DUBAI: After a decade of holding fort, James Hogan will step down from his position as the President and Chief Executive Officer of Etihad Airways in the second half of 2017, the Etihad Aviation Group Board of Directors announced on Tuesday in a statement.
The move comes as the Abu Dhabi carrier continues to suffer massive losses from its investments in European airlines Air Berlin and Alitalia.
Hogan led Etihad’s expansion into Europe, buying a 29-per cent stake in Air Berlin in 2011, followed by Air Serbia stake in 2013 and a 49-per cent stake in Alitalia shortly after. Etihad’s losses in Europe were led by Air Berlin alone having been €477 million in the red in 2015.
A company-wide strategic review is next on cards for the airline, according to Mohammad Mubarak Fadhel Al Mazroui, Chairman of the Board of the Etihad Aviation Group. “We must ensure that the airline is the right size and the right shape,” he said in a statement. “We must progress and adjust our airline equity partnerships even as we remain committed to the strategy.”
Along with Hogan, the company’s chief financial officer, James Rigney, would be stepping down too later this year. Etihad said that Hogan will...Read more...