Etihad Airbus A380 jet in flight. Photo: TradeArabia.

LONDON — UAE national carrier Etihad Airways has announced that it will be undergoing a group restructuring format with all seven divisions seeing change, group Chief Executive Tony Douglas will be assuming responsibility for the airline after he was appointed CEO in January this year.

The major restructure is coming after Etihad had reported an annual loss of $1.5 Billion from failed business investments in European carriers such as Alitalia and Air Berlin. The airline has been making drastic and quick changes by dropping non-profitable routes and shrinking the size of its fleet.

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All seven divisions of the airlines are undergoing the new restructuring program form operations, commercial, maintenance, repair & overhaul, human resources, finance, and support services and transformation. It is clear to see that Etihad are committed to changing the way the airline operates with the shrinking of the fleet we have also seen Etihad give pilots to competitors Emirates who have been combating pilot shortages in the ever growing greater demand for the airline.

One of the things we are likely to see over the coming months will be Job losses, the airline did announce that this was an unfortunate move that it had to make, however, exact numbers and when this will take place is yet to be confirmed.

READ MORE: Etihad Upgrades Paris To All-Airbus A380

So what went wrong for Etihad? Well, there is no doubt that the failures of their investments into European carriers Alitalia and Air Berlin have not helped the airline, but the ever-changing demand in the market has not helped either.

Emirates took drastic actions to combat the low load factors on their US-bound flights, by introducing stops in  Mainland Europe were as Etihad almost seemed reluctant to make the changes required. All in all, Etihad is in need of a major restructuring if it is going to continue to operate.

Although the fleet may be smaller there are still many unique features that Etihad offers its passengers while they fly, but only time will tell on how the airline goes about this major change, the road ahead will likely be a hard one, this was clear when Brussels airlines underwent a restructure and where hit with a changing market.