Etihad appoints Irishman Gammell as interim CEO

Etihad accelerated its strategic reset by naming an interim chief executive to take the reins from James Hogan, the architect of the carrier’s costly bets on ailing Alitalia and Air Berlin.

Etihad appoints Irishman Gammell as interim CEO

Wicklow native Ray Gammell, the Abu Dhabi-based group’s chief people and performance officer, will assume “full management responsibilities from today,” Etihad said.

That means Mr Hogan effectively has no official role. His departure is now set for July 1, the earliest possible date after the company previously said he’d leave sometime in the second half.

Etihad said the move was “consistent” with its management transition plan.

With Etihad still searching for a permanent CEO, the sudden management handover suggests urgency on the part of its state owners to proceed with a re-evaluation of the group’s direction, especially its so-called Equity Alliance strategy.

Under Mr Hogan, who ran the airline for more than a decade, Etihad took minority stakes in mostly underperforming airlines in an effort to turn them around while feeding more traffic through its Abu Dhabi hub.

Mr Gammel will continue Etihad’s strategic review aimed at repositioning the business for “a prolonged period of challenges for global aviation,” chairman Mohamed Mubarak Fadhel Al Mazrouei said in the statement, adding that a new CEO is expected to be named in a few weeks.

Mr Hogan devised the acquisition push as the company sought to catch up with larger Gulf rivals Emirates and Qatar Airways.

While some of its investments have shown a profit, Alitalia filed for bankruptcy last week amid mounting losses and a lack of funds. Hours after the Italian carrier’s insolvency, Air Berlin revealed that Etihad granted the German company financial support for at least another 18 months, including €350m of new funds.

Mr Gammell joined Etihad in 2009 after working at Intel and Royal Bank of Scotland. His main responsibility was recruiting more Emiratis into Etihad’s workforce.

In addition to his appointment, the company named Ricky Thirion, currently senior vice president of group treasury, as its interim chief financial officer. He replaces James Rigney, who is also leaving.

Bloomberg

More in this section

Lunchtime News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up
Revoiced
Newsletter

Our Covid-free newsletter brings together some of the best bits from irishexaminer.com, as chosen by our editor, direct to your inbox every Monday.

Sign up