Merger of Emirates and Etihad will create new largest airline

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Merger of Emirates and Etihad will create new largest airline

September 21, 2018 - 10:54
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Leading Dubai’s airline Emirates considers option of purchasing unprofitable Etihad from Abu-Dabi, Bloomberg reports. If this option is to be realized, then the new largest airline in regards to passenger traffic will be created. In this case, American Airline will lose its top position.

Photo © Bilal EL-Daou, CC0 1.0

Leading Dubai’s airline Emirates considers option of purchasing unprofitable Etihad from Abu-Dabi, Bloomberg reports. If this option is to be realized, then the new largest airline in regards to passenger traffic will be created. In this case, American Airline will lose its top position.

Traditionally two companies were competing for transfer passengers traveling between Asia and West.

Merger of two airlines may confirm tendency of UAE companies consolidation in order to increase competitiveness. So, Abu-Dabi and Dubai companies created Emirates Global Aluminium becoming one of the largest producer in the world.

Etihad’s operations have been shrinking recently due to failure of some alliances with foreign operators, including collapsing Air Berlin and Alitalia. Losses in 2017 were $1,52 billion.

According to IATA, Emirates today is the largest airline in the world in regards to international routes, and fourth in general after three top US carriers.