United Air, Emirates End Years of Rancor With Unlikely Alliance

(Bloomberg) — United Airlines Holdings Inc. and Dubai-based Emirates have agreed to an alliance enabling them to feed passengers to each other’s flights, a reversal of years of discord between the two global carriers.

The codeshare agreement will expand the international presence of both companies, United Chief Executive Officer Scott Kirby said Wednesday at Dulles International Airport near Washington. Airlines use such accords to grow at little extra cost and share revenue based on the terms.

The partnership highlights a renewed focus by carriers on lucrative international business travel, which has lagged domestic markets in recovering from the Covid-19 pandemic. American Airlines Inc. and JetBlue Airways Corp. both recently extended similar agreements with carriers from the Middle East.

Yet the United-Emirates deal also represents a union that would have seemed highly unlikely during years of rancor over government subsidies. The US airline, alongside American and Delta Air Lines Inc., alleged the Gulf giant and domestic rival Etihad were unfairly benefiting from state support. The U.A.E eventually agreed to improve financial transparency.

“Who would have believed” the two would join in a partnership, Tim Clark, president of the Dubai group, said at the press conference. “But we kind of look forward and we don’t look back.”

It’s about “putting two great brands together,” added Kirby. “That’s what this is all about.”

United will start a direct flight from Newark, New Jersey, to Dubai in march as part of the agreement, Kirby said.

Emirates recently announced it would end a codeshare with JetBlue on Oct. 30, weeks after domestic rival Etihad announced it would expand a codeshare with the same US airline to increase flying to New York.

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