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.

 

 

 

 

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