Originally Posted by
FD1971
I still like the spin he puts on the losses from the hedges, which went down the hill some years ago.
Anyway, who cares whether the debt of EK or the owner of EK increased by nearly 3 billion?
It is one big cash Register after all...
I would love to do business like this, but I guess I have to move to the land of (financial) fairy tales in order to do so.
And pointing out the obvious, that every state-owned airline received subsidies like crazy, has been my main argument, so Mr.Clark, so I really urge to come up with something different to keep us entertained.
You seem to want to try and convince yourself and others that the story of EK cannot be true. Why is that? No-one is denying that EK has received substantial help from the Dubai Government to facilitate their expansion. This, however isn't a subsidy. This is a competitive environment that they have been able to take advantage of (airport construction, low tax rates, 24 hour operations).
This is the same as the US3 is taking advantage of their domestic networks to make 10% and more margins to ensure huge profits for their shareholders. The UAE doesn't have this advantage, so they created an advantage for themselves, along with the natural advantage that they have at the "centre" of the world to transport people.
Originally Posted by
FD1971
I compared the situation of EK to parents after supporting their kid for 25 years, after all those years of financial support, their kid can finally make it without financial support from their parents,but the accumulated debt has to be paid and accounted for somehow... @:-)
This is basically the situation of EK right now and considering their debt and the debt of their owner, it is about time.
So what you are saying is that EK, even though it has received billions from the Dubai government is now making money? So you are agreeing that EK is not a scam? It has used the "subsidies" that all others have had in their past, and is now making money like the US3 and EU airlines. I hope you voted no then....
Originally Posted by
eternaltransit
It's almost as if the argument put forward by the US3 is that every carrier has a natural right to certain amounts of traffic, passenger preferences be damned.
Seeing that their position is that they should have a pre-determined amount of passengers gifted to them, is it any wonder their service and aircraft are so sub-standard? They can do what they want because they will always have x amount of passengers gifted to them.
