Abu Dhabi has developed an unhealthy appetite for European airlines.
The UAE's official national carrier, state-owned Etihad Airways, is eyeing a tie-up with Virgin Atlantic -- which is bidding for Lufthansa's (LHAG.DE) bmi unit -- and mulling a 25 percent stake in Aer Lingus (AERL.I) being sold by the Irish government. Such deals may deliver tactical gains. But they would be a messy way to trying to catch up with rival Dubai-owned Emirates.
Etihad is in an awkward position, outdone by Emirates in terms of profile and passenger numbers. The eight-year-old Etihad flew 7 million passengers in 2010 with a 74 percent seat load factor. Emirates -- which is almost three decades old -- flew 31 million passengers at an 80 percent load over the same period. Its sheer scale means Emirates is often wrongly assumed to be the UAE national carrier.
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