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Etihad CEO criticizes airline alliances

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James Hogan believes legacy airline alliances outlived their usefulness

Etihad Airways’ President and Chief Executive Officer, James Hogan delivered a keynote speech at the International Aviation Club in Washington, D.C.

Mr Hogan said Etihad Airways’ unique business model, which is a combination of organic growth, codeshares and minority equity investments, was proving very effective in building passenger numbers, revenue and profit for all its partners.

According to Mr Hogan, the traditional airline alliances became slow-to-respond, bureaucratic organisations which struggle to deliver added value to their member airlines.

“This month we will report our strongest ever first quarter results. Our codeshare and equity partners have made a major contribution to that financial success,” Mr Hogan said.

Mr Hogan said that Etihad Airways’ equity alliance of minority shareholdings, enabled the airline to enter markets within local foreign investment limits and, therefore, without the complexities, approvals or expense attached to mergers or larger investments.

Etihad Airways owns 29 per cent of airberlin, 40 per cent of Air Seychelles, 9 per cent of Virgin Australia and just under 3 % of Aer Lingus. It has 42 code share relationships around the world.

Etihad Airways

[Pictured: James Hogan; Photo courtesy Etihad Airways]

 

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