Global Traveler: Etihad Airways is on the eve of its fifth anniversary. What were the advantages of beginning with a blank canvas to create an airline that will compete globally with established airlines?

James Hogan: Legacy airlines as they exist today are the result of decades of decisions made and strategies devised in varying conditions. The advantage in starting as we did is that we have been able to structure the brand right from the beginning to meet the needs and conditions of the 21st-century market, which is markedly different even from the market of 15 years ago. The disadvantage, as with any new company, is that we began as an unknown and in many markets. But that has changed rather quickly and in a positive manner.

GT: Do your advantages, particularly in competition with legacy global carriers, include being owned by the cash-rich, oil-rich emirate?

JH: We get no special breaks on oil or access to capital by virtue of being the airline of a wealthy emirate. We pay the same price for oil, we hedge aggressively on fuel buying, we negotiate the best deals we can with Airbus and Boeing and we rely on our government to build the infrastructure, such as a world-class airport, which Abu Dhabi is in the process of doing.

GT: You recently announced what could be the largest commercial aircraft order ever — for as many as 205 planes worth $43 billion at list price. What did the order consist of and how do the individual pieces fit your expansion strategy?

JH: It was a firm order for 100 aircraft, with options for an additional 105 aircraft. From Airbus we will be taking 10 A380s, 20 A320s and 25 A350s. From Boeing we have ordered an additional 10 777-300ERs, an excellent long-haul aircraft that we already have in our fleet, and 35 787s. These aircraft, to be delivered between 2012 and 2020, will help us to achieve our growth strategy, which includes additional frequencies as well as additional cities served. With the exception of the A380s, these are all twin-engine aircraft, giving us more flexibility in choosing new destinations or adding frequencies.

GT: The U.A.E. government is spending $7 billion to create a futuristic hub at Abu Dhabi International Airport, just a 90-minute drive from Emirates’ hub in Dubai. Can the region support both hubs and the ambitions of both airlines?

JH: The Middle East is a natural transit point between East and West. Our experience of the past five years shows that we are redirecting traffic between Europe and Asia to Abu Dhabi while continuing to draw heavily from our natural catchment area within two hours’ flying time of our hub. This gives us access to a population equal to that of China.

GT: You believe the Middle East will redefine the aviation industry. How?

JH: The “magic three” factors of location, investment and vision have combined to create an opportunity never seen before in the industry. In less than 10 years, Abu Dhabi, Doha and Dubai have gone from serious players in regional aviation to major players on the global stage. Abu Dhabi, placed perfectly between East and West, offers an ideal position from which to set off to the rest of the world. Another catalyst is our investment in the latest aircraft technology. The new breed of long-haul and ultra-long-haul aircraft makes non-stop travel from our region to all four corners of the world a comfortable and convenient reality.