As I posted about earlier today, an Italian newspaper was reporting that Etihad was in talks with Lufthansa over the possibility of buying a stake in them. It was even suggested that the two airlines may enter a full-blown merger, which I was skeptical about.
Continue reading: Are Etihad And Lufthansa Really Considering A Merger?! Here’s An Update
Share your questions, experiences, and thoughts below.
Singapore with no natural resources but a strategic location runs a world class airline staffed mostly with Singaporeans.
Abu Dhabi with so much oil wealth can't run a decent airline staffed mostly with foreigners.
not sure how stragetic SIN is considering how few or no nonstop to the americas
A financial investment is not going to solve Lufthansa's primary issues - high labor costs and competition from low cost airlines. Meanwhile, Etihad doesn't have the answers - it can't run it's own airline very profitably but thinks it can buy stakes and turn airlines around. But then when you are desperate ...
Of course Alitalia are keen on Lufthansa investment as they are desperate and almost out of cash which is not a first time. However I doubt of any investment from any other airline in Alitalia. Etihad had a strategy, as an outsider to reinforce their presence into Europe faster gaining terrain into their most direct rival Emirates which I consider difficult to reach any time soon.
I want to clear some of your misconceptions.
1) Etihad and Emirates are the only gulf carriers turning a profit.
2) Kuwait airlines, Gulfair, Saudia, Qatar, Royal Jordanian, Middle eastern airlines are all losing money.
3) I frequently fly Etihad business class on many routes and have never seen an empty seat in F, J or Y for that matter.