Originally Posted by
eternaltransit
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!
If you look at Dubai's history it has a tendency to make bold decisions around future demand (see Jebel Ali port and the new Maktoum International Airport for example). They look 20-30 years ahead and are often prepared to take short term hits as a result. So I wouldn't be surprised if they maintained their high growth approach.
On the other hand they have been devasted by the collapse of the oil and gas industry in the Middle East and the stalling regional economy as a whole. So much of their premium traffic comes from regular business travellers and well off local nationals that the cost savings companies and individuals are now implementing has really affected them in a bad way, especially given the high margins regional travel has.