chain have meant Etihad won’t be able to start the program immediately, and will need to wait until late next year. The two components that will take the longest to source are business class seats and toilets, which are built as whole by the supplier and later installed in the aircraft.
Abu Dhabi’s flag carrier recorded a 66% increase in profit after tax for the first nine months of the year compared with a year earlier, driven by a strong summer season and growth in the cargo business. Passenger numbers rose 35%. The carrier has committed to adding more than 60 planes from manufacturers and lessors this year, Neves said.
The retrofit program is part of Etihad’s $7 billion investment plan over the next five years, including doubling the fleet size, rearranging the network, and adding routes. The carrier is also planning an initial public offering, Bloomberg reported earlier this year.
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