Some villas for pilots in Abu Dhabi? You're dreaming mate. It's just as bad down there.
It would all come down to who gets the part of the shepherd and who has to be the camel. Believe me, I'd love to see TC having to bend over for JH. Allthough no one would seriously want to see a new company making the losses the clowns down south set up.
It has to happen, sooner or later and to keep the invaluable impact of branding, it has to adopt the name of Emirates. This might be the biggest obstacle. As to ownership, who gives a toss. The Burj al Arab is owned by Abu Dhabi, but is still considered the symbol of Dubai.
Another problem is hubbing. Two hubs won't work and the one in DXB is much bigger and nicely established. You want value for money, you have to keep it.
Maybe a shelving of terminal 4 in DXB and the planned expansion in AUH could be stalled, JXB brought forward and made the new hub. Exchange a little land, as to put JXB on both emirates could save some faces. Naming the airline Etihad of Emirates (unity of Emirates) could do the same. Send both hyper-egoed CEOs home and have the two Ahmeds agree on a new one. Adopt best practices and ... Bingo.
But unfortunately we are talking about the sandpit and its natives, most probably they will sc..w up this opportunity as well.