Etihad chief to step down as Gulf carrier reviews strategy

Australian James Hogan is to stand down as head of the Etihad Airways group, the company said today, as the Abu Dhabi-based carrier struggles with investments in European airlines.
After piloting the state-owned Gulf airline through more than a decade of growth, Hogan will leave his post in the second half of 2017, Etihad Aviation Group said in a statement.
Hogan was the architect of a strategy that saw Etihad buy significant stakes and make major investments in other airlines, notably Air Berlin and the long-struggling Alitalia.
But Etihad Aviation Group chairman Mohamed al-Mazrouei said it was time for a company-wide review, following continued cash injections into Etihad's partners.

"We must progress and adjust our airline equity partnerships even as we remain committed to the strategy," Mazrouei said in the statement.
"We must ensure that the airline is the right size and the right shape."

Hogan's approach was in stark contrast to the strategies of fellow Gulf airlines Emirates, based in Dubai, and Qatar Airways, which instead invested in developing their own services.
It saw Etihad spend hundreds of millions on stakes in foreign airlines, including acquisitions of 49 per cent of Alitalia, 29 per cent of Air Berlin, 19.9 per cent of Virgin Australia and three per cent of Irish carrier Aer Lingus that it offloaded in 2015.

Etihad also acquired 40 per cent of Air Seychelles, 24 per cent of India's Jet Airways and 49 per cent of Air Serbia.
Some of the investments have been costly, however, with Etihad keeping Air Berlin alive with regular cash injections in recent years. The German carrier suffered a record loss of 447 million euros (USD 480 million) in 2015.
Etihad's management of Alitalia has also been criticised over fears of up to 1,600 jobs being cut at the Italian carrier, which was rescued from bankruptcy by the Abu Dhabi company in 2014.
Etihad reported a 41 percent surge in its net profit in 2015, reaching USD 103 million on the back of rising passenger numbers and cargo volumes.

But in a sign of financial strain, the company said last month that it had begun cutting jobs in a restructuring process amid tough competition and a weakened global economy.