FlyerTalk Forums - View Single Post - Is EK Expanding Too Quickly...???
View Single Post
Old Mar 15, 2012 | 11:00 am
  #1  
blackmamba
 
Join Date: May 2011
Location: BKK
Programs: Hyatt Globalist, Marriott Titanium, Hilton Diamond
Posts: 1,088
Is EK Expanding Too Quickly...???

Originally Posted by HB-IWC
I also predict that MIA and BOS will follow in 2013.
I think EK should seriously cool it with rapid expansion. All these routes are going to take a toll on their service quality and gives the company a terrible incentive to accept unqualified service crew members and hasten their training just to get them on a plane to somewhere.

A drop in service quality eventually equates to a sharp drop in profits as evidenced by Singapore Airlines 54% drop in Q4 profits. Furthermore, EK has every need to provide excellent service quality to the Americas - the airline is virtually an unknown in this side of the world (unless you're one of the few Americans who actually watches "football" and is an Arsenal fan). It needs to ramp up marketing efforts and do a careful statistical analysis of further expansion in the Americas before it pulls the trigger on any other new destinations in the Americas that is not named ORD.

Moreover, I believe that the sharp increase in crew members leads to logistic issues as EK surely cannot take the burden in providing all these individuals with the luxurious living conditions that most EK crew members get to experience in downtown Dubai today. Disparity in crew member living conditions only leads to ideas of favoritism and may even creates possible animosity between the haves and the have-nots. Building new facilities in downtown Dubai may seem like a logical answer but can EK seriously keep up with building and renting new buildings while fuel prices rise out of control, have other logistics expenses to cater to with rapid expansion and Dubai's economy showcasing signs that it was built more upon dreams rather than substance? I think not.

My advice is to stop the Americas expansion at ORD and utilize a "hub and spoke" method with increased partnership with US domestic carriers. Jetblue in the East Coast and Virgin America in the West look like ideal partners that share EK's identity of glamor and excellent service.

These are my two cents.
blackmamba is offline