Emirates (EK, Dubai International) is planning to increase cooperation with its sister carrier flydubai (FZ, Dubai International) in the post-COVID recovery period, but the two airlines will not merge, President Tim Clark said during an interview held online by the Arabian Travel Market.
"We've been able to step back a little bit and make an assessment of perhaps where this relationship can be activated a little bit more meaningfully, more profitably, and give both carriers synergies," Clark said.
Both airlines are owned by the government of Dubai and provide complementary services, with Emirates operating exclusively widebody aircraft and flydubai - exclusively narrowbody. Although the latter airline was initially created as a low-cost carrier, it has evolved. It now operates as a full-service carrier with dedicated business class seats onboard its B737-800, B737-8s, and B737-9s. The two airlines have an existing code-share partnership and coordinate their schedules, although they operate as separate businesses.
Clark underlined that despite the benefits of cooperation, the two airlines would continue to "grow together" as separate units.
He added that Emirates was also exploring options to gradually increase cooperation with Etihad Airways, although this process was more complicated due to both regulatory hurdles and the ongoing strategic review of the Abu Dhabi International-based flag carrier.
Although much smaller in terms of capacity and fleet, Etihad Airways is owned by the government of the emirate of Abu Dhabi, which is the capital of the UAE, and as such enjoys the status of the country's flag carrier. Clark underlined that once the internal restructuring at Etihad is completed, there will be opportunities for "relationships for mutual benefit" between the two Emirati airlines.
In an interview with Aviation Week, Clark added that he "would welcome" a partnership with one of the "big three" airlines in the United States (American Airlines, United Airlines, or Delta Air Lines). However, Emirates would not consider joining any of the airline alliances. Clark admitted that the prospect of such a partnership remained bleak due to the US airlines' allegations of unfair state aid to Emirates.
Emirates already partners with Alaska Airlines and JetBlue Airways in the US but has a much colder relationship with each of the three biggest carriers.
