Abu Dhabi-based Etihad Airways’ equity investment model has created a new force in global air travel that protects and promotes competition, according tothe airline’s president and chief executive James Hogan.
Pictured: Flanked by Etihad cabin crew is Melbourne City Football Club chief executive Scott Munn, Melbourne City Football Club head coach John van ’t Schip, Hogan and Melbourne City Football Club vice chairman Simon Pearce.
Speaking at a Melbourne lunch, Hogan outlined the challenges facing airlines trying to bring new competition to global markets.
“In a world of mega-connectors and mega-alliances, it is impossible to go it alone when trying to compete on the global stage,” said Hogan.
"The regulatory challenges, the daunting cost of entry and the might of the legacy carriers create incredibly high barriers.
“We have had to build everything from scratch, investing in all the infrastructure of a global airline. So in addition to the obvious multi-billion dollar investments in aircraft and engines, that meant investment in people, investment in technology, investment in real estate and investment in our brand.
“It also meant investment in partners.
“A network carrier needs global reach if it is to compete effectively and the market is too mature, too dominated by legacy interests, for any new carrier to get that reach on its own.
“We’ve used partnership since day one, in the form of a growing codeshare network, but the equity investments took that approach to a new level.”
Etihad Airways has taken minority equity investments in airlines in strategic markets, including Virgin Australia, Alitalia, Jet Airways, airberlin, Air Serbia and Air Seychelles.
“Together, we are creating and developing commercially-focused businesses that can compete against the legacy airlines that dominate markets around the world.”
The airline will bring its A380 service to Melbourne from 01 June 2016 and will also open its new premium lounge at Melbourne airport in May.
Abu Dhabi-based Etihad Airways’ equity investment model has created a new force in global air travel that protects and promotes competition, according tothe airline’s president and chief executive James Hogan.
Pictured: Flanked by Etihad cabin crew is Melbourne City Football Club chief executive Scott Munn, Melbourne City Football Club head coach John van ’t Schip, Hogan and Melbourne City Football Club vice chairman Simon Pearce.
Speaking at a Melbourne lunch, Hogan outlined the challenges facing airlines trying to bring new competition to global markets.
“In a world of mega-connectors and mega-alliances, it is impossible to go it alone when trying to compete on the global stage,” said Hogan.
"The regulatory challenges, the daunting cost of entry and the might of the legacy carriers create incredibly high barriers.
“We have had to build everything from scratch, investing in all the infrastructure of a global airline. So in addition to the obvious multi-billion dollar investments in aircraft and engines, that meant investment in people, investment in technology, investment in real estate and investment in our brand.
“It also meant investment in partners.
“A network carrier needs global reach if it is to compete effectively and the market is too mature, too dominated by legacy interests, for any new carrier to get that reach on its own.
“We’ve used partnership since day one, in the form of a growing codeshare network, but the equity investments took that approach to a new level.”
Etihad Airways has taken minority equity investments in airlines in strategic markets, including Virgin Australia, Alitalia, Jet Airways, airberlin, Air Serbia and Air Seychelles.
“Together, we are creating and developing commercially-focused businesses that can compete against the legacy airlines that dominate markets around the world.”
The airline will bring its A380 service to Melbourne from 01 June 2016 and will also open its new premium lounge at Melbourne airport in May.
Abu Dhabi-based Etihad Airways’ equity investment model has created a new force in global air travel that protects and promotes competition, according tothe airline’s president and chief executive James Hogan.