Saturday, 1 June 2013

The UAE and Canada re-engage

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Abu Dhabi-based Etihad Airways and Air Canada recently signed a Memorandum of Understanding to begin selling tickets on each other's flights from the third quarter of this year. Etihad has more than 40 such codeshare agreements in place around the world, but its latest partnership – which follows a thawing of relations between the United Arab Emirates (UAE) and Canada – could be a milestone in the long-running battle between the Gulf carriers and their legacy counterparts, particularly those in the Star Alliance grouping of airlines.

Under the terms of the agreement, Etihad will place its code on Air Canada-operated flights between Toronto and unspecified destinations in North America. In return, Air Canada will put its code on Etihad's bilaterally constrained Abu Dhabi-Toronto trunk route, as well as its Abu Dhabi-London Heathrow service...