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Podcast: Has Etihad Hit A Wall?

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After spending billions in investments in foreign airlines and new aircraft, Etihad’s CEO James Hogan is being replaced. With less appetite for risk and growth, what’s next for the Abu Dhabi-based airline?

Meanwhile, Emirates Airline has rattled the feathers of U.S. legacy carriers with this week’s announcement of a new service between Athens and New York. How will the Trump administration react? Listen in as our editors discuss.

Read further: Etihad’s Management Changes Signal New Course

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Discuss this Video 12

on Jan 27, 2017

To coin a trite phrase, 'it is as plain as the nose on your face' that the Gulf carriers have benefited from massive subsidies provided by their respective Governments with little, if any notice taken of commercial imperatives. Of course, one might argue that all, so called, 'flag carriers' had similar arrangements in times gone by, but that was then and this is now.
Trump will almost certainly penalise these airlines, one way or another, which seems to me to be appropriate. I look forward to seeing how is actions adversely affect other, innocent carriers.

on Jan 29, 2017

Airline CEO, how Trump is going to penalize these airlines if the people elected him accept this. more competition means less fare, why would Americans will support A4A. how will a common American will benefit by helping American legacy airlines restrict their competition. if they do so and force Trump administration to penalize or restrict gulf carriers adding more capacity and opening up new routes to USA, then American legacy carriers will definitely increase their fares and common Americans are the one who has to pay that fare, why anyone wants to higher fare if they have opportunity to pay less.

as long as any government has the support of common people who elected, they don't care about these corporate companies whose primary interest is making profits.

i don't think Trump will support A4A as his voters are welcoming this competition.

American carriers should find a way how to face this situation.

on Jan 27, 2017

James Hogan raised the Etihad from scratch. His departure is a bad news for Etihad. I really liked his strategy to buy stakes in foreign airlines particularly in Europe.

on May 1, 2017

Purchasing a large number of aircraft, or any other items, if you have money, does not make you a successful airline executive. The strategy of investing in other airlines was not great, considering Alitalia and Air Berlin are close to bankruptcy.

on Jan 27, 2017

Etihad experienced sincere growth under CEO Hogan - but was his growth based pressure from the Board of Directors to expand without building the super structure of the company underlying to support that growth? Expanding during stagnant economic times is dangerous. But trying to gain profit from cornering a larger share of the market is a doomed plan! (Braniff Airlines 1981) !!!

on May 1, 2017

When you have a lot of money you buy things whether you need it or not. For Etihad purchasing a large number of aircrafts is not enough, having the market to utilize the huge capacity is a basic requirement, which obviously they do not have. The purchase spree helped Boeing & Airbus on the short term, now they will be facing a lot of cancellations. They should reduce aircraft production to a more sensible level.

on Jan 27, 2017

The new Etihad livery is one of my favorites.

on Jan 27, 2017

I am amazed that people will travel on Etihad or Emirate. While changing planes their laws would have them arrest atheists, blasphemers, homosexuals, and imprison or execute them. A great culture to support.

on Jan 29, 2017

if you don't fall under restricted category, i don't think you need to worry about that " DJA137".

there are majority and minority in every society, they have their cultural rules, if you want to take advantage of their resources, then you have to respect their cultural rules, the same way you expect from others for yours, there is no bad or absurd in it.

on Jan 31, 2017

When you look at the Tim Clark's approach with expansion of the fleet, he has built a massive structure from Europe to Asia with a stop at a large Shopping Mall in DXB. The Flights are full with the diverse cultures of East and West. I recently flew from DXB to LIS the flight was full of Chinese Tourists (Another huge market in it's self)

Clark / Hogan, visionaries driving change into the commercial aviation sector.

With many new aircraft slots being sold or the new aircraft models being late to deliver (as they all have) Hogan used the Minority Ownership as a model to compete. He was a little late and the Shopping Mall is still in construction in AUH.

Then there's Qatar and how they fit the Europe to Asia and Asia Europe. Expansion just like the other 2

Look out THY are building a new Mall also.

on Feb 4, 2017

All big Manufacturers have enjoyed Money from the Gulf Governments , just look at the 777 8 / Orders ? simply huge . sooner or later things will have to settle down to more normality .

on May 2, 2017

To see for the first time the A-380 first impression most are likely get it's simply to big. Given the regions of the world the 380 aircraft are flown it seems the needs of the flying public are overstated. As an example the U.S. air-carrier Southwest Airlines makes is profits simply using the "Bus Stop" principals having many flights using smaller narrow body planes giving the flying public more departure times and cities to fly to. Airbus 380 has an inherit design flaw "Turn around" arrival/departure total time at the gate will never be not a profit maker for aircraft owners.

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