Etihad chief predicts more airline mergers
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The world’s airline industry is heading for more consolidation because of the global recession and drop in air travel, Bloomberg reported the Chief Executive Officer of Etihad Airways as saying.
James Hogan told the Australian Broadcasting Corp.’s Inside Business programme that combinations such as Air France-KLM Group will probably become more common as companies seek to cut costs. Hogan added that Abu Dhabi-based Etihad is seeking ways to work more closely with Qantas, following recent codeshare deals.
“We are already seeing a number of airlines under huge pressure. Airlines will have to make decisions as any other business does with regard to their network, their fleet and whether they rationalise, consolidate or continue to invest in expansion,” Hogan was quoted saying
He added that the Gulf region’s aviation market was “still strong,” but that Etihad was still “under pressure” to achieve its target of becoming profitable in 2010.
“Let’s see how the second half of this year goes,” he said.
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