James Hogan had spent over three decades working with airlines like Ansett and Gulf Air, hotel and restaurant chain Forte and car rental firm Hertz before he joined Abu Dhabi-based Etihad Airways in October 2006. But the Australian will be remembered more for what he unleashed at the UAE national carrier, where he is president and CEO, than for any of his achievements in all those years. In 2008, he placed a $43-billion order for 205 aircraft. That was just the start.
Three years later, Hogan turned industry conventions on their head by kicking off what Etihad calls 'equity alliances'. Instead of joining an airline alliance like Star Alliance or OneWorld, Etihad bought just under 3% in Air Berlin, and later raised it to nearly 30%. Etihad also lent the ailing German airline $255 million.
Etihad has since picked up equity stakes in four other airlines, the most recent and largest being 24% in Jet Airways for $379 million earlier this week. (It has invested another $220 million in Jet, including $150 million in its frequent-flyer programme and $70 million to buy its three slots at Heathrow airport.) Etihad, with these acquisitions — all minority ones — has now strengthened its presence in Asia, Australia, Europe and Africa.
28/04/13 G Seetharaman/Economic Times
