Etihad appears to be in the market for a new airline CEO, as reports suggest current boss Tony Douglas is leaving the airline. It had been reported a couple of weeks ago that new Saudi Arabian startup RIA wanted to headhunt Douglas for the top job, it seems the hunt has been fruitful.

As reported in Arabian Business today, Douglas has accepted to the job offer. Citing ‘industry sources,’ the publication reports that Douglas has already informed Etihad shareholders of his decision to leave, and that the airline has instructed consulting firm Korn Ferry to find a replacement.

It is further noted that other Etihad senior executives could be tempted to leave alongside Douglas. However, the CEO says he will stay on at the Abu Dhabi carrier until a suitable replacement can be found.

As reported by Bloomberg yesterday, Etihad has already begun the process of headhunting for the top job. The outlet said that at least three senior aviation figures have been approached by a head-hunting firm, although no specific names were mentioned and no employment contracts have been offered.

Photo 3
Photo: Etihad Airways

The reports from Arabian Business remain unconfirmed by either Etihad or PIF. Etihad declined to comment, while PIF did not respond to our request for comment.

What do we know about RIA so far?

RIA is a new Saudi Arabia startup, aiming to become the Emirates of Saudi Arabia, connecting the globe just like its Dubai neighbor began doing back in the mid-1980s. It is being formed as part of Saudi Arabia's Vision 2030 tourism plan, which aims to increase the number of air routes connecting the country from the current 100 or so up to about 250. It also wants to bring some 300 million tourists to the country per year - an increase of around six times from 2019's tourism numbers.

Bankrolled by the mega Public Investment Fund (PIF), one of the largest sovereign wealth funds in the world, RIA is just one element of Saudi Arabia's massive push on aviation and tourism. The nation recently announced the establishment of a leasing firm it calls AviLease, as well as a third airline to serve the planned mega city of Neom.

Saudia B787-9
The new airlines are planned to occupy different niches from each other, and won't compete directly with Saudia. Photo: Getty Images.

In all, Saudi Arabia plans to invest some $100 billion into aviation, some of which will be swallowed up by these new airlines, while money will also be spent on improving facilities such as air traffic control, and investing in new technologies such as eVTOLs.

A lasting legacy

If Douglas is indeed planning to leave Etihad for RIA, his influence on the airline will stay for many years to come. Spearheading the ambitious turnaround plan for Etihad, he has led it through its trickiest years, optimizing the fleet, the operations, the staffing and the systems to put it in a good position for the future.

etihad boeing 787 over abu dhabi
Douglas will leave a lasting legacy at Etihad. Photo: Etihad Airways

Having led the airline through the pandemic - aviation's worst crisis in history - Douglas has now seen the carrier posting its first half-year profit in a very long time. Projections are that it will have a fully profitable year - no mean feat given the high costs of aviation fuel across the industry at present. He will be missed, but his legacy of turning around a struggling airline will persist for a long time to come.

Source: Arabian Business, Bloomberg