Etihad Empire

After James Hogan took charge of Etihad Airways in late 2006 and launched his revolutionary strategy of investment in selected foreign carriers, some of them mired in losses, many industry pundits suggested he was throwing cash into an abyss. A decade later and all the signs are he has hit on a winning formula that allows smaller airlines to compete with the world’s mega-operators

As Etihad Airways president and chief executive James Hogan sits in his office at the carrier’s headquarters in Khalifa City, near Abu Dhabi International Airport, he could hardly be blamed for feeling a certain level of self-satisfaction. Not that everything is rosy across the stable of airline investments held by the United Arab Emirates’ second largest carrier. Etihad’s latest acquisition, Alitalia, is still losing money. So is airberlin in Germany. Lots of it. And while Virgin Australia is back in profit it isn’t yet offering any returns on the investment Etihad has made in a 25. 1 per cent stake. On the other hand, India’s Jet Airways, Air Serbia and the smaller Air Seychelles are in the black. And the loss-making entities do seem to be heading in the right direction.

A monitor cross welcomed the first airberlin
flight to Abu Dhabi. etihad

The airline’s owners, the government of Abu Dhabi, obviously agree Hogan is ultimately on a winner. In May he was appointed president and chief executive of the entire Etihad Aviation Group, overseeing everything from the airline itself to engineering, global cargo, the carrier’s loyalty company, airport services and Hala Abu Dhabi (its travel and tourism arm). Replacing Hogan as CEO of Etihad Airways is Peter Baumgartner, formerly chief commercial officer who joined Etihad Airways in April 2005 from Swiss International Air Lines.

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