Etihad to loan pilots to competing UAE airline Emirates

In this Thursday, Dec. 18, 2014, file photo, an Emirati man takes a selfie in front of a new Etihad Airways A380 in Abu Dhabi, United Arab Emirates. (AP/Kamran Jebreili, File)
Updated 24 June 2018
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Etihad to loan pilots to competing UAE airline Emirates

  • Etihad Airways has told its pilots they can join rival Emirates on a temporary basis for two years
  • The agreement is also likely to help Emirates, where a pilot shortage forced it to cancel some flights this summer

DUBAI: Etihad Airways has told its pilots they can join rival Emirates on a temporary basis for two years, according to an internal Etihad email seen by Reuters, as the downsizing of the Abu Dhabi carrier’s operations helps fill a pilot shortage for Dubai’s Emirates.
Etihad, which last week reported a $1.5 billion annual loss, has been overhauling its business since 2016, replacing its top executive, dropping unprofitable routes and shrinking its fleet.
The agreement is also likely to help Emirates, where a pilot shortage forced it to cancel some flights this summer. Management had said the shortage was a short-term issue.
In the email, Etihad said pilots who join Emirates on a two-year secondment would be placed on a leave of absence, retain seniority at Etihad, and receive their salary and full benefits from the Dubai airline.
Pilots were asked in the email to register a non-binding expression of interest and told that Emirates’ recruitment team would meet with pilots at Etihad’s offices.
Two sources separately told Reuters that Etihad had emailed staff announcing the agreement with Emirates.
An Etihad spokesman told Reuters secondment programs were common practice among airlines, enabling the effective management of pilot resources.
“This is something Etihad Airways has done for several years with partner airlines around the world,” the spokesman said.
An Emirates spokeswoman told Reuters the airline was “working with Etihad on a secondment program for some of their pilots.”
It was not immediately clear how many pilots would be offered temporary employment at Emirates and the email stated that any pilots applying for the secondment would need to complete Emirates’ training program.
Etihad employs 2,200 pilots, according to the airline spokesman. Reuters reported in January that Etihad had offered up to 18 months unpaid leave to pilots.
Emirates and Etihad have been exploring closer ties and signed a security pact in January, the first agreement between the United Arab Emirates (UAE) based airlines. Emirates has since said that a closer relationship was not about a merger.
Emirates and Etihad, backed by their state owners, have competed developing global networks from their respective hubs in Dubai and Abu Dhabi that are just 128 kilometers apart.
Emirates is owned by the government of Dubai, and Etihad is owned by the government of Abu Dhabi.


OPEC chief: Group must stay together as US sanctions Iran

Updated 27 min 26 sec ago
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OPEC chief: Group must stay together as US sanctions Iran

  • Production cut agreement now a "permanent feature"
  • Brent already near $80 per barrel

FUJAIRAH: OPEC must stick together for the good of the global economy as founding member Iran faces renewed US sanctions, the head of the group said Tuesday — though he did not address how an already-tight market will make up for the loss of Iranian supply.
Mohammed Sanusi Barkindo also said an agreement between OPEC and non-members that cut production and helped bring prices back up from lows of $30 a barrel in January 2016 was now “a permanent feature.”
Cementing that arrangement would be one of the topics of discussion as OPEC meets this Sunday in Algeria, he added.
Still, OPEC will face rising anger from Iran, which feels increasingly under pressure after President Donald Trump pulled out of the landmark nuclear deal between Iran and world powers in May.
Crushing US oil sanctions on Iran will resume in early November and already, American allies in Asia are cutting back on their purchases of Iranian crude.
The US moves have gotten furious reactions from Iran, especially amid talk of American officials asking Russia and Saudi Arabia to make up the difference.
“Mr. Trump’s attempt to prevent Iran from appearing on the global crude oil markets has allowed Russia and Saudi Arabia, which would not favor low prices, to pursue hostage-taking policies in the market,” Iranian OPEC governor Hossein Kazempour Ardebili said on Saturday.
Barkindo said: “Iran is not only a founding member of OPEC, it’s a very important member of this organization. We have no choice but continue to work with all parties.”
Benchmark Brent crude already is nearing $80 a barrel and analysts believe it may go even higher as production remains low. A loss of Iranian supply likely will further drive up prices.
Trump, facing midterm elections in the US, already has called for more oil production from Saudi Arabia and OPEC to bring down prices with limited effect. A gallon of regular gasoline costs on average $2.85 in the US, up from $2.62 a year ago, according to AAA.
Barkindo praised the agreement between OPEC and non-members that cut production and said the cartel would work to make it permanent.
“The declaration of cooperation has come to stay,” he said.