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mercure1
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Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 2:07 am

Etihad Airways new CEO Tony Douglas laid out carriers restructuring plan.

> Business divided into seven divisions
> Staff adjustments
> Network reanalyzed
> Review fleet needs
> Product changes (premium economy coming)

Story and 19-minute video interview with CEO

https://www.bloomberg.com/news/articles ... end-losses
 
planemanofnz
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 2:33 am

The CEO says:

... [Etihad] will prioritize point-to-point flights over the super-hub model that the carrier previously pursued as it sought to attract customers making flights between Asia, Europe, Africa and the Americas.

With all due respect, AUH doesn't strike me as somewhere that really has that many point-to-point routes with reasonable demand? It's a lot less significant than DXB in global trade and internationalization.

Cheers,

C.
 
WPvsMW
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 2:37 am

Even more interesting (IMO)... EY is willing to give up its "alliance" if *A will allow EY to join *A.
https://thepointsguy.com/news/etihad-wa ... tid=More-1
 
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PerfectGriffin
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 2:55 am

Premium economy is a good idea but the question is, which of the ME3 will be first to enter this growing yet potentially profitable market?
 
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janders
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 3:39 am

They put out a press release.

Lots of executive changes with the new structure.
https://www.etihad.com/en-us/about-us/e ... structure/

The CEO Peter Baumgartner will be moved over to the group level and focus on "global partnerships and innovation" and new group CEO will be Tony Douglas
"We make war that we may live in peace." -- Aristotle
 
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sq421
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 7:07 am

planemanofnz wrote:
The CEO says:

... [Etihad] will prioritize point-to-point flights over the super-hub model that the carrier previously pursued as it sought to attract customers making flights between Asia, Europe, Africa and the Americas.

With all due respect, AUH doesn't strike me as somewhere that really has that many point-to-point routes with reasonable demand? It's a lot less significant than DXB in global trade and internationalization.

Cheers,

C.


That was my first thought as well. How many Emiratis are you gonna fly out of AUH to where? EK (with Fly Dubai) and Air Arabia will take your business any day. No viable business model for EY to work as a point to point hub with AUH as the base, if they have a multi base strategy like Gulf Air of the past, with bases in Bahrain, KSA, Yemen etc. then they might have a viability but don't think the KSA based airlines would allow it.
 
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hongkongflyer
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 7:21 am

PerfectGriffin wrote:
Premium economy is a good idea but the question is, which of the ME3 will be first to enter this growing yet potentially profitable market?


EK I believe, they already have detailed plan long time ago
 
directorguy
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 7:44 am

planemanofnz wrote:
The CEO says:

... [Etihad] will prioritize point-to-point flights over the super-hub model that the carrier previously pursued as it sought to attract customers making flights between Asia, Europe, Africa and the Americas.

With all due respect, AUH doesn't strike me as somewhere that really has that many point-to-point routes with reasonable demand? It's a lot less significant than DXB in global trade and internationalization.

Cheers,

C.


EY can still fly a reasonable regional network (GCC countries) plus CAI, BEY, major markets in India/Pakistan etc. Long-haul, I think at a bare minimum they will maintain LHR at least 2x daily, plus JFK. I think 2 US cities will eventually be dropped. To the east, NRT, NGO, ICN, SGN and HKT will be cut.
 
Aither
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 7:50 am

"will focus more on serving Abu Dhabi, where it’s based, than carrying globe-trotting passengers between continents."
Sounds contradicting : serving more by reducing the number of flights & routes that exist only because of these transit passengers...

ME3 : EK, QR and...TK
Never trust the obvious
 
sq256
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 8:03 am

WPvsMW wrote:
Even more interesting (IMO)... EY is willing to give up its "alliance" if *A will allow EY to join *A.
https://thepointsguy.com/news/etihad-wa ... tid=More-1


EY is likely to be facing a veto from UA though (and possibly SQ as well), even if LH tries to sponsor them into *A.

Also considering EY's codeshare list has a large amount of SkyTeam carriers, I'd have to agree that SkyTeam would be a better fit for them, especially through their shareholdings in Jet Airways and Virgin Australia which both have JVs with SkyTeam carriers.
 
Armodeen
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 8:54 am

Aither wrote:
"will focus more on serving Abu Dhabi, where it’s based, than carrying globe-trotting passengers between continents."
Sounds contradicting : serving more by reducing the number of flights & routes that exist only because of these transit passengers...

ME3 : EK, QR and...TK


Sounds like they want to shut up shop and become a regional airline? :lol:
 
xwb777
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 10:54 am

So will Etihad keep the A380s if they will concentrate on Point to Point traffic? Do they really need it?
 
Newflyer2018
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 11:16 am

I just cant see how they can focus mainly on point to point / regional air travel going forward. Abu Dhabi isn't exactly Dubai or Singapore.

The timing for such decision couldn't have been worse, the main regional carriers such as Saudia, Kuwait Airways, Jordanian and Oman Air are either expanding or improving their offerings. EY are leaving the bigger market for smaller and more competitive one. I know they are not quitting international routes (as of yet) but it seem they going to cut a lot of international routes. It makes the many years and billions spent in brand awareness in sport, fashion and lounges as money wasted in my opinion.

The fact the new CEO needs a personal adviser for airline matters speaks volume.

Also, is the midfield terminal (current CEO was involved in during the early stages) opening this time next year going to become a white elephant? its simply too big for AUH without international connecting traffic.
 
PanHAM
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 11:24 am

and that is not all, the Administrators of the Air Berlin companies raised enough Money to be able to sue Etihad and the Abu Dhabi government for 3 billlion €. For their role in the bankcruptcy
Was Erlauben Erdogan!!!
 
Newflyer2018
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 11:46 am

There is going to a lot parked aircraft in AUH from 1st Oct. A number of daily routes will cease on that date.
 
planemanofnz
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 11:57 am

Is James Hogan (the former CEO) largely responsible for this mess? He doesn't seem to be ashamed or embarrassed at all - his LinkedIn page still boasts of all of his so-called achievements while at EY.

See: https://www.linkedin.com/in/james-hogan-77a99b54/.

Cheers,

C.
 
PanHAM
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 12:10 pm

Mr Hogan did what the owners wanted him to do and he did a good Job on that.. I am sure that he has a letter of exonneration from the owners of EY and a clean discharge with enough pay to live a good life.
Was Erlauben Erdogan!!!
 
Themotionman
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 12:12 pm

The more they shrink, the less connections they will be able to pump through AUH, leading to a vicious circle. They should have used their smaller aircraft to move into markets those EK triple-sevens couldn't make work.
 
IndianicWorld
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 12:41 pm

O&D focus on AUH? All well and good, but they won’t need many aircraft to handle that demand.

There really aren’t many routes that make sense for them without a decent connector network. They will be squeezed by many competitors to a point of irrelevance really, unless AUH can suddenly find significant demand increases to fill seats.

That new midfield terminal will be a monument to former dreams :)
 
3AWM
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 12:46 pm

We are talking about a major reduction in routes here. If you look at the routes to AUH served by other airlines or routes at smaller gulf carriers like Gulf and Oman you will get an idea of the route profile they will shrink to.

I guess this means the Australia routes could also go?
 
planemanofnz
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 12:57 pm

3AWM wrote:
I guess this means the Australia routes could also go?

The EY numbers aren't pretty for Australia - let's take a look at their load factors for recent months:

- Apr: 65.8%
- Mar: 62.6%
- Feb: 67.2%

Their market share is down from 3.2% to 2.8% in one year, and will reduce further once PER is cut.

See: https://bitre.gov.au/publications/ongoi ... tions.aspx.

This is all definitely dismal, considering their shareholding in VA, and supposed feed that this brings.

Cheers,

C.
 
MaverickM11
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 1:05 pm

PanHAM wrote:
Mr Hogan did what the owners wanted him to do and he did a good Job on that.. I am sure that he has a letter of exonneration from the owners of EY and a clean discharge with enough pay to live a good life.

What does this mean for all the other AUH projects the “owners” have been driving? Ie the Louvre, Guggenheim, Masdar, etc
E pur si muove -Galileo
 
planemanofnz
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 1:08 pm

PanHAM wrote:
Mr Hogan did what the owners wanted him to do and he did a good Job on that.

I disagree - was it not Hogan who executed the strategy of buying minority stakes in foreign carriers which has ultimately produced EY's crisis? So, when the strategy failed, he was dumped.

Hogan's failure, it now seems clear, may not have been his strategy per se, but rather his selection of very flawed foreign airlines in which to invest ... Al Mazrouei determined the financial collapse last week of Alitalia SpA, in which Hogan and Rigney had led Etihad to take a 49.9% ownership stake, had undermined Hogan’s credibility as Etihad’s leader ... Hogan’s plan to spread risk across different entities blew up in his face.

See: https://www.forbes.com/sites/danielreed ... 5ad6575691.

Despite the failure of Hogan's strategy, he still goes to great lengths to market himself as "Aviation CEO of the Year" and "CAPA Airline Executive of the Year." Should he show greater humility?

See: https://www.linkedin.com/in/james-hogan-77a99b54/.

Cheers,

C.
 
JustSomeDood
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 1:19 pm

What's more important is, where is a smaller, more regional EY going to find the traffic and routes to need 50 more 787s and 60 more A350s, along with a sizeable 777x order..
 
Noshow
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 1:19 pm

Buying non profitable airlines is a risky concept as has been proven here again. The feeder concept was oversized and connecting long range passengers at Abu Dhabi had mixed experiences for some time. Now that might be much improved.

I hope they keep their flagship product and their flagships.
 
Pe@rson
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 1:22 pm

Funny that plane spotters admonish a global airline CEO as being ineffective and unsuccessful. ;-)
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
 
planemanofnz
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 1:25 pm

Pe@rson wrote:
Funny that plane spotters admonish a global airline CEO as being ineffective and unsuccessful. ;-)

Is it not the truth though? That is, that Hogan (or at least his execution of his strategy) was unsuccessful? There's nothing funny about that?

Cheers,

C.
 
Virtual737
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 1:26 pm

Bittersweet to see Etihad in this much trouble. I used to fly between 16 and 20 long haul segments with them per year, almost all in J and often flown in F (the F on their A380s really is something to behold) and I have to say they treated me like a King. Was consistently "Gold Elite" and then "Platinum" when they changed the tier naming and the benefits were excellent.

That was up until the end of 2015 when, on enquiring if I would receive my usual incentive to fly once more that year (when I have no compelling business need) I received the wording "We regret to inform you that your account was not in the target list.".

Have not flown them once since but still wish them all the best.
 
VictorKilo
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 1:31 pm

It will be interesting to see how they choose to restructure their wide body fleet. 73 789, 332, 333, 77W, and 380 - plus 139 A350, B77X, and B787 variants on order. Mass cancellations would be expected - the 60 350 orders to start, and probably the 77Xs too.

I don’t think they could find someone to take the 10 A380s if they wanted to, given the weakness in the market (they don’t share engine commonality with BA’s 380s).

My guess is that the airline will park the 330s and some of the 77Ws, focusing on the 787s going forward.
 
IndianicWorld
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 1:31 pm

planemanofnz wrote:
3AWM wrote:
I guess this means the Australia routes could also go?

The EY numbers aren't pretty for Australia - let's take a look at their load factors for recent months:

- Apr: 65.8%
- Mar: 62.6%
- Feb: 67.2%

Their market share is down from 3.2% to 2.8% in one year, and will reduce further once PER is cut.

See: https://bitre.gov.au/publications/ongoi ... tions.aspx.

This is all definitely dismal, considering their shareholding in VA, and supposed feed that this brings.

Cheers,

C.


Trying to fill 2 x daily A380’s into SYD with a ME3 capacity battle going on really isn’t likely to be helping their numbers.

MEL has already seen significant capacity cuts, which is exacerbated really by the decrease in network connectivity options. With PER going, BNE at a manageable 1 x daily
, it would leave SYD that is likely next on the list to see cuts.

I can’t see how any of the Australian routes would survive in an AUH O&D focuses strategy. There is very little demand to even think about trying it.

I do think their strategy will be more of a balanced position though than just that, but as the network continues to shrink the harder it will be to justify most of their routes.
 
planemanofnz
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 1:38 pm

VictorKilo wrote:
I don’t think they could find someone to take the 10 A380s if they wanted to ...

They could pull an MH and do a Hajj set-up with them - or, lend them to EK up the road?

Cheers,

C.
 
Lufthansa
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 2:11 pm

EK may take their A380s for the right price... but AUH has a lot of oil money. Much more than DXB. These may just get converted into flying Palaces. According to wikipedia there is a proposed rail link to DXB proposed or in the works (hard to tell how up to date Wiki is).... it might simply be time to send the entire fleet bar a small amount of A320s for regional service to dxb? And yes the Australian routes need feed. They're based mostly on Euro traffic so if you can't fly to the likes of Rome and Paris anymore they'll suffer. They perhaps could make Sydney to LHR work. The issue however is the Chinese carriers are setting the price now and they are charging some crazy prices. CA is determined to make it's mark on the world.
 
Noshow
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 2:13 pm

I think Etihads A380 marketing was pretty smart. They came late to the party but got the full attention with their apartment suite. I hope they keep it. Must be perfect for long distance travel to Australia.
 
TC957
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 2:20 pm

DXB wouldn't cope with a sudden influx of EY aircraft so until DWC opens fully that idea is out.
 
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aemoreira1981
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 2:27 pm

directorguy wrote:
planemanofnz wrote:
The CEO says:

... [Etihad] will prioritize point-to-point flights over the super-hub model that the carrier previously pursued as it sought to attract customers making flights between Asia, Europe, Africa and the Americas.

With all due respect, AUH doesn't strike me as somewhere that really has that many point-to-point routes with reasonable demand? It's a lot less significant than DXB in global trade and internationalization.

Cheers,

C.


EY can still fly a reasonable regional network (GCC countries) plus CAI, BEY, major markets in India/Pakistan etc. Long-haul, I think at a bare minimum they will maintain LHR at least 2x daily, plus JFK. I think 2 US cities will eventually be dropped. To the east, NRT, NGO, ICN, SGN and HKT will be cut.


With KE cooperation, I see ICN remaining. Everything else you listed should be cut. As for North America, I see only JFK surviving, perhaps with feed from Delta and Aeromexico (if Etihad wants into an alliance, SkyTeam makes the most sense, but will Saudia allow it?). Down the line, EY should rationalize around the B789, A35K, and A321/A321LR. Almost all of Africa could be covered by the A321LR as well as secondary Europe, Russia, and out to Bangkok (Flydubai flies from DXB to BKK on the 737). Keep it simple on the fleet.
 
Lufthansa
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 2:37 pm

aemoreira is probably right. Nauru Airlines once flew to SIN, TPE, HKG, HNL and various Japanese locations but there was no way in hell it could be supported. Economic sense had to kick in sooner or later. Ditto for Royal Brunei. This airline... as much as it's known for excellent service was always a vanity project because the Older and richer Emirate didn't wanna be upstaged.... however it was proven DXB and EK got first movers advantage. The only other place I think they "might" be able to maintain is SYD due to the VA relationship and the popularity of the 388 service. They do get a premium over the Asian carriers. However they may not if they're pretty much depending on all traffic going to LHR .
 
planemanofnz
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 2:51 pm

TC957 wrote:
DXB wouldn't cope with a sudden influx of EY aircraft so until DWC opens fully that idea is out.

Perhaps EK and EY could join forces to run an LHLC operator through DWC then, using EY's unused 388's (if it comes to that).

Nobody has really fully maxed out the 388 density-wise, to its full capability (600 - 700 seats). Start with the India - UK corridor?

Cheers,

C.
 
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zkojq
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 2:56 pm

mercure1 wrote:
Story and 19-minute video interview with CEO

https://www.bloomberg.com/news/articles ... end-losses


Did anyone else find that video painful to watch? He's just stringing bits of jargon and business terminology together. :/
Most recent aircraft flown: A318 F-GUGQ, A319 F-GRHR, A320ceo D-AIZH, A320neo D-AINE, A330-300 VH-QPD, A350-900 B-LRA, A380-800 D-AIMH, 717 VH-YQW, 737-600 LN-RPA, 737-700 OY-JTY, 737-800 LN-NGA, 767-300 ZK-NCI, 777-300 ZK-OKN, 787-9 VH-ZNA, CS100 HB-JBG
 
BestWestern
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 3:17 pm

I’ve heard that many of the 330’s are heading to Eurowings Swiss and SN. Some of the the 777 may be heading to Swiss and Austrian.

The 320, 787 and 350 will form the backbone of the new fleet.

I’ve also heard that ADAC are in total panic mode over the midfield terminal. Their debt covenants are based on a totally different scenario and could be heading to junk status.
Greetings from Hong Kong.... a subsidiary of China Inc.
 
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yowza
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 3:40 pm

mercure1 wrote:
Story and 19-minute video interview with CEO
https://www.bloomberg.com/news/articles ... end-losses

zkojq wrote:
Did anyone else find that video painful to watch? He's just stringing bits of jargon and business terminology together. :/

EXCRUCIATING video to watch. One of the benefits of being backed by Abu Dhabi Inc should be the ability to move fast and get sh*t done without distraction. This is the kind of interview that CxO's conduct to keep shareholders calm. So kind of pointless...

Some thoughts:
1) I'm not confident that somebody who has never run an airline can do what needs to be done at EY.
2) Like others I don't think AUH is enough of a draw for P2P.
3) "bespoke offering" + "digital transformation" + "2 thirds of the world's population within 7 flying hours." = had the management consultants in and retained three talking points of their leave behind. And thus Alitalia of the Middle East was born.

YOWza
 
Armodeen
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 3:52 pm

If it is as drastic as is made out then they don’t need a lot of their fleet.

They can get rid of the A380, 777, A330 fleets and concentrate on (a reduced final amount) of 787s and A320/1. Cancel the 77X order, and either cancel completely or partly the A350 order (depending on how terrible the forecast is, they may need a small number of A35K).

Really terrible news for the airport authority, they are right to panic!
 
planemanofnz
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 3:55 pm

yowza wrote:
1) I'm not confident that somebody who has never run an airline can do what needs to be done at EY.

He can't be any worse than Hogan!

Two points:

1. Several airlines have had CEO's with non-airline backgrounds come in and successfully manage them, like Christopher Luxon at NZ
2. This new EY CEO seems to have had a role previously at AUH, which means he should understand EY's current state of affairs well

Cheers,

C.
 
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lightsaber
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 3:57 pm

I join the chorus that AbuDhabi lacks the O&D demand to make this strategy plausible.
I'm not hearing of a real plan... More of a we're doing something, let's have the band play as the ship goes down sort of thing.

Armodeen wrote:
Aither wrote:
"will focus more on serving Abu Dhabi, where it’s based, than carrying globe-trotting passengers between continents."
Sounds contradicting : serving more by reducing the number of flights & routes that exist only because of these transit passengers...

ME3 : EK, QR and...TK


Sounds like they want to shut up shop and become a regional airline? :lol:

But they are not pursuing the right strategy.

Being a luxury airline providing more than you charge makes customers happy. To be a successful regional airline means pursuing less premium traffic. EY isn't set up for that. FlyDubai and AirArabia have taken the LCC market. Are they going ULCC? What is their niche? How will they thrive?

EK has the Kangaroo routes, and thanks to well organized (if a wee bit crowded) hub waves, connectivity between Europe (all of Europe), North Asia, SE Asia, India, Africa, Australia/NZ, and even a spattering of flights to the Americas. So I agree with dropping the superhub strategy as with that game you are either #1 or a distant 2nd (in profit). With the new IST, the game will get far tougher hubbing for the ME3. I'm not saying they do not have a market, I'm saying a major competitor losses constraints.


planemanofnz wrote:
Pe@rson wrote:
Funny that plane spotters admonish a global airline CEO as being ineffective and unsuccessful. ;-)

Is it not the truth though? That is, that Hogan (or at least his execution of his strategy) was unsuccessful? There's nothing funny about that?

Cheers,

C.

Hogan so destroyed money that it has changed the economic might of what was once the dominant emirate.


Lightsaber
You only have the first amendment with the 2nd. If you're not going to offend someone with what you say, you don't have the 1st.
 
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yowza
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 4:20 pm

planemanofnz wrote:
yowza wrote:
1) I'm not confident that somebody who has never run an airline can do what needs to be done at EY.

He can't be any worse than Hogan!

Two points:

1. Several airlines have had CEO's with non-airline backgrounds come in and successfully manage them, like Christopher Luxon at NZ
2. This new EY CEO seems to have had a role previously at AUH, which means he should understand EY's current state of affairs well

Cheers,

C.

I'm not saying it cant be done but it does reduce the likelihood of success. If I'm not mistaken Luxon had some previous airline experience and let's be serious NZ is a much saner organization than EY. :)

I give Douglas 14 months.

YOWza
 
musman9853
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 4:53 pm

hongkongflyer wrote:
PerfectGriffin wrote:
Premium economy is a good idea but the question is, which of the ME3 will be first to enter this growing yet potentially profitable market?


EK I believe, they already have detailed plan long time ago



iirc ek's new build a380s will have prem econ
 
musman9853
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 5:04 pm

BestWestern wrote:
I’ve heard that many of the 330’s are heading to Eurowings Swiss and SN. Some of the the 777 may be heading to Swiss and Austrian.

The 320, 787 and 350 will form the backbone of the new fleet.

I’ve also heard that ADAC are in total panic mode over the midfield terminal. Their debt covenants are based on a totally different scenario and could be heading to junk status.



if they're going to be a more regional airline, why keep the 350s in favor of the 78s?
 
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aemoreira1981
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Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 5:52 pm

musman9853 wrote:
BestWestern wrote:
I’ve heard that many of the 330’s are heading to Eurowings Swiss and SN. Some of the the 777 may be heading to Swiss and Austrian.

The 320, 787 and 350 will form the backbone of the new fleet.

I’ve also heard that ADAC are in total panic mode over the midfield terminal. Their debt covenants are based on a totally different scenario and could be heading to junk status.



if they're going to be a more regional airline, why keep the 350s in favor of the 78s?

At least some will be needed to serve Australia, Hong Kong, London, and New York. But no more than 15-20. Dreamliners could cover everything else that survives.
 
WPvsMW
Posts: 1182
Joined: Thu Mar 23, 2017 7:30 pm

Re: Etihad CEO lays out restructuring plans

Wed Jul 04, 2018 6:59 pm

A modern Tale of Two Cities, errr, two Emirates. It is not just EY in crisis... it's AUH. Would the two Emirates think for a second about DXB operating AUH (Dubai won't alter DWC... but running multiple scissor hubs?)? DWC could return to (nearly) all cargo.
 
IndianicWorld
Posts: 3064
Joined: Mon Jun 04, 2001 11:32 am

Re: Etihad CEO lays out restructuring plans

Thu Jul 05, 2018 12:13 am

The talk of trying to keep routes like SYD if you get rid of 90% of their network is just not going to work.

The Australian routes rely heavily on the ability to feed into the broader EY network, providing 1-stop service to many route options.

It will likely end up looking more like GF did when it right sized to a regional player, with some select longer range destinations. Once it stablises, it can then look to expand coverage again down the track, just as GF is looking at currently.

By that time, AUH may have built itself to a position that it has enough demand to justify increased service.
 
planemanofnz
Posts: 3931
Joined: Fri Sep 30, 2005 4:46 pm

Re: Etihad CEO lays out restructuring plans

Thu Jul 05, 2018 1:09 am

IndianicWorld wrote:
The talk of trying to keep routes like SYD if you get rid of 90% of their network is just not going to work.

I think SYD could survive if LHR, FRA and CDG all survive, similar to how BI's MEL service survives because of its LHR services.

For O&D to the UAE, they could offer more reasonable prices, relative to distance. Often, SYD - LHR is cheaper than SYD - AUH!

Cheers,

C.

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