Emirates denies report that it is looking to take over Etihad to create global mega-airline

Emirates Airline has denied a report that it is considering a takeover of fellow Persian Gulf carrier Etihad.

Bloomberg reported that the Dubai, United Arab Emirates-based airline could take over its financially challenged rival based in neighboring Abu Dhabi to create the world's largest airline in terms of passenger traffic.

"There is no truth to this rumor," an Emirates spokesperson told Business Insider.

Etihad is in rebuilding mode after an aggressive global expansion strategy with heavy investments in several struggling international airlines left the carrier exposed financially.

This story is developing.

NOW WATCH: Beware one huge mistake investors often make when the economy is at a crossroads, says Charles Schwab’s investment chief

See Also:

• BMW just unveiled a new electric SUV concept to take on Tesla's Model X — take a closer look

• The iconic VW Beetle is going away — here's what it was like to drive a $27,000 version of the Bug

• Car companies are pouring billions into self-driving tech they may never use, experts say

SEE ALSO: An Alaska Airlines exec speaks out about a secret weapon the company has against American, Delta, and United

FOLLOW US: On Facebook for more car and transportation content!