Airlines Does Emirates plan an Etihad takeover?
According to a media report, Emirates is looking at taking over its neighbor carrier Etihad.
With a fleet of over 100 aircraft, Etihad Airways is one of the largest carriers in the Middle East region. After reporting an annual loss of over $1.5 billion, the Abu Dhabi-based airline is currently undergoing a structural and strategy change. Following the insolvency of the partly owned European airlines Air Berlin and Alitalia in 2017, Etihad appointed a new CEO and scrapped unprofitable routes to reduce costs.
Now, Bloomberg reports, that Etihad’s neighboring competitor Emirates is looking at taking over Etihad. According to the news agency, the talks are at a preliminary stage and focus on the acquisition of Etihad’s main airline business.
Shortly after the news report, both carriers denied talks and stated, that there is no truth to this rumor. Nevertheless, experts are speculating about a future takeover of Etihad by Emirates. Earlier this year, Emirates CEO Tim Clark warned of the antitrust hurdles of a takeover, especially in the US market.
After a possible takeover, the new airline would become the world’s largest carrier by passenger traffic. Emirates operates 105 Airbus A380 and over 150 Boeing 777 from its mega hub at Dubai Airport. Together with Etihad’s 111 aircraft, the new fleet would have over 350 aircraft. While Etihad focused on the acquisition of other airlines, Emirates mainly operates alone and focuses on long-haul flights from its hub in Dubai. Both airlines are suffering from high overcapacities and political tensions in the region.
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