Etihad Airways' expansion strategy has largely been based around having equity stakes in foreign airlines, rather than growing their own fleet too much. Etihad has invested in airberlin, Air Serbia, Alitalia, Jet Airways, etc. While I understand the Jet Airways investment since it gives Etihad more access to the India market, their other investments are…
Continue reading: Rumors Of Fleet, Job, And Service Cuts Coming To Alitalia
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In a commercial transaction if conditions precedent have not been met then the transaction does not proceed at all. That doesn't sound like what has happened here. If Alitalia breach the EY investment contract post completion (ie with conditions subsequent), EY should be entitled to pull their investment and let Alitalia continue to die a slow and painful death.
Indeed, "what they were expecting in the first class" is quite a mystery.... 😉
I know you're an aviation geek Ben, but 'what they were expecting in the first class' is taking it a little too far 😉
Etihad had over 200+ planes on order for delivery in the next 10 years. I they dont plans of their own, r that they are only relying on equity partners or their growth.
"New uniforms, new liveries, and dine on demand in business class can only taken an airline so far…
Obviously, Etihad's powers-that-be neglected to recall Swissair's acquisition of floundering Sabena...and the disastrous consequences that acquisition had for the formerly stellar Swissair.
Maybe customers are staying away from Alitalia to avoid being visually assaulted by those hideous new flight attendant uniforms and the baby poo-colored leather seats in the lounges and planes...
Alitalia is always a bad investment, as many have learned before. But Etihad thought they could turn around bad businesses, so they at least wouldn't be major cash drains, while redirecting traffic through Abu Dhabi. Alitalia and airberlin are the flip side of the Jet Airways investment. Carry European passengers through Abu Dhabi to India, Pakistan, etc and carry passengers from India (Jet), Australia (Virgin Autralia) etc through to Europe.
Everyone who touches Alitalia gets burned. And Etihad is no doubt thankful they didn't get suckered into bailing out South African Airways...
In the case of Airberlin it's pretty obvious: Etihad was always interested in the slots they couldn't get on European/German airports on their own, so they got airberlin. You can see that strategy clearly in last years endless discussions with the German ministry for transport and infrastructure around the special permission of their codeshare flights....
I wish Etihad would train the staff of these airlines they buy stakes in. I just flew Alitalia, and the service was so horrible. If they'd make the service better, you could forget about their horrendous uniforms, dirty planes, bad food...actually, maybe there's no hope.
I wonder where Air Berlin would be now if the new Berlin airport had opened on time.
Hogan has never managed a profitable airline, not sure why he and his band of geniuses thought they could turn around this or any other airline.
I suppose its fun to play with other peoples money.