Possible Emirates and Etihad Merger

[Ansett]

REPORT: Emirates and Etihad Considering Merger - View from the Wing

If this ever happened it could be very interesting given Emirates Tie up with Qantas and Etihad's part ownership of Virgin.

What do you think are the chances of this and the effect on the Australian Aviation Industry?

 

[yohy?!]

Re: Possible Emirates and Ethiad Merger

had to happen eventually with all the capacity dumping from ME carriers although surprised that Qatar wasn't the first to be talked about being consumed by EK

 

[samh004]

Re: Possible Emirates and Ethiad Merger

Surely the problem with such a merger would be that the new combined company would have reduced slots at busy airports, essentially meaning it would be downsized? Unless such a merger would be more like IAG with the airlines keeping their separate identities... though I could still see governments reducing slots.

 

[docjames]

Re: Possible Emirates and Ethiad Merger

Surely the problem with such a merger would be that the new combined company would have reduced slots at busy airports, essentially meaning it would be downsized? Unless such a merger would be more like IAG with the airlines keeping their separate identities... though I could still see governments reducing slots.

Yes although given there is potential overcapacity then rationalising routes / frequencies would cover off most of that.

Whilst a merger would "make sense" superficially, the separate emirate identities (due to the UAE "political requirements" would probably have to be maintained (a la IAG with one "company" but multiple brands, and there'd need to be co-ordinated schedules). I'd be staggered to see either of Emirates or Etihad cede their brand (which reflects their emirate).

 

[Gold Member]

Re: Possible Emirates and Ethiad Merger

Speculative trolling drumming up click baits for his credit card referrals.

 

[Strategic Aviation]

Emirates CEO Provides New Fuel for Etihad Merger Speculation - View from the Wing

Now Emirates CEO Tim Clark says he’s open to working with Etihad, and offers a non-denial denial about a likely merger.

He says “there is value to be had working more closely with” Etihad.

As for the future of any cooperation, that’s really not up to him, “It is my superiors who have to make that call, not me.”

Indeed, they’ll be the ones who decide on any merger (while even if true, it’s strange for a CEO to distance himself as though he’d have no knowledge even of their thinking).

When the CEO of an airline says he really doesn’t know whether his carrier is going to merge with a competitor that’s a red flag to the bulls of speculation that they’re going to merge with the competitor.

 

[UP4014]

Sooner or later it will happen. While funded separately as govt airlines there will come a time when enough will be enough

 

[Berlin]

One can only hope that EK will be the party determining service and aircraft standards in any such deal (and it's allied airlines too, ideally). EK's service is vastly superior to that of EY in my experience but I'm aware that some people disagree with me there.

 

[Flying Fox]

Won't the governments that own these airlines be banging heads for a long long long time over these possible negotiations before the contacts get signed?

 

[Must...Fly!]

There would be a lot of cost savings to be had, but I suppose you wouldn't have to officially merge to realise a large number of them...

 

[UP4014]

Won't the governments that own these airlines be banging heads for a long long long time over these possible negotiations before the contacts get signed?

Both from the UAE, The emirate with the largest losses might be happy to hand it off.......

 

[Must...Fly!]

Both from the UAE, The emirate with the largest losses might be happy to hand it off.......

And admit defeat?

Even less likely in public than private. IMO there may be partnerships with aircraft buying, maintenance, procurement, recruitment etc but I just can't see the brands combining. Etihad on its own is fine and can work, I think - they tried way too hard and committed way too much cash in to building an empire.

A nice and expensive reality check.

 

[AIRwin]

Sounds like this is on again

 

[docjames]

Sounds like this is on again

Source/rationale for this update (noting last post was almost a year ago)?

 

[AIRwin]

Emirates in talks to take over Etihad to form world's biggest airline, say insiders

 

[juddles]

EK will outlive / win over / outlast,the other middle eastern airlines. It is not in their interest to save these others via merger - better to let them burn. EK have deeper pockets, better alliances. EK will always reign supreme in the whole concept of a middle-eastern hub. But it is a short term thing. QF will get around this with Project Sunrise. Suddenly such hubs as Dubai will lose meaning. Many may hate the current Qantas CEO, but he clearly sees the future. It is inevitable - point to point transglobal flights. Which makes Dubai redundant.

 

[rock86]

EK will outlive / win over / outlast,the other middle eastern airlines. It is not in their interest to save these others via merger - better to let them burn. EK have deeper pockets, better alliances. EK will always reign supreme in the whole concept of a middle-eastern hub. But it is a short term thing. QF will get around this with Project Sunrise. Suddenly such hubs as Dubai will lose meaning. Many may hate the current Qantas CEO, but he clearly sees the future. It is inevitable - point to point transglobal flights. Which makes Dubai redundant.

I definitely agree in respect do EK reigning supreme, but I'll have to respectfully disagree regarding hubs being made redundant with point to point transglobal flights.

With the projected growth in international air travel in the coming years, I think transglobal flights on popular routes will certainly complement airline operations, however the need for the major hubs in the world will continue to be required, particularly for connections to regions in which point to point flights to that region will never be economical.

 

[dajop]

But it is a short term thing. QF will get around this with Project Sunrise. Suddenly such hubs as Dubai will lose meaning. Many may hate the current Qantas CEO, but he clearly sees the future. It is inevitable - point to point transglobal flights. Which makes Dubai redundant.

I read about this death of hubs things regularly. Sure you won’t need a hub to get from SYD to LHR. But if you want to travel (with one stop) from ADL-ATH, or BNE-BUD or HAN-HRE or LHE-LAD, DXB still makes a lot of sense. Don’t forgot that DXB connects East Asia to Africa, the subcontinent to Africa, ME, North America and Europe , Australia to Africa etc.

It’s not all about Australia- Europe!

 

[docjames]

EK will outlive / win over / outlast,the other middle eastern airlines..

Survivor - Middle East Airline edition!

With the projected growth in international air travel in the coming years, I think transglobal flights on popular routes will certainly complement airline operations, however the need for the major hubs in the world will continue to be required, particularly for connections to regions in which point to point flights to that region will never be economical.

Agree, hubs are not going anywhere soon - allows for volume and frequency, often at lower cost, than transglobal flights. Room for both.

 

[Zulaiha]

I wonder if this is going to happen eventually? (as read from Bloomberg)

Emirates Seeks Etihad Takeover to Create World’s Largest Airline - Bloomberg