Dubai-based Emirates Airline has denied reports of a possible merger with UAE national carrier Etihad Airways, dismissing it as the work of 'rumour mills'.

'There is nothing like that [alliance]. There is always a lot of rumour, people will try and put things together,' Emirates chairman Sheikh Ahmed was quoted as saying in the Arabian Business.
 
'People have the right to say what they think but the problem is sometimes they believe it themselves. They come up with something and they believe it that it is happening. There is no such plan,” he added.

The Dubai carrier has been the subject of year long speculation, fuelled by the global financial crisis, that an alliance with Etihad was being discussed, the report said.

Sheikh Ahmed also dismissed suggestions that the airline could seek a public listing (IPO) to raise funds.