Etihad signs codeshare deal with Korean Air

Zawya Dow Jones/Dubai

Abu Dhabi’s Etihad Airways has agreed to form a codeshare with Korean Air, marking the latest such partnership agreement with a carrier, as the airline aims to rapidly expand around the globe.

Korean Air will place its KE code on Etihad Airways daily services between Seoul and Abu Dhabi, and the two airlines will also merge their respective loyalty programmes, including lounge access and frequent flier points, according to an emailed statement.

“Codesharing on the Abu Dhabi-Seoul route will enable the airlines to leverage the strength of their respective brands and distribution channels for mutual commercial and customer benefit,” James Hogan, chief executive of Etihad Airways, said in the statement.

Trade between the UAE and Korea was valued at $20bn last year, while Korean investment into the Gulf country since 2009 is valued at $29bn, the statement added.

Since establishment in 2003, Etihad has been pursuing a strategy of signing codeshare agreements and taking minority equity stakes in airlines around the world. In June, it said it had entered discussions with the Serbian government about a possible equity investment in the country’s national carrier Jat Airways. Meanwhile in May, Etihad said it would buy a 24%-stake in India’s Jet Airways for $380mn.

Earlier this year, Etihad also began codesharing with Air France on a number of new destinations in Africa, Asia, Australia and Europe, following a strategic partnership announced last October to build commercial ties and expand the two airlines’ global networks.

The airline has now signed 46 codeshare agreements and taken other stakes in Germany’s Air Berlin, Ireland’s Aer Lingus, Virgin Australia and Air Seychelles, and has expressed interest in raising stakes in the Irish and Australian carriers.