EY won't cut. They are making €€€ on that service and its one of there most profitable. EK will help bring down prices which is good.
I doubt Etihad would publicise the figures to prove DUB is one of their most profitable, but, you actually just pointed out a bigger problem than benefit.
If, and its a big if,
a) EY's DUB-AUH is one of their most profitable, but then
b)EK forces them to drop seat prices,
Doesnt that mean point a) then comes into question? After all, a drop in seat prices means a drop in profit?