Emirates (EK, Dubai International) president Tim Clark has evidently had a change of heart, saying that closer ties with rival Etihad Airways (EY, Abu Dhabi International) has value. Speaking with Reuters, Clark said that there was room for synergies between them in areas such as procurement, but that any potential merger between the two airlines was not up to him.
"I think there is value to be had working more closely with them," Clark said. "There are many areas that the airlines could work together on like procurement. But we have to go the first jump first to understand what it is we could do and I'm simply the manager of one of the businesses."
Clark's comments have sparked energetic discussions across the aviation industry, with some news outlets predicting a potential merger between the two Emiratis, especially as they have both been struggling for the past few years. Etihad has been hit by failed investments in Air Berlin (1991) (Berlin Tegel) and Alitalia (AZA, Rome Fiumicino), while both Etihad and Emirates are facing stronger competition from the rise of longhaul LCCs in Europe and Asia.
The comments are particularly interesting given Clark's stern rejection of any possible merger between the two carriers earlier this year. Whereas in March, Clark said the idea was 'nonsense', now he is much more circumspect.
"I don't think that [a merger] will be the case but it is not my call, really. It is whatever (the shareholders) may do in the future," he told Reuters.
