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Etihad shuffles pack in bid to stem losses

Key Points
  • Etihad Aviation Group is to be split into 7 business divisions.
  • All divisions, as well as Etihad Airways, will report to new CEO Tony Douglas.
  • Etihad has suffered heavy losses for two straight years.
An attendee at the Dubai Air Show enters an aircraft on Nov. 13, 2017, in Dubai, United Arab Emirates.
Natalie Naccache | Bloomberg | Getty Images

United Arab Emirates aviation giant Etihad has announced a shake-up of its organization.

From Tuesday, the Etihad Aviation Group is to be divided into seven different business divisions, all now reportable to Chief Executive Tony Douglas, who started his role in January.

Douglas will also assume responsibility for Etihad Airways, while Peter Baumgartner will step down as the airline’s CEO to move into a “strategic advisor role.”

In a statement Tuesday, Douglas said the changes were necessary even though the firm was “already seeing positive results, even during this early phase of our transformation.”

The changes come during a drive to turn around performance at Etihad, which last month reported $1.52 billion in losses for 2017.

The group has been attempting to stem losses that are in part caused by previous investments in Air Berlin and Alitalia.

Under the new structure, the Etihad Aviation Group will be reorganized into seven business divisions – operations, commercial, maintenance, repair and overhaul (MRO), human resources, finance, support services and transformation.