According to the rumors, it is soon to be. If the speculations come true, Dubai government owned Emirates would merge with the Abu Dhabi government owned Etihad, to support the latter in its downfall.
This collaboration is said to be much profitable to Emirates, as post conjunction, it will become world’s largest airlines. Experts are calling this unconfirmed step of both the airlines as “a holistic approach to the economic activity”. In this conjunction, it is much clear that Emirates would be the dominating partner as the deal would be done due to lack of options that Etihad has left with during its economic crisis. Without the collaboration, the future of Etihad is speculated to be “struggling”.
For this collaboration to be realized however, the airlines “would require the blessing of the rulers” of Abu Dhabi and Dubai, as Bloomsberg reported. And both the airlines, which are known as each other’s traditional arch-rivals, are denying the rumors continuously.
Both the airlines, Etihad and Emirates, are one of the most important airline service providers both regionally (in UAE) and inter-continentally. The faltering condition of Etihad however, can benefit Emirates by taking it over and becoming world’s largest airlines. Currently, Emirates makes a return of $1.1bn year. While “as part of its restructuring effort, Etihad has brought in a new management team, cut unprofitable routes from its schedule and reduced its fleet of aircraft. That has left it with too many pilots on its books and during the summer it emerged that it had offered some of them a two-year secondment with Emirates.” (Source: Forbes)