In recent years, the Gulf has become a byword for wealth and luxury. Naturally, these are qualities for which the region’s newest airline, Etihad Airways, wants to be known.
In less than four years, the official airline of the United Arab Emirates (UAE) has earned its wings as one of the world’s preeminent new carriers. With the recent launch of its thrice-weekly service to Brisbane via Singapore, Etihad’s route roster has increased to 45.
No wonder Peter Baumgartner, Etihad’s executive VP of marketing and product, bristles at the suggestion that his employer is an underdog. “We are a young brand competing with the big guys. But we are definitely not an underdog,” Baumgartner insists. “I don’t think observers should give us too much time before we’re up there with Singapore Airlines (SIA). After four years, we are ready to be compared with the best in the skies.”
Pitting Etihad, which has a fleet of 27 airplanes, against the monolithic SIA, which flies to over 100 destinations in 41 countries, may sound a shade ambitious. But the younger carrier has made a name for itself by winning the title of World’s Leading New Airline at the World Travel Awards for three consecutive years since Baumgartner joined the airline in 2004. It also edged out more established rivals Qatar Airways and Emirates to be named the Middle East’s leading airline at this year’s awards.
Yet here is a company that wants to avoid associations with the dripping-with-oil excesses of the Middle East. Beneath the bravado of a groaning trophy cabinet lies a humility in Baumgartner that underscores his - and his company’s - successes. When pressed to name a personal achievement that he’s particularly proud of since shifting to Etihad (from the marketing consultancy Grieshaber), Baumgartner muses quietly that he has none.
With a worthiness that borders on the bland, the Swiss prefers to share his accomplishments with his fellow colleagues. “I think the best thing we’ve achieved is to deliver a first-class network and a product to the world in such a short period of time. It’s something the company can be very proud of.”
Joining the company in the face of stiff competition was a challenge that he could not resist, says Baumgartner. After all, the airline was formed when the UAE Government decided to tap into the rapid growth of air travel in the Middle East, despite the presence of Dubai-based Emirates and Abu Dhabi’s Qatar Airways.
“When I arrived, the opportunity to start with a blank sheet of paper and do it the way we wanted to, with no history or legacy, was a once in a lifetime thing. It’s easier to do things right with a blank sheet of paper,” he says.
However, observers point out that the proximity of the three long-haul airlines could eat into one another’s profits. Currently, Etihad is operating in the red, although chief executive James Hogan has reiterated that the company aims to break even by 2010. The International Air Transport Association has predicted that the net profits of Middle Eastern airlines could drop to US$200 million this year, less than half of what it had forecasted a year ago.
Baumgartner believes that this is where marketing and advertising will come into play. “All you see these days from airline brands is a sense of undifferentiated superiority. It’s a communications style we don’t want to compete with,” he insists. “Yes, we want to align ourselves with the high-yield, high-end consumers. But we want to remain an accessible brand.”
Right now, he has his sights firmly fixed on the sporting world. Recently, Etihad signed a three-year agreement with Chelsea Football Club as a platinum and official international airline sponsor. And earlier this year, the airline moved into Formula One by sponsoring the Spyker team. “The F1 team is young and has strong team performance. Together with Chelsea, these young teams are consistently improving and challenging benchmarks,” explains Baumgartner.
However, Etihad isn’t jumping on to the Beijing Olympics bandwagon. Instead, it prefers to grow its China business cautiously and focus on icurrent sponsorship commitments, says Baumgartner - even though the airline will debut a service to Beijing early next year.
Outside of work, the Swiss’ other prized achievement is his diving licence, which he acquired recently. “But there really isn’t much life to live after we have conquered the skies,” he quips.
Peter Baumgartner’s CV
2006 Executive vice-president, marketing and product, Etihad Airways
2005 Vice-president, marketing, Etihad Airways
2004 Senior consultant, Grieshaber-Consulting
2002 General manager, Swiss International Air Line Ltd
