Etihad boss speaks out
Etihad boss James Hogan has criticised legacy airlines, saying they have outlived their usefulness.
Instead, he believes organic growth, codeshares and minority equity investments are the way forward.
Speaking at the International Aviation Club in Washington D.C, the Etihad president and CEO said: "The traditional airline alliances have evolved into slow-to-respond, bureaucratic organisations which struggle to deliver added value to their member airlines, many of which are no longer compatible with each other.
"If we look at the consolidation currently occurring throughout the airline industry, we are also seeing more fragmentation within the alliances. This is going to continue as members seek ways to operate profitably in a very competitive environment with high fuel costs and generally slower global economic growth."
Etihad Airways has 42 codeshare relationships and owns 29% of airberlin, 40% of Air Seychelles, 9% of Virgin Australia and just under 3% of Aer Lingus.
"It is easier, faster and far more cost effective to grow through one-on-one partnerships with established, respected carriers than it is to rely totally on our own resources, and to start from scratch in every market we serve," said Logan.
He said this approach has allowed Etihad to enter markets within local foreign investment limits "without the complexities, approvals or expense attached to mergers or larger investments".
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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