Barely three weeks after gaining rights from the Australian Government to fly daily into Australia, Etihad Airways has announced plans to start flights to Sydney in late March, and has hinted it will seek additional rights so it can fly to other state capital cities.

The Abu Dhabi-based airline was also quick to play down concerns it would represent another threat to Qantas, arguing its entry would instead create additional demand for air travel from the Middle East and Europe into Australia.

"I believe we're going to grow the market," the airline's Australian-born chief executive, James Hogan, told a press conference in Sydney on January 29.

Far from being a threat, he said Etihad was in talks with Qantas about forming a code share agreement.

Etihad means "united" in Arabic.

Unperturbed by his fellow - and much larger - United Arab Emirates-based competitor, Emirates, lobbying Canberra to double its flights into Australia to 98 a week by 2014, Mr Hogan said: "I believe there's still room for all the carriers to grow their business forward."

Echoing the constant argument put by Emirates, Mr Hogan said Etihad would connect Australia to new destinations in its network not serviced by Qantas.

But while Mr Hogan was keen to spruik the potential of Abu Dhabi as a tourist destination, along with his airline's new first class seats, he was less forthcoming on his airline's long-term plans for the Australian market.

"Our first objective is to establish a Sydney service," he said.

While Mr Hogan declined to outline Etihad's blueprint for Australia, he said the airline would hold talks with other state governments in Australia when the need arose.

Launched only three years ago, Etihad claims to be the world's fastest-growing international airline.

With aircraft worth about $US8 billion on order, the airline has 3500 staff and now flies to 47 destinations in the Middle East, Africa, South-East Asia, Europe and North America.

The airline's base in Abu Dhabi is only 160 kilometres from Emirates' Dubai hub.

In what could be considered welcome news for Air New Zealand, Mr Hogan said Etihad had no plans to follow Emirates' lead and fly across the Tasman.

After landing in Sydney, Brisbane and Melbourne from Dubai, Emirates flies its aircraft to New Zealand and back before returning to the Middle East.

Etihad will begin three weekly flights to Sydney on March 26 before going daily on June 29.

Etihad also declined to say whether it planned to use any of the four Airbus A380 super jumbos its expects to take delivery of in 2009 on its Sydney leg.

Qantas Airways, Singapore Airlines, Emirates, Thai Airways and Malaysia Airlines all plan to use the giant aircraft into Sydney.