Etihad CEO, Tony Douglas, is reported by Arabian Business to have accepted an offer to join RIA, Saudi Arabia’s new national carrier as the Head of the Board of Directors. Other sources suggest that many other senior executives from Etihad are expected to follow suit.
Consulting firm Korn Ferry has been assigned to find a replacement for Douglas, as per sources. It is further reported that Douglas has informed Etihad’s shareholders of his decision, but has agreed to stay on until a replacement is found.
An Etihad spokesperson told Arabian Business that: “Etihad doesn’t comment on rumour or speculation.” Airline Economics has reached out to Etihad for comment but received no response at the time of publication.
The $30bn carrier RIA is expected to launch operations towards the end of 2022. The airline plans to launch only regional operations initially with a fleet of Boeing 737Max and A320.
RIA is fully funded by Saudi Arabia’s Public Investment Fund (PIF) and is expected to be a key pillar in the $100 bn investment program spanning over eight years. This plan is a part of the Vision 2030 program to expand Saudi Arabia’s economic portfolio.
According to the experts, the lunch of a new carrier in the Middle East domestic market is expected to bring a wave of fierce competition between existing players like Emirates, Etihad, and Qatar.