Emirates and Etihad have teamed up. Could this mark the rise of a Middle Eastern airline powerhouse?

Two major airlines, both offering world-class long-haul services, operate from separate key aviation hubs just a short distance from one another.

With the UAE owning two globally influential long-haul carriers whose routes overlap significantly, one might question whether such a setup is excessive. Could one airline suffice?

The recent announcement of a closer partnership between Emirates and Etihad has reignited speculation about a possible merger—a topic often discussed in aviation circles, particularly during economic downturns. However, local political factors and the proximity of their major hub airports may complicate this idea.

This month, Emirates and Etihad, both still recovering from pandemic-related disruptions, formalized an 'interline' partnership. This raises important questions for travelers and sparks further speculation about the emergence of a regional airline giant.

Emirates and Etihad are the flagship carriers of the UAE, a small Gulf nation composed of seven emirates. Emirates, founded in 1985 and headquartered in Dubai, ranks among the world’s largest airlines. Etihad, the younger of the two, was established in 2003 and is based in Abu Dhabi.

Dubai International Airport and Abu Dhabi International Airport are less than 150 kilometers (100 miles) apart, with a drive time of about 75-90 minutes, depending on traffic. While Abu Dhabi, the capital, is known for being quieter and more laid-back compared to its bustling neighbor Dubai, both cities attract travelers and are key regional economic hubs.

Whenever Emirates and Etihad make headlines together, a common question arises: could this signal a closer collaboration, such as reciprocal frequent flyer benefits, codeshare flights, or even the possibility of a merger?

Addison Schonland, a partner at consultancy AirInsight Group, downplays the merger talk, describing the interline agreement as mainly a marketing initiative aimed at promoting regional tourism.

“Previous memorandums of understanding on aviation security in 2018 and promoting Abu Dhabi in 2022 did not result in integration,” Schonland notes. “Each time Emirates and Etihad announce joint projects, they face questions about integration. And each time, the response is a definite ‘no.’”

As Schonland points out, these airlines pursue their individual strategies when it comes to codeshare and interline partnerships, such as the recent collaborations between Emirates and United Airlines, and between Etihad and Gulf Air in 2021.

So, what exactly is interlining, and what does it mean for travelers?

Interline agreements are often the first step two airlines take when they plan to work together. For passengers, this typically means that when connecting from one airline to another, you can check in your bags with the first airline and not have to reclaim and recheck them at the connecting airport.

The partnership between Emirates and Etihad appears to go beyond typical agreements, as it also aims to facilitate open-jaw ticketing—allowing travelers to fly into one city and out of another. This is especially useful for tourists exploring destinations like Europe or Japan, as it prevents unnecessary backtracking.

In the early phases of their expanded interline agreement, both airlines plan to focus on attracting visitors to the UAE, especially by encouraging inbound travel from select cities in Europe and China, according to a joint statement.

The ‘open-jaw’ feature will enable travelers to make the most of their trip to the UAE by exploring multiple cities—such as Abu Dhabi, Dubai, or other emirates—without having to return to their arrival city to catch their flight home.

For example, if you were traveling from Europe or China, and you landed at Dubai International Airport but planned to visit the Sheikh Zayed Grand Mosque in Abu Dhabi, you would previously need to backtrack to Dubai to fly home. Now, with this new arrangement, you can fly into Dubai and out of Abu Dhabi, or vice versa.

The double open-jaw option opens up even more exciting possibilities for travelers.

In an interesting twist, you can even opt for a double open-jaw with this arrangement.

According to the airlines' joint statement, travelers to the UAE now have the option of ‘multi-city flights,’ allowing them to fly between cities served by both carriers, with the added convenience of returning to a different destination on either Emirates or Etihad's network.

This offers a number of advantages for travelers.

For example, you might find better flight deals or more convenient timings departing from one airport in your home region, but returning from a different one—such as flying out of Copenhagen and back into Stockholm.

Additionally, this option is useful for longer trips: for instance, flying from Beijing to Abu Dhabi, exploring the UAE, and then departing from Dubai to another destination that may not be served by Etihad but is on Emirates' network.

If the new interlining agreements apply to your departure region, you could score some great deals, especially if the idea of a stopover for a few days on both your outbound and return trips appeals to you.

Both Abu Dhabi and Dubai are great stopover destinations: they offer a wide range of accommodations, including budget-friendly resort-style hotels with large pools and plenty of sunshine.

It’s worth watching to see if either Emirates or Etihad— or both—introduce extended stopover options or enhance current offerings like the Dubai Connect program. This program provides a free hotel stay for connections longer than six hours but less than 26 hours, turning your layover into a mini getaway.

Which should I choose—Emirates or Etihad?

When it comes to the onboard experience, both Emirates and Etihad are highly esteemed airlines known for offering some of the best passenger experiences available. For most travelers, there isn’t much difference in economy class between the two carriers.

If you have the option to choose between flights, opt for aircraft with wider economy seats, like the Airbus A380 or A350, rather than the narrower seats on the Boeing 777 or 787. There’s typically no price difference, but the increase from 17” to 18.5” in seat width can make a significant impact on comfort, and the extra space in the aisles and around your shoulders is a big bonus.

If you're a premium economy traveler, keep in mind that Emirates is the only one of the two airlines offering this class, though it’s available only on select routes.