In 2015, BTN named Etihad Aviation Group CEO James Hogan to
its list of Most Influential largely for the company's investments to build a
global alliance network. This year, Hogan stepped down from that position, as
chairman Mohamed Mubarak Fadhel Al Mazrouei, announced a review of Hogan's
policy. In the aftermath, one major European carrier is out of business and
another is on life support.
Upon Mazrouei's ordered review, Etihad pulled financial
support from Germany's second-largest carrier, Airberlin, and the carrier filed
for insolvency soon after. Airberlin made its last flight in October, and
Lufthansa and Easyjet are seeking regulatory approval to absorb the remains.
Another carrier in Etihad's family of investments, Alitalia,
filed for bankruptcy protection this spring, after its workers rejected a major
refinancing plan and Etihad decided not to offer additional funding. Unlike
Airberlin, Alitalia seems poised to survive as a carrier, continuing operations
as it weighs offers from bidders to take it out of bankruptcy.
Financial woes predated Etihad's investments in both
carriers, and Etihad's change in strategy was not surprising, given that the
investments were large factors in Etihad's $1.87 billion net loss in 2016.
Etihad Airways CEO Peter Baumgartner has said the company has no plans to pull
back on its other investments, which include India's Jet Airways, and Etihad
Aviation has tapped former Heathrow CEO Tony Douglas to succeed Hogan as group
CEO in January. In the meantime, Baumgartner has indicated the carrier is now
focused on its own network rather than looking for new investments.