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Old May 13, 2017, 9:08 am
  #17  
eternaltransit
 
Join Date: Nov 2013
Posts: 5,454
Originally Posted by DYKWIA
The issue with smaller aircraft is that DXB is already full. If they want smaller planes with increased frequency, then that's going to lead to even more delays and remote parking.

Maybe they could shift some of the point-to-point heavy routes to DWC?
You'd still need logistics to transfer onwards via DXB though - you'd have to set up a subsidiary that accept any interlining to be sure to avoid any issues.

I don't think there is much EK can do in the short term because the current results are just a consequence of decisions made a few years ago in terms of fleet planning for projected pax numbers / market development. Clearly those projections did not work out.

If EK want to carry on with their underlying economic view, then I think the best they can do is just tread water for the next couple of years and wait for demographics to catch up.

Another option would be to double down on the high-yield/low-density model (instead of the current high density premium model) in order to try and take the declining pool of less price sensitive premium pax from other carriers.

That would take a significant capital investment in cabin redesign and potentially retrofitting - extremely risky for such a highly indebted company, which means I think that will be down a decision by Sheikh Ahmed and the ICD board, depending on the owners' plans for whether they need dividend payments from EK (given there are no - well, 2 old 777s - planes to sell for dividends like last year).

It would be good for pax though!
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