News
Etihad: “no truth” in Emirates merger talks
September 28th 2018
Etihad Airways on Wednesday told Orient Aviation there was “no truth in the story” that the UAE government and airline officials were working on a merger between Abu Dhabi’s Etihad Airways and Dubai’s Emirates Airline. Read More »
Several global media outlets have reported talks were underway with the goal of a merger between the two carriers. Analysts suggested Emirates taking over Etihad would make sense, despite a number of logistical and political challenges.
The route maps of Etihad and Emirates largely overlap, their respective hubs are only an hour’s drive apart and their order books with Airbus and Boeing show many similarities that could become a bargaining chip for future fleet acquisitions.
Etihad’s finances have imploded recently, making it an obvious target for Emirates. The Dubai-headquartered carrier has continued to produce good profits, despite the U.S.’s travel bans on citizens of some Middle Eastern countries and the fast rising cost of fuel.
Etihad reported an annual net loss of US$1.52 billion in 2017, a better result than the US$2 billion net loss for the previous year. Dubai’s Emirates Group posted a 67% year-on-year net profit gain, or US$1.1 billion, for its latest financial year, to March 31.
