Emirates, Etihad airlines deny reports of merger

Emirates Explores Etihad Deal to Forge Biggest Airline

Emirates is in talks to acquire Etihad

Yesterday, Bloomberg reported the news that Emirates and Etihad Airways could be in talks over a possible merger which would ultimately create the world's largest airline.

An Emirates spokeswoman said that "there is no truth to this rumour".

Based on anonymous sources, Bloomberg reported that there were talks at a "preliminary stage" which could eventually lead to Emirates taking over Etihad Airways. The negotiations could yet fall through, they said.

What is clear from recent news reports is that both airlines have faced pressures because of the tough competition and unstable business environment for carriers.

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A few stations have been removed from the new Etihad Cargo freighter network, the largest of which was Nairobi, citing weakening demand and market behaviours that rendered other core markets more attractive to serve. Douglas has also been negotiating with Airbus SE and Boeing Co. after concluding that doubling the fleet is no longer viable, calling into question scores of wide-body jet orders.

The ownership of the two airlines would make any merger politically sensitive.

Emirates Airline is part of the Emirates Group, which is owned by the Dubai government.

Bringing the airlines together would not be easy because of the duplication of routes from their Dubai and Abu Dhabi bases.

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