Newly elected Etihad Airways chief to rethink strategies

Published on : Tuesday, May 16, 2017

Etihad AirwaysA new boss at Etihad Airways presents the Gulf carrier with an opportunity to reorganize its aggressive expansion strategy. Ray Gammell was appointed the interim CEO of Etihad recently. He replaces veteran boss James Hogan.

 

Hogan’s strategy was to buy up minority stakes in numerous airlines but the struggles of that strategy, most recently with Alitalia, are representative of a predicament peculiar to the industry.

Since 2011, Abu Dhabi state-owned Etihad has spent billions of dollars buying minority stakes from Europe to Australia as it prepares to catch up with regional rivals Emirates and Qatar Airways.

 
Alitalia was Etihad’s eighth and most high-status bet.

 

Now the future of Etihad’s other leading investment, in Air Berlin, is also in doubt as the Gulf carrier pursues a strategy review that began last year. Like Alitalia, the German carrier has incurred big losses and it said that it was seeking a new partner, which could include a new investor.

 

 

Etihad and its rivals have demonstrated spectacular growth but are increasingly pressured by a slowing Gulf economy due to relatively low oil prices.


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