Legacy airline alliances have outlived their usefulness, based on Abu Dhabi-based Etihad Airways’ president James Hogan. Hogan yesterday delivered a keynote speech on the International Aviation Club in Washington, DC. Hogan said Etihad Airways’ unique business model, that’s a mixture of organic growth, codeshares and minority equity investments, was proving very effective in building passenger numbers, revenue and profit for all its partners. “The traditional airline alliances have evolved into slow-to-respond, bureaucratic organisations which struggle to deliver added value to their member airlines, lots of that are now not compatible with one another. “If we glance on the consolidation currently occurring inside the airline industry, we’re also seeing more fragmentation in the alliances. “This goes to continue as members seek easy methods to operate profitably in a completely competitive environment...
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