Etihad Airways denies UK airline tie-up

A British Sunday newspaper says the airline is considering a merger with a UK carrier as part of its growth strategy.

Etihad Airways has denied that it is seeking international partners as part of its growth strategy and to curb costs, as was reported in a British newspaper today. The UK's Sunday Times newspaper said today that the airline had approached the UK's BMI British Midland seeking a merger, in a deal that could value the British airline at up to £600 million (Dh3,9bn). The paper added that Etihad had also approached Lufthansa, the German airline that holds a stake in BMI.

Iain Burns, the vice president of corporate communications at Etihad, said the airline was not pursuing merger or partnership talks with other carriers. The airline remained committed to breaking even by 2010, he added. "We will reach this target by focusing on cost control," he said. Many international airlines are viewing consolidation as a way to stem losses caused by spiriling fuel costs. Earlier this month the International Air Transport Association said airlines were at risk of losing $5.2bn (Dh19bn) worldwide this year, followed by a loss of $4.1bn in 2009. Already the slowdown in economies and high oil prices has led to the collapse of 25 airlines in the first half of tis year.