The United Arab Emirate’s national airline Etihad plans to remove James Hogan as its chief executive after a failed spree of acquisitions in Europe, multiple independent sources told Handelsblatt on condition of anonymity.
Mr. Hogan sought to expand Etihad’s presence in Europe, buying a 29-percent stake in Air Berlin, Germany’s second-largest airline, in 2011. The Gulf carrier then purchased Air Serbia and bought a stake in Alitalia three months later.
But Etihad’s European expansion has proven to be a misadventure. The Gulf airline has suffered €2.5 billion ($2.6 billion) in losses from its investments in Europe. Air Berlin alone was €477 million in the red in 2015.