Following the recognition of Israel by the United Arab Emirates and the upcoming establishment of scheduled flights between the countries, flag carriers El Al Israel Airlines (LY, Tel Aviv Ben Gurion) and Etihad Airways (EY, Abu Dhabi Int'l) signed a Memorandum of Understanding to explore "deeper cooperation".

The two airlines said they would seek to establish a codeshare partnership covering flights between Tel Aviv Ben Gurion and Abu Dhabi Int'l, as well as services beyond the two hubs. The cooperation will also cover cargo, engineering, loyalty programmes, destination management, and the optimal use of pilot and cabin crew training facilities.

Currently, neither Etihad nor El Al is a member of any global airline alliance. Etihad attempted to build its own equity-based group, Etihad Aviation Group, and despite the collapse of Air Berlin, Jet Airways and Darwin Airline, and the recent renationalisation of Alitalia, still holds stakes in Air Serbia and Air Seychelles.

Etihad Airways plans to commence flights between Abu Dhabi and Tel Aviv...