Etihad & China Eastern Launching Intriguing Joint Venture

There is talk of Etihad IPO and Etihad is working towards it, that could open the door Delta buying a stake.

Lol at the caption about Etihad folks looking more excited. The Chinese are like New Yorkers. They don’t smile. This habit is off putting to people from other cultures where smiling is routine to indicate that you’re okay and not a weirdo.

Ben is correct that Etihad has done a great job of building a sustainable and growing business after some disastrous investments.
Given the limited amount of service to China from around the world compared to pre-covid, these types of JVs make sense if there really is or can be an equal handling.

As for the SkyTeam expectations, there is likely reason to believe that is accurate as well. DL might want to invest in an Etihad IPO but SK is coming into the transatlantic JV via a AF/KL investment; DL is invested in AF/KL.

DL is not likely to seek a JV with Etihad until they serve AUH on their own metal which is very possible in the coming years as DL takes delivery of dozens of A350s and convers the ex-Latam A350s, creating even more long-haul aircraft.

It is very likely that DL will start some India service on its own metal; given that SQ overflies India on its way from NYC to SIN w/ "less capable" A350s and fewer seats, the A350 is certainly capable of US to India service even w/ Russian airspace restrictions which SQ respects.

EY is increasingly being run as a very good business. Doing things that are "smarter" than other ME carriers is certain to yield fruit

Also, Etihad has an agreement of sorts with Saudia for earning miles on flights operated by the other carrier, so it makes sense for Etihad to join Skyteam. At the same time, Etihad might value its independence like Emirates, so might decide against joining any alliance

It's like Etihad is slowly sliding to sit closer to the Skyteam partner airlines but to actually come out and say "Please can we join the alliance" is still up in the air.

As for this JV, in addition to budding up to a Skyteam partner, wouldn't it be a (albeit belated) response to the Emirates/China Southern partnership plus I think Qatar has an equity stake in Cathay Pacific?

I just find it interesting to see who is pictured signing the agreement on behalf of Etihad

Espcially after the fascinating comment section here last week!

EY and DL had an informal meeting at IATA in DXB last week (I’ll add that DL did ask for Arik De not to be present in those conversations). Apparently the conversation went well with EY touting CBP pre-clearance in AUH that could drive better connectivity in JFK/BOS and ATL. Interestingly VA and DL also met ex-parte (without VA’s big brother UA).

Definitely seems like EY is sliding closer to SkyTeam, but as mentioned, the elephant in the room seems to be the radio-silence on any talks with DL.

Though there is one thing:

and currently Delta’s only partner in the region is Saudia

Technically, DL also has a partnership with MEA, but since neither connects to the other's network, that partnership is about as useful as scuba gear in a desert. Then again, sorta the same for Saudia.

Getting EY, and especially a strategic partnership with EY, would be an incredible boon for DL. And really, a huge catch-up move, compared to what UA and AA have in the region.

China is on the verge of economic collapse due to the real estate bubble. Unless the Chinese govt will allow mainland China to join HK and allow bitcoin ETFs into the Shenzhen and Shanghai markets as well they are in for major hurt that will impact the global supply chain.

The focus seems to be on close cooperation between AFKL and Etihad - if EY are exploring Skyteam membership, there's no need for them to develop a special relationship with DL any more than developing a special relationship with Aerolineas Argentinas or GA.

I have a bias, but it wouldn’t surprise me to see them launch some sort of deal as well as a flight to Detroit. Turkish recently launched IST DTW, and with the large Middle Eastern population in the Detroit area I have heard the route has been very successful. if another Middle Eastern carrier wants to get in on that action, it might make sense to work together with Delta.

I've posted this before, but I think it's more likely than not that we see El Al, Etihad, and Riyadh Air join SkyTeam as a package deal tying in with the Abraham Accords.

So either it's Ivander or this never happened?

Um, of course there's a reason: it starts with "M-" and ends with "-oney."

A "special relationship" with DL would entail an immunized J/V, which is far and away more lucrative for either carrier, than would be a simple FFP reciprocation as required for SkyTeam.

I don't doubt any of that, my point is that forming a special relationship with DL, or any other member airline, is in no way a prerequisite for EY joining the alliance.

They can talk about such a relationship in parallel with preparing for membership and conclude the bilateral talks before or after joining Skyteam - or indeed freeze them for a period of time while they are busy aligning their policies, IT etc with those of the alliance with a view of simplifying negotiations further down the line.

DL partnership / JV would be huge, especially if EY would fly to one of LAX/SEA/SLC. I'd happily go 'the long way' to Singapore through AUH to avoid KE.

Arik basically admitted last week in one of our town halls that he is Ivander (though no one doubted it), and he then encouraged us to ‘take risks’ and ‘not care what the world thinks’.

Not a chance in hell that EY would fly to SLC, lol.

But by many accounts, a return to LAX is imminent.

Depends on the airline. You're forgetting that founding members can veto (just as easily as sponsor) a new member.

Not saying that DL's vindictive enough to do that, if others attempt to move forward before its assessed its own net/benefit of a major new entrant......... but not saying that they aren't, either.

Amusing on the Arik front. It probably helped EY’s negotiating team as they was lower risk of his superficial knowledge being exposed.