Originally Posted by
sammy7
Rumors will surface any and every time the under dog starts to show headway. This is true in every industry and in every part of the world.
However, I wouldn't, for a moment, think that the ME governments are trying to push European airlines out of business.
You have to remember...
...refined jet fuel used in airplanes is for the most part purchased from western nations, due to a lack of refinery's in the Middle east (ironic I know).
Therefore, ME airlines buy the refined product at the same rates...no tax's are imposed
...more than just cheap labour/oil that allows these airlines to compete. Consider the following:
1- Economic growth in the ME, resulting in MUCH higher inbound travel to this part of the world. Euro/US airlines don't offer enough frequencies, resulting in ME airlines capturing the growth, at premium prices nonetheless.
2- Proximity to India, which is growing exponentially, resulting in further traffic for these Airlines.
3- ME travelers who traditionally traveled on Euro/US airlines to Europe/US because of the superior service at the time, are now flying ME airlines because of THEIR superior offerings now.
4- Newer and more enjoyable aircraft.
The rumors you speak of, are most probably coming from adversely affected airlines due to the above points, and are trying to play on your sense of patriotism !!
Just my $0.02
That's an excellent summary,
Sammy7.
I'd forgotten about the distillate-grade oils like kerosene/jetfuel being a specialty product not refined in the mid-east and thus imported.
People worried about European carriers need also to be aware:
- In several cities/emirates, the Mid-East airlines' home airports are now hubs, trying to replicate the success and economic growth in tourism and air traffic a la Singapore, Bangkok and KL.
- Emirates and Etihad (and to a lesser extent Qatar and Gulf under James Hogan) are taking advantage of their home airports being well-located for ultra long haul travel, eg. from European cities to Asia Pacific cities.
- Many if not most of the European airline flag carriers have rights to fly these routes but may choose not to as they are not profitable point to point.
These mid-east airlines are following a successful model used by SQ and others. SQ may have had this kind of complaint raised a couple of decades ago, Im not sure. At least the 'oil' complaint is clarified by Sammy.
There is some info on Etihad just out on the load factors of Y and J/F seats and the loads are well up on 2007.