DUBAI, (Reuters) – Airlines Etihad Airways and rival Emirates are in talks on sharing equipment purchases and technology services to allow both United Arab Emirates carriers to save costs, Etihad’s chief executive said on Sunday.

Abu Dhabi government-owned Etihad and Dubai-based Emirates could make joint orders of equipment or share information technology and engineering services, James Hogan told Reuters.

“It could be in the area of purchasing to get a better deal. We can cooperate in non-competitive areas where we both buy or we both need services,” he said, declining to give details.

Emirates, the largest Arab airline, said it would consider cooperation with Etihad.

“We are always prepared to look at areas where there may be scope for cooperation with other players in the industry,” said Mike Simon, director of corporate communications for Emirates.

“We look at the possibilities as they arrive on a case by case basis.”

Both airlines are expanding fleets to cater for the Middle East market, where demand for air travel surged 18.1 percent last year in terms of passenger-kilometres, faster than any other region, according to the International Air Transport Association.

Dubai government-owned Emirates, the world’s eighth-largest international air passenger carrier in 2005, operates a fleet of 102 aircraft and has more than 100 on order, including the Airbus A380, which will be the world’s largest passenger aircraft when it comes into service.

Etihad operates a fleet of 25 aircraft and expects to carry 4.5 million passengers this year after adding eight aircraft and seven destinations.