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Jayant Mundhra
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Dexter Capital Advisors • 6m
UAE's Etihad & China’s 2nd biggest airline announce a global first 🙌🙌 The two biggies have decided to shun competition and rather join hands to serve a massive market. What exactly has happened? The two airlines just had a baby. Let’s learn! .. China Eastern is a massive airline with over 617 aircraft in operational fleet. -> That practically makes it bigger IndiGo (InterGlobe Aviation Ltd) and all of Air India Limited group combined. Imagine how big it is! -> And for long, this giant had been competing with Middle Eastern carriers, when it came to ferrying tourists & business people from both the nations into each other’s lands But, last year, things began changing. .. China Eastern & Abu Dhabi’s flag carrier Etihad began talking about a whole new partnership. Outcome? They have announced a joint venture airline which will be launched by next year. .. Why is this big? -> Because all of a sudden, two of the biggest airlines serving the traffic between two regions will become one & stop competing -> By pooling resources & expertise, they will also be able to optimize their operations, reduce costs & expand their reach That means an opportunity for both parties to make more money, than competing for market share. .. Also, geopolitically, it's a reflection of the growing economic & political ties between China and the UAE. By collaborating on this joint venture, both countries are sending a signal of cooperation, trust and mutual interest. And with precedent being set, we might see more collaborations like this. .. And frankly, this is any which way a landmark event. -> A joint venture between two major airlines from different regions is unprecedented. It had never happened before. -> It's a bold experiment that could reshape the way airlines collaborate and compete. Though, it will be interesting to see how the will address potential challenges, such as cultural differences, regulatory hurdles, and operational complexities. What do you think?
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