Tuesday, January 24, 2017

Etihad Group CEO steps down

NEWS FLASH


The Etihad Aviation Group Board of Directors today announced that James Hogan will step down as President and Chief Executive Officer of the company in the second half of 2017. The Board and Mr Hogan first initiated the transition process last year with the formation of the Etihad Aviation Group, of which Air Serbia is a part of. Commenting on Mr Hogan’s time at Etihad, H.E. Mohamed Mubarak Fadhel Al Mazrouei, Chairman of the Board of the Etihad Aviation Group said, “We are very grateful to James. In just ten years, he has overseen the growth of the company from a 22 plane regional carrier into a 120 aircraft global airline and aviation group, with seven airline equity partnerships which together serve more than 120 million guests every year. It is a business which has set new benchmarks for service and innovation. Under his leadership, the company has provided new opportunities for thousands of Emiratis and has been a critical element in the remarkable progress of Abu Dhabi and the UAE. We look forward to James’ continued association with Abu Dhabi in new ways”. Commenting on current priorities for the business, H.E. Mazrouei said, “To position the company for continued success in a challenging market, the Board and management team will continue an ongoing, company-wide strategic review. We must ensure that the airline is the right size and the right shape. We must continue to improve cost efficiency, productivity and revenue. We must progress and adjust our airline equity partnerships even as we remain committed to the strategy”. Mr Hogan will join an investment company along with Etihad Aviation Group CFO James Rigney, who will also leave the company later this year.

44 comments:

  1. it will be interesting to see who will inherit hogan, possible one of the toughest jobs offered on the market at the moment


    i scarecly followed ey, but as i see it this could be task list of the future CEO:

    1. either sell its share in AB or entire company since they have already downsized it
    2. leave alitalia somehow
    3. renegotiate deliveries of those ~180 planes because they will not be able to take it in
    4. finish midfield terminal and new hq
    5. review darwin, airserbia, virgin, jet and seychelles investments
    6. downsize core ey operation

    too bad the story wasn't a success. i am just sorry for all those people who will lose their jobs now. hope airserbia will remain in a firm partnership otherwise it would be a catastrophe

    ReplyDelete
    Replies
    1. You are making it look worse than the actual situation is. Your task list is very passive and pessimistic. I am sure whoever is the next CEO will try to do completely the opposite.

      Delete
    2. An interesting strategy investing in loss making airlines by hogan the not so hero. A shame it didn't pan out as expected but I'm guessing EY will embark on a bunkering down phase to protect its own existence.
      Hogan is a great sales man but these days you need a person in charge that has financial acumen to run a complex airline business.
      EY will need to sell its investments in all these airlines and focus on their core business - EY

      Delete
    3. anon. 10.22 & 10.36.
      Somehow, it does not read as you would be really sorry with the worst possible outcome imaginable.
      Why did you chose such an outcome?
      Što je komu/babi milo, to mu/joj se i snilo :D

      Delete
    4. so what do you see in future for etihad?

      turn AB in sustainable business and ran it?
      work out a deal for AZ with government and unions that will turn them profitable?
      make a ey itself a profitable business?
      reverse in fuel price that would stem travel demand in gulf region again?

      tall order.
      but if they choose to play it that way it would be just prolongation of what james did, so why change him in the first place?
      accent here is on investment review and changes.

      Delete
    5. You are making the situation look worse than it is.

      It is not as good as it was several years ago. Oil prices are down a lot. But in a 10 or 20 perspective, oil prices are relatively high and oil incomes are still immense.
      And, unlike Dubai (the owner of EK), which has almost depleted its oil reserves, Abu Dhabi has oil for many decades.

      You expect EY to turn AZ around in 2-3 years? Tell me, please, how much time LH needed to turn OS around and how much it has succeeded?
      How much money has the state of Austria pumped into OS before marrying it to LH? And how much money was injected to Swiss by its state? How comes?

      Why is AB primarily EY responsibility? EY is a minority shareholder there, like in Virgin Australia.

      Delete
    6. it seems sheiks don't want to wait for that long term 10-20y horizon, which only exists on internet forums and that are made by complete amateurs.

      why is ab ey reponsibility? because they are the biggest shareholder and they have been installing management of the company?

      i don't undestand OS comments? are you saying it is the best practice example?


      i am amazed at the comments one can read here

      Delete
    7. Alen Šćuric PurgerJanuary 24, 2017 at 1:46 PM

      LH and EY are not same level of company. EY is much much smaller with less possibilities, resources, influence...

      Also AZ and OS are not same level. AZ is much bigger company with much bigger problems, investments to revitalize should be much bigger... Also Air Berlin was much bigger company than Austrian (or Swiss, or Brussels) was in time of LH took them.

      In same time EY had much more companies in one moment to take care of:
      - Air Serbia
      - Jet
      - Air Serychelles
      - Virgin Australia
      - Darwin
      - Aer Lingus
      - Air Berlin
      - Alitalia

      Lufthansa in same time had just three much smaller:
      - Swiss
      - Air Berlin
      - Brussels
      They had also bmi, but sow they can not deal with so many companies and sell bmi to main competition.

      But what is most important those companies were already connected to LH, and they are common market with huge P2P passengers and possible connections in one region. EY acquisitions were in 3 continents with so different companies have no connections at all, market was not even near to common, so different systems, targets, goals...

      Delete
    8. Isn't better when your subsidiaries do not compete with each other on the same market, but complement each other? Because you argue that it is a good thing.

      Delete
    9. 1st aer lingus is out of ey partnership for some time now

      2nd of all, i think the analogy try was that it made sense to burn money in those companies. it never did

      3rd when lufthansa had to handle ab? they are just now scavenging on its corpse

      Delete
    10. Like historical medieval Hansa, LH business model is to establish and maintain monopoly with state or para-state support. It successfully brought down AB.
      But, this being 21st century, instead of enjoying the fruits of AB downfall, LH just brought to Germany worse competition, opening space for Ryan.

      Good luck to LH with that stupid business strategy.

      Delete
    11. True. Ryan will eat LH alive.

      Delete
  2. it is strange how it was all run.
    how do you let airberlin lose so much money each year for 5 years? how do you let darwin linger in this limbo for so long? it would be interesting to see what kind of plans they had in their heads/excels to actually start making money when they were making these investments, especially alitalia?
    who made bad prognosis? consultants? james? some other guys from ey? failed group attempt?

    ReplyDelete
  3. However, Air Serbia will publish positive financial result for 2016, contrary to Alitalia and Air Berlin. Maybe even today.

    ReplyDelete
    Replies
    1. Ne zajebavaj napravices kolektivni harakiri ovde.

      Delete
    2. great! let's see if the line about subventions will be available in that report

      Delete
  4. This was being expected for so long time.
    Even from the start of creation Etihad Airways group it was being the same thing as with Swissair back in 2001 when it went donw!
    The SR group had the same strategy.
    What should i say i am very sorry for those prople who will lose their jobs!

    ReplyDelete
    Replies
    1. It is not the same thing. And the major difference that the Swiss state was formally forbidden to help Swissair. Abu Dhabi has no such limitation. Never had them.
      I feel sorry for people with schadenfreude complex. Luckily, the worst imaginable outcome you are wishing will not realize.

      Delete
  5. So you don't believe in Air Serbia profit ? Just wait for the proof.

    ReplyDelete
    Replies
    1. Well,
      1. they did not sell their spare engines.
      2. They did not sell LHR slots.
      to "create" profit. I would say they are not doing bad.

      Delete
    2. actually, they are doing very bad. JFK is a financial disaster

      Delete
    3. Maybe in your wishful thinking. In reality nothing points out to anything significantly bad. Especially if compared to regional competition that sells spare engines and LHR slots to make ends meet, JU is doing fine.

      Delete
    4. JFK is loss making, but JU won't file for bankruptcy just because you wish it to be

      Delete
    5. If it comes to that catastrophic outcome, which is highly unlikely, they can delay it by selling their spare engines first, then their LHR slots. So, even if the worst possible development materializes, you have to be very patient. That doesn't prevent you to enjoy your schadenfreude dreams. I say go for it, if it makes you happy.

      Delete
    6. ermmm, can you stop with stupid OU references? quite annoying to read.

      Delete
    7. Oh, that is annoying? I am sorry. And "JU filing for bankruptcy because of JFK" isn't? I am sorry to disturb your daydreaming about the imminent destruction of JU. Go on, please.

      Delete
    8. only mention of bankruptcy i read was in a post supportive of JU

      Delete
  6. Now, taxpayers can prepare themselves for Arabs farewell party and in same time welcome party for PRC management

    ReplyDelete
  7. Will Dane depart JU as well?

    ReplyDelete
    Replies
    1. No, he is staying. Both Serbian government and EY owners are very satisfied with his performance and the results.

      Delete
    2. I bet the staff at JU have a completely different view on that...

      Delete
    3. I bet they don't.

      Delete
    4. Hahah we do.Everyone hates him, HR department went down from 11 people to just 2. Why? ;)

      Delete
    5. well why? :) it was mentioned weeks ago on in the comments section something about hr director

      Delete
    6. We don't. Speak for yourself, if you are working at Air Serbia at all.

      Delete
  8. The story begins to unfold. The biggest issues are Alitalia and Air Berlin. These need to be fixed URGENTLY. Upon this strategy (if EY and LH are going together) hangs the future of ASL. Unfortunately is think is it's a triple no win situation.
    1.) If EY and LH cross invest, LH will make sure that ASL mini hub shuts down
    2.) If EY stays out of LH it will be forced to review the strategy. Without AZ and AB which one way or another will be leaving the EY family, the bunch of small airlines doesn't make any sence
    3.) The Serbian government has not enough money to subsidize an ASL at this size (sinkhole of 40-50 million € per year)

    I guess after the election in April we will know more about the faith.

    ReplyDelete
    Replies
    1. EY decisively denied LH rumors.
      Without AZ and AB and their huge baggage, EY can focus on building JU, investing much more in the company and turning it into its main European hand.
      It is the most reasonable way forward, since JU doesn't have its hands tied by EU regulation, which favors big legacies and LCCs, over mid-size public owned companies (see Malev and Croatian for further details).
      The future can be much brighter when you are not led by the philosophy "da susjedu crkne krava". :D

      Delete
    2. this kind of "susjedu crkne krava" & "babi snilo" comments are even uncomfortable to read on account how intelligence deprived they are. all made by same person, without any knowledge of the industry, with ridiculous scenarios and even suggesting that comments are made from croatia as a part of some duck measuring contest between serbs and croats.
      how old are you exactly? 12?

      Delete
    3. Oh, finally some real "arguments" in form of personal insults and personal abuse. Impressive, anon. 13.51!

      Delete
    4. try to correct your broken record appearance, read some books, start working in aviation business and eventually you will be writing some sensible comments and avoid slaps and running to moderator for cover

      Delete
    5. Oh, you don't need to help me. No, really.
      And if your main argument is personal abuse, you don't really have an argument.
      Regarding you "expertise." It is such a pity to waist such a potential here on "12 years old children."
      Go immediately to major players in aviation business. They will undoubtedly recognize your talent. Maybe you will succeed Hogan and have an opportunity to implement your cunning plan. Good luck!

      Delete
  9. That is bad news for JU...

    ReplyDelete
    Replies
    1. No doubt. Everything is bad news for JU. Since this site began.

      Delete