970x90 - Montreal - Desktop Sample
Order HereAirlines should have access to global investment funds to help them grow efficiently, the head of Etihad Airways and its alliance of strategic airline partners said.
Speaking in Italy Aug. 24, Etihad president and CEO James Hogan pointed out that when his Abu Dhabi-based company invested €560 million ($650 million) in Alitalia last year, no one else wanted to invest in the Italian flag carrier.
“Aviation is a global industry, not a local one,” Hogan said. “Like so many other industries, aviation should have access to global investment funds in order to provide the capital required to grow efficiently and remain competitive.
“Global investment is not a threat. It is both a lifeline and an energizer, which can only be good for European aviation, European economies and European jobs,” he said
Hogan said Etihad’s investment in Alitalia was a cost-effective way for both airlines to progress, while delivering more choice and better quality to consumers.
“Alitalia is a company with a great heritage and global brand recognition. But over many years Alitalia has lost its way and become a challenged business.
“Let’s not forget that nobody else wanted to invest in Alitalia, but we see a great future for Alitalia, and we are committed to working with other shareholders, and with the airline, to help rebuild it as a premium brand and a profitable business.”
Etihad completed its deal in December 2014 to acquire 49% of Alitalia as well as take a 75% stake in the Italian carrier’s loyalty program. Alitalia has remained a member of theSkyTeam global alliance.
Hogan said that as a strategic shareholder, Etihad needs to see a return on its investment and had set a three-year timeline for achieving sustainable profits. In this first year, the aim is to reduce losses, with break-even targeted in 2016 and profitability in 2017. Alitalia CEO Silvano Cassano has said the airline is targeting operational profitability of €100 million by the end of 2017.
“We are not a bank,” Hogan said this week. “We needed to stabilize the business financially by providing fresh capital. We also needed to work with Alitalia, its unions and its partners to identify immediate opportunities to cut costs. These included seeking efficiencies, restructuring the network and schedules, and reducing the short-haul fleet to maximise aircraft utilisation. There were immediate results.”
Etihad has connected the networks of both airlines via Etihad’s Abu Dhabi hub, with each carrier entering into codeshare agreements on each other’s services. Etihad also assisted Alitalia in sourcing new widebody aircraft to increase long-haul services.
“We have not only ensured that Alitalia stays in the air; we have also invested in protecting and creating jobs in Italy. We have invested in rebuilding the Alitalia brand,” Hogan said.
The information on this page may have been provided by a contributor and no guarantees can be made about the accuracy of any content. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting the same for publication. AIRLINE PARTNERSHIP disclaims all liability arising from the publication of content received from contributors. Please refer to our Disclaimer for more details.
970x250 - Melbourne - Desktop Sample
Order Here300x250 - Zurich - Desktop Sample
Order Here300x300 - Rome - Desktop Sample
Order Here300x600 - Paris - Desktop Sample
Order Here468x150 - Cape Town - Phone Sample
Order HereAirlines should have access to global investment funds to help them grow efficiently, the head of Etihad Airways and its alliance of strategic airline partners said.
Speaking in Italy Aug. 24, Etihad president and CEO James Hogan pointed out that when his Abu Dhabi-based company invested €560 million ($650 million) in Alitalia last year, no one else wanted to invest in the Italian flag carrier.
“Aviation is a global industry, not a local one,” Hogan said. “Like so many other industries, aviation should have access to global investment funds in order to provide the capital required to grow efficiently and remain competitive.
“Global investment is not a threat. It is both a lifeline and an energizer, which can only be good for European aviation, European economies and European jobs,” he said
Hogan said Etihad’s investment in Alitalia was a cost-effective way for both airlines to progress, while delivering more choice and better quality to consumers.
“Alitalia is a company with a great heritage and global brand recognition. But over many years Alitalia has lost its way and become a challenged business.
“Let’s not forget that nobody else wanted to invest in Alitalia, but we see a great future for Alitalia, and we are committed to working with other shareholders, and with the airline, to help rebuild it as a premium brand and a profitable business.”
Etihad completed its deal in December 2014 to acquire 49% of Alitalia as well as take a 75% stake in the Italian carrier’s loyalty program. Alitalia has remained a member of theSkyTeam global alliance.
Hogan said that as a strategic shareholder, Etihad needs to see a return on its investment and had set a three-year timeline for achieving sustainable profits. In this first year, the aim is to reduce losses, with break-even targeted in 2016 and profitability in 2017. Alitalia CEO Silvano Cassano has said the airline is targeting operational profitability of €100 million by the end of 2017.
“We are not a bank,” Hogan said this week. “We needed to stabilize the business financially by providing fresh capital. We also needed to work with Alitalia, its unions and its partners to identify immediate opportunities to cut costs. These included seeking efficiencies, restructuring the network and schedules, and reducing the short-haul fleet to maximise aircraft utilisation. There were immediate results.”
Etihad has connected the networks of both airlines via Etihad’s Abu Dhabi hub, with each carrier entering into codeshare agreements on each other’s services. Etihad also assisted Alitalia in sourcing new widebody aircraft to increase long-haul services.
“We have not only ensured that Alitalia stays in the air; we have also invested in protecting and creating jobs in Italy. We have invested in rebuilding the Alitalia brand,” Hogan said.
The information on this page may have been provided by a contributor and no guarantees can be made about the accuracy of any content. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting the same for publication. AIRLINE PARTNERSHIP disclaims all liability arising from the publication of content received from contributors. Please refer to our Disclaimer for more details.
970x250 - Melbourne - Desktop Sample
Order Here728x90 - Cape Town - Tablet Sample
Order HereAirlines should have access to global investment funds to help them grow efficiently, the head of Etihad Airways and its alliance of strategic airline partners said.
Speaking in Italy Aug. 24, Etihad president and CEO James Hogan pointed out that when his Abu Dhabi-based company invested €560 million ($650 million) in Alitalia last year, no one else wanted to invest in the Italian flag carrier.
“Aviation is a global industry, not a local one,” Hogan said. “Like so many other industries, aviation should have access to global investment funds in order to provide the capital required to grow efficiently and remain competitive.
“Global investment is not a threat. It is both a lifeline and an energizer, which can only be good for European aviation, European economies and European jobs,” he said
Hogan said Etihad’s investment in Alitalia was a cost-effective way for both airlines to progress, while delivering more choice and better quality to consumers.
“Alitalia is a company with a great heritage and global brand recognition. But over many years Alitalia has lost its way and become a challenged business.
“Let’s not forget that nobody else wanted to invest in Alitalia, but we see a great future for Alitalia, and we are committed to working with other shareholders, and with the airline, to help rebuild it as a premium brand and a profitable business.”
Etihad completed its deal in December 2014 to acquire 49% of Alitalia as well as take a 75% stake in the Italian carrier’s loyalty program. Alitalia has remained a member of theSkyTeam global alliance.
Hogan said that as a strategic shareholder, Etihad needs to see a return on its investment and had set a three-year timeline for achieving sustainable profits. In this first year, the aim is to reduce losses, with break-even targeted in 2016 and profitability in 2017. Alitalia CEO Silvano Cassano has said the airline is targeting operational profitability of €100 million by the end of 2017.
“We are not a bank,” Hogan said this week. “We needed to stabilize the business financially by providing fresh capital. We also needed to work with Alitalia, its unions and its partners to identify immediate opportunities to cut costs. These included seeking efficiencies, restructuring the network and schedules, and reducing the short-haul fleet to maximise aircraft utilisation. There were immediate results.”
Etihad has connected the networks of both airlines via Etihad’s Abu Dhabi hub, with each carrier entering into codeshare agreements on each other’s services. Etihad also assisted Alitalia in sourcing new widebody aircraft to increase long-haul services.
“We have not only ensured that Alitalia stays in the air; we have also invested in protecting and creating jobs in Italy. We have invested in rebuilding the Alitalia brand,” Hogan said.
The information on this page may have been provided by a contributor and no guarantees can be made about the accuracy of any content. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting the same for publication. AIRLINE PARTNERSHIP disclaims all liability arising from the publication of content received from contributors. Please refer to our Disclaimer for more details.