By Staff writer
Emirates chief rebuts talk of consolidation in German media
Emirates has no plans to form a super-sized airline with Etihad Airways, according to the Dubai carrier’s president.
German business publication Handelsblatt, quoting “several sources”, said the airlines’ owners have discussed the possibility of consolidating their operations, amid challenging conditions in the aviation sector.
Emirates, the world’s largest international carrier, reported a 75 percent fall in first-half profit in November, buffeted by tough competition, currency moves and damper demand.
Tim Clark, responding to the report, dismissed the report as “nonsense”.
President of Emirates since 2003, Clark said the airline may consider a move away from its all-wide body fleet of Boeing 777 and Airbus A380, and establish a short-haul fleet to stave off possible competition from low-cost carriers.
“For a long time people thought low-cost long-haul wasn’t economically possible,” Clark said at the Bloomberg Berlin Forum. “I didn’t believe it to be the case. Now aircraft makers are producing aircraft that can go for far longer quite cheaply, and it’s up to us to recognise that, and look at how we adapt.”
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"He believed in the Low- Cost Long Haul Model" but still decided to buy the largest planes available on the market.
Now that he can't fill the seats Emirates is making huge losses, despite oil prices being at record lows.
Etihad on the other hand developed a flawed strategy of buying heavily unionized loss making airlines and taking on huge debts .
This airline will never turn a profit and also time for its CEO and top management to phase out.