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Etihad works to close competitive gaps in US coverage with new service to Los Angeles

Analysis

Etihad Airways has delivered on its pledge to unveil a new US destination, revealing Los Angeles as its fourth market in the country. Once the new service begins in Jun-2014 a new competitive element will be introduced between the Middle East and the US as Etihad's new service creates new pressure for Emirates. At the same time, Etihad's codeshare with American will be expanded to cover the new service even as rival Qatar readies to officially joined American-anchored oneworld. For the moment American appears comfortable having two Gulf partners, and does not see the need to cut any of its existing ties as its relationship with Qatar deepens.

Emirates remains the largest carrier operating between the US and the Middle East by a wide margin, but Etihad's latest move shows that it is working to close the gap. Once Etihad's new service begins, it will compete with Emirates on three of the four US routes it operates - JFK, Washington Dulles and Los Angeles - with more competition likely to ensue in the not too distant future.

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