corporate social responsibility report 2011 - Etihad Airways

COLLABORATING FOR CHANGE 

CORPORATE SOCIAL RESPONSIBILITY REPORT 2011

Etihad Airways 

P.O. Box 35566, 

Khalifa City, 

Abu Dhabi 

United Arab Emirates 

Telephone: + 9712 511 0000 

Fax: + 9712 511 1200 

Website: www.etihad.com 

Scope of reporting 

Together, Etihad Airways’ sustainability 

report, is published once a year in English 

and Arabic, and covers the airline’s 

sustainability strategy and performance 

for a calendar year from 1 January to 

31 December 2011, unless otherwise 

noted. 

Activities of the airline’s outstations, 

subsidiaries and joint ventures have 

not been included in this report unless 

specifically mentioned. 

An electronic version of the report is 

accessible on the airline’s website at 

www.etihad.com. 

The report has not been independently 

audited but reference is made to the 

Global Reporting Initiative, GRI G3 Sustainability 

reporting guidelines. Where 

GRI indicators are addressed they are 

referenced as a footnote next to the GRI 

symbol. 

For more information about this report, 

please contact : Anne Tullis, Head of 

CSR and Sustainability, Etihad Airways 

P O Box 35566, Abu Dhabi UAE atullis@etihad.ae 

+9712 511 1031 or visit 

the website at www.etihadairways.com 

CONTENTS 

From the President and Chief Executive Officer 6 | Etihad Airways 8 | Executive Team 9 | Sustainability at Etihad Airways 10 

Route map 12 | Collaborations and conversations 14 | Together 16 | Greener Together 18 | Growing Together 36 | Working Together 40 

Giving Together 46 | Corporate governance 48 | Awards 50 

2 Etihad Airways Corporate Social Responsibility Report 2011 Etihad Airways Corporate Social Responsibility Report 2011 3

HH Sheikh Khalifa bin Zayed Al Nahyan 

President of the UAE and the Ruler of Abu Dhabi 

HH General Sheikh Mohamed bin Zayed Al Nahyan 

Crown Prince of Abu Dhabi and Deputy Supreme 

Commander of the Armed Forces of the UAE 


Board of Directors 

HH Sheikh Hamed bin Zayed Al Nahyan (Chairman) 

HH Sheikh Khaled bin Zayed Al Nahyan (Vice Chairman) 

HE Mohammed Mubarak Fadel Al Mazrouei 

HE Ahmed Ali Al Sayegh 

HE Mubarak Hamad Al Muhairi 

HE Hamad Abdullah Al Shamsi 

HE Khalifa Sultan Al Suwaidi 


From the President and Chief Executive Officer 

2011 drew to a close on a high point 

with the attainment of our first year of 

profitability – a major milestone in our 

eight year history, and the crowning 

achievement of a busy and successful 

year. 

This result is all the more significant in 

light of the testing global environment 

in which it was achieved. The year 

was marked by a succession of natural 

disasters, the unprecedented civilian 

uprisings in the Middle East and North 

Africa, a persistent sovereign debt crisis 

across Europe and high oil prices. 

Against this backdrop Etihad Airways 

delivered earnings before interest 

and tax (EBIT) of US$137 million, on 

revenues up 36 per cent to US$4.1 

billion. Net profit for the year came in at 

US$14 million. 

However, we should not and do 

not measure our success only in 

commercial terms. As an organisation 

we aim to be completely transparent 

and open to a holistic evaluation - not 

only on our bottom line, but more 

importantly, on how we engage with 

our staff, our customers and our 

business partners, and on our integrity 

in dealing with the industry’s impacts on 

the environment. 

Etihad Airways has a comprehensive 

environmental strategy which makes 

provision for emissions reduction, 

recycling and efficient resource 

utilisation. However, as part of an 

industry heavily reliant on fossil fuel, 

particular focus is placed on emissions 

management and climate change as 

airlines face increasing pressure to take 

proactive measures to reduce their 

dependence on oil. 

In March, despite strong reservations, 

Etihad Airways submitted its emissions 

report in compliance with the 

requirements of the European Union 

Emissions Trading Scheme (EU ETS). 

The decision in October by the 

European Court of Justice to uphold 

the legality of the EU ETS was 

disappointing. In addition to the 

potentially significant financial burden 

on our industry, the scheme is divisive 

and ineffective in addressing the real 

issue of emissions reduction. Along with 

local and global industry partners, we 

support collaboration to find sensible 

and fair solutions and we believe that 

a global sectoral approach is needed 

to avoid competitive distortion and 

negative macro-economic effects on our 

industry and wider global economy. 

Over and above the significant 

investment in our modern fleet of 64 

aircraft, we continue to implement 

initiatives that drive improved fuel 

efficiency and reduce our emissions 

and this is clearly reflected in annual 

efficiency improvements across our 

fleet. Equally importantly, we are 

committed to play our role in what 

we see as the most important carbon 

abatement strategy, namely the 

development of a commercially viable 

biofuel. Working with the Masdar 

Institute, Boeing and Honeywell’s UOP, 

we will invest a total of US$2 million 

over five years in a biofuel research and 

development project investigating salttolerant 

sources of biofuel in the desert 

coastal regions of Abu Dhabi. 

Etihad Airways employs more 

than 10,000 staff representing 125 

nationalities. This diverse workforce 

is our most important asset, and their 

wellbeing is critical to our successful 

growth and sustainability. In addition to 

very competitive and fair compensation 

packages we continue to invest heavily 

in making this a good place to work. 

In the local community and across 

our network, we continue to invest in 

people – empowering and developing 

individuals to take up meaningful 

economic roles in their communities. 

This commitment is no better illustrated 

in Abu Dhabi than by Etihad Airways’ 

career development and nationalisation 

programs. Further afield, we support 

a range of educational initiatives to 

develop both business skills and artistic 

talent in all disciplines. 

As a natural consequence of living 

and working in a multinational, 

cosmopolitan city and by virtue of our 

own diverse workforce, we see it as a 

priority to connect people and support 

projects and initiatives that facilitate 

ongoing dialogue and engagement 

to promote cultural awareness and 

understanding. 

As a driver of tourism, we play a critical 

role in promoting the Emirate’s rich 

culture and heritage. 

In 2011 Etihad contributed US$ 7 

billion (9.6 per cent of Abu Dhabi’s 

non-oil GDP (or 3.8 per cent of total 

GDP), supporting around 104,000 (or 8 

per cent) of non-oil jobs throughout the 

Emirate. 

In 2011 we reinvigorated our approach 

to customer engagement through the 

newly established Guest Experience 

department. July 2011 saw the launch 

of a new initiative to encourage 

passengers to ‘Tell Us What You Think’. 

This feedback will form the basis for 

an ongoing program of change in 

productivity and performance across the 

customer journey to ensure we maintain 

the standards that have assured our 

position as the World’s Leading Airline 

for three consecutive years. 

In the year since the publication of our 

last report we have made good progress 

on our journey towards sustainability. 

I look forward to continuing an open 

and productive dialogue with all our 

stakeholders in the coming year. 

James Hogan 

President and Chief Executive Officer 

As a natural consequence 

of living and working 

in a multinational, 

cosmopolitan city and by 

virtue of our own diverse 

workforce, we see it as a 

priority to connect people, 

support projects and 

initiatives that facilitate 

ongoing dialogue and 

engagement to promote 

cultural awareness and 

understanding.” 

1.1, 1.2 



US$4.1 billion 

36% 

TOTAL REVENUE 

US$29.6 billion 

23.9% 

PASSENGER REVENUE 

8 Etihad Airways Corporate Social Responsibility Report 2011 

Etihad Airways, the national airline of the United Arab Emirates, 

based in its capital, Abu Dhabi, was set up by government decree 

and made its first commercial flight in November 2003. 

Wholly owned by the Government of Abu Dhabi, Etihad Airways 

is a global business supporting the Abu Dhabi 2030 Plan and 

contributing in the region of US$1.46 billion to the UAE economy. 

The airline has 35 codeshare partners and serves 84 passenger and 

cargo destinations in Africa, Asia, Australia, Europe, the Middle 

East and North America operating a young and environmentallyefficient 

fleet of 66 aircraft. 

Etihad Airways has a 29.21 per cent stake in airberlin, Europe’s 

sixth largest carrier and a 40 per cent shareholding in Air 

Seychelles, the national airline of the Republic of Seychelles. 

Etihad Airways’ main business is the international air 

transportation of passengers. The airline also operates Etihad 

Holidays, Hala Abu Dhabi, Etihad Cargo and a global contact 

centre organisation as part of its commercial group. 

US$651 million 

25.7% 

CARGO REVENUE 

8.3 million 

17% 

PASSENGER NUMBERS 

38.7 billion 

15.8% 

REVENUE PASSENGER 

KILOMETRES 

2 

51 billion 

13% 

AVAILABLE SEAT 

KILOMETRES 

Chief 

Planning 

and Strategy 

Officer 

• Cargo 

• Government 

Affairs and 

Aeropolitical 

• Network 

Planning 

• Fleet Planning 

• Revenue 

Management 

• Amadeus Gulf 

• Alliances and 

Distribution 

Executive Team 

President and Chief Executive Officer 

• Audit 

• Corporate Affairs 

• Corporate Security 

Chief 

Commercial 

Officer 

• Marketing 

• Product 

• Sales 

• Contact 

Centres 

• Etihad Holidays 

• eCommerce 

• Service Design 

and Delivery 

• Hala Abu Dhabi 

• Hala Travel 

Management 

75.8 per cent 

1.8% 

SEAT FACTOR 

Chief 

Operations 

Officer 

• Airport 

Operations 

• Flight 

Operations 

• Guest 

Experience 

• Safety 

• Aviation 

Security 

• Corporate Strategy 

• General Counsel and Legal 

• Program Management Office (PMO) 

64 aircraft 

Chief 

Financial 

Officer 

• Finance 

• IT 

• Supply chain 

• Property 

• Treasury 

• Investments 

12.3% 

FLEET SIZE 

Chief 

People and 

Performance 

Officer 

• Human 

Resources 

• Facilities 

• Medical 

9,038 

15.1% 

NUMBER OF 

EMPLOYEES 

Etihad Airways Corporate Social Responsibility Report 2011 9

Sustainability at Etihad Airways 

Vision: To be recognised as a sustainable airline 

that operates to the highest standards of safety with 

integrity and transparency. 

Mission: Sustainability will be at the core of our business. We will 

ensure that sustainability is integrated and integral to our day to 

day operations and practices and is embedded in every layer of our 

business thinking, planning and execution. 


4.8 

Objectives 

• Drive individual and corporate 

awareness of the necessity of living and 

working sustainably. 

• Develop capability and capacity in 

Etihad Airways to manage the ongoing 

sustainability agenda. 

• Meaningfully and regularly consult with 

and engage all our stakeholders at the 

hub and across the network: 

- to ascertain their expectations and 

needs , and 

- implement initiatives that show 

a genuine commitment to meet those 

expectations. 

• Set and manage meaningful targets 

to improve continuously our 

sustainability performance based on 

globally identified, material criteria, our 

shareholder mandate and stakeholder 

expectations. 

• Create tools and initiatives that allow our 

core stakeholders to participate: for example 

staff participation (training and reward), 

customer participation (voluntary 

carbon offset), and supplier participation 

(website recognition of adherence to 

policies). 

• Measure and report honestly and 

transparently our performance in identified 

and material criteria. 

• Promote our activity through 

the full range of traditional and new 

communications channels and in effective 

reporting. 

• Continue to align Etihad Airways 

sustainability policy and activity with the 

objectives in the Abu Dhabi 2030 Plan.

Inverness 

Malaga 

Aberdeen 

Oslo 

Gothenburg 

Helsinki 

Stockholm 

Londonderry 

Edinburgh 

Belfast 

Copenhagen 

Nottingham Amsterdam 

Birmingham London Stansted 

Prague 

Stuttgart Kosice 

Basel 

Zurich 

Lyon 

Venice 

Bucharest 

Sofia 

Madrid 

Rome 

Barcelona 

Tirana 

Thessaloniki 

Berlin 

Isle of Mann 

Leeds 

Hamburg 

Manchester Hanover 

Dublin 

Warsaw 

London 

Southampton 

Düsseldorf 

Exeter Brussels 

Jersey 

Frankfurt 

Paris 

Munich Vienna 

Salzburg Budapest 

Innsbruck Graz 

Geneva 

Toulouse 

Milan 

Marseille 

Belgrade 

Palma de Mallorca 

Istanbul 

Europe Network 

Broome 

Port Hedland 

Karratha 

Perth 

Route map 

Newman 

Darwin 

Australasia Network 

Athens 

Catania 

Malta 

Cairns 

Townsville 

Proserpine Hamilton Island 

Mackay 

Rockhampton 

Ayers Rock (Uluru) 

Gladstone 

Hervey Bay 

Sunshine Coast 

Brisbane 

Gold Coast 

Ballina 

Coffs Harbour 

Port Macquarie 

Newcastle 

Adelaide 

Sydney 

Canberra 

Albury 

Melbourne 

Launceston 

Hobart 

Rhodes 

Christchurch 

Queenstown 

Dunedin 

Auckland 

Hamilton 

Rotorua 

Wellington 

Vancouver 

Seattle 

Minneapolis Ottawa 

La Crosse Toronto 

MadisonMilwaukeeRochester 

Syracuse 

Sioux City DubuqueChicago 

Waterloo 

BuffaloWestchester Boston 

Des Moines Moline Toledo 

Detroit Cleveland Hartford 

Omaha Bloomington Champaign Newark New York 

Salt Lake City 

Indianapolis Harrisburg 

Pittsburgh NY - La Guardia 

Denver 

Louisville Columbus Philadelphia 

Saint Louis 

Baltimore 

San Francisco 

Covington 

Evansville Lexington Washington 

Las Vegas 

Tulsa 

NW Arkansas Nashville 

Oklahoma 

Memphis 

Knoxville 

Raleigh (Durham) 

Los Angeles 

Little Rock 

Huntsville 

Charlotte Douglas 

Phoenix 

Dallas 

Atlanta 

San Diego Tucson 

El Paso 

Wilmington 

Austin 

San Antonio Houston New Orleans 

Orlando 

Tampa 

Fort Myers 

Miami 

Etihad Destinations 

Codeshare Partner Destinations 

Etihad Future Destinations 

São Paulo 

Bangkok 

Manila 

Trat 

Phnom Penh 

Ho Chi Minh City 

Phuket 

Koh Samui 

Krabi 

Langkawi 

Penang 

Kuala Lumpur Kuantan 

Johor Bahru 

Singapore 

Kota Kinabalu 

Kuching 

Tokyo 

Osaka Nagoya 

Fukuoka Matsuyama 

Kumamoto 

Kagoshima 

12 Etihad Airways Corporate Social Responsibility Report 2011 Etihad Airways Corporate Social Responsibility Report 2011 13 

Funchal 

Nouakchott 

Dakar 

Banjul 

Manchester 

Dublin 

London 

Düsseldorf 

Brussels 

Frankfurt Prague 

Paris 

Munich 

Porto Barcelona 

Madrid 

Lisbon 

Faro 

Tangiers Nador 

Fez Oujda 

Casablanca 

Errachidia 

Marrakech 

Ouarzazate 

Agadir 

Bamako 

Geneva 

Milan 

Ouagadougou 

Cotonou 

Accra 

Lagos 

Tripoli 

Istanbul 

Kiev 

Athens 

Minsk 

Larnaca 

Alexandria 

Cairo 

Khartoum 

St. Petersburg 

Nairobi 

Johannesburg 

Moscow 

Krasnodar 

San'a 

Kazan 

Samara 

Erbil Tehran 

Beirut 

Baghdad 

Damascus 

Amman Basrah 

Kuwait 

Dammam 

Riyadh 

Bahrain 

Doha 

Jeddah 

Abu Dhabi Muscat 

Seychelles 

Praslin 

Astana 

Karachi 

Peshawar 

Islamabad 

Lahore 

Delhi 

Bengaluru 

Kozhikode 

Kochi 

Trivandrum 

Colombo 

Malé 

Almaty 

Mumbai 

Hyderabad 

Chennai 

Kathmandu 

Dhaka 

Luang Prabang 

Chiang Mai 

Yangon 

Chengdu 

Hanoi 

Beijing 

Jakarta 

Denpasar Bali 

Shanghai 

Hong Kong 

Seoul 

Okinawa 

Sapporo 

Sendai 

Niigata 

Melbourne 

Brisbane 

Sydney 

Auckland

Collaborations and conversations 

Collaboration with stakeholders is essential in our 

sustainability endeavours. 

We work tirelessly across the broadest range of 

stakeholders; notably employees, customers, 

service providers, industry groups, local businesses, 

government departments, non-government 

agencies, industry associations, charities and others 

to engage, educate, inform and effect change. 

We engage with staff to sustain motivation, 

increase awareness, to educate, gain ideas, and to 

communicate our appreciation, specifically: 

» the cabin crew social responsibility group works 

on supporting charities; 

» the green champions are volunteers within the 

company who get together regularly to share ideas 

and initiatives and then communicate these 

amongst their colleagues; 

» the three-day ‘Marhaba’ induction program for 

new staff includes a section on environmental 

awareness; 

» the carbon management committee members 

are representative of all key departments within 

the business. Regular meetings ensure a common 

understanding of carbon and emissions related 

issues; identify and approve policy positions, 

projects and programs relating to carbon 

management; 

» the biofuel committee is led by the Chief 

Operations Officer and implements the biofuel 

strategy for the business; and 

» mass communication facilitated through a 

dedicated intranet site for environmental matters, 

a dedicated email and a section in the internal 

staff newspaper – Etihad News. 


Etihad Airways customers form a key stakeholder 

group. In July 2011, a new initiative was 

launched to facilitate convenient and accessible 

communication between Etihad Airways and 

its customers. A range of processes put in place 

encourage customers to; ‘tell us what [they] think’; 

measure customer feedback clearly and efficiently; 

and make this information accessible to track 

productivity and performance. The new systems 

allow the airline to centralise and streamline all 

customer feedback and customer relations activity 

Within the local community, the airline uses media 

channels to communicate and also engages directly 

with local governments and businesses through 

partnership groups, including the following; 

» membership of the Abu Dhabi Sustainability 

Group (ADSG); 

» membership of ADSG task forces including 

the waste, the labour practices and sustainable 

procurement task groups; and 

» within the industry Etihad Airways has an 

extensive network of collaboration, both locally 

regionally and at a global level. These are 

essential in effectively addressing the complex 

global challenges and developing common 

positions. 

In July 2011, a new ‘tell us 

what you think’ initiative was 

launched to facilitate convenient 

and accessible communication 

between Etihad Airways and its 

customers. 

Our participation includes the following: 

» the Abu Dhabi Stakeholders Coordination Group, 

focused on aviation and climate change and 

hosted by the Department of Transport; 

» regular meetings with the environment team of 

the UAE General Civil Aviation Authority as part 

of an aviation environment policy group; 

» membership of the regional Arab Air Carriers 

Associations’ Environmental Policy Group; and 

» global interaction with international airlines 

through the International Air Transport Association 

Environment Committee and International 

Affairs Committee. 

Increasingly the issues facing aviation are far too 

complex to address effectively within the industry 

and thus its collaborative efforts are becoming 

much more extensive. The airline industry’s 

commitment to driving the commercialisation of 

biofuels has resulted in the creation of an airline 

stakeholder group, the Sustainable Aviation Fuel 

Users Group, and in cross-industry engagement 

with many other stakeholders throughout the supply 

chain. 

Etihad Airways’ flight operations and technical 

teams engage extensively with all in the 

aviation industry to investigate opportunities for 

improvements in flight paths and routes. The 

airline’s engagement on the INSPIRE - Indian 

Ocean Strategic Partnership to Reduce Emissions 

– project involved over 20 global stakeholders 

including airlines, airports, civil aviation authorities 

and airspace navigation providers. The potential 

emissions savings are simply not possible without 

this extensive collaboration. 

In future Etihad Airways will continue to work 

collaboratively, ensuring that these efforts remain 

relevant to support aviation sustainability. 

4.13, 4. 16, PR5 


Together 

Etihad Airways acknowledges its position as an integral part 

of society and its potential to have both positive and negative 

impacts on the communities in which it operates. 

Aligned with the greater ambitions and vision of the Emirate 

of Abu Dhabi, the sustainability policy and supporting strategy 

is designed to ensure its compliance with all applicable 

international and local regulations and standards; mitigate any 

potential risks and enhance the airline’s reputation through 

the implementation of industry best practice in the fields of 

sustainability and social responsibility. 

Sustainability is a collaborative process, and one which will 

only succeed in partnership with the broad range of internal 

and external stakeholders. For this reason, the airline’s 

sustainability program is called Together. 

Together is a four-part policy, communications and reporting 

framework for engagement with all our stakeholders - our 

staff, the local community and economy, the environment, 

and the greater communities across our global network. 

• Greener Together 

• Growing Together 

• Working Together 

• Giving Together 

In these four areas, the aim is to work collaboratively in: 

• Identifying and developing awareness of the 

issues and challenges; 

• Focusing action to address these challenges; and 

• Making a difference, through measurable 

improvement, year on year. 


Etihad Airways’ environmental strategy and program 

is driven primarily by its commitment to reduce its 

carbon dioxide emissions. 

Nevertheless, the overall strategy is diverse, looking at 

the environmental performance of aircraft operations 

and the supporting ground activities. 

The introduction of more aircraft in 2011 saw an 

overall increase in resource use and emissions. 

However, there were substantial improvements in fuel 

efficiency when measured per passenger kilometre – a 

clear reflection of the success of Etihad Airways’ fuel 

saving initiatives. 

Particular focus was placed on staff awareness and 

partnership development and these are covered in 

some detail. 

Environmental policy 

Etihad Airways is an important driver of economic 

growth and diversification in Abu Dhabi. 

While operating under a strict commercial mandate 

from our shareholder, we recognise our responsibility 

to the community and are committed to mitigate 

the impact of our operations on the environment. To 

achieve this Etihad Airways pledges to: 

» Abide by all national and international 

environmental legislation that applies to our 

business; 


» Put in place the measurement systems and working 

procedures to allow us to track and modify our 

environmental performance; 

» Innovate to reduce our dependency on traditional 

forms of energy and aviation fuel; 

» Train our staff on the importance of environmental 

protection in our business operations and on their 

individual responsibilities; and 

» Communicate and report openly and transparently 

on our environmental performance to all our 

stakeholders including employees, customers, 

suppliers and partners. 

We hold it as a fundamental principle that true 

success requires the engagement and participation of 

many different partners, within the markets in which 

we operate and across the air travel industry as a 

whole, and therefore aim to: 

» Encourage collaborative action and play an active 

role in industry debate on environmental issues; and 

» Work with industry bodies such as the International 

Civil Aviation Organization (ICAO), the International 

Air Transport Association (IATA), the Arab Air Carriers 

Organisation (AACO) and with local government and 

non-government partners on identifying issues and 

developing common solutions. 

The environment is a joint responsibility and every 

member of our workforce has a duty of care to 

uphold this policy, limit their individual impact on 

the environment and actively work to mitigate the 

potential impacts of our business on the environment. 

Data collection and materiality 

We continue to monitor and measure the 

environmental performance associated with our key 

operations and activities. Our efforts are focused on 

those activities that are most material, notably: 

» those activities or operations that are covered by 

environment related regulations; 

» those that make the largest contribution to our 

carbon footprint, both locally and globally; and 

» those that may be of specific concern to certain 

stakeholder groups. 

We make use of several important reference 

documents to ensure that we are appropriately 

identifying key issues, including the Greenhouse Gas 

Protocol, and, for reporting purposes, the Global 

Reporting Initiative. 

Non compliance 

Etihad Airways complies with all relevant environment 

related legislation and regulations. 

We make use of several important reference documents to ensure 

that we are appropriately identifying key issues, including the 

Greenhouse Gas Protocol, and, for reporting purposes, the Global 

Reporting Initiative Guidelines.

Our challenges 

Decarbonising the aviation industry 

Whilst our environmental strategy is diverse, covering 

all potential environmental concerns both in the air 

and on the ground, the efforts to reduce our reliance 

on fossil fuel are at the forefront. 

The industry four-pillar strategy remains valid and 

essential in engaging the broad range of industry 

stakeholders and looking at all potential opportunities 

to decouple aviation growth and carbon emissions is 

a priority. 

Whilst aircraft development and operational controls 

to improve efficiency continue, there is increasing 

emphasis on alternative sustainable fuels as a way to 

decarbonise the industry. Several technologies have 

been approved to create aviation fuel from non-fossil 

fuel based feedstock and a number of airlines are 

using these alternative fuels on a limited commercial 

basis. 

Aviation has a distinct advantage over road 

transportation in having far fewer distribution points. 

For example in Abu Dhabi there are about 200 

petrol stations, whereas Abu Dhabi airport provides 

for almost all the fuel needs of the airlines out of 

the Emirate of Abu Dhabi. This means that if the 

challenges of supply, refining capability and cost 

parity can be addressed, the use of biofuels has 

the potential to make a significant contribution to 

decarbonising the aviation industry. We believe that, 

given the limitations on other forms of technical 

innovation in the short- and medium-term, sustainable 

alternative fuels should be a priority for the aviation 

industry. 

Waste and materials management 

With the carriage of 8.3 million passengers in 2011, 

the production of significant quantities of waste 

is inevitable. In this area, most of the focus is on 

minimising resource utilisation and the reduction 

of final waste material. This includes the careful 

measurement of food requirements and preferences; 

cutting down on single-use items and using products 

that can be collected and cleaned for re-use. 

On the ground, we work closely with our catering 

providers and equipment and product suppliers 

in reducing consumption and looking at ways to 

minimise unnecessary items which will end up as 

waste. 

Recycling continues across our main commercial 

facilities and key residential complexes. We will look 

to expand on this, both by extending the practice and 

encouraging and educating our staff. 

The industry four-pillar strategy remains valid and essential in engaging the broad 

range of industry stakeholders and looking at all potential opportunities to decouple 

aviation growth and carbon emissions is a priority. 

Effective engagement and messaging 

In 2011 we extended the scope and range of our 

stakeholder engagement to communicate our 

messages more effectively. An environmental 

awareness session for all our new ground staff is part 

of their three-day induction program. Etihad Airways 

also participates in global environmental events such 

as World Environment Day and Paperless Day, while 

continuing to engage extensively within the industry 

in a range of activities and initiatives. 

Aircraft emissions management 

The current contribution to man-made carbon dioxide 

emissions by air transport is two per cent, and the 

Intergovernmental Panel on Climate Change (IPCC) 

estimates that this could rise to three per cent by 

2050. 

The emissions management strategy of the industry 

is based around rigorous initiatives to reduce fuel 

burn under the industry inspired ‘Four Pillar’ strategy; 

technology innovation, operational efficiency, 

improvements in infrastructure and market based 

mechanisms. 

Driven largely by fuel costs, substantive improvements 

are being made in the way our aircraft are designed 

and built, the way in which they are flown; and 

by updating and modifying ground infrastructure 

including airport procedures, airspace modifications 

and the removal of unnecessary ground infrastructure 

restrictions. 

Globally these have achieved incremental efficiency 

improvements across the industry. 

AVIATION IN PERSPECTIVE 


2% of Global 

CO2 emissions 

12% of Transport 

CO2 emissions

Our carbon footprint 

The carbon footprint is the total amount 

of carbon dioxide emissions or equivalent 

associated with our activities. As our 

operations and activities are geographically 

widespread, and to ensure we focus on 

those that we can influence and reduce, we 

measure and set improvements on those 

that are considered material. At present the 

focus is on our core aircraft operations, the 

operations of our 43 ground vehicles and the 

operations at our key office facilities. 

Our carbon footprinting has developed 

in alignment with the Greenhouse Gas 

Protocol. The Protocol covers three types of 

emissions, defined under Scope 1, Scope 2 

and Scope 3 

Scope 1 - Direct emissions from burning 

fossil fuel, such as jet fuel, gasoline and 

diesel. 

Scope 2 - Indirect emissions such as those 

associated with energy requirements in 

the production of electricity, potable water 

through the desalination process and chilled 

water for air conditioning. 

Scope 3 – Emissions from other sources, 

including waste disposal. 

The focus in 2011 was on Scope 1 emissions 

and Scope 2 emissions generated at the 

largest ground facilities within the UAE. In 

future years we will look to expand these 

and include other areas of our business that 

are considered material and that we are able 

to influence in terms of improvement. 

Scope 1 

Total 

Usage 

Unit 

Conversion 

Factor 

Tonnes of 

Carbon 

Dioxide 

% of 

Total 

Aircraft 1,722,842 tonnes 3.15tCO2/tfuel 5,426,954 99.74 

Ground Vehicle (Petrol) 190,340 Litre 2.3kgCO2/litre 438 0.01 

Ground Vehicle (Diesel) 1,932,795 Litre 2.7kgCO2/litre 5,219 0.1 

Scope 2 

EY Complex Electricity 1,501,981 kWh 

EY Plaza Electricity 675,813 kWh 

EY Complex District 

Cooling Water 

EY Plaza District Cooling 

Water 

(including residential 

areas) 

EY Complex potable 

water 

EY Plaza Offices potable 

water 

Scope 3 

4,239,162 tonnes/hr 

3,009,064 tonnes/hr 

74,202 m 3 

2,481 m 3 

Waste to Landfill 728,700 kg 

0.700 kgCO2/ 

kWh 

0.700 kgCO2/ 

kWh 

0.674 kgCO2/ 

tonnes/hr 

0.674 kgCO2/ 

tonnes/hr 

15kg CO2/m 3 

1,051 0.02 

473 0.01 

2,857 0.05 

2,028 0.04 

1,113 0.02 

15kg CO2/m3 37 0 

1.000 tonnes/ 

CO2 

729 0.01 

Total CO2 emissions 5,440,899 100 

The global industry commitment 

The aviation industry has improved its 

fuel efficiency by 70 per cent over the 

last 40 years. 

Pressure placed on the industry due to 

climate change concerns, fuel prices, 

carbon regulations and the perception of 

the industry’s ‘do nothing’ attitude, has 

reinforced the need to be much more 

proactive, about global strategy and 

action. 

The industry has come together in a way 

unique to aviation in forging a set of 

collective industry goals, namely: 

» an average annual fuel efficiency 

improvement of 1.5 per cent annually 

to 2020; 

» the stabilisation of net CO2 emissions 

levels (‘carbon neutral growth’) from 

2020; and 

» a 50 per cent reduction in net carbon 

dioxide emissions compared to 2005. 

Etihad Airways is fully supportive of this 

industry-wide commitment. 

The aviation industry has come together, unlike 

any other industry, to agree on quantitative 

emissions reduction goals. 

EN1, EN3, EN4, EN8, EN16 


Our actions 

The environmental strategy is the responsibility of 

the Head of Environmental Affairs at Etihad Airways. 

Through communication and consultation across 

all business units the strategy is developed into a 

comprehensive environmental plan and from these 

tangible meaningful actions are taken. 

Initiatives to improve fuel efficiency are extensive 

and the environment office ensures that these are 

measured not only in terms of fuel and financial 

benefits, but also the resulting reduction in associated 

carbon emissions. 

Investment 

Greener engines 

In 2011 Etihad Airways began an engine upgrade 

program for more than half the Airbus A330 fleet. 

Scheduled to last two years, the program will see 15 

of the airline’s A330 aircraft with Trent 700 engines 

being retrofitted with enhanced performance kits, 

resulting in significant improvement to the overall 

efficiency of the aircraft. It is estimated that the 

modification process will save more than 3,000 

tonnes of fuel and reduce our carbon footprint by 

more than 10,000 tonnes per year. 

Lighter cargo containers 

Etihad Airways, along with its cargo container partner, 

Jettainer, embarked on a program in 2011 to replace 

3,000 of the original aluminium containers with 

environmentally-friendly lightweight versions. 

The new lightweight containers are manufactured 

from a range of composite materials including Kevlar, 

the material used in making bullet-proof jackets. 

This composite is tougher and much lighter with an 

average weight saving of 17kg per container or over 

200kgs per average wide-bodied flight. This significant 


weight reduction will lower fuel consumption, 

costs and CO2 emissions. It is estimated that the 

implementation of the new containers will cut 

emissions by approximately 5,000 tonnes in 2012. 

Collaboration and innovation 

Green flights 

At a time when fuel costs remain high and there is 

pressure on the industry to take action to reduce 

emissions, Etihad Airways has embarked on a number 

of multi-stakeholder initiatives to enhance flight 

operations. 

In July 2011, we worked with the various stakeholders 

engaged in the ‘INSPIRE’ program. This ‘Indian Ocean 

Strategic Partnership to Reduce Emissions‘ investigates 

aspects of flight and identifies opportunities for 

fuel saving and emissions reductions. All the stated 

aims of INSPIRE partners, which include airports, 

air navigation service providers and civil aviation 

authorities, include accelerating the development and 

implementation of operational procedures to reduce 

the aviation industry’s carbon footprint, capitalising 

on existing technologies and best practice, and 

developing shared performance metrics. 

The Etihad Airways flight from Abu Dhabi to Sydney 

in July 2011 resulted in savings of more than 15 

tonnes of carbon dioxide emissions. This is a clear 

demonstration of the massive savings in emissions 

that can be achieved if airlines are able to make more 

effective use of the on-board computerised systems for 

calculating the most efficient routes based on current 

weather conditions; and the removal of airspace 

restrictions, many of which simply require political 

will. 

If similar savings were possible just once each week 

for flights between Abu Dhabi and Australia, we 

conservatively estimate a saving of 350 tonnes of fuel 

annually based on our current frequency. This would 

represent a reduction of more than 1,100 tonnes of 

carbon dioxide. 

Etihad Airways strongly advocates industry 

modernisation that will allow aircraft to fly within 

their current capabilities. IATA estimates that global 

emissions reductions of up to 12 per cent can be 

achieved simply by improving and modernising 

ground and airspace infrastructure and by allowing 

more reliance on the aircraft systems to calculate 

efficient flight paths. 

Carbon offsetting 

The Etihad Airways loyalty program had 1.3 million 

members by the end of 2011, an increase of over 

a third on the previous year. A carbon offsetting 

program provides the opportunity for members to 

donate their miles to carbon reduction projects 

around the world. In 2011 the approximate equivalent 

of AED 26,000 was donated as miles, offsetting 

approximately 600 tonnes of carbon dioxide. 

Three projects benefited from this offset. One in India 

involves the switching of the fuel use for a paper 

factory from furnace oil to ‘bagasse’ – a renewable 

energy source using the pulp left after crushing 

sugarcane to extract the juice. Projects in Uganda 

and Cambodia involve upgrading of traditional lowefficiency 

stoves with more efficient types. 

Regulatory regimes 

The most significant move towards regulating carbon 

emissions from aviation has been through the 

European Union Emissions Trading Scheme (EU ETS). 

EN5, EN6, EN18 

From 2012, airlines flying within, into and out of the 

EU will have to account for their emissions and pay 

for the right to emit carbon. 

In 2011 Etihad Airways received notification of its 

entitlement of free carbon allowances. The remainder 

will need to be purchased on the carbon market or 

through auction. The financial exposure on this is 

likely to be significant, and heavily influenced by 

fluctuating carbon prices and the growth of our traffic 

into Europe. 

Etihad Airways’ position on emissions trading 

Our position on emissions trading can be summarised 

under the following points: 

» While recognising emissions trading as one of a 

range of potential market-based measures in a many 

tiered approach to reducing carbon emissions, we 

view the EU ETS and any other national or regional 

emissions trading scheme, as counterproductive and 

contrary to the terms of the Chicago Convention. 

» The current EU ETS scheme penalises all airlines, 

does not take account of investment by individual 

airlines, and will undoubtedly reduce funds 

available for further investment in new and 

emerging technologies. In short, it will have the 

effect of penalising growth without taking account of 

direct investment in efficiency. The mechanism used 

by the scheme in determining the industry cap and 

distributing the free allowances effectively favours 

established airlines over those with more ambitious 

growth plans. 

» No rules for the application of the scheme’s 

financial proceeds by member countries have 

been determined and there is no indication that they 

will be invested in environmental programs. 

» We fully support the overriding position of the 

UAE to pursue a global ICAO-led scheme to address 

climate change. We will therefore continue to 

encourage ICAO to pursue with diligence its work 

on the Assembly Resolution on Climate Change and 

hope that its conclusions will make the EU ETS 

redundant. 

» We support the prioritisation by the UAE 

government of measures that will result in a tangible 

and quantifiable reduction of emissions, such as 

those possible through infrastructure improvements 

in ground and air traffic management and a 

reduction in regional airspace inefficiencies. This 

will undoubtedly require multi-stakeholder input 

from airlines, airports, the military and neighbouring 

states. Effectively managed actions could reduce fuel 

wastage and emissions considerably. 

» We strongly oppose measures that will impose 

any additional financial burdens on airlines 

without a corresponding and real reduction in 

carbon emissions. We also believe that marketbased 

measures should be used with caution, and 

only as a last resort, when all possible operational 

measures have been exhausted. 

» Any measures directed at airlines should take 

account of efficiency, and the considerable capital 

investment involved in the acquisition of a modern, 

fuel-efficient fleet. Those airlines with younger more 

efficient fleets should be treated advantageously 

over those with older aircraft/engines. 

» Investments by airlines in environmental projects, 

such as biofuel research, should be credited against 

any market-based measures. 


Measuring our efficiency 

Fuel efficiency and emissions reduction 

Fuel use and corresponding carbon dioxide 

emissions increased in 2011 in line with fleet 

expansion. Nevertheless we have been successful in 

demonstrating year on year efficiency improvements. 

As a result of continued efforts we improved the 

efficiency of our passenger fleet by four per cent 

on our 2010 performance. This adds up to an 

improvement of 17 per cent between 2006 and 2011 

which is more than double the industry target of 1.5 

per cent per annum. 

Nitrous oxide (NOx) emissions 

A local pollutant, released during the fuel combustion 

process, NOx emissions are regulated by ICAO, 

through emissions standards for new engine types. 

We are able to track emissions during the landing and 

take-off (LTO) cycle at Abu Dhabi airport using the 

ICAO engine emissions database. 

The total NOx emissions increase as our fleet 

expands and the number of flight events increases. 

Nevertheless, since 2007 we have seen a 29 per 

cent improvement in emissions per LTO. This can be 

attributed to stricter NOx emissions controls in the 

newer generation of aircraft engines. 

Although the overall trend is positive, there was a 

slight increase in NOx per LTO between 2010 and 

2011, which is a reflection of the increase in the 

proportion of the wide-bodied long haul aircraft being 

utilised in 2011. 

Fuel dumping 

Passenger medical emergencies and technical issues 

may require a flight to divert to an alternative airport. 

If this occurs while the aircraft weight is still above 

its maximum landing weight, mid air fuel dumping 

may be required prior to landing. This procedure is 

only performed if absolutely necessary and in 2011 

this occurred only seven times, mainly as a result 

of passenger illness requiring emergency medical 

treatment. 

Noise 

Aircraft noise continues to affect local communities 

around busy airports. Global regulations on aircraft 

noise control are determined through ICAO which 

sets noise restrictions on new engines as part of the 

certification process. In addition, local regulations 

may be placed on individual airports in terms of 

restrictions on noisier aircraft and curfews. All Etihad 

Airways aircraft are compliant with the most stringent 

Chapter 4 noise standards imposed by ICAO. Etihad 

Airways was not subject to any noise complaints or 

infringements during 2011 

TOTAL NOx (TONNES) kg NOx / LTO 

1200 

50 

1000 

45 

40 

800 

35 

600 

30 

400 

25 

20 

200 

15 

0 

10 

2007 2008 2009 2010 2011 

ALL AIRCRAFT (THOUSAND TONNES) 

TOTAL FUEL CONSUMPTION g FUEL/100PK 

2000 

256 

1800 

254 

1600 

252 

1400 

250 

1200 

248 

1000 

800 

246 

600 

244 

400 

242 

200 

240 

0 

2008 2009 2010 2011 

238 

CO2 EMISSIONS g CO2 / 100TK 

6000 

800 

790 

5000 

780 

4000 

770 

760 

3000 

750 

740 

2000 

730 

1000 

720 

710 

0 

700 

2008 2009 2010 2011 

PASSENGER AIRCRAFT (THOUSAND TONNES) 

TOTAL FUEL CONSUMPTION g FUEL/100PK 

1800 

50 

1600 

45 

1400 

40 

1200 

35 

1000 

30 

800 

600 

25 

400 

20 

200 

15 

0 

10 

2006 2007 2008 2009 2010 2011 

CO2 EMISSIONS g CO2 / 100TK 

6000 

160 

5000 

150 

4000 

140 

3000 

130 

2000 

120 

1000 

110 

0 

100 

2006 2007 2008 2009 2010 2011 

Etihad Airways has improved fuel efficiency on its passenger fleet by 17 per cent per 

passenger kilometre between 2006 and 2011, more than double the 1.5 per cent per 

annum industry target. 

EN3. EN20. EN28 


Driving the development of alternative, sustainable fuels 

While the airline industry works tirelessly in looking 

for opportunities to reduce its carbon footprint, the 

growth of the industry, in line with global economic 

and social demands, will inevitably drive the 

continued net growth in emissions. 

We recognise this and the role we can play in helping 

to support the move towards viable sustainable 

alternatives to regular fossil fuel as a major step 

forward in decarbonising the industry. 

The progression towards the acceptance and potential 

use of biofuels in the aviation industry over the last 

two to three years has been rapid with drivers such 

as climate policies, carbon regulations and fears 

around the cost and supply of fossil fuels leading 

to a proliferation of global initiatives investigating 

sustainable aviation alternatives and their commercial 

feasibility. 

It is evident that the only real opportunity for a step 

change in technology will come through an alternative 

fuel. However its development is not without 

challenges and constraints. 

» It will have to be a ‘drop in’ fuel with the same 

specification as regular fuel with the required 

certification. 

» It will have to be cost competitive with regular fuel 

and its total lifecycle impacts will have to be lower 

than those of traditional fuel sources. 

» Biomass and refining capacity will have to meet 

the high global demand for aviation fuel which is 

presently approximately 60 billion gallons per year. 

» In the production of biofuel, sustainability and 

ethical issues around competition with local food 

and water resources and the social impacts of 

biofuels must be taken into account. 


Our commitment to using only fully sustainable fuels is 

confirmed by our membership of the Sustainable Aviation 

Fuel Users Group (SAFUG). 

SAFUG consists of 23 international airlines, all committed 

to enabling the commercialisation of sustainable alternatives 

to aviation fuel. This independent airline group represents 

approximately 20 per cent of the commercial global fuel 

use and is focused on supporting and driving sustainability 

principles in the development and commercialisation 

of alternative fuels. New members are only admitted by 

majority vote of existing members and are required to make 

a formal application committed to driving the development 

of biofuels and sign to the SAFUG sustainability pledge. 

The pledge includes commitment to the following: 

» The development of feedstock in a manner which 

is non-competitive with food and where biodiversity 

impacts are minimised. In addition, the cultivation 

of plant-based feedstock sources should not 

jeopardise drinking water supplies. 

» Total lifecycle greenhouse gas emissions from plant 

growth, harvesting, processing and end-use should 

be significantly reduced compared to those 

associated with jet fuels from fossil sources. 

» In developing economies, development projects 

should include provisions or outcomes that improve 

socio-economic conditions for small-scale farmers 

who rely on agriculture to feed their families, and 

that do not require the involuntary displacement of 

local populations. 

» High conservation value areas and native eco- 

systems should not be cleared and converted for jet 

fuel plant source development. 

EN6 

We see the use of sustainable biofuels as a major positive step change for our industry 

and we are proud to be involved with the Masdar Institute, Boeing and Honeywell’s UOP 

on a project that makes use of the resources of this region and supports the sustainability 

strategies of Abu Dhabi, including key research and development.” 

The Sustainable Bioenergy Research 

Consortium 

Led by the Masdar Institute and funded by 

Etihad Airways, Boeing, Honeywell’s UOP 

and the Abu Dhabi Government, the project is 

focused on the research and development of 

biofuels in the region. 

The flagship program of the consortium 

is investigating and piloting an integrated 

seawater energy agriculture energy system 

(ISEAS) utilising both aquaculture and potential 

feedstock. 

The production of Salicornia – a saltwater 

tolerant, oil producing halophyte – is part of 

a system which includes the development of 

commercial fish and shrimp farming along 

marginal desert coastal areas. 

The ISEAS makes provision for the nutrient-rich 

effluent from the aquaculture system to be 

directed to Salicornia plantations, providing 

essential nutrients for the growth of these 

shrub-like plants. The effluent undergoes 

further biological treatment in mangrove 

habitats which can themselves be harvested 

and converted into electricity, as well as 

providing a habitat for birds and coastal fish. 

Initial small scale investigations into yield 

and extensive desk top investigations have 

been very positive, with studies indicating that 

there may be some carbon positive benefits as 

residual carbon becomes locked in the soils. 

In 2012, the selection of a sizeable site will 

allow for the pilot project to commence. 

1 

4 

Pump seawater from the 

ocean to ponds, where 

fish and/or shrimp will 

be farmed 

Biomass from the halophytes 

is used to produce bioenergy, 

including biofuels 

2 

5 

Aquaculture for 

fish and shrimps 

Water that drains from the 

halophyte fields is fed into a 

mangrove wetland 

3 

6 

Waste water from the 

aquaculture operation, 

which is enriched in 

nutrients, is used to irrigate 

salt-tolerant biomass 

(halophytes) 

Biomass from the 

mangroves can be 

converted into bioenergy 

Etihad Airways Sustainability Report 2011 29

Total CO2 

emission 

Petrol 

(litres) 

total 

usage 

Diesel 

(litres) 

total 

usage 

Ground emissions 

Emissions from ground vehicles 

Etihad Airways owns a fleet of 48 buses, ranging from 

14-seater minibuses to 40-seater coaches. Their fuel 

consumption is carefully monitored allowing for the 

calculation of associated emissions. 

In 2011, the utilisation of diesel vehicles increased 

slightly compared to 2010 while there was a decrease 

in the use of petrol driven buses. Overall this 

resulted in a 14 per cent reduction in carbon dioxide 

emissions. 

2011 2010 

ETIHAD CREW BUS FUEL CONSUMPTION 

190,340 

350,237 

1,932,795 

1,774,469 

5,656,329 

6,645,901 

Emissions from our facilities 

Our key office facilities, namely the Etihad Airways 

headquarters, the Training Academy and Etihad Plaza 

provide a work environment for approximately 44 

per cent of our Abu Dhabi ground-based staff. The 

headquarters, which includes the Training Academy, 

is located close to Abu Dhabi International Airport, 

adjacent to land that is considered to be of no 

significant biodiversity value. Airline property is not 

close to any ‘desert preservation’ areas designated in 

the Abu Dhabi 2030 Plan. 

The emissions associated with these facilities can be 

calculated based on the data we collect for electricity 

and water usage and the provision of centralised 

cooling water. 

As expected, the use of electricity and water increased 

in these facilities in 2011 in line with the number of 

staff using the facilities and as their use for meetings 

and training purposes increased. 

Despite its being the most resource intensive utility, 

the level of district cooling required for our Etihad 

complex and Etihad Plaza showed improvements 

between 2010 and 2011. At the Complex and Plaza 

the total cooling demands fell by three and eight per 

cent respectively, saving the equivalent of 260 tonnes 

of carbon dioxide. 

These achievments were primarily as result of 

improvements in the building management systems, 

setting the thermostats to automatic, to work more 

effectively as and when required. 

Resource management 

Resource savings 

The use of copy paper in the offices is monitored and 

staff are encouraged to send documents electronically 

and avoid printing unnecessarily. 

Various communication tools are used to drive these 

messages to staff: 

• As part of the ‘Marhaba’ induction training for all 

new ground staff 

• The Green Champions, who have representation in 

most departments, are tasked with encouraging best 

practice among their colleagues. 

Reducing potable water 

Potable, that is, fully treated, water in Abu Dhabi, is 

primarily derived from desalinated seawater. 

At our main facilities it is used for bathrooms, 

canteens, cleaning purposes and for irrigation. In 

2011 the water demand at both our main facilities, 

the Etihad Complex and the Etihad Plaza, fell by nine 

and nearly 16 per cent respectively. 

These improvements are a reflection of our efforts to 

be more careful in the use of water, and a result of 

fewer maintenance activities which place additional 

demands on water. 2011 also saw fewer instances of 

problems with the water systems such as leakages and 

pipe work problems. 

In 2012, the launch of the company-wide water 

savings campaign should drive further water saving 

and an additional five per cent reduction target has 

been set. 

Waste collection and recycling 

Paper, cardboard, cans and plastic bottles are 

collected and placed in bins around offices and other 

areas. 

This initiative has been extended to our residential 

facilities in Etihad Plaza, with the provision of 

collection bins close to every residential tower, 

and clear communication to all residents about the 

locations of these and the types of materials that can 

be segregated. 

We also support the Philippine Community Fund 

(PCF), a non-sectarian not for profit organisation that 

works in the most depressed areas of the Philippines 

with communities who are unable to provide their 

own basic needs. We encourage staff and individual to 

support and collect ring pull tabs from canned drinks 

and food tins. 

Etihad Airways also supported a student from a nearby 

school in an independent initiative to recycle inkjet 

printer cartridges in support of the British Guide Dog 

Association. 

Waste material from offices, the canteen and from 

facilities and maintenance management continues to 

be monitored. 

The airline made significant improvements in the 

amount of paper and cardboard that was segregated 

for recycling in 2011. This is reflected in a slight 

decrease of 3,150 kilograms in waste being taken to 

landfill from our head quarters and office facilities. 

ETIHAD COMPLEX 

ELECTRICITY CONSUMPTION 

(Total KwH) 

EN2, EN3, EN4, EN5, EN7 

EN1, EN8, EN9 


2011 

2010 


2010 


2010 


2010 


2010 

1,501,981 

1,408,867 


DISTRICT COOLING 

(Total Cooling Tonne/hr) 

4,239,162 

4,358,315 


WATER CONSUMPTION 

(Total cubic metres) 

74,202 

81,560 


WASTE GENERATION 

(Total kg) 

728,700 

731,850 


OFFICE PAPER 

CONSUMPTION (Reams) 

18,725 

21,450 


2010 


2010 


2010 

2010 


2010 

ETIHAD PLAZA (OFFICES) 

ELECTRICITY CONSUMPTION 

(Total KwH) 

675,813 

660,359 

ETIHAD PLAZA 

DISTRICT COOLING 

(Total Cooling Tonne/hr) 

3,009,064 

3,274,599 

ETIHAD PLAZA 

WATER CONSUMPTION 

(Total cubic metres) 

2481 

2946 

ETIHAD PLAZA 

WASTE GENERATION 

(Total kg) 

17,300 

24,775 

ETIHAD PLAZA 

OFFICE PAPER 

CONSUMPTION (Reams) 

3,428 

3,296

Staff engagement 

Green Champions 

Etihad Green Champions are staff volunteers 

who help to support the office greening and drive 

behaviour change by educating staff in best practice. 

Recycling, using office resources wisely, switching off 

office equipment and lighting when not needed, are 

examples of actions encouraged among our staff. 

Earth Hour 

Earth Hour in the UAE was marked on March 

26, 2011 between 8.30pm and 9.30 pm. This 

international event, started in Australia in 2007, has 

gained increasing global recognition and support as 

a way of driving awareness when it comes to energy 

saving. 

We supported Earth Hour by promoting the event, 

encouraging staff support and by turning off the lights 

across our major facilities in Abu Dhabi. 

Building on this initiative, we participated in a 

joint activity ‘Going Beyond Green’ with the Abu 

Dhabi Airports Company (ADAC). This included 

an inspirational presentation from HH Sheik Abdul 

Aziz bin Ali Al Nuaimi of the ruling family of Ajman, 

popularly known as the “Green Sheikh” for his ecofriendly 

initiatives. 

Kid’s art competition 

We partnered with ADAC in a children’s art 

competition. We invited children between the ages of 

two and 12 to submit entries using recycled materials 

The theme of the competition was Saving Planet 

Earth. The overall winners won a fantastic Etihad flight 

simulator experience. 

Green Room 

2011 saw the official opening of the Etihad ‘Green 

Room’. Located in the Etihad Training Academy, 

the room is a showcase for environmental best 

practice and eco-technology and a venue to raise 

environmental awareness. 

World Environment Day 

Etihad Airways celebrated World Environment Day in 

June as part of the airline’s environmental awareness 

program.World Environment Day is the most widely 

supported annual event aimed at promoting positive 

environmental action. 

The environment team arranged a number of activities 

including earth meditation sessions, the sale of 

eco-friendly products, documentary screenings and 

presentations. 

Our efforts rewarded 

In November 2011, Etihad Airways was honoured for 

its commitment to the environment at China’s 2011 

Top Travel magazine awards. 

The prestigious Environmental Contribution of the 

Year Award is given annually to travel companies for 

demonstrating global leadership in corporate social 

responsibility. 

The award was made in recognition of the 

introduction of ‘Permagard’, a polymer coating 

applied to the exterior of our entire fleet of aircraft. 

The Permagard treatment provides protection to 

the aircraft surface, reflecting dirt and dust from the 

surface, so aircraft need to be washed less often. 

The treatment also eliminates the need for strong 

cleaning agents, which can be replaced by more 

environmentally friendly alternatives. 

This has resulted in significant savings in washing 

water and cleaning fluids - 10 million litres of water 

a year, as well as a 96 per cent reduction in cleaning 

fluid, from 50,000 litres to just 2,000 - as well as 

improvements in fuel efficiency from reduced drag on 

aircraft. 


Goals and targets 

Our 2011 targets 

Several targets were set in 2010 for 2011. 

Some of these targets were met and our efforts were particularly rewarded with a 

nine per cent reduction in water consumption and a 45 per cent increase in the 

amount of wastepaper and cardboard collected for recycling. 

However, some of our targets were not met. We set a five per cent reduction target 

for our energy consumption in Etihad Complex and in our offices at Etihad Plaza. 

However, the electricity demand in these facilities increased during 2011 by seven 

and two per cent respectively. This was primarily due to the more intensive use of 

the facilities, particularly our crew training areas. Plans for building improvement 

projects in 2012 should allow for efficiency improvements in 2012. 

Reduction targets Outcome 

Five per cent reduction in potable water consumption 

at Etihad Complex 

Five per cent reduction in energy consumption TARGET NOT MET 

Etihad Complex 

Etihad Plaza offices 

10 per cent reduction in the volume of waste to landfill 

from Etihad Complex 

10 per cent improvement in waste segregation and 

recycling in Etihad Complex 

TARGET EXCEEDED 

Nine per cent reduction in consumption 

in 2011 versus 2010 

Seven per cent increase in consumption 

in 2011 on 2010 

Two per cent increase in consumption in 

2011 on 2010 

TARGET NOT MET 

0.4 per cent reduction in volume of 

waste to landfill in 2011 on 2010 

TARGET EXCEEDED 

45 per cent more material segregated 

and sent for recycling in 2011 on 2010 

10 per cent reduction in copy paper use in TARGET NOT MET 

Etihad Headquarter (HQ) 

Etihad Training Academy (TA) 


four per cent reduction in copy paper 

use in 2011 on 2010 

Three per cent increase in copy paper 

use in 2011 on 2010 

Four per cent increase in copy paper use 

in 2011 on 2010 

District cooling No target set for 2011 

Etihad Complex 


Three per cent reduction in district cooling 

needs in 2011 on 2010 

Eight per cent reduction in district cooling 

needs in 2011 on 2010 

Our 2012 targets 

The main focus for 2012 is to drive down electricity consumption in our ground 

facilities, identify ways and means to reduce the volume of waste going to landfill 

and to use the 2012 water saving campaign to reduce dependence on fresh water 

both in our offices and facilities and in the daily lives of our staff. 

Unlike last year, we will also set a target for our cooling water consumption. 

While we achieved improvement in this area from 2010 to 2011 (three per cent 

and eight per cent respectively at Etihad Complex and Etihad Plaza), the facilities 

management team will be looking at the feasibility of further improving the 

efficiency of the air cooling units. Signifigant upgrading of the water distribution 

systems within Etihad Airways facilities should result in fewer instances of broken 

pipeworks and leaks. 

Reduction targets Action plan 

Five per cent reduction in potable water consumption at 

Etihad Complex compared to 2011 

Five per cent reduction in energy consumption at Etihad 

Complex and the Etihad Plaza offices compared to 


Five per cent reduction in cooling water requirements at 

Etihad Complex compared to 2011 

10 per cent reduction in the volume of waste to landfill 

from Etihad Complex compared to 2011 

10 per cent improvement in waste segregation and 

recycling in Etihad Complex compared to 2011 

10 per cent reduction in copy paper use in both Etihad 

Complex and Etihad Plaza offices compared to 2011 

The 2012 water saving campaign will 

promote water saving among staff. 

Feasibility studies on using drainage 

water from air handling and fan cool 

condensate for irrigation may lead to 

implementation of this initiative in 2012. 

A switch to energy saving lighting 

Improvements in the building management 

systems will enable a more effective 

and efficient scheduling system for 

lighting and air conditioning systems. 

More comprehensive cleaning and 

maintenance of air conditioning 

systems. 

Improvements to building management 

system. 

A waste composition assessment will 

allow a comprehensive plan which 

reflects reduction opportunities. 

Additional materials for recycling will 

be identified. 

Continued education and awareness 

raising for office and cleaning staff 

Changing of the printer setting to default 

double sided. 

Education and awareness raising and 

communication to office staff by the 

Green Champions. 

Summary 

Units 2011 2010 

Aircraft Operation Metrics 

Total Passenger Kilometers (PK) 40,020,920,494 34,516,523,826 

Freight Tonne Kilomters (FTK) 2,245,587,824 2,212,751,786 

Total Tonne Kilometer (TK) 

Fuel Consumption 

7,048,098,283 6,354,734,645 

Total Consumption tonnes 1,722,842 1,548,638 

Fuel consumption (passenger flights only) tonnes 1,561,426 1,429,848 

Fuel consumption (Cargo) 

Carbon Dioxide Emissions 

tonnes 161,416 118,789 

Total CO2 emission (pax & cargo) tonnes of CO2/kg 5,427 4,878 

CO2 per RPK (passenger only) gCO2/100 PK 123 130 

CO2 per TK gCO2/100 TK 770 768 

% of improvement in CO2/RPK (Since 2006) CO2/RPK 17.25% 12.13% 

% of improvement in CO2/TK (Since 2008) CO2/TK 3.52% 3.82% 

Total NOx emission during LTO kg 974,575 843,569 

NOx emission per LTO kg 33 32 

CO emission per LTO 

Fuel Ground Vehicle 

kg 14 13 

Petrol Liters 190,340 350,237 

Diesel 

Energy 

Liters 1,932,795 1,774,469 

Etihad Headquarter & Training Academy 

Etihad Plaza (Offices and Common Area) 

District Cooling 

kWh 

1,501,981 

675,813 

1,408,867 

660,359 


Etihad Plaza (Including residential areas) 

Water 

tonnes/hour 

4,239,162 

3,009,064 

4,358,315 

3,274,599 


m3 Etihad Plaza (Offices and Common Area) 

Waste 

74,202 

2,481 

81,560 

2,946 

Paper and Cardboard recycled kg 24,775 17,300 

Printer Cartridges recycled pcs 206 549 

Aluminium (cans) recycled kg 0 240 

Plastic (bottles) recycled kg 10 90 

Etihad Complex General Waste kg 728,700 731,850 

EN1, EN2, EN3, EN4, EN8, EN16, EN20, EN22 


Driving economic growth in Abu Dhabi 

Aviation is a critical cluster industry within the Abu 

Dhabi Government’s 2030 Plan, in which a successful 

airline and airport are recognised as fundamental 

drivers of successful free-market commercial activity 

and vital to underpin a diverse economy in the global 

arena. 

According to the latest study, completed in April 2011 

by leading UK think tank, Oxford Economics, Etihad 

Airways plays a crucial role in supporting and driving 

economic growth in the UAE. 

The research used the standard methodology for 

economic impact appraisals, and was based on data 

from the International Airline Transport Association 

(IATA), the Air Transport Action Group (ATAG), 

EUROCONTROL, the UK aviation industry, and the 

Civil Aviation Authority of Singapore (CAAS). 

Economic contribution is classified into four key 

areas: direct (within Etihad Airways), indirect 

(suppliers to Etihad Airways), induced (spending of 

direct and indirect employees) and catalytic (impacts 

on other industries). 

Creating wealth, creating jobs 

Direct economic contribution: The airline contributed 

US$1.46 billion (2.1 per cent) of Abu Dhabi’s non-oil 

GDP (or 0.8 per cent of total GDP) in 2011, and 

helped to generate and support nearly 104,000 nonoil 

jobs throughout the Emirate. 

Our procurement policy guides the cost efficient 

and transparent purchasing of goods and services 

and provides a standard framework for governance 

to create value and mitigate risk to Etihad Airways. 

While the use of local suppliers is always preferred, 

they are selected only where they are able to provide 

a service and/or product that is equivalent or superior 

to an external supplier based on the evaluation 

criteria specified in the supplier selection and tender 

process, which includes, but is not limited to price, 

quality, and experience. 

Indirect economic contribution: Etihad Airways made 

an indirect economic contribution of US$830 million 

and supported an additional 15,000 jobs in 2011 

through fuel purchases, maintenance and repair, 

airport rental and landing fees, marketing, advertising, 

IT ventures and communications. 

Induced economic contribution: An induced GDP 

contribution of US$760 million and 13,839 additional 

jobs can be attributed to money spent during 2011 by 

people working for Etihad Airways and its suppliers. 

Catalytic economic contribution: Etihad Airways 

played an important role in improving air links 

between Abu Dhabi and the rest of the global 

economy, and the airline’s expanding network was 

a key factor in encouraging businesses to invest in 

the Emirate and the UAE. These activities provided 

a catalytic economic contribution of nearly US$4 

billion, representing 5.3 per cent of the Abu Dhabi’s 

non-oil GDP (2.1 per cent), and supported nearly 

68,000 jobs. 

Etihad Airways was also a key contributor to the 

development and growth of tourism in the UAE. 

In 2011 the airline carried 8.3 million passengers 

through its hub in Abu Dhabi. In 2012 this figure is set 

to increase to 10 million passengers. 

Based on the airline’s current growth projections, 

Etihad Airways’ total economic contribution to Abu 

Dhabi’s GDP is on track to increase by 76 per cent 

to US$10.743 billion by 2015, helping to support 

162,000 jobs in the Emirate. 

Building a national workforce 

A key imperative for Abu Dhabi is the development 

of long term strategic initiatives aimed at empowering 

its national workforce, motivating young people, 

equipping them with the right workplace skills and 

enabling them to fulfill their potential and sustainably 

power the national economy in the long term. 

One of our primary contributions to the local 

economy is through our Emiratisation program, 

which is a key business imperative mandated by 

the Board and fundamental to our human resources 

strategy. Ensuring that we attract and develop Emirati 

nationals to support our future growth, we adopted an 

integrated approach. 

Source - aligning business requirements with 

community needs; 

Develop - aligning learning interventions with 

business and individual needs; 

Engage - fostering a conducive working environment; 

and 

Deliver - sustainably embedding Emirati talent at all 

levels within our workforce. 

Aviation is a critical cluster industry within the Abu Dhabi government’s 

2030 Plan, in which a successful airline and airport are recognised as 

fundamental drivers of successful free-market commercial activity and 

vital to underpin a diverse economy in the global arena. 


Since the commencement of the Emiratisation 

program in 2007, we have invested a significant 

amount in the three main streams of the Emiratisation 

endeavour; the cadet pilot program, the graduate 

management development program, and the trainee 

engineering apprenticeship scheme. A total of 140 

Emirati nationals have graduated from the programs 

since their inception. (See also Working Together) 

In the four years since inception, the number of 

nationals within our workforce has grown from four 

per cent in 2007 to 21 per cent (excluding cabin crew 

and outstations) by the end of 2011, representing an 

impressive 98 per cent year-on-year increase. 

Local innovation through partnership 

Environmental performance and action to benefit 

the local community are intrinsically linked. Our 

‘Together’ strategy ensures that anything we do, 

or support, adds value to local communities. Our 

engagement in research into feedstock for biofuel 

in Abu Dhabi with the Masdar Institute is a perfect 

example of this. The ‘integrated seawater energy 

agriculture system’ will create long-term value for 

local communities through the development of an 

economically viable aquaculture industry, creating 

work and prosperity in the less developed areas of the 

Emirate. For the aviation industry a potentially viable 

alternative to fossil fuel for this region is an exciting 

prospect. 

Supporting the community 

Despite the broader commercial imperative at the 

macro level of the country’s economy, we also 

participate in several projects and initiatives which 

positively and more directly impact and improve the 

lives of people in the local community. 

Sponsorship 

Etihad Airways is proud to support a range of sporting 

and cultural events in the United Arab Emirates and 

worldwide. These sponsorships are consistent with the 

airline’s values of hospitality, team spirit, and helping 

bring Abu Dhabi to the world. 

Our major sponsorships include the Formula 1 Etihad 

Airways Abu Dhabi Grand Prix, Manchester City 

Football Club, Etihad Stadium in Melbourne, Sport 

Australia Hall of Fame, GAA Hurling All Ireland 

Senior Championship, Harlequins Rugby Football 

Club and V8 Supercars Australia. 

We work with our sports partners to develop Emirati 

sporting talent and support grass roots sport in the 

UAE in various community program properties 

including the F1 in Schools Program in conjunction 

with Mubadala; the Etihad Manchester City Soccer 

School Program reaching over 2000 children; the 

Etihad Harlequins Rugby Schools Program and Clinic, 

which in the last six years has reached over 3,000 

children from schools in Abu Dhabi. 

In 2011, Etihad Airways also supported several key 

international conferences, notably the Eye on Earth 

Summit and the Women in Leadership Conference 

held in Abu Dhabi. 

Etihad Airways celebrated the 40th anniversary of the 

UAE’s National Day with a fly past across the seven 

emirates, in addition to sponsoring several other staff, 

community and sporting activities in Abu Dhabi. 

2011 was designated as the ‘Year of Abu Dhabi’ to 

coincide with the launch of ‘essential abu dhabi’, 

a campaign to enhance Abu Dhabi’s standing as a 

top tourist and MICE destination through a range of 

promotional activities organised with major tourism 

operators in the Emirate. 

Etihad Airways unveiled a special “Visit Abu Dhabi in 

2011” livery on an Airbus A330-300 aircraft, which 

took off for a celebratory flight across the United Arab 

Emirates, with a group of special needs children from 

Zayed Higher Organization for Humanitarian Care 

and Special Needs, to take in some of the country’s 

top landmarks. 

We also sponsored flights to Paris for a group 

of scholars from Zayed Higher Organization for 

Humanitarian Care and Special Needs for an 

educational visit and provided tickets to support the 

Future Centre in Abu Dhabi. 

UAE women – the core of the community 

In 2011, as an extension of our Emiratisation program, 

we opened a new call centre staffed entirely by 

Emirati women from Al Ain, the second largest city 

in the Emirate of Abu Dhabi and the fourth largest 

in the UAE with a population of 374,000 (2009). 

The complement of 80 staff includes the manager, 

seven team leaders, five quality executives and 67 

agents. It has capacity to grow from its present size 

to accommodate 200 staff as the requirements of the 

business dictate. 

The staff underwent a comprehensive six-month 

training program to equip them fully for employment. 

Courses covered soft skills, reservations systems 

knowledge and English language essentials. 

In addition to empowering a previously excluded 

sector of the local community, the centre will 

enhance the prosperity of Al Ain, providing a second 

income for many families and contributing directly 

and indirectly to economic growth and development 

in the UAE. 

A unique collaboration with Sougha, a Khalifa Fund 

initiative, is working with women in the Western 

Region, to preserve traditional crafts in a range of 

modern products that are included in the duty free 

selection onboard Etihad Airways flights. 

This project supports the economic inclusion and 

development of an otherwise marginalised rural 

community, the enhancement and creation of working 

opportunities for women, and the Emirate’s overall 

goal of economic diversification. 

In October we marked breast cancer awareness 

month by sponsoring a campaign in the community 

to raise awareness of the disease and importance of 

early detection, offering free screening and education 

in collaboration with Lifeline Mobile Clinic in the city 

and other locations in the Emirate. We also sponsored 

Pink Polo at the Ghantoot Racing and Polo Club. 

EN5, EN18 


Our workforce 

Etihad Airways recognises the value of a talented 

and diverse workforce, and is committed to valuing 

and promoting diversity in all areas of recruitment, 

employment, training and promotion. Etihad Airways 

will work towards an environment that is based on 

meritocracy and inclusiveness, where all employees 

can develop their full potential irrespective of their 

race, gender, marital status, language, age, disability, 

religious belief, socio-economic status, thinking styles, 

experience and education. 

At the end of 2011, our total workforce comprised 

9,038 employees, 7,672 of whom were based in Abu 

Dhabi with 1,366 located in 46 countries across our 

network. Of the total number of employees, 1,185 are 

pilots and 3,230 are cabin crew. There is a 48 to 52 per 

cent ratio of women to men. 

Nearly all employees, (99.93 per cent) within the 

organisation are full time employees, with only a very 

small number of external consultants, (just 0.07 per 

cent of the total workforce), being retained on part time 

or temporary employment contracts. 

Location Headcount % 

Outstations 1,366 15.11% 

UAE 7,672 84.89% 

Grand Total 9,038 

Gender Headcount % 

Female 4,374 48.40% 

Male 4,664 51.60% 

Grand Total 9,038 

Age Group Headcount 

Currently in training 

We have a continuous focus on building aviation 

specific capability through training programs: 

As the national airline of the UAE, Etihad Airways will 

continue to create opportunities in every part of its 

business to attract, develop and retain talented and 

committed UAE nationals. Ultimately the Emiratis from 

the various program will be empowered and developed 

to meet its future needs. 

Learning and development 

In 2011, the learning and development function 

designed and delivered several new learning 

interventions aligned with business requirements to 

enhance organisational performance. 

2000 

1500 

1000 

500 

0 

JANUARY - DECEMBER 2011 COMPARATIVE ANALYSIS 

COURSES VS TRAINEES 

JAN 

Trainees currently in 

training 

Cadet 

Pilots 

Second 

Officers 

State-of-the-art Academy resources include: 

− 32 classrooms 

− 1 auditorium (seating approx 120) 

− 4 flight simulators (1 x B777, 1 x A320, 

2 x A330/340) 

− 1 Cabin Emergency Evacuation Trainer 

− 1 real Fire Fighting Trainer 

− 4 door trainers (Airbus & Boeing) 

− 6 computer-based training rooms 

The Etihad Academy, now accredited by IATA, 

delivered almost 1,300 classroom-based courses to 

more than 12,700 participants in 2011. Core Etihad 

employees based in head office underwent an average 

of two hours training, with cabin crew averaging six 

hours of training for the year. 

Trainee 

Engineers 

Total 1,391 courses and 13,915 trainees 

Average trainees/month=1,159 

Average number of courses/month=115 

Courses Trainees 

FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 

Graduate 

Managers 

Airport 

Managers 

Trainees 159 63 84 101 10 417 

Males 152 60 76 44 9 341 

Females 7 3 8 57 1 76 

Total Trainees 

Our adoption of on-line learning proved to be very 

successful with a 500 per cent increase in on-line 

learning courses, an effective training solution for a 

global and mobile workforce which also delivers cost 

advantages to the airline. The shift to on-line learning 

delivery enabled a cost avoidance of AED10 million in 

2011. 

Competitive benefits 

In addition to very competitive remuneration packages, 

UAE based staff receive an end of service benefit in 

line with UAE labour legislation based on the years 

of service. Outside the UAE, payments to government 

pension plans are made in line with local labour 

legislation. 

Our fulltime employees enjoy a wide range of 

benefits, including accommodation assistance, sports 

and recreational facilities, educational assistance to 

managerial staff, discounted air travel and cargo as well 

as access to medical care and medical insurance. 

Performance management 

At the end of 2010 Etihad employees completed 

their first full year cycle in the new performance 

management system ‘iachieve.’ One hundred per cent 

of employees completed an end of year performance 

review in the first quarter of 2011 and the first 

performance-based pay increases were applied in 

April 2011. In tandem with this significant change, the 

company grading structure was redesigned with the 

introduction of job levels and a reduced number of 

grades while the number of job titles in the organisation 

was also reduced by over 30 per cent and a standard 

job title protocol introduced. Both these changes were 

key initiatives in reducing complexity and bureaucracy 

in organisation design. Further reinforcing the link 

between performance and reward, global incentive 

schemes were introduced in the Sales and Cargo 

divisions. The focus on ongoing dialogue between the 

employee and the manager continued through 2011 

with almost 100 per cent of employees completing a 

formal end of year performance discussion. 

We are committed to fairness in the workplace 

and recognise that a diverse workforce allows us 

to serve our stakeholders most effectively. 

LA10, LA11, LA12 


A positive workplace A safe workplace 

We are committed to fairness in the workplace and 

recognise that a diverse workforce allows us to serve 

our stakeholders most effectively. We do not tolerate 

any form of discrimination or harassment directed at 

any individual or group on the basis of race, colour, 

religion, sex, national origin, citizenship, creed, age, 

marital or family status or disability. 

This in entrenched in our code of conduct and noncompliance 

is subject to disciplinary action. 

A healthy workplace - medical and employee 

wellbeing services 

Since opening its doors in 2010, the Etihad Airways 

Medical Centre has provided essential medical 

services to cabin crew and pilots. As services are 

regulated by both the Health Authority of Abu Dhabi 

and the General Civil Aviation Authority there is a 

natural emphasis on compliance with regulations and 

standards. 

During 2011 our emphasis changed from not just 

achieving compliance but to achieving excellence. 

This was a necessary step in order to meet the needs 

of Etihad Airways. To achieve this objective medical 

services were restructured into distinct specialties: 

Aviation, General and Occupational medicine. 

As access to services is critical for airline staff with 

variable and busy schedules, the Etihad Airways 

Medical Centre re-engineered internal business 

processes to provide flexibility and increase the 

number of available appointment slots, reduce waiting 

times and improve the service flow through the centre. 

In the next phase, opening hours will be extended 

and the capacity of the centre increased by providing 

additional consultation rooms so that a broader range 

of services can be provided for more staff and their 

families. 

Recognising that prevention is better than a cure, 

and that a healthy workforce is happier and more 

productive, the Medical Centre partnered with the 

CSR team in a series of highly successful campaigns, 

including a breast cancer screening program, 

wellbeing days and a flu vaccination program. The 

Centre also encourages health and wellbeing in the 

staff newspaper, Etihad News, and promotes fitness 

and wellbeing through the Fit2Fly exercise programs 

at gyms and state-of-the-art sports facilities in five 

locations. 

Etihad Airways is committed to supporting healthy 

lifestyles through its modern, dynamic gyms, rapidly 

expanding healthcare facilities and health education 

and promotion activities. 

An active community 

The Etihad Sports and Social Committee is an 

independent and self funded group voluntarily 

constituted to promote sporting and social activities for 

employees and their families in Abu Dhabi. Sporting 

activities coordinated and promoted by the committee 

at tournaments and friendly club fixtures include 

football, squash, basketball, bowling, cricket, tennis 

and junior football. 

Safety is Etihad Airways’ top priority. It lies at the heart 

of our business and is a core value across the entire 

organisation. The statement of commitment, policy and 

procedures are outlined in the airline’s safety manual, 

which supports the requirement for a company-wide 

Safety Management System and helps to embed safety 

in our working procedures and processes. 

Safety Management System (SMS) 

Etihad Airways’ Safety Management System (SMS) is a 

comprehensive system designed to proactively manage 

health, safety and general risks in the workplace. 

Mapped to ISO 14001 and OHSAS 18001 standards 

to ensure consistency with international best practice, 

the proactive SMS risk management strategy and 

tools provide a comprehensive and systematic way of 

identifying risks across the organisation and controlling 

and mitigating them to acceptable levels. It enables 

goal setting, planning and measuring performance, 

communication with staff, training, safety assurance 

and safety culture and reporting. 

During 2011, a 61 per cent reduction in risk for 

identified hazards across all operational areas was 

achieved 

The SMS also involves the airline’s third party suppliers 

and contractors, who are assessed and have to adhere 

to the SMS requirements and procurement ratification 

process. 

Etihad Airways’ Safety Management System gained full 

approval by the Abu Dhabi Department of Transport 

and the Competent Department for Occupational 

Safety and Health Abu Dhabi in September 2011. 

Etihad Airways commenced formal reporting on health 

and safety injury and lost days from that time, with 

10 work-related injuries being recorded across the 

organisation by year-end. This resulted in two days’ lost 

time. There were no work-related fatalities recorded 

within the organisation in 2011. 

Safety Action Groups 

Under the Abu Dhabi Environment, Health and Safety 

Regulatory framework, it is mandatory for Etihad 

Airways to consult with its employees in decisions 

affecting their health and safety. Within the Safety 

Management System (SMS) we have set up Safety 

Action Groups (SAGs) throughout the business to 

ensure that effective and appropriate EHS information 

is disseminated and communicated between 

management and employees. 

The SAGs are also engaged in resolving health and 

safety issues, monitoring employees’ health and 

workplace conditions and ensuring that adequate 

training and information is provided on hazard 

identification, risk assessment and maintaining healthy 

and safe working conditions. 

Consisting of representatives from nine key operational 

departments, the SAGs have been improved and 

expanded during 2011, to include representation 

from three key outstations across the global network. 

With between five and 15 staff per group, there are 

around 90 employees (or approximately one per cent 

of the total workforce) who are actively involved in 

disseminating EHS information and providing feedback 

between management and employees. 

Environmental health and safety training 

EHS training is fundamental for any workplace if it 

is to succeed in achieving its objectives. All training 

requirements are determined by the organisation’s 

Safety and Quality Department and overseen by 

the Health and Safety Division of the Abu Dhabi 

Department of Transport. 

The training provided during 2011: 

− 220 core grade staff underwent EHS-specific 

induction training 

− 227 staff undertook fire fighting training 

− 800 crew underwent EHS specific induction training 

− 55 pilots underwent EHS specific induction training 

− 45 staff were trained as fire marshalls 

Full regulatory compliance 

All IATA member airlines are required to pass IOSA 

(IATA Operational Safety Audit), which is conducted 

every two years by an externally accredited audit 

organisation. In 2010 Etihad Airways passed a major 

UAE GCAA audit and the IOSA 2010 renewal, the 

latter being the most recognised operational safety 

accreditation in the airline industry. The program 

is comprehensive, consisting of 966 standards, 

subdivided into eight operational areas. Passing 

this with zero findings in 2006, 2008 and 2010 is a 

significant achievement demonstrating the very highest 

levels of safety. 

There were no incidents of non-compliance with local 

regulations and voluntary codes, which was further 

validated following an unscheduled inspection by the 

Abu Dhabi Department of Transport in February 2012. 

44 Etihad Airways Corporate Social Responsibility Report 2011 LA7 

PR.2, LA6, LA8 


Corporate and individual philanthropy plays an 

important part in meeting our social responsibility. 

In 2011 we increased our commitment to local and 

international projects and initiatives that improve the 

lives and wellbeing of the communities in which we 

operate. 

Crisis and humanitarian aid 

Staff in Japan and Thailand affected by the natural 

disasters during the year were supported in 

various ways, including the provision of alternate 

accommodation and a daily living allowance. Staff 

based in Abu Dhabi were given access to information 

and assistance hotlines to stay in touch with their 

families during the crises. 

Our staff responded with generosity and compassion 

to the devastating earthquake and tsunami in Japan 

and the flooding in Thailand later in the year. 

We extended our support for HRH the Prince of 

Wales Pakistan Relief Fund which continues to rebuild 

villages and communities still stricken by the 2010 

floods. 

Working with Airlink and Care by Air, Etihad Cargo 

transported large consignments of aid destined for 

Somalia in the wake of the civil war and famine. 

Our association with Airlink strengthened and 

we were able to support several charities and 

organisations carrying out relief work in Thailand, the 

Philippines and Africa, flying passengers and cargo to 

areas in need. 

Community engagement 

Our focus continued in the areas of individual 

and community empowerment and development. 

Extending the rationale and strategy in our workplace, 

we work in a variety of communities and with 

accredited programs to deliver opportunities, 

education and vocational training that in turn create 

employment and enhance the quality of life in 

communities. 2011 also increased engagement with 

cultural and artistic programs, and our continued 

support for those which promote multi-cultural 

dialogue. Etihad Airways does not provide any 

financial support to politicians or political parties. 

» Peace X Peace and Connection Point 

» Mosaic 

» Offscreen 

» Edge of Arabia Exhibition 

» National Museum of Australia – 

Handwritten Exhibition 

» TEDx 

» Give and Gain Day 

» Islamic Relief 

» Islamic Museum of Australia 

» Maria Christina Foundation 

and Scholarship Program 

» Child Welfare Scheme 

» Monyati 

» Medicimage 

» Palestine Children’s Relief Fund 

» Shelterbox 

» Pakistan Relief Fund 

» 2041 and International Antarctic Expedition 

» Pink Polo 

» Plurabelle Paddlers 

» F1 in Schools 

Adding it all up in 2011 

We provided 170 free flights across our network for 

charities, community and cultural projects and waived 

200 kgs of excess baggage for voluntary charity 

support. 

Our frequent flyer customers donated a total of 

31,422,850 Etihad Guest Miles to the 63 charities 

listed on the Etihad Guest shop. 

In 2011 we increased our commitment to local and 

international projects and initiatives that improve the lives 

and wellbeing of the communities in which we operate. 

46 Etihad Airways Corporate Social Responsibility Report 2011 SO.6 


Corporate governance 

Corporate governance is rigorously enforced in line 

with the Manual of Authority through carefully defined 

structures and processes. The Manual of Authority 

outlines authority limits delegated by the Board to the 

Executive Committee, the executive team, management 

and staff in order to run the company’s affairs and 

operations. 

The organisational structure ensures transparent 

reporting and necessary checks and balances. A 2009 

report by leading global management consulting firm 

Oliver Wyman for the Abu Dhabi Audit Authority 

concluded that Etihad Airways had “established strong 

corporate governance and process redesign”. 

Various layers of shareholder, management and 

regulatory oversight ensure continuous performance 

review against corporate strategic objectives and 

external standards. 

Etihad Airways governance framework 

Shareholder 

Board Meeting – Quarterly 

Executive Committee – Monthly 

Audit Committee – Quarterly 

Management 

Manual of Authority 

Tender Board Meetings 

Internal Audits 

Regulatory 

External Audit – KPMG Annual 

Financial Review – KPMG Quarterly 

Government Audit – ADAA Periodic 

Operations Audit – GCAA Annual 

Safety Audit – IOSA Biennial 

Etihad’s management reporting framework 

Meetings Objective Frequency Attendees 

Board Meetings The Board meets the management of the company to ensure 

shareholder mandates are effectively implemented. The Board 

receives its authority from the shareholder and effectively 

delegates that to the management via the Manual of Authority. 

Executive Committee 

Meetings 

The Executive Committee meets management to discuss and 

authorise the carrying out of any activity deemed necessary to 

enable the company to achieve its commercial objectives and 

operational activities, and to review risks and formulate actions 

to address such potential risks. 

Audit Committee The Audit Committee provide assurance to the Board over the 

qualification, independence, and performance of the registered 

public accounting firm (external auditor), and seeks advice from 

the company’s internal audit function as to the adherence to 

relevant governance standards. 

Chiefs Meetings The Chief Officers of the company meet to discuss and review 

performance to ensure the company achieves its commercial 

objectives. At this meeting the CEO updates his direct reports on 

issues affecting the company and feedback of Board, Executive 

Committee and other meetings. The Chief Officers update the 

CEO on issues and focus areas relating to their divisions. 

Performance Review 

Prioritisation Meetings 

Divisional Business 

Review Meetings (BRM) 

These meetings focus on the performance of the company 

including planned initiatives and continuous improvement. 

The CEO meets with the management teams on a monthly basis 

to ensure the organisation’s performance is aligned to strategic 

objectives and a healthy operational environment exists. This is 

done through updating the CEO and other members of the BRM 

on initiatives, projects, risks and critical performance indicators 

and focus areas of the division. 

Quarterly Board members, CEO, CFO and 

Chief Officers as required 

Monthly A subcommittee of Board 

members, CEO , CFO and Chief 

Officers as required 

At least five 

times a year 

Two members of the Board, CEO, 

one independent member 

including a representative of 

Abu Dhabi Accountability 

Authority, Audit Committee 

Secretary (VP Internal Audit), 

CFO and other VPs as required 

Monthly CEO, Chief Officers 

Quarterly or 

as required 

CEO, Chief Officers, PMO, 

Cross functional VPs 

Monthly CEO, Chief Officers, VPs, 

Departments Heads and 

Divisional Financial Controllers 

Ethics and compliance 

During 2011 Etihad Airways implemented a Fraud 

Control Policy and a reporting hotline (800 1919) 

to guide employees when faced with incidents of 

potential fraud. 

A new Code of Business Conduct addresses 

workplace conduct with respect to business ethics, 

conflicts of interest and dealings with outside parties. 

Other policies used to guide employee actions; 

include the Competition Law Compliance Manual, 

Disciplinary Policy, the Fraud Control Policy, the 

Manual of Authority and the Social Media Policy 

Guidelines. Employees can seek guidance from the 

Compliance Office or the Ethics hotline. 

Responsibility for administering the Code lies with 

the Ethics Committee, comprising the Vice President 

Internal Audit (Chair), the Chief People & Performance 

Officer, and the General Counsel. Oversight 

responsibility rests with the President and Chief 

Executive Officer, Audit Committee and the Board of 

Directors. 

Compliance 

We take compliance very seriously and have 

compliance programs in the areas of Competition/ 

Antitrust, Data Protection and Anti-corruption/Bribery. 

We are in the process of updating and relaunching 

our compliance programs in the Competition and 

Data Protection areas and recently launched an 

ethics hotline to enable our staff to report instances of 

corruption, bribery and other unethical behaviours. 

We require managers to undergo online training in 

these areas. All of our contracts have clauses dealing 

with compliance and we require our agents and 

suppliers in high risk areas to undertake competition 

compliance training. 

Articles of Association 


Government of Abu Dhabi 

Etihad Airways was not involved in any legal actions 

arising from anti-competitive behaviour, anti-trust, and 

monopoly practices and was not subject to any fines 

or sanctions for non-compliance. 


Ensuring that Etihad Airways operates to the highest 

ethical standards with strict compliance to corporate 

governance procedures is critically important. 

GRI 4.1, GRI 4.6, SO7, SO8 


Contracts Manual 

Tender Board 

Board of Directors 

Executive Committee of the Board 

Executive Team 

COMMERCIAL MANDATE 

Audit Committee 

External Audit 

Internal Audit 

Abu Dhabi Audit 

Authority 

The airline’s Manual of Authority sets out its corporate 

governance processes and approval limits, which 

are intended to enable efficient decision making 

and approval processes without compromising the 

effectiveness of governance and business controls. 

It was comprehensively reviewed for renewal by 

2012 in line with international best practice and 

to accommodate the growth requirements of the 

business.

2011 Awards recognition of our excellence 

• World’s Leading Airline – World Travel Awards 

• World’s Leading First Class – World Travel Awards 

• World’s Leading Airline to the Middle East – World Travel Awards 

• World’s Best First Class – Skytrax Awards 

• World’s Best First Class Onboard Catering – Skytrax Awards 

• World’s Leading Airline – Arabian Business Magazine 

• Airline of the Year – TTG Travel Awards 

• Best Business Class – Biz Travel Forum, Milan 

• Business Airline of the Year – Guardian Observer Travel Awards 

• Middle East’s Leading Airline – World Travel Awards 

• Middle East’s Leading Airline First Class – World Travel Awards 

• Middle East’s Leading Airline Inflight Entertainment – World Travel Awards 

• Middle East’s Leading Cabin Staff – World Travel Awards 

• Web Excellence, Airline category – Pan Arab Web Awards 

• Best Co-Branded Card in the Middle East – Smart Card Awards Middle East 

• Best Long Haul Airline – Irish Travel Awards 

• Best Economy Class – Monitor Airline of the Year Awards 

• Best Meal in Economy Class – Monitor Airline of the Year Awards 

50 Etihad Airways Corporate Social Responsibility Report 2011

corporate social responsibility report 2011 - Etihad Airways

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