Hogan is leaving following a multiyear buying spree that saw Etihad snap up stakes in airlines from Europe to Australia.
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Etihad Airways announced the exit of longtime Chief Executive Officer James Hogan and will review the web of holdings he created in other airlines as the Persian Gulf company struggles with mounting losses from investments in Air Berlin PLC and Alitalia SpA.Hogan took the helm at Etihad in 2006 and has transformed the airline from a local operator with 22 planes into a global force boasting a 122-strong fleet, 178 orders and 26,000 employees.While most of those investments have begun to show a profit and swelled the wider group to 120 million passengers, compared with 18.5 million at Etihad alone, Air Berlin and Alitalia have continued to bleed cash, with their situation approaching a critical point in the past couple of months.The German company, in which Etihad has a 29.9 percent stake, has suffered record losses in each of the past two years and will split into three to survive, with part of the fleet to operate on behalf of Deutsche Lufthansa AG and other aircraft transferring to an Austrian venture with TUI AG. Chief Financial Officer James Rigney will also quit Etihad to join Hogan at an investment company located outside the United Arab Emirates and not linked to the airline or its affiliates.
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