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Traditional alliances no longer deliver value to members: Etihad Airways CEO

5-Apr-2013 12:52 PM

Etihad Airways president and CEO James Hogan stated (04-Apr-2013) traditional airline alliances are becoming fragmented and no longer deliver value to their member airlines. Mr Hogan said Etihad's equity alliances with Aer Lingus, airberlin, Air Seychelles and Virgin Australia allowed easier access to new markets and greater scope to expand networks and reduce operating costs. Mr Hogan said, "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... It is easier, faster and far more cost effective to grow through one-on-one partnerships with established, respected carriers than it is to rely totally on our own resources, and to start from scratch in every market we serve." [more - original PR]