New Etihad boss to rethink strategy after Alitalia dream fails
The naming of a new boss at Etihad Airways presents the carrier with an opportunity to rethink its aggressive expansion strategy after the failure of minority-owned Alitalia underlined the big barriers to global growth. Ray Gammell was appointed interim CE this week, days after Alitalia sought bankruptcy protection with US$3.3b of debt. He replaces veteran boss James Hogan. Hogan's strategy was to buy up minority stakes in myriad airlines but the struggles of that strategy, most recently with Alitalia, are emblematic of a quandary peculiar to the industry. Since 2011, Etihad has spent billions of dollars buying minority stakes from Europe to Australia as it races to catch up with regional rivals Emirates and Qatar Airways. Alitalia was Etihad's eighth and most high-profile bet. But the investment lies in tatters. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-05-12/eap/new-etihad-boss-to-rethink-strategy-after-alitalia-dream-fails
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New Etihad boss to rethink strategy after Alitalia dream fails
The naming of a new boss at Etihad Airways presents the carrier with an opportunity to rethink its aggressive expansion strategy after the failure of minority-owned Alitalia underlined the big barriers to global growth. Ray Gammell was appointed interim CE this week, days after Alitalia sought bankruptcy protection with US$3.3b of debt. He replaces veteran boss James Hogan. Hogan's strategy was to buy up minority stakes in myriad airlines but the struggles of that strategy, most recently with Alitalia, are emblematic of a quandary peculiar to the industry. Since 2011, Etihad has spent billions of dollars buying minority stakes from Europe to Australia as it races to catch up with regional rivals Emirates and Qatar Airways. Alitalia was Etihad's eighth and most high-profile bet. But the investment lies in tatters. <br/>
