Irishman Ray Gammell announced as Etihad interim chief executive

UAE flag carrier re-evaluating strategy of taking minority stakes in other airlines

Etihad Aviation Group has named Ray Gammell, from Greystones, Co Wicklow, as its interim chief executive officer
Etihad Aviation Group has named Ray Gammell, from Greystones, Co Wicklow, as its interim chief executive officer

Etihad Aviation Group has named Ray Gammell, from Greystones, Co Wicklow, as its interim chief executive officer. He will take over from James Hogan when the Australian stands down after more than a decade in charge later this year.

Gammell, the group's chief people and performance officer, will assume full management responsibilities for the group immediately, though he will formally take charge when Hogan leaves on July 1st, Etihad said in a statement on Monday. The Irishman joined the carrier, which is the national airline of the United Arab Emirates, in 2009 after working at Intel and Royal Bank of Scotland.

The search for a permanent new chief executive continues, and an announcement should be made in the next few weeks, Etihad chairman Mohamed Mubarak Fadhel Al Mazrouei said in the release. In the meantime, Gammell will continue with a strategic review begun last year in order to reposition the business for "a prolonged period of challenges for global aviation," he said.

Equity alliance

Etihad is examining whether to continue with a so-called equity alliance strategy that has seen it take minority stakes in mostly underperforming airlines around the world in an effort to turn them around while helping to feed more traffic through its Abu Dhabi hub.

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Hogan devised the plan as the company sought to catch up with older Gulf rivals Emirates, based in Dubai, and Qatar Airways. While some of its investments have shown a profit, Alitalia has filed for bankruptcy amid mounting losses and a lack of funds, and Air Berlin is dividing its business into three in a bid to survive amid competition from local rivals.

Etihad said that Ricky Thirion, currently senior vice-president, group treasury, will take over as chief financial officer from James Rigney, who is also leaving on July 1st. The departures of both Rigney and Hogan had already been announced by the airline. – (Bloomberg)