Will Fly Dubai Ever Merge With Emirates?

.Recently, Fly Dubai announced a partnership agreement with the flag carrier of Dubai, Emirates.

They will combine their fleet of aircraft and codeshare their routes. This will result in them operating up to 380 planes worldwide to 240 destinations. But many suspect this partnership is a precursor for Fly Dubai to initiate an eventual merger between the two Emirate airlines.

Why Fly Dubai & Emirates is a Good Partnership

Emirates’ fleet is entirely made up of large wide-body planes (Airbus A380 and 777s) that can’t access many destinations. Their planes are simply too big. Fly Dubai, however, has many smaller planes, Boeing 737’s that are far more flexible. They can land at runways like the challenging Kathmandu airport in Nepal.

Additionally, with an Emirates plane being much larger than Fly Dubai in size and capacity, there is little reason for them to compete on routes. If a routes demand is high, use an Emirates plane. The low demand routes will be use Fly Dubai planes.

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Lastly, both airlines are under the ownership of the Dubai government. This means they don’t have competing shareholders.

Does Air Dubai Deem This a Merger or Partnership?

However, this is not a merger, it is a closer partnership between the two firms. They will share resources, codeshare and more, but operate as completely separate corporations. This is unlike the merger between British Airways and Iberia Airways that saw the formation of International Airline Group.

If they did merge, however, it might resemble the merger between Singapore Airways and Silk Airways.  The former operates popular long-haul routes in large lanes, whilst the minor latter fills in the gaps in the regional network.

Tim Clark, CEO of Emirates has said

“We are minded to accelerate a greater joining of the hip, of what we do, there’s a lot of work going on there to extract value for the shareholder. We could do things better together than apart.”

So whether or not they will merge completely in the future is unknown. We will just have to wait with baited breath to find out.

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