" Dubai’s flagship airline Emirates is looking at taking over its unprofitable neighbor Etihad according to four people familiar with the matter, in a move that would create the world’s biggest carrier by passenger traffic."
The discussions rumored to be going on, involving the Dubai based carrier Emirates acquiring and taking over operations of its competitor Etihad, who as of recent years has been unable to turn a profit. Emirates and Etihad officials have neither confirmed or denied this, potentially in an attempt to keep it under wraps until an official decision has been reached.
“Any deal would require the blessing of the rulers of the richest sheikhdoms in the United Arab Emirates. For Abu Dhabi, which sits on 6 percent of global oil reserves, it would advance a drive to overhaul state-controlled entities as it adapts to lower crude prices. The airlines have traditionally been arch rivals, with their hubs competing to attract the same transfer passengers making long-distance trips between Asia and the West.”
Even though this would make Emirates the world’s largest airline, many complications are involved. For starters, the two airlines are based at two airports right next to each other constantly competing for the connection market. If Emirates and Etihad were to merge, there would be some major logistics involved in order to get everything in order. Also, they would have to cut some flights as both carriers currently operate similar routes in the international region. One more thing that would be a challenge would be fleet streamlining. Currently, Emirates operates only the A380, 777, and 1 A319. If Emirates were to take on Etihad’s fleet, it would have to adapt very swiftly.
Personally, I would love to see them merge, but it would create many challenges and hurdles for Emirates to overcome. Another possibility is Emirates only taking over long-range operations, which would make sense since they both will operate the 777, A380, and the 787.
What do you guys think, should they merge? Should Emirates only take over Long Range Operations, or is this all just a bad idea? Also, what do you think will happen to Qatar, will the Etihad and Emirates monopoly completely ruin them, or will they come out on top in all of the chaos?
- Emirates Takes Over Etihad Completely
- Emirates Takes Over Etihad Long Range Operations
- Emirates Does Not Merge With Etihad
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