Low energy prices have meant a reduction in travel to energy rich nations of the Mideast. As a result the region’s airlines have made service cuts to reduce expenses.
Etihad’s situation is even worse, they’ve lost billions in a strategy to diversify their business around the world, investing in airlines that could drive addition traffic through their Abu Dhabi hub. Alitalia and air berlin were disastrous investments and both carriers are insolvent. They’ve sold off their stake in Darwin Airlines (which had been rebranded Etihad Regional). And they’ve lost much of their influence over Jet Airways to Delta.
They fly just 6 daily flights to the U.S., having cut their San Francisco service. They cut their car service for premium cabin passengers and are monetizing seat selection.
Now they’re even closing the spa in their First and Business Class Lounge at London Heathrow at the end of the month.
Naturally they spin this as a positive, “we will soon be introducing more areas for you to relax, as well as some new food and drink options” of course more areas to relax means space in which we used to have a spa you’ll be able to just sit in.