The ADQ investment and holding company has confirmed that the Abu Dhabi government-controlled sovereign wealth fund will take over the Etihad Airways Group as part of Etihad’s “next phase of sustainable growth.”

While ADQ was announcing the takeover, Tony Douglas was in Abu Dhabi with reporters and influencers to celebrate the launch of a new Business Class experience created in partnership with Giorgio Armani’s homeware business Armani / Casa.

Douglas appeared happy and relaxed during the occasion, giving no hint that he was planning to resign as Etihad’s CEO. Since January 2018, he has been in charge of the struggling airline.

On the other hand, Douglas stated that he was quitting Etihad to “pursue an opportunity elsewhere” on Wednesday morning. It is widely believed that the Saudi sovereign wealth fund has hired Douglas to establish a new international airline in Riyadh that will compete with Etihad and Emirates.

Antonoaldo Neves, the former CEO and board member of Portugal’s flag carrier TAP, will succeed Douglas. Neves also held the position of President at Azul Airlines, a Brazilian airline founded by David Neeleman.

In order to concentrate on its main airline business, Etihad agreed to dispose of practically all of its aviation subsidiary operations to ADQ at the end of last year. Earlier this year, control of the companies was handed over to ADQ.

On Tuesday, ADQ said that it had received approval from Abu Dhabi’s Supreme Council for Financial and Economic Affairs to assume control of Etihad Airways.

After reducing Etihad’s size and costs to restore profitability, ADQ announced on Tuesday that it would shift its attention to making Abu Dhabi a “sustainable and global aviation hub” again.

“Tony has led Etihad through some of its most challenging times and has successfully turned the airline into a profitable and sustainable business over the past five years,” commented the group’s chairman His Excellency Mohammed Ali Al Shorafa.

“As we’re entering our next phase of sustainable growth, we are confident that Antonoaldo will build on Tony’s legacy. We thank Tony for all the hard work he has delivered. Etihad will continue to serve Abu Dhabi as the national airline of the UAE, delivering world-class services and exceeding global benchmarks in the near future.”

Following a post-pandemic surge in travel demand, Etihad Airways reported a record half-year profit for the first six months of 2022 in July. The Abu Dhabi-based carrier reported a core operating profit of US $296 million between January and June 2022, compared to a roughly $400 million loss during the same period in 2021.