Tuesday 19 March 2024
 
»
 
»
Story

Hogan...fully believes in Alitalia's growth potential

Embracing change key to Alitalia's growth, says Hogan

ABU DHABI, October 4, 2015

Etihad Airways, a key investor in Alitalia, believes Italy’s national airline has “fantastic potential to grow” – but only if it embraces change, said James Hogan, the Gulf carrier’s president and chief executive officer, and vice chairman of Alitalia.
 
Speaking in Milan to the International Forum of Sovereign Wealth Funds, Hogan said that “Alitalia was on the verge of collapse last year.”
 
“We invested €560 million ($627.6 million) as part of a €1.76 billion ($1.97 billion) restructure of Alitalia,” said Hogan. “Today, we are the largest single shareholder, with a 49 per cent stake. What did we see in Alitalia that nobody else did?  A great brand, a great network, but a poor business in need of a new direction.”
 
Hogan said Etihad Airways saw great potential for both airlines to grow efficiently by working together. “Partnership offers lower risks, greater rewards and faster outcomes than ‘going it alone’,” he said. “That’s good for Alitalia, good for Etihad Airways, good for Italy and good for consumers.”

He said Etihad Airways and Alitalia had complementary route networks which, combined, offered approximately 200 destinations. He also said Alitalia gained significant new flight connectivity by connecting with Etihad Airways at its hub in Abu Dhabi, providing extensive access to destinations across Asia, and in Australia and Africa – destinations not served by Alitalia.

But the Etihad – Alitalia partnership offered much greater benefits for customers including the alignment of inflight product and service, expansion of both carriers’ frequent flier programs, and synergy benefits including joint procurement and resource sharing, Hogan noted.
 
Recently, Etihad Airways and six equity partners, including Alitalia, participated in an innovative capital raising, through which $700 million was collectively sourced from global financial markets.

“Alitalia’s chairman, Luca Cordero di Montezemolo has a clear vision for the success of the Alitalia business, one which we share fully. Together, we are working to re-establish the airline to its rightful place as one of the great international brands,” Hogan said.

“Alitalia is ascending. But it still faces challenges. It cannot afford to revert to past practices. For Alitalia to survive and thrive, there must be a relentless focus on costs and efficiency, coupled with a commitment to delivering quality, innovation and value for money. Through our partnership, we can achieve success together,” he said. – TradeArabia News Service




Tags: Etihad | investment | Alitalia |

More Travel, Tourism & Hospitality Stories

calendarCalendar of Events

Ads