Abstract
In 2011, Etihad Airways CEO James Hogan entered into an equity alliance with several airline companies globally to counter the growth of its Persian Gulf rivals of Emirates Airline and Qatar Airways. This strategy led to Etihad holding interests (mostly minority interests) in eight other airline companies principally from Australia, India and Europe (five from Europe). Etihad encountered more failures than successes with these investments, which ultimately led to the departure of CEO James Hogan in 2017. This case study paper examines the factors that impacted Etihad’s egocentric alliance. The research findings suggest that minority equity investments in struggling airline companies in developed, highly-regulated and competitive markets are risky bets. Etihad’s equity alliance also suffered from CEO overconfidence and hubris.
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