Dubai: Etihad Aviation Group announced on Thursday the appointment of Tony Douglas as group chief executive officer, replacing James Hogan who stepped down in July.
The new chief executive will join the group in January 2018, Etihad said in a statement. He joins the airline from the UK’s Ministry of Defence, where he served as CEO of the Defence Equipment and Support department.
Regionally, Douglas formerly held positions that include chief executive officer of Abu Dhabi Airports Company and CEO of Abu Dhabi Ports Company where he was responsible for the delivery of Khalifa Port.
The loss-making, Abu Dhabi-based airline said Douglas will “implement a range of strategic initiatives to position Etihad for sustained success in an increasingly competitive regional and global aviation market.”
His appointment comes as Etihad Airways recorded $1.87 billion in losses in 2016 amid challenges in the macro-environment, high impairment charges, and costs related to airberlin and Alitalia, where Etihad owns stakes.
The results were a significant plunge from the $103 million in profits recorded in 2015.
The stakes in airberlin and Alitalia (both airlines are now insolvent) were part of a growth strategy orchestrated by former CEO Hogan.
With airberlin now having filed for insolvency and up for sale, and Alitalia under special administration, the new CEO at Etihad will be faced with the task of limiting the company’s losses from its exposure to both the European carriers.
In late July when Etihad reported its financial results, the airline said it expected to continue facing headwinds in 2017 on the back of a challenging environment for the global aviation industry.
Transformation
“We are delighted to have Tony return to Abu Dhabi to lead Etihad. He has guided the transformation of large organisations in the UAE and the UK, and he understands the UAE and the region.
He is also deeply knowledgeable about commercial aviation, and keenly familiar with Etihad’s challenges and opportunities in a rapidly changing industry,” said Mohammed Al Mazrouei, chairman of Etihad Aviation Group, in a statement.
Though Douglas does not have experience heading airlines, his background in the aviation industry including holding senior positions with airport operator BAA in the UK, and as chief operating officer and group chief executive designate of Laing O’Rourke.
His roles under BAA included managing director of the Heathrow Terminal 5 project, group supply chain director, group technical director, and CEO of Heathrow Airport.
Most recently, at the UK’s Ministry of Defence, he was responsible for procuring equipment and services for the British Armed Forces.
John Strickland, director of air transport consultancy JLS Consulting, said Etihad has appointed “someone well known to the owners, providing a sense of trust, and bringing much airport experience.”
In the Etihad statement on Thursday, the new group CEO described Etihad as a “force in global aviation that must continue to adapt and evolve on its own and with industry partners.”
Douglas will take over from Ray Gammell who has been serving as interim CEO following Hogan’s departure. Gammell said the new chief executive will guide the company “into the next phase of its development.”
Once Douglas takes over as CEO, Gammell will return to his position as group chief people and performance officer.
Ricky Thirion will continue to serve as interim group chief financial officer. Etihad is yet to announce a new chief financial officer. The group’s former CFO stepped down at the same time as Hogan.
