Etihad chief slams ‚Äúoutdated” alliances

Etihad chief slams ‚Äúoutdated” alliances
By admin


Traditional airline alliances are no longer relevant in today’s aviation landscape, Etihad boss James Hogan has declared as he pointed to signs they are starting to crumble.

Speaking to the International Aviation Club in Washington yesterday, Hogan branded the legacy alliances “slow-to-respond, bureaucratic organisations” which struggle to provide members with added value.

“If we look at the consolidation currently occurring throughout the airline industry, we are also seeing more fragmentation within the alliances,” he said.

“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.”

Hogan highlighted Etihad’s own equity alliance model as a more successful model of delivering benefits to partners. The carrier owns 29% of Airberlin, 40% of Air Seychelles, 9% of Virgin Australia and just under 3% of Aer Lingus.

Through such partnerships, Etihad is able to enter markets without the cost implications of starting from scratch and eliminating the competing interests seen in other alliances, he explained.

“We have hand-picked like-minded partners with whom we can work collaboratively to build revenue across a broader network and reduce operating costs,” he said.

Areas of cooperation between the carriers include fleet and engine acquisition, maintenance, recruitment and training.

“This is a real value add-on for our equity alliance and I am confident it is the way forward,” Hogan said.

 

 

 

 

Latest News

  • Cruise

P&O rescues Rotary volunteers after collapse of Air Vanuatu

P&O Cruises Australia has answered a plea for help from a group of young Australian Rotary volunteers, stranded in Vanuatu following the collapse of Air Vanuatu. The students, many of them teenagers from Albury, NSW, were volunteering for a youth project run by the Hive Rotary Club Australia when the airline abruptly cancelled all flights, […]

  • Destinations

Intrepid continues expansions with launch of first DMC in Jordan

Intrepid has increased its presence in the Middle East with the opening of its first destination management company in Jordan. Based in Amman, the local team will operate Intrepid’s range of nine experiential small group tours in Jordan from this summer, with a view to expanding the range for 2025 and beyond. Zina Bencheikh, managing […]

  • Appointments

Minor hotels appoints Puneet Dhawan to key Asia role

Global hotel owner and operator Minor Hotels has appointed Puneet Dhawan as head of Asia as the group plots its growth in Asia and India. From July, Dhawan will be responsible for the performance of all Minor Hotels properties in Asia, working in close collaboration with the Minor Hotels senior leadership team and will report […]

  • Appointments

Abercrombie & Kent and Crystal appoint Evon Ler to director of sales, Asia

Abercrombie & Kent Travel Group have announced that Evon Ler will join them in the new role of director of sales, Asia. She will work closely with Tony Archbold (VP, Sales, APAC, Crystal) and Susan Haberle (VP, Sales & Partnerships, APAC, A&K) with trade support across the region. Ler comes to the A&K family with more […]