Air Seychelles appointed (31-Jan-2012) Cramer Ball as CEO, effective 01-Feb-2012. Mr Ball was formerly the regional general manager for Asia Pacific South and Australasia for Etihad. The appointment is a result of a new management contract signed with Eithad. [more - original PR] [more - CAPA Analysis #1] [more - CAPA Analysis #2]
Air Seychelles appoints former Etihad exec as CEO
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Air Malta Part 2: cannot match LCC unit costs; Alitalia not about to invest.
Part 1 of this report on Air Malta analysed its network, capacity development, codeshare partnerships and the competitive landscape in its markets. This second part looks at its financial track record and the development of its shrinking fleet and its financial track record. It also presents an estimate of Air Malta's unit cost position and the outlook in the aftermath of the Alitalia talks.
Air Malta's majority owner, the Maltese government, initiated a search for private investors in the loss making national airline in 2015. In Apr-2016 Alitalia signed an MoU with the government over the possible acquisition of up to 49% of Air Malta, but the two airlines announced on 13-Jan-2017 that talks had ended. It seems that the financial and political risks have prevented the investment from proceeding, particularly as Alitalia is wrestling with its own restructuring.
Its unit cost is efficient compared with European legacy airlines, but remains higher than the level of the LCCs with which it competes. Its short haul, non premium, point-to-point product has little with which to differentiate itself.
Air Malta has struggled to compete profitably and has reported several years of losses. A new plan is needed, and this may include a search for an alternative investor.
Etihad to review equity airline investments as partners decrease their Abu Dhabi presence
Partnerships are easier to announce than to sustain. That is evident with Etihad Airways and its Abu Dhabi hub, which is experiencing a decrease in capacity and flights from Etihad's equity and codeshare partners. Etihad established itself as the nucleus of a model in which partner airlines from around the world fly to Abu Dhabi and connect passengers onwards. Now all but one of Etihad's investment airlines are shrinking in Abu Dhabi. All partner capacity has fallen 22% compared to 2015 but is still up 46% compared to 2013.
This is not a one-way review but a significant shake up in relatively short time. On 18-Jan-2017 CEO James Hogan remarked "We are committed to our equity partner strategy." A week later on 24-Jan-2017, as Etihad's chairman announced Mr Hogan's departure in 2H2017 (with no successor named), he said Etihad remains committed to its equity network but opened the door to adjustments: "We must ensure that the airline is the right size and the right shape. We must progress and adjust our airline equity partnerships."
Etihad's partnership approach, and its challenges to address ailing airberlin, could further adjust on 01-Feb-2017 as Etihad and Lufthansa plan further cooperation. Even though airberlin has mostly delivered financial pain, it could provide the key to an invaluable strategic bridge.