Etihad And Emirates Merger Rumors

st_20160313_lifplanes_2132349

" 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

0 voters

Article - https://www.bloomberg.com/news/articles/2018-09-20/emirates-said-to-be-exploring-etihad-deal-to-forge-no-1-airline

Image - https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwjMlqfVn8vdAhXvIDQIHa_nDnkQjhx6BAgBEAM&url=https%3A%2F%2Fpointsfromthepacific.boardingarea.com%2F2016%2F12%2F08%2Fetihad-emirates-no-plans-canberra%2F&psig=AOvVaw1OFjKiwwmP1jzaMsBiTI5K&ust=1537590085705721

8 Likes

I honestly really don’t care about Emirates taking over Etihad. If they can pull it off successfully, I’m fine with it.

6 Likes

It means Emirates gets to be the launch customer of the 777-8 then.

1 Like

I doubt this will happen. Emirates is already in the midst of fully absorbing FlyDubai (codeshare was completed last year and now the two share a rewards program). Emirates does not have a need to acquire Etihad. All they need to do is sitback and let Etihad fade away and move in to the vacuum.

5 Likes

Well i still believe that it is definitely possible, emirates is big enough and has a large enough profit margin to be able to take on 1 or 2 years of losses while absorbing etihad, and doing so would make them the worlds larges airlines, putting american in second.

This is not about airlines or passengers or aviation or whatever. This is about politics. The ruling Emirati family of Abu Dhabi has financially helped that of Dubai in the past and this is happening as the families begin to cooperate more. Also, when DWC (Dubai World Center) opens, it will be so close to Abu Dhabi (in between Abu Dhabi and Dubai) that it does not make sense for Etihad to have a large Abu Dhabi hub.

2 Likes

Definitely could be playing a factor, Bloomberg in the article said “A combination of the airlines would provide further evidence of the sheikdoms consolidating businesses to boost competitiveness. Abu Dhabi and Dubai companies formed Emirates Global Aluminium, one of the world’s largest producers, in a $15 billion combination in 2013, and the two have studied a merger of their stock exchanges.”

1 Like

Just gonna leave this here…

Very interesting, did hear about this in the news but it the open skies agreement is still going right?

Emirates operates the A318? Since when?

1 Like

I think they own an A319 but is used for the government!

1 Like

They own an A319 which is used for charters only

1 Like

My bad let me fix that really quickly

1 Like

That sure would be sad. Love the look of their livery and First Class suites.

Fky Dubai iOS owned and was set up by the same group that owns Emirates, so they are not taking them over as already owned by the same organisation!

I would be surprised if Emirates and Eithad merge, as mentioned by @sk28, due to the local politics involved within the UAE. Be interesting if it does happen mind you.

4 Likes

Emirates has denied any plans of merging with Etihad. I personally think it would become a hot mess of logistics to get everything sorted out.

https://www.google.com/amp/s/mobile.reuters.com/article/amp/idUSKCN1M027F This is the article where it says they denied it

1 Like

I watched a YouTube video on this last night which made a few good points (I’ll try find link and post it) chief of which was that for Emirates a merger would be costly and not very beneficial. Whilst they would acquire plenty new aircraft and route, the majority of which Emirates already serve from their Dubai hub so there is little benefit to operating the same routes from an Abu Dhabi hub.
Opening new routes would be a possible but when considering the size the fleet would be, are there really that many high demand destinations that warrant A380’s and 777’s left in the world?

1 Like

It would be interesting to see Qatar’s reaction with if’s two rivals merging

1 Like

I think it’d work wonders for Qatar - better service, better hub, better fleet (in my humble opinion)

2 Likes

Arnet they both owned by the government?

1 Like