Etihad Airways CEO James Hogan has urged EU governments and airlines to embrace external investment to help strengthen the aviation industry.
Hogan said aviation was a “global, not regional, industry, generating strong economic and social benefits”, and that Etihad “wanted to engage with Europe for mutual gain.”
Hogan also said that “external investment is not a threat. It is an opportunity to strengthen airlines, and to support employment and economic growth.”
Etihad Airways has acquired minority stakes in three European airlines – airberlin (29.2%), Aer Lingus (4.99%) and Air Serbia (49%). The airline recently finalized the acquisition of a 33.3% stake in the Swiss regional carrier Darwin Airline, which operates as Etihad Regional, and is in the process of acquiring a 49% stake in Alitalia.
Hogan accused opponents of investment of citing the expansion of Gulf carriers as a major competitive threat: “All Gulf carriers are not the same. We are different sizes, have different hubs and follow different strategies. We are actually vigorous competitors with each other.”
Hogan also said that the biggest problems facing the European industry were long-standing issues over congestion from under-investment in airports and airspace management, high operating costs at hub airports, high labour costs and inconsistent and inequitable air passenger duty taxes.