Legacy airline alliances have outlived their usefulness, according to Abu Dhabi-based Etihad Airways’ president James Hogan.
Hogan yesterday delivered a keynote speech at the International Aviation Club in Washington, DC.
Hogan said Etihad Airways’ unique business model, which is a combination of organic growth, codeshares and minority equity investments, was proving very effective in building passenger numbers, revenue and profit for all its partners.
“The traditional airline alliances have evolved into slow-to-respond, bureaucratic organisations which struggle to deliver added value to their member airlines, many of which are no longer compatible with each other.
“If we look at the consolidation currently occurring throughout the airline industry, we are also seeing more fragmentation within the alliances.
“This is going to continue as members seek ways to operate profitably in a very competitive environment with high fuel costs and generally slower global economic growth.
“This month we will report our strongest ever first quarter results.