The worst-kept secret in international aviation was made public today when Abu Dhabi-based Etihad Airways formally announced that James Hogan, late of Gulf Air, has been appointed chief executive.
Hogan spent four years at Gulf Air, with a remit to redefine and restructure the carrier, and had been widely tipped to take the helm of Etihad after stepping down from Gulf Air at the end of September. His appointment at Etihad is effective immediately.
Hogan is likely to have a lot more scope at the helm of Etihad than he did at Gulf Air, which has been left rather exposed since Abu Dhabi’s government, which was a shareholder in Gulf Air, last year pulled out of its involvement there to concentrate on developing Etihad.
The carrier has ambitious expansion plans, having launched 35 long-haul routes in as many months. It says it expects to carry four million passengers in 2007.
Hogan has a wealth of business experience in the region and says he believes “we can position Etihad as a leader in the international and local markets”.
He is taking one of his most trusted lieutenants with him on the move. James Rigney, former head of corporate strategy at Gulf Air, takes on the role of vice-president finance at Etihad alongside his former colleague.
Martin George and Iain Burns of British Airways may be the first high profile heads to roll in the on-going probes into fuel surcharges, but are unlikely to be the last.
George and Burns, both high-flying and well-respected industry executives, have done the decent thing at BA. Although not admitting direct responsibility for “inappropriate” conversations relating to long-haul fuel surcharges, George is taking the rap with his resignation. Burns has yet to comment.
The departure of George after 4 months of gardening leave was probably inevitable. He needs to rebuild his career, most likely outside the aviation industry, and BA needs closure.
BA may stem the tide in people terms – it certainly will not want to lose any more top managers – but the investigation continues. The prognosis does not look too encouraging.
And let’s not forget the cargo fuel surcharge probe, which also affects BA. This is an equally troubling investigation for airline boardrooms on both sides of the Atlantic. The fallout should become apparent over the next few weeks and months – it will not be a pretty sight.
