Emirates president Tim Clark has dismissed reports that the rulers of the UAE are discussing a potential merger of Emirates and Etihad due to tough market conditions.
German business paper Handelsblatt Global cited several sources as confirming the talks and said they were motivated by falling profits and slowing growth at the two airlines.
Emirates announced a 75 per cent dip in first half profit in November, while both carriers are undergoing restructuring efforts that have included job cuts.
“The possibility of consolidating the two state-owned carriers would not be easy, and require a huge amount of effort, but is clearly not out of the question anymore,” Handelsblatt reported, suggesting Gulf airlines had reached their limits and must change their operations to stay competitive, according to a Gulf website.
