Subscribe Free
in Air Transport

Air Arabia Abu Dhabi agreement sparks talk of Emirates merger with Etihad Airways

Posted 18 October 2019 · Add Comment

Following the news that Etihad Aviation Group and Air Arabia have signed of an agreement to launch Abu Dhabi’s first low-cost airline, this has ‘rekindled’ talk of an Emirates merger with Etihad Airways, according to GlobalData.

 

Colin Foreman, deputy editor at GlobalData said: “This decision is the latest sign of growing cooperation between the UAE’s airlines. The new carrier, Air Arabia Abu Dhabi, complements Etihad Airways’ services and will cater to the growing low-cost travel market segment in the region.

“In the past, the UAE’s aviation sector has grown with different emirates and companies replicating each other’s efforts. This approach was justified when the market was forecast to grow strongly. With the UAE airlines’ profits under pressure, that is no longer the case, and as a result existing players are becoming more open to working together.

“The bigger question that arises from talk of cooperation and consolidation in the UAE’s aviation sector is a merger of Etihad Airways and Emirates. In September 2018, it was reported that talks between the two UAE airlines are at a preliminary stage, and the potential merger would involve Emirates acquiring the main business of Etihad while Etihad would retain its maintenance arm.”

Foreman concluded: “Speculation about a merger has moved on little since, but with cooperation, rather than competition, looking set to dominate the agenda for UAE aviation in the years to come, it is a story that is unlikely to disappear.”

* required field

Post a comment

Other Stories
Advertisement
Latest News

Dubai Airshow: Opening the door to better training

Spatial is at the air show highlighting its latest door trainer for Etihad’s A330 aircraft.

Dubai Airshow: Emirates’ A380 receives royal visit

Emirates yesterday welcomed His Highness Sheikh Mohammed bin Zayed Al Nahyan, to its Emirates A380 which was on static display at the Dubai Airshow 2019.

Dubai Airshow: Boeing and EgyptAir Maintenance and Engineering sign MRO service agreement

Boeing and EgyptAir Maintenance and Engineering (EGME) announced agreements at the Dubai Air Show that will approve the Cairo-based MRO as Boeing's first maintenance supplier in Africa and the Middle East region providing aircraft,

Dubai Airshow: Off to a flying start

Dubai Airshow 2019 was officially opened yesterday, Sunday 17 November, by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai, and His Highness Sheikh Mohammed bin Zayed Al

Dubai Airshow: White Lightning powers in for Air Race E

This is the world’s first electric racing aircraft, called White Lightning.

Dubai Airshow: Building stronger links in the supply chain

EgyptAir strengthened ties with Boeing at the show yesterday with the two sides signing supply chain partnership agreements to give the Cairo-based flag-carrier global access to critical aircraft components.

WASS SK0210101219
See us at
AVAFA20BT2607050320AVMENA20 BT1309100620Dubai AS BT2006211119