Tuesday, September 25, 2018

Emirates-Etihad Sibling Rivalry Won’t Have a Happy Ending

A fantastic analysis on the merger of Emirates-Etihad, should it occur.

We have said for a while now that Etihad is in major trouble along with several other large entities in the UAE.

They have sold several planes this year, have had loss of USD 3 bn in 2 consecutive years, reduced routes, didn't pay Alitalia and Air Berlin causing legal troubles and bankruptcy, now Etihad won't pay any money to support Jet Airways which is owned 24% by Etihad.

Etihad guaranteed bond is at USD 53.50 today indicating severe distress. 

All this indicates Etihad is in very bad shape.

This article is a good analysis and also suggests that shutting down Etihad is a better option and we don't disagree.

Let's see how this forced merger plays out.



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