Emirates not interested in Austrian Airlines or Alitalia

Emirates has indicated that it is not interested in submitting a bid for Austrian Airlines, nor will it take part in the privatization of Italy’s troubled carrier, Alitalia. Tim Clark, Emirates’ chief executive officer, categorically rejected any speculation that the carrier-based in the United Arab Emirates-would submit a bid for the all but insolvent Alitalia, noting that such a scenario has been “ruled out.” Clark reportedly went a step further and also rejected speculation that Emirates may be pondering a bid for Austrian Airlines, noting that this too was out of the question. The legacy carrier’s CEO told journalists that Emirates’ current strategy did not involve any mergers, deep partnerships or major purchases, but that the airline would instead attempt to stay on an independent course.

Clark appears to be quite upbeat about Emirates’ future prospects and the chief executive predicted that the firm’s profit margins would be greatly helped by a fall in oil prices. Clark believes that oil will drop back to around $85 some time next year. If this assessment proves to be accurate, all carriers will be able to experience some relief from the challenging market conditions that characterize the entire commercial airline industry at the moment. Emirates, however, seems to be performing quite well, even with record high fuel prices. The carrier’s profits are expected to stand at around $2 billion, although the anticipated $500 million increase will likely be negated thanks to high oil prices.

Thank you to Forbes and Thomson Financial News for the initial report.

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