Etihad Airways CEO James Hogan, speaking at the CAPA Australia Pacific Aviation Summit, stated (07-Aug-2013) that the carrier has not joined an alliance as it felt that unless it was a major player in the alliance it would not have a voice in the strategic direction. Mr Hogan sees the alliance system as fragmenting and he is “happy to be non-aligned”, but continues to have strong partnerships with alliance member airlines.
Etihad Airways 'happy to be unaligned' with airline alliances
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oneworld, in a complex solar system
oneworld is the smallest in size of the three global alliances but advertises itself as highest quality in terms of members and awards received. oneworld has strength in financial centres, is the alliance for the world’s largest airline (American) and with LATAM is a powerhouse in Latin America. It is also the loosest of the three major alliances, often described as more of a linked collection of bilateral partnerships.
Lufthansa and Etihad: equity tie up could further align mutual strategy, but marriage unlikely
Greater cooperation between Lufthansa and Etihad reflects their local and global challenges growing in quantity and complexity. Contact between the two has led to speculation that the partnership could radically expand to include an equity tie up, with rumoured merger talks.
Their initial Dec-2016 codeshare announcement was, in practical terms, small but showed the possibility, as they stated, to expand cooperation. However, it would be a leap to go from their handful of codeshares to a 17-Jan-2017 article from Italian daily newspaper Il Messaggero that Etihad could invest in Lufthansa on the way to a possible merger between the two. A subsequent denial in a Reuters story that "A financial stake is out of the question at the moment", does little to dispel the rumour. Were it not for the last three words of that statement the rumour would lack credibility.
There is certainly logic for a deeper partnership - and the two have danced this waltz before. Equity involvement from airlines can cement partnerships, add to board influence and partially allow one side to gain financially from any matter it feels it is compromising away. Nevertheless, there are obstacles to a full blown merger, and even to Etihad's taking a 30% to 40% stake. A marriage between the new bedfellows does not seem an immediate prospect. Nonetheless the logic is there for a move; and the mere fact of a potential move is sufficient to rock the equilibrium.