Etihad would consider more investments – Hogan

Etihad Airways will consider making more equity investments in other airlines, the company’s president & CEO James Hogan has said.

The airline recently currently engaged in three major transactions – the acquisition of a 24% stake in India’s Jet Airways, a 49% stake in Air Serbia, and increasing its stake in Virgin Australia from 10% to 19.9%. And speaking at the FVW Kongress in Germany this week, Hogan revealed that it would consider further acquisitions in the future, if they “add value” to the airline.

“Global reach is beyond the capacity of any single airline. Progress must come through partnership,” said Hogan. “The investments we are making are delivering significant benefits not only to the airlines but to our passengers and freight customers. We will consider more strategic partnerships if they add value.”

Etihad launched its equity investment strategy in 2011 with the purchase of a 29% stake in airberlin, and followed this up with a 40% investment in Air Seychelles. It also owns almost 3% of Irish national carrier, Aer Lingus.

“Equity investments deliver synergy benefits which cannot be achieved through legacy airline alliances,” Hogan said. “Legacy alliances are focused largely on network and revenue benefits. Our equity alliance delivers much broader benefits for all of the partners including opportunities to reduce costs through resource sharing and joint procurement.”

Hogan’s statement comes as amid rumours that Etihad is about to invest in Alitalia. When asked about the deal this week, Hogan said he is currently “focused on India”, but admitted Etihad is still “look[ing] at many businesses”.