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Old Jul 19, 2010, 7:56 am
  #12  
wgarnerr
 
Join Date: Nov 2005
Location: MSY
Programs: DL DM+Reserve, JJ Blue
Posts: 60
Originally Posted by NYBanker
Emirates is subsidized by a family controlled government of a resource rich land (UAE, not just Dubai). (NB: There are essentially no income taxes in the UAE. Americans: Imagine that!)

Delta, like all US carriers, is forced to compete and does not benefit from much government largesse.

Unfortunately, DL's situation (and all US carriers) is this: Nearly all US pax base their carrier selection primarily in price. If Emirates is $1,500 and Delta is $1,200 for the same route (example: JFK-DXB), most US customers will select Delta.

Until US customers are willing to pay up for service (30+ years of post-deregulation data shows otherwise), it will be a further race to the bottom in terms of service on US carriers.

Funny how that works...everyone wants a cheap seat at time of booking...but then complains enroute about the experience.
The Economist last month did an excellent briefing on the Gulf airlines' upsetting the aviation market. Emirates is finally turning a profit...

http://www.economist.com/node/16271573
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