By: Mahmoud Gamal
Abu Dhabi – Mubasher: Etihad Airways’ latest decision to allow its pilots to join Emirates' staff has raised many questions regarding a potential merger between the two Emirati carriers, a matter that officials from both firm had denied over the past two years.
This news came as Etihad Airways underwent major changes following the reporting of AED 5.58 billion ($1.52 billion) in annual losses in its core operations during 2017.
This pilot-sharing agreement will help Emirates after it was forced to cancel several flights this summer due to a shortage of pilots.
Such deals are common in the aviation industry as they aim to cut costs, economist and financial analyst Sami Al-Awadhi told Mubasher, noting that a merger between the UAE-based carriers would create a strong international entity.
The aviation sector in the UAE faces many challenges, among them are the instability of oil prices and the regional geopolitical tensions, along with the trade war between the world’s biggest economies, the analyst added.
A potential merger between Etihad Airways and Emirates would also promote UAE carriers’ competitiveness globally, although it reduce that competitiveness locally and may have a negative impact on flight tickets, managing director of asset management at MENACORP Tariq Qaqish told Mubasher.
Mergers between state-owned companies play in the government's favour as they reduce these companies’ expenses and amalgamate their efforts to be more competitive, Qaqish added.
Translated by: Muhammad Khalid
