Aviation Commercial Strategy: Etihad & China Eastern JV

End-to-End Commercial Approach

Joint Agent Incentive Program: Etihad Airways & China Eastern

The Strategic Mandate

Design and implement a joint agent incentive program between Etihad and China Eastern across China and the GCC, focused on driving incremental JV revenue.

Strategic Objectives

1. Drive Incremental Revenue

Maximize value from Joint Venture routes.

2. Avoid Double Incentivisation

Ensure efficiency in commission spending.

3. Ensure Simplicity

Credible, easy-to-understand structure for agents.

Market Dynamics: China vs. GCC

• Structured incentives<br>• Volume-driven approach<br>• Requires clear tiered targets

• Relationship-led business<br>• Timing and network driven<br>• Flexible framework required

High-Level Strategy & Risk Mitigation

Target priority JV routes and flows

Use growth-based, tiered incentives

Common JV principles with local flexibility

Double Payment: Mitigated via aligned system audits

Volume Shifting: Monitored through origin/destination tracking

Low-yield Traffic: Thresholds set on revenue quality

Step-by-Step Implementation

1. ALIGNMENT

Define success, priority markets, and incremental revenue.

2. PROGRAM DESIGN

Targets, thresholds, finance and legal validation.

3. SYSTEMS & TRACKING

Aligned reporting and tested attribution models.

4. AGENT ROLLOUT

Simple structure, FAQs, sales team briefing.

Governance Model

Establish a JV Incentives Steering Group (Etihad + China Eastern)

Own Strategy

Approve Changes Quickly

Review Performance

Stakeholder Ecosystem

INTERNAL

• Sales • Revenue Management • Finance • Legal • IT & Data

EXTERNAL

• Key Agents • TMCs (Travel Management Companies) • GDS Partners • Regulators (where required)

Monitor & Optimise

Continuous tracking of results to adjust strategy where needed.

JV Alignment Sign-off

Systems Readiness

Agent Launch

Thank You

Etihad Airways & China Eastern Joint Venture