Daily Management Review

Security Pact Between Rival Middle Eastern Airlines Emirates, Etihad Brings Them Closer


01/09/2018




Security Pact Between Rival Middle Eastern Airlines Emirates, Etihad Brings Them Closer
Two of the largest airlines of the Middle East and indeed that of the world aviation industry - Emirates and Etihad Airways, have agreed to cooperate with each other on security matters. The two United Arab Emirates (UAE) based airways signed a security pact to that effect on Monday.
 
The airways have agreed to share information and intelligence and this is the first such agreement between the two rival airlines.
 
The two airlines - Emirates and Etihad, have their headquarters just 128 kilometers apart and the two airlines have backing of their state owners and have grown to become global airlines despite the companies getting head-to-head in their business. Both the airlines have also managed to create global networks for themselves.
 
The government of Abu Dhabi is the owner of Etihad while the government of Dubai is the owner of Emirates.
 
According to an Emirates statement, Etihad parent Etihad Aviation Group and Emirates unit Emirates Group Security would be working “together on operational areas both within and outside the UAE,” according to the memorandum of understanding that was signed on Monday.
 
Etihad’s new Group Chief Executive Tony Douglas and Emirates President Tim Clark were the signing authorities in the agreement.
 
Emirates was ready to cooperate with Etihad on multiple aspects including procurement, Clark had told the media in October.
 
“I think there is value to be had working more closely with them,” Clark said in October.
 
Overcapacity, security concerns, and a drop in regional business travel are among the common issues that are faced by both Emirates and Etihad apart from both the airways having to conduct a lobbying campaign with the government of United States for investigating into the accusations against the companies that they receive state subsidies in an unfair manner. These allegations have been vehemently denied by both the airlines 
 
Development of the security escort abilities of Etihad and security and training programs for the employee of the airlines would be provided by the Emirates Group Security according to the agreement that was signed on Monday.  
 
In order to complete against Emirates which is the biggest airline in the Middle East, Etihad, which is also comparatively younger, has been spending billions in attempting to grow up to Emirates by purchasing stakes in over half a dozen operators around the world. but the efforts have been largely unsuccessful. In 2016, Etihad had fallen into the red for the first time since 2010 after filing of administrations by Air Berlin and Italy’s Alitalia last year. these were amongst the most prominent of the investments made by the airline.  
 
It was last year that ties with fellow Dubai state-owned carrier flydubai and Emirates started developing closer.
 
(Source:www.reuters.com)






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