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James Hogan: “In 2006, we had nothing. We worked out of a portable building”


How Etihad went from zero to $25bn within a decade


ETIHAD AIRWAYS CHIEF EXECUTIVE JAMES HOGAN HAS TRANSFORMED THE AIRLINE IN HIS 10 YEARS IN CHARGE. HE SPOKE TO IAN TAYLOR


When Etihad Airways group chief executive James Hogan joined the carrier in 2006, the Abu Dhabi-based airline was barely on the aviation map. Today it is a $25 billion group. Yet despite rapid growth, Etihad remains smaller than neighbours Emirates and Qatar Airways.


Hogan is unconcerned, saying:


“It has never been our strategy to be the biggest. When I was asked to be chief executive, it was clear we had two very strong competitors nearby. The business plan was about the right shape and right size. What was important


64 travelweekly.co.uk 21 July 2016


was that we established a strong safety culture, developed a strong brand, developed a competitive network, built a sustainably profitable business and, as a by- product, supported Abu Dhabi’s diversification from energy. “We evolved the model along the


way. In 2006, we had nothing. We worked out of a portable building. We had to employ engineers, pilots, crew and admin staff. We built it from scratch. “By 2009, we had a strong


foundation and we presented an ‘enriched business’ model to develop a group with Etihad


Airways as the core airline, investing in other airlines and building a global network. We felt it wasn’t about the number of aircraft you operated, but the network you offered. “We developed a strong cargo and engineering business, and created a company called Hala offering holidays, a frequent- flyer programme, destination marketing and business travel management. “We’re a considerable airline,


but are half the size of our nearest competitors. We stretched our network through partnerships. We have 700 aircraft with our equity partners and 50 codeshare partners, which give us global reach. Yet our investments in other


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