Would you be willing to relocate?

Depending on the needs of Etihad Airways, relocation could be a conversation to be had in the future. If relocation were needed for this role, it would be mentioned in the job posting. Likely, the interviewer is asking to see if you would be transferable in the future, should they need your skills in another department and region.

Be honest and transparent in your answer. If relocation is needed for this role, then your answer must be yes- you DID apply! If this is more of a discovery question, answer in the best way you see fit.