Icarus, what is wrong with what I said? Isn't it true that UAE exports are around 30% oil? There are other sources of income of course, but cheap oil is bad for business, as paradoxical as it may seem.
Then I don't get how can they get the synergies in case they merge the airlines, they would have to move them to the same hub, right? Or can they operate from two hubs just 200Km from each other?
Another point is the Hub-and-Spoke model ME airlines have adopted. Isn't it true that the new Acs, the A350 and 787 are endangering this model? So in the near future pax can start flying "over" UAE and don't use all their fancy airports and infrastructure, am I correct?
On top of that, the huge investment made in first-class cabins and support infrastructure (lounges, etc) that the pax don't seem to be willing to pay for. 1st class is in less and less demand and most airlines giving up on it. Another hole.
As for the unmentionable, add all the bad investments they did. Their situation is not pretty, so who knows maybe the article is right.
It is true that UAE pockets are quite deep, but are they willing to keep burning money for years to come just to keep the airline afloat? I doubt they would declare bankruptcy, it would be humiliating, but even a merger would essentially mean pretty much the same thing.