Emirates plans to acquire Etihad Airways

Abu Dhabi – Mubasher: Emirates is considering the acquisition of Etihad Airways, informed sources told Bloomberg on Thursday.

The potential major deal – if closed successfully – will create the world’s biggest carrier by passenger traffic, which will be bigger than American Airlines Group whose market value amount to $19.2 billion, the New York-based media corporation said.

The preliminary talks may result in the taking over of Etihad’s airline business, while the Abu Dhabi-based company would keep its maintenance unit, sources familiar with the matter noted.

“Any deal, talk on which are only at a preliminary stage, would require the blessing of the rulers of the richest sheikhdoms in the UAE,” Bloomberg noted.

Etihad Airways has struggled to put its losses in check during last year, logging AED 5.58 billion ($1.52 billion) loss for the full year 2017.

“Etihad has been shrinking its operations following the failure of a so-called equity alliance strategy that saw it invest in a number of generally ailing foreign operators to help feed more traffic through Abu Dhabi,” Bloomberg commented. 

Mubasher Contribution Time: 20-Sep-2018 14:21 (GMT)
Mubasher Last Update Time: 20-Sep-2018 15:05 (GMT)