Emirates denies plans to take over Etihad

Lloyd Doyle
September 23, 2018

Emirates and Etihad Airways, two state-owned airlines in the United Arab Emirates, denied a September 20 Bloomberg report they are preparing to combine to create the world's largest airline.

"There is no truth to this rumor", an Emirates spokeswoman told Reuters.

The report, published earlier in the day, suggested that Emirates will take over Etihad, and that talks were at a "preliminary stage".

"So I can't say what they may or may not be thinking", Clark added. According to Bloomberg, if the two airlines chose to merge, the market value would be bigger than $19.2 billion, which is bigger than the American Airlines Group Inc. There have been few cross-border mergers within the UAE, a federation of seven semi-autonomous emirates; such tie-ups require the approval of the ruling families of the emirates involved. Emirates also owns the world's biggest fleet of Airbus A380 superjumbos, according to Bloomberg.

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. Emirates Chairman Sheikh Ahmed bin Saeed al-Maktoum last ruled out a merger as recently as May 2018.

That contributed to a $1.52 billion loss in 2017, taking the two-year deficit at the airline unit to nearly $3.5 billion.

Dubai and Abu Dhabi are both spending heavily on airport facilities.

Other reports by Iphone Fresh

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