Top Middle East airlines – Emirates and Etihad – on Thursday, 20 September, denied a Bloomberg report that suggested that the two will merge to create the world's largest carrier.
The report, published earlier in the day, suggested that Emirates will take over Etihad, and that talks were at a "preliminary stage." According to Bloomberg, if the two airlines decided to merge, the market value would be bigger than $19.2 billion, which is bigger than the American Airlines Group Inc.
While Emirates spokesperson said that there was “no truth to the rumour,” Etihad airlines also made a similar statement, reported Reuters.
Merger Politically Significant
Both the carriers are state-owned and would make any merger "politically sensitive." Emirates is owned by the government of Dubai, while Etihad is run by the Abu Dhabi government. The airlines would therefore require approval from the ruling families of UAE, if the merger were to take place.
Earlier this year, the two airlines signed agreements which let Etihad pilots join Emirates, on a temporary basis for two years. When speculation about a merger started making the rounds, in May 2018, Emirates chairman Sheikh Ahmed bin Saeed al-Maktoum ruled out the possibility, Bloomberg report said.
A source reportedly told Reuters that while a merger "could conceivably" happen in the future, Abu Dhabi would not be willing to "give up control" of the airline and brand.
According to the report, Emirates is three times bigger than Eithad, with a fleet of 268 Airbus A380 and Boeing 777 jets as of 31 March.
(With inputs from Bloomberg, Reuters.)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)