Dubai: Etihad Airways Chief Executive and President, James Hogan, said on Thursday Alitalia cannot afford to fall back into old habits that nearly led to its collapse.
In an address at the International Forum of Sovereign Wealth Funds in Milan, Italy Hogan said the Italian carrier is improving but “still faces challenges,” according to an emailed statement from Etihad.
“It cannot afford to revert to past practices. For Alitalia to survive and thrive, there must be a relentless focus on costs and efficiency, coupled with a commitment to delivering quality, innovation and value for money,” Hogan stated.
In 2014, Etihad committed 1.25 billion euros to restructure Alitalia in a deal that saw the Abu Dhabi carrier take a 49 per cent stake in Italy’s national airline.
But in September 2015, months after Alitalia publicly committed to the restructuring programme, Chief Executive Silvano Cassano resigned citing personal reasons.
On Thursday, Hogan put his faith in Alitalia Chairman Luca Cordero di Montezemolo, who, aided by other executives, has temporarily taken over chief executive duties.
“Montezemolo has a clear vision for the success of the Alitalia business, one which we share fully. Together, we are working to re-establish the airline to its rightful place as one of the great international brands,” Hogan said.
