OpenLink, the global leader in integrated commodity and treasury risk management solutions to the energy, commodities, corporate, and financial services industries, have announced its selection by Etihad Airways for commodities, treasury and enterprise risk management.

Key drivers

A key driver for Etihad was the airline’s move to consolidate its fuel risk management and treasury business into a single strategic platform. Managing these functions in one system instead of its previous two, provides senior managers with a consolidated view of operations, and treasury activities including:

• dealing (management of interest, currency and commodity risks)
• risk management
• cash liquidity and working capital management
• back office operations, corporate finance and insurance.

Adam Boukadida, Etihad Airways Deputy Treasurer, said: “As we expand, aligning with a partner who has a proven track record of success is essential. OpenLink was the standout choice as a ‘one-stop’ solution to cater for and support the daily Treasury core functions in the most efficient manner, i.e. cash management or funding, in-house banking, trade capture and settlement of Foreign Exchange, Money Market, Loan, Lease, IRS and Fuel Hedging payments and Islamic equivalents.”

OpenLink strategy and commitment

Two comments from OpenLink’s management show the group’s strategy and commitment to the business and the region:

• Claudio Capozzi, OpenLink Managing Director for EMEA, added: "Our comprehensive solution fully supports Etihad Airways’ growth goals. Working with an airline group of this calibre is a testament to OpenLink's ability to support global corporates where efficient systems and return on investment are paramount."
• Amer Attar, Director of Business Development, Middle East and Africa at OpenLink commented: "Working with Etihad Airways is a sign of our commitment to the region. This commitment is supported by our expanding presence with a larger team and offices in Dubai, which allows us to develop closer partnerships and additional engagements in the region.”

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CTMfile take: Etihad’s use of OpenLink as an integrated solution for both commodity and treasury management is a good example of how increasingly corporate treasury departments are taking over commodity risk management as part of their overall responsibilities. HOWEVER, it is vital to remember that commodity management is not just about about risk management, it also includes managing the physical contracts and associated documentation that goes with managing commodity risk.