Video: What's behind Etihad Airways' sweeping reorganisation plans?

Wed 11 Jul 2018 10:57 AM GST
Etihad Aviation Group has announced a new organisational structure and operating model that will see it reorganised into seven distinct business divisions under Group CEO Tony Douglas, with former Etihad Airways CEO Peter Baumgartner moving into a strategic advisor role, the company announced last week

The changes – effective immediately – will see the group organised into an operations division, as well as commercial, maintenance, repair and overhaul human resources, finance, support services and transformation divisions, led by a new executive leadership team reporting to group CEO Tony Douglas, who also assumes responsibility for Etihad Airways.

"Etihad is now positioned to continue supporting the mandate of our shareholder, and the growth and prominence of Abu Dhabi,” Douglas said of the changes.

For 2017, Etihad Aviation Group’s core airline division reported a 22 percent improvement in core operating performance, driven by improved revenues of $6.1 billion and a 7.3 percent reduction in unit costs, albeit with losses of more than a billion and a half dollars that indicate the airline is still having to cope with the effects of a strategy that saw it absorb impacts from partners Alitalia and Airberlin which went into administration.

In this edition of Inside AB, Jeremy Lawrence and Shayan Shakeel look at what’s driving the reorganisation and ask what happens next for the UAE national carrier.

(Source: Arabianbusiness.com YouTube channel)