UAE-based airlines Emirates and Etihad have signed an interline agreement that enables passengers to fly into Dubai and depart from Abu Dhabi or fly into Abu Dhabi and depart from Dubai.

Described as an “open jaw” arrangement, from this summer, travellers will also be able to fly from one city served by the two airlines, land in Dubai or Abu Dhabi, then return from the UAE to another served by Emirates or Etihad, on a multi-city flight ticket.

A statement said the move was designed to boost tourism in the UAE from key source markets by enabling visitors to experience more than one destination in a single itinerary.

Emirates Airline President Sir Tim Clark said: “We believe this new agreement provides a strong foundation to develop further opportunities between both airlines and is an example of our commitment to the UAE’s vision for continued economic diversification.”

Etihad Airways CEO Antonoaldo Neves described the new agreement as “a win-win proposition for travellers to the UAE”.

Often seen as rivals, the UAE’s airlines, Dubai-based Emirates, founded in 1985, and Abu Dhabi-based Etihad, founded in 2003, have seen increased cooperation in recent years.

An MoU between Emirates Group Security and Etihad Aviation Group was signed in 2018. Emirates signed another agreement last year with Abu Dhabi’s Department and Culture and Tourism to boost UAE tourism.

While both airlines face potential competition from soaring spending on new Saudi airlines and the expansion of Riyadh’s key airport, Sir Tim Clark wished rising competitors “good luck” earlier this week, saying investment is good for the region and the aviation industry.

(Writing by Imogen Lillywhite; editing by Seban Scaria)

imogen.lillywhite@lseg.com